Explainer Videos Pricing: A Guide for Businesses & Prospects

Key Factors Influencing Explainer Video Pricing

One of the primary determinants of explainer video pricing is the length of the video. Shorter videos that are under 30 seconds are generally more expensive per second compared to longer videos, as some base production costs remain the same regardless of length. For example, a 30-second explainer can range from $2,700 to $4,500. However, the per-minute cost decreases as the length increases beyond one minute.

Visual style is another major pricing differentiator. More complex 3D animation will understandably be pricier than simpler 2D or motion graphics. As per industry sources, a one-minute 3D animated explainer can start from $5,500 and sometimes exceed $50,000, depending on the level of complexity. In comparison, motion graphics typically range from $2,000 to $3,500 per minute for a standard production.

The level of customization required also influences the quote. Videos involving unique animations, eye-catching illustrations, specially designed characters, or detailed brand integration will undoubtedly cost more than templates or stock footage-based videos offering limited customization.

The number of revisions is another factor to consider, as most reputed producers provide 1-2 rounds of minor modifications, including the primary estimated cost. However, significant changes or multiple revision requests beyond the agreed scope can potentially lead to extra charges.

Geographical location also plays a role, with US-based companies typically charging higher prices than their European counterparts. For instance, explainer videos produced by American firms averaged $12,667 compared to $4,662 from European producers, according to one analysis.

Additionally, tight delivery deadlines requiring rushed turnarounds within days or weeks commonly result in a premium of 15-30% over standard timelines spanning several weeks.

Budget Ranges for Explainer Video Production

Taking all these aspects into account, here are some of the most common budget ranges that businesses should plan for explainer video projects:

• Online video creators (basic templates): $50 – $500
• Freelance animators: $2,500 – $12,000
• Small production companies: $4,000 – $10,000
• Established production firms: $6,000 – $15,000
• Large advertising agencies: $15,000 – $100,000

Industry sources point out that the optimal sweet spot, offering a balanced mix of quality, customization, and value, lies between $4,000 to $7,000 for a typical 60-second explainer video. Budgets below this range may compromise on the production standards and polish, while investments significantly above may not yield proportionate returns.

Common Explainer Video Pricing Models

Providers employ different models, but the most typical are:

• Per the video, there is a fixed rate for the completed project, varying with elements like length, features, and turnaround time.
• Hourly rate: Charging hourly for things like script development, revisions, or additional videography work. Rates average $75-150/hour.
• Project-based: Factoring all video components together with an overall flat fee budget. Suitable for complex requests.
• Subscription/retainer: Monthly or annual access to a vendor’s services for an ongoing number of videos, updates, and projects.

Estimating Costs Based on Video Length

Here are standard estimated cost ranges according to video runtime:

• 1-2 minutes: $1,000 – $3,000
• 3-5 minutes: $2,000 – $5,000
• 6-8 minutes: $3,000 – $7,000
• 9+ minutes: $4,000 and up

Additional Costs to Consider

Other potential expenses not always included:

• Voice over talent from $500 for non-union to $2000-5000 for professional Hollywood actors.
• Music licensing goes from $100 for independent artists to $1000s for major label music.
• Reworks and revisions are extra if quantities exceed agreed upon.
• Translations range from $300-1000 per language for subtitles and dubbing.
• SEO and social media promotion of $500-1500 per campaign.

Getting The Right Fit for Your Budget

To make video creation affordable:

• Focus on only the most essential messaging points.
• Consider using stock video placeholders that can change later.
• Evaluate subscription options for longer-term, multifaceted projects.

Measuring the ROI of explainer videos

Prove videos are worth it by tracking:

• Views and engagement on hosting sites and your own channels.
• Understanding from pre- and post-video customer surveys.
• New leads are entering sales pipelines referenced to videos.
• Concrete increases in sales, contacts, and subscriptions from video viewers.

Wrapping Up!

Determining the appropriate budget for an explainer video can depend on several factors. Businesses should carefully consider key aspects like video length, visual style, customization levels, revisions, and delivery timelines when requesting quotes from providers. While costs may vary depending on these elements, budgets between $4,000 and $7,000 often provide a well-balanced quality-to-value ratio for standard explainer video projects.

It is also important to track video ROI through metrics like views, engagement, and tangible business impacts to prove return on investment. With thorough planning and realistic budgeting informed by this pricing guide, companies can create highly effective explainer videos to support their marketing strategies.

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