running a three person agency in austin taught me how badly we were handling video production
Hey everyone!
I run a small full service creative agency in Austin, just me and two other people, and we've been at it for about two years. Wanted to share something about how we handle video production for clients because it was quietly killing our margins for a long time before we figured out a better way.
The situation
When you're a three person shop you're constantly making decisions about where to spend your time and what to outsource. Video production was always the thing that took the most time relative to what we were charging for it. We were either doing it ourselves which meant late nights and weekends, or outsourcing it which meant thinner margins and slower turnaround. Neither felt sustainable and clients were starting to notice the inconsistency.
The specific problem was client expectations around video have gone up a lot in the last couple of years. Everyone wants more of it, wants it faster, and wants it to look like it cost more than it did. For a small agency trying to compete with larger shops that have dedicated production teams that's a hard gap to close.
What we started doing
About eight months ago I started seriously testing AI video tools to see if they could fill some of that gap. Not to replace real production entirely but to handle specific types of content faster and cheaper than we could otherwise. What I found was that the tools varied a lot more than I expected and figuring out what worked for client work specifically took some time.
For anything product focused or commercial, clean controlled output that clients feel comfortable putting their brand on, Veo was the most consistent. For lifestyle and campaign content, scenes with natural movement and energy, Kling handled that better than everything else I tested. For more conceptual or mood driven work, brand awareness stuff at the top of the funnel, Wan turned out to be more capable than I expected going in.
Managing multiple tools across different platforms was becoming its own problem until someone at an Austin creative meetup mentioned Prism. It lets you work across models from one place without the account switching and file management eating into billable time. There's also a good thread on r/agency about production workflows for small shops worth reading, and this breakdown on AI video for creative agencies covers how other small teams are thinking about integrating these tools without it changing what they actually sell.
Where we're at now
We're taking on more video work than before and delivering it faster. The margins on that work have improved because we're spending less time on production overhead. We've also been able to pitch video as part of packages where we previously would have either avoided it or outsourced it entirely.
I want to be honest that this took real time to figure out and not every client brief translates well to these tools. There's still plenty of work that needs traditional production and knowing the difference matters. But for a small agency trying to compete above its weight on video the ceiling on what's possible has gone up a lot in the last year.
Happy to answer questions about how this works in practice for agency work specifically.