How Much Do Explainer Videos Cost?

How Much Does It Cost to Produce an Animated Explainer Video?

The cost of producing an animated explainer video can vary widely. There's no one-size-fits-all price tag for this type of production.

Typically, studios charge anywhere from $2,000 to $50,000 or more.

You might be surprised by these figures, but explainer videos are valuable assets for your business and marketing efforts. Consider them long-term investments.

However, this doesn't mean you should spend all your money on an explainer video. When planning your budget, carefully consider the scale of your business.

Explainer videos are one of the best ROI assets to invest in. Equal in its weight to a website. After all, these two mediums are what the prospect usually sees first and first impressions matter. Usually, an explainer video comes BEFORE the website. These videos are often posted on email newsletter campaigns, Linkedin profiles, email signatures etc. They then reel the prospect to visiting the website or jumping on a call. Contrary to what we think, it's quite commonplace to get paying clients even without a website.

We'll cover the factors that influence the cost of animated explainer videos and help you determine the right budget for your business.

Explainer Videos in 2024

Explainer videos are now more ubiquitous in 2024 than ever before and its use and popularity is growing faster than ever before.

Almost nine out of ten people worldwide watch videos online. In fact, 88% of marketers agree that videos bring a positive ROI to their marketing efforts. Moreover, explainer videos influence 85% of audiences to make a purchase.

There are different types of explainer videos, but the two most common are animated and live-action. What’s the difference?

Animated Explainer Videos Animated explainer videos use animation techniques, typically involving a combination of graphics, characters, and narrative voiceovers to explain a concept or tell a story. In contrast, live-action explainer videos feature real-life people, settings, and props.

Animated videos are generally more versatile in creativity, as they can visualize ideas that are challenging to convey with live-action footage. While both types have their merits, animated explainer videos often offer more creative freedom and flexibility in delivering your message.

In most cases, producing animated videos is slightly more expensive due to the complexity of the creation process. Let’s see what contributes to the production cost of animated explainer videos.

Production Cost To understand the cost breakdown of an animated explainer video, what components influence the production process?

Length and Complexity Longer videos with intricate animations, detailed motion graphics, and advanced special effects require more time and resources. As the saying goes, time is money. A longer, more complex video demands a more extensive investment.

Producing short-form videos under 60 seconds is significantly cheaper than long-form ones. A 30-second explainer video introducing a simple product might have minimal animation and straightforward graphics. Meanwhile, a five-minute video packed with multiple characters and complex scenes will undoubtedly cost more.

Quality High-quality visual elements, professional voiceovers, and impeccable sound design come at a premium compared to more basic options. Imagine comparing two explainer videos side by side: one features crisp, vivid animations with well-crafted audio, while the other uses more straightforward drawings and a standard voiceover. The former requires a more significant budget. You get what you pay for.

Script and Storyboard Script and storyboard are crucial in explainer video production, especially for animated ones. Studios use these creative elements to convey a message effectively, and they also contribute to the overall production cost.

Explainer studios need to hire professional scriptwriters and storyboard artists to create a narrative that resonates with your target audience. The more skilled they are, the higher their rates. Expect a higher cost if you want to create a compelling story with your explainer video.

Voiceover and Music Voiceovers and music breathe life into your explainer video. Hiring professional voiceover artists and obtaining the rights to high-quality music can significantly impact the overall production cost.

Excellent narration and captivating visuals mean nothing if the audio quality is poor. Good voiceover artists should clearly deliver your message in terms of pronunciation, tone, emotion, and empathy.

Revisions Revisions are often necessary to ensure the best result for your animated explainer videos. However, modifications can extend the production time, involving additional work and extra budget.

Aligning your explainer video with your business vision, persona, and audience expectations is essential. Use your revision opportunities wisely. Establish clear communication with your production team to keep costs in check and provide comprehensive feedback during each revision round.

Budget Considerations Producing an animated explainer can be costly, but the price is always negotiable. Let’s first understand your budget. If you’re unsure about how much to spend on explainer video production, consider these parameters before investing.

Your Business Scale Matters Weigh the scale and size of your business when budgeting for an explainer video, as financial resources will determine your budgetary decisions.

Startups with limited resources should opt for a more budget-friendly explainer video. Simple and clear explainer videos can be effective if they align with your business goals. Maintaining a positive cash flow should be a priority in this case. Remember, explainer videos don’t have to be fancy to be effective.

In contrast, well-established companies often have more financial leeway to invest in high-quality production. This means you can work with top-tier animation studios, professional voiceover talent, and a creative team that can bring your vision to life in the most captivating manner.

Align with Your Marketing Goals Before deciding on your explainer video budget, align it with your marketing goals and objectives. If your primary goal is to enhance brand awareness, a concise and visually appealing video presentation can work wonders for your business to create a lasting impression.

If you need to demonstrate a product use case, a more in-depth how-to video might be necessary. This could involve additional production costs for scripting, visual animation, and narration that help convey your message in a simpler and easier way.

If you want to boost conversions, your explainer video might need to go the extra mile. This can include advanced animations, personalized storytelling, and a deeper emotional connection with the audience. While you have to expect a higher budget for this kind of video, it won't disappoint with better conversion rates.

How Much ROI Do You Expect? Remember that explainer videos are known for delivering impressive ROI. Consider this as you plan your budget: view your explainer video not as a one-time purchase but as a long-term investment. A well-crafted animated explainer video can become a valuable asset for your business and support your marketing strategy.

Why You Should Invest in Explainer VideosNow that we’ve discussed the cost factors and budget considerations, let’s highlight why explainer videos are worth investing in:

  • Effectively engage and educate your target customers. People love being entertained while getting informed. Explainer videos often incorporate a dash of humor or creativity, educating your audience through an entertaining experience.
  • Boost your conversions and sales. Animated explainer videos are game-changers, converting leads into buyers and turning buyers into loyal customers.
  • Build a positive brand identity. High-quality explainer videos help reinforce your brand identity. Audiences who watch your explainer video will perceive your brand as trustworthy, reliable, and committed to delivering a superior customer experience.
  • Reach more audiences. Explainer videos are easy to share. Positive virality is a thing nowadays across many social platforms. If you want to reach broader audiences, explainer videos, especially short-form ones, can easily do that for you.
  • Be unique in your voice and colors. Having an explainer video can provide a competitive edge for your business. It persuasively communicates your unique value proposition and sets you apart.

Back to You While the cost of producing an animated explainer video in 2024 can vary widely, it’s an investment worth considering for your business. When determining your budget, consider your business scale, marketing goals, and expected ROI.

Isn't it interesting that explainer videos remain relevant and influential today? Whether you’re a startup or an established enterprise, don’t hesitate to explore the possibilities of creating an animated explainer video—it’s a step toward unlocking boundless marketing opportunities for your business.

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