Over the past week, my team and I found ourselves in a deep discussion about a term we use all the time yet struggle to define precisely — production value.
We all know it when we see it. We talk about it constantly. But when it comes to defining or measuring it, things get murky.
How Is Production Value Defined?
A quick online search offers formulas that attempt to define production value in terms of efficiency — things like cost divided by deliverables or time spent versus output. But these metrics don’t quite capture the essence of what production value feels like.
So I asked myself: What does production value really mean?
At its core, I believe production value is about creating something that looks or feels more expensive than it actually is. If a client receives a piece of content — a photo, a film, an ad — that exceeds their expectations in terms of perceived quality relative to the budget, then we’ve achieved what I’d call net positive production value.
Can Production Value Be Measured?
If we were to quantify this, a simple formula could be:
Production Value = Perceived Value ÷ Actual Spend
If the perceived value is consistently higher than the actual budget invested, then you’ve successfully maximized production value.
As a producer, this is one of the most crucial aspects of my work — stretching a budget as far as possible while maintaining ethical business practices. It’s not about cutting corners or underpaying talent. It’s about being smart, resourceful, and creative enough to deliver something that exceeds expectations without exploiting anyone in the process.
The Fine Line Between Efficiency and Ethics
Maximizing production value is an art. It’s the delicate balance between negotiating smartly and cutting costs irresponsibly. A “lean” production doesn’t automatically mean high production value — it could also mean overworking people, underpaying suppliers, or sacrificing quality.
True production value comes from strategic resource allocation — where everyone is fairly compensated, the right tools and talent are in place, and yet the final output feels more valuable than the budget might suggest.
A Production Value Index: Can We Create One?
This led me to another thought: Is there a way to actually measure production value objectively?
If production value is based on perception, one potential way to quantify it is through audience feedback. Here’s an idea:
Post a piece of content (photo, video, ad) on social media.
Ask the audience to estimate the production budget within a given range.
Calculate the average perceived value and divide it by the actual spend.
This would create what I’d call a Production Value Index — a numerical representation of how much higher (or lower) the perceived value of a piece of content is compared to its actual cost.
The Role of Audience Bias
One challenge is that perception differs based on who you ask.
A broad public audience (e.g., Instagram followers) might lack industry knowledge and base their estimates purely on aesthetics.
A professional network (e.g., LinkedIn) might have a more informed perspective on costs and production processes.
Both perspectives are valuable. Clients might care more about public perception, while producers might value expert evaluation. But do these two audiences align? Or do they see production value in fundamentally different ways?
An Experiment: Testing the Theory
To test this, over the next few weeks, I’ll be posting various pieces of content — both stills and video — on LinkedIn and Instagram, asking audiences to estimate the budget. I’ll then compare how different groups perceive production value and whether a standardized Production Value Index is viable.
If this works, it could open up new ways for agencies, brands, and content creators to assess their production investments — not just in terms of cost-efficiency, but in terms of perceived impact.
I’d love to hear your thoughts: How do you define production value? Is it something that can (or should) be measured?
Let’s discuss. And if you’re interested, keep an eye out for the experiment!
Written by Chris Coetsee
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