How to Calculate the Cost of Video Delays
A step-by-step method for putting a dollar figure on slow video, so you can take the cost of delay to finance instead of describing it as a feeling.
How do you calculate the cost of video delays?
You calculate it in two halves: the direct cost of producing each video, and the operational cost of producing it too slowly. Add them, multiply by your annual volume, and you have a defensible number. Here is the method.
Step 1: Calculate cost per video
Multiply three inputs:
- Your fully loaded hourly rate (salary, benefits, overhead).
- The average hours to edit one video.
- The number of people in the editing and approval workflow.
A team at a $50 loaded rate, two hours per edit, and five people in the workflow spends about $100 in direct labor per video before revisions. Full detail is in how much in-house video editing costs.
Step 2: Calculate annual direct cost
Multiply cost per video by the number of videos you produce in a year. This is the number most teams already half-know. It is the floor, not the full cost.
Step 3: Put a value on each week of delay
This is the half teams skip. Pick the measure that fits the content. For marketing, McKinsey puts campaign impact lost at around 15 percent per week of delay. For internal comms, HubSpot shows engagement falling around 30 percent from a one to two week delay. For training, Gartner estimates the cost of delays at about $13.5M per year per 1,000 employees. Apply the relevant measure to your average delay.
Step 4: Add the volume gap
Estimate what you would produce if turnaround were not the constraint, and value the videos you are not making. This is the opportunity cost, and it is often the biggest line. We cover sizing it in how many videos an enterprise should produce per month.
A faster way to run the numbers
The enterprise video ROI calculator runs all four steps for you and returns an annual figure plus the days you could save by speeding up. To model the upside of the video itself rather than the cost of delay, use the video ROI calculator.
Where to start
Gather your four inputs (loaded rate, hours per edit, people in the workflow, current turnaround) and run them. Then read what slow video production actually costs an enterprise for the full picture.
Sources
- McKinsey: campaign impact lost per week of delay.
- HubSpot: engagement decline from delayed time-sensitive content.
- Gartner: annual cost of training delays per 1,000 employees.
- Salesforce: share of organizational failures linked to poor communication.
- Shootsta customer reporting across 70,000+ videos produced.
