Video Ad Cost Calculator
Calculate the true cost of your video ad campaigns. Compare production methods and see potential savings.
Campaign Settings
Cost Breakdown
Based on 10 videos/month with UGC Creators
Estimated Performance
Based on average TikTok benchmarks
*Estimates based on 1% CTR and 2% conversion rate. Actual results vary.
Understanding Video Ad Production Costs
Video ad production costs vary dramatically depending on your approach. Traditional production companies typically charge $5,000-$50,000+ per video, while UGC creators range from $100-500 per piece. In-house teams require significant salary investment, and AI video tools like August Ads can produce content for as little as $15 per video at scale.
Beyond production costs, you need to factor in ad spend—the money you pay platforms like TikTok, Instagram, Facebook, and YouTube to show your ads. CPMs (cost per thousand impressions) typically range from $8-15 depending on the platform and targeting.
The key metric is total cost per conversion, which combines production and ad spend divided by results. Brands that can produce more creative variations typically win, because they can test more hooks, scripts, and angles to find winners faster.
Video Ad Production Methods Compared
🎬 Traditional Production
$5,000+ per video. Professional quality but expensive, slow (2-4 weeks), and hard to iterate quickly.
👤 UGC Creators
$100-500 per video. Authentic feel, but requires management, revisions, and 1-2 week turnaround times.
🏢 In-House Team
High fixed costs (salaries, equipment). Good for consistent output but requires dedicated resources.
🤖 AI Video (August Ads)
$15-50 per video. Instant turnaround, unlimited revisions, no creator management. Best for scale.
Frequently Asked Questions
How much does it cost to make a video ad?↓
Video ad costs range from $15 (AI-generated) to $50,000+ (professional production). UGC creators typically charge $100-500 per video. The right choice depends on your budget, timeline, and how many variations you need to test.
What is CPM and how does it affect ad costs?↓
CPM (Cost Per Mille) is what you pay per 1,000 ad impressions. TikTok averages $10 CPM, Instagram $12, YouTube $15, and Facebook $8. Lower CPMs mean your budget reaches more people, but engagement quality matters more than raw reach.
How many video ads should I test per month?↓
Top-performing brands test 10-50+ creative variations per month. The more you test, the faster you find winners. AI video tools make high-volume testing affordable by reducing per-video costs to under $20.
Is this ad cost calculator free?↓
Yes, the August Ads Ad Cost Calculator is completely free. Compare production methods, estimate performance, and see potential savings with AI video generation.