How we make a Reels ad for under 70¢
By Addy Team · Updated · 5 min read
Short answer
Everyone in AI video charges in credits so you can't see the price. We think the price is the product, so here is the whole stack for one finished portrait video ad.
Everyone in AI video charges in credits so you can't see the price. We think the price is the product, so here is the whole stack for one finished portrait video ad.
The bill of materials
Video generation: about $0.10 per generated second in 720p. The voice is generated in the same pass, so there is no separate voiceover bill. A standard ad is about $0.50.
Script and concept: Gemini Flash-Lite writes the hook, the script and the caption, amortised across the batch. About $0.003.
Storage and delivery: about $0.002.
That is roughly $0.51 of cost per HD ad. Stripe takes 2.9% plus 30 cents of whatever you pay. Starter is $19 for 28 HD ads, about $0.68 each, and we keep about 15% after everything.
Draft quality (480p) costs half, so testing a batch of hooks costs about 34¢ an ad. Make the winners again in HD.
Why not charge more?
Because the market does. A typical UGC platform charges $29 for 500 credits where a video is 70 credits. That is $4.14 per ad. Agencies charge $150 to $400 per UGC clip. We would rather have 10,000 people paying under 70¢ than 500 paying $4.
What happens when Wan's price changes
Our credit math is in one file and assumes list price, with no promos. When our video provider runs a discount, our margin grows and we pass it on as more credits. If the price goes up, you will see it on the pricing page before you see it in your bill.