Contents
How Much Does It Cost to Grow Your Business with Explainer Videos?
The Avengers of Your Marketing Toolkit!
Breaking Down Explainer Video Costs
When Do You Need 3D Explainer Videos?
Which Format Is Right for Your Business?
Expert Insights to Help You Decide
Cost-Saving Hacks for Explainer Videos
How Much Does It Cost to Grow Your Business with Explainer Videos?
If explainer videos were a Netflix series, they’d be titled “The Conversion Kingpins.”
These dynamic animations have swept across industries, transforming complex ideas into digestible, binge-worthy content that converts casual viewers into loyal customers. But just like a blockbuster production, quality comes with a price tag.
In a world where attention spans rival a goldfish’s (seriously, we’re at 8 seconds), explainer videos have emerged as the ultimate storytelling weapon for brands. These succinct, visually engaging animations can turn a dry elevator pitch into a captivating narrative—and they’re not just for startups. From industry disruptors like Dropbox to giants like Slack, explainer videos have proven their mettle. But how much does creating one cost? And more importantly, what kind of ROI can you expect? Let’s roll the tape.
Bring the Sauce!
Imagine trying to grab attention at a BTS concert—surrounded by flashing lights, thumping music, and screaming fans. That’s your competition in today’s digital marketing landscape. Attention spans are shorter than the runtime of a TikTok clip—an average of 8 seconds.
Now picture this: A 90-second animated story grabs eyeballs and glues them to your message. Explainer videos are the Pixar of the marketing world: concise, colorful, and capable of turning casual curiosity into brand loyalty.
The Stats Don’t Lie:
- Videos boost conversions by 20-30%, according to Wyzowl.
- Websites with video content are 53 times more likely to rank on Google (Forrester Research).
- 95% of viewers retain a message better when it’s delivered via video than just 10% with text.
- Landing pages with videos can increase conversions by up to 80% (EyeView Digital).
- On average, businesses see a 49% faster revenue growth when using video in their marketing strategies (HubSpot).
- It’s no wonder 72% of consumers prefer learning about a product or service through video, according to Wyzowl.
The Avengers of Your Marketing Toolkit!
Have you ever felt overwhelmed by endless ads, pop-ups, and jargon-filled marketing emails? Imagine being a consumer in today’s digital hurricane. Now, picture an explainer video—short, sharp, and clear-cutting through the chaos.
Think of explainer videos as the Tony Stark of content: charismatic, intelligent, and irreplaceable. These 60-90-second animations simplify complex ideas, captivate viewers, and convert them into customers.
Why Every Dollar Spent is a Smart Investment?
1. ROI That Justifies the Cost
Investing in explainer videos isn’t just about aesthetics; it’s about impact. Consider the case of Dropbox, which spent $50,000 on its first explainer video. The result? A staggering 10 million users gained and over $48 million in revenue.
Another success story: Crazy Egg, a website analytics platform, used an explainer video to drive an extra $21,000 monthly revenue—a 64% increase.
2. SEO Superpowers
Explainer videos can help your site climb the Google rankings faster than a viral TikTok. According to Forrester Research, websites with video content are 53 times more likely to rank on the first page of Google search results. Plus, they increase visitors’ time on your site, another major factor in SEO success.
3. Audience Retention Rocket
People love stories, and explainer videos tap into that instinct. Research from Wistia shows that audiences retain 95% of a message when delivered via video compared to only 10% via text. Platforms like YouTube report that videos under two minutes have the highest engagement rates, making concise explainer videos perfect for capturing attention. Example: Zendesk used a quirky explainer video to clarify their complex product suite, leading to a 25% drop in support queries and higher retention rates.
4. Cross-Platform Powerhouse
Explainer videos are marketing chameleons—they fit everywhere. From Instagram Reels to LinkedIn ads, one video can be optimized for various platforms, maximizing reach and impressions. Example: Shopify repurposed snippets from their explainer video as Instagram Stories, driving 40% higher engagement than static ads.
5. Conversion Machine
According to Vidyard, 83% of marketers agree that video content directly drives leads and sales. With an explainer video, you’re not just explaining—you’re persuading. Example: Trello embedded an explainer video on their homepage, which boosted sign-up conversions by 22%, thanks to clear storytelling and an actionable CTA.
6. Humanizing Your Brand
An explainer video adds personality to your brand, building trust and relatability. This is invaluable for easing customer anxiety in industries like fintech and healthcare. Example: Mint, a personal finance app, used a warm, animated explainer video to humanize their data-driven service. The result? 100,000 users in less than a year.
7. Long-Term Content Value
Explainer videos have staying power. Unlike blog posts or static ads, which require frequent updates, a well-made video can remain relevant for years. Example: Dollar Shave Club’s iconic video is still referenced today, delivering consistent traffic and branding benefits years after its creation.
Breaking Down Explainer Video Costs
What’s the Range? The cost of explainer videos can vary significantly, typically ranging from $500 to $25,000 or more. Here’s why:
- Basic 2D Explainer Videos: $500–$5,000
- High-Quality 2D Animation: $5,000–$10,000
- Custom 3D Explainer Videos: $10,000–$25,000+
- Motion Graphics Explainer Videos: $3,000–$8,000
What’s Included in the Price?
- Scripting and Storyboarding: Crafting compelling narratives.
- Animation and Design: Creating characters, backgrounds, and movement.
- Voiceover: Hiring professional voice talent.
- Music and Sound Effects: Adding emotional and audio-driven depth.
2D vs. 3D Explainer Videos: Cost & Context
When creating compelling explainer videos for your business, choosing 2D and 3D animation is more than just a stylistic decision; it’s strategic. Each format offers distinct advantages, aligns with specific business goals, and caters to different budgets. Whether you’re a scrappy startup aiming to break through the noise or an established enterprise looking to make waves, understanding the nuances of 2D and 3D videos is crucial.
What’s the Deal with 2D Explainer Videos?
2D explainer videos are like the Swiss Army knife of animated marketing—versatile, accessible, and often the go-to choice for small businesses and startups. Here’s why:
Simplified Storytelling
2D animations rely on flat, graphic visuals and straightforward scripts. Think of classic explainer videos like Slack’s launch video, which charmed its way into millions of workplaces with vibrant graphics and relatable scenarios.
Budget-Friendly
The cost of producing 2D explainer videos ranges from $1,000 to $10,000, depending on the length and complexity. They’re ideal for businesses that deliver concise messages without breaking the bank. Fun fact: A well-designed 2D explainer video can boost landing page conversions by 86%, according to EyeView Digital.
Short and Sweet
With the average attention span clocking in at 8 seconds, 2D videos are perfect for delivering bite-sized nuggets of information. Whether it’s a product overview, a tutorial, or an elevator pitch, 2D videos keep things simple and effective.
When Do You Need 3D Explainer Videos?
If 2D is the trusty sidekick, 3D is the blockbuster superhero. These videos go the extra mile with depth, realism, and visual flair.
Immersive Impact
3D animations are the gold standard for industries like healthcare, SaaS, and manufacturing, where visualizing complex systems is a game-changer. Tesla, for instance, uses 3D videos to showcase their cutting-edge technologies, making innovation relatable and awe-inspiring.
Premium Price for Premium Quality
Creating a 3D explainer video starts at around $10,000 and can exceed $25,000, depending on factors like length, animation complexity, and production quality. However, the ROI speaks volumes: businesses report higher audience retention and a 40% lift in engagement for 3D content (HubSpot).
Perfect for Complex Products
Do you need to explain how your AI-driven app works or demonstrate the inner workings of an advanced medical device? 3D explainer videos excel at breaking down intricate ideas into digestible visuals. Case in point: IBM leveraged 3D videos to explain its blockchain technology, simplifying a complex concept for global audiences. Fun Fact: A well-animated 2D explainer video can increase landing page conversions by 86%!
Industry-Specific Explainer Videos: Pricing Insights
Healthcare Explainer Videos
- Used to simplify medical jargon or demonstrate procedures.
- Cost: $5,000–$20,000
Educational Explainer Videos
- Perfect for e-learning platforms and training sessions.
- Cost: $3,000–$12,000
SaaS Explainer Videos
- Focused on showcasing software features and benefits.
- Cost: $7,000–$15,000
Marketing-Focused Explainer Videos
- Designed to drive sales and brand awareness.
- Cost: $3,000–$10,000
Feature | 2D Explainer Videos | 3D Explainer Videos |
Cost | $1,000–$10,000 | $10,000–$25,000+ |
Turnaround Time | Faster (2–4 weeks) | Longer (4–8 weeks) |
Use Case | Short campaigns, overviews | High-tech industries, complex products |
Visual Appeal | Flat and colorful | Dynamic, detailed, and realistic |
SEO and Engagement | Boosts conversions up to 86% | Increases retention and engagement rates |
Mark Wilson
Mark is a Senior Content Marketer with 7+ years of experience in growing B2B, B2C, e-commerce, SaaS, & Digital Design Brands. He’s a polished writer, SEO geek, optimist at heart & good at playing table tennis.
Get the week’s best
marketing content
Please Book Your
Appointment to
Schedule a Call.
Look no further than Cloud Animations! Our comprehensive animation services offer a one-stop-shop for all your needs.
Which Format Is Right for Your Business?
Choose 2D If You Need:
- Quick Turnarounds: Campaigns with tight deadlines.
- Cost-Effectiveness: Startups and SMBs with limited budgets.
- Straightforward Messaging: Simple product or service overviews.
Example: A fitness app could use 2D videos to showcase basic features and benefits to a young, mobile-first audience.
Choose 3D If You Need:
- Visual Impact: Products or services that demand a “wow” factor.
- Depth and Detail: Industries requiring precise visualizations, like biotech or engineering.
- Long-Term Investment: Content that will remain relevant for years.
Example: A medical device company could use a 3D video to demonstrate a groundbreaking surgical tool to investors and healthcare professionals.
Expert Insights to Help You Decide
What Influencers Say:
- Gary Vaynerchuk on video marketing: “It’s not the next big thing, it’s the big thing now.”
- Neil Patel on video ROI: “Adding a video to your homepage can increase conversions by 80%.”
From Industry Leaders:
- Dropbox: Spent $50,000 on its first explainer video and generated 10 million users, netting over $48 million in revenue.
- Crazy Egg: Used an explainer video to boost monthly revenue by 64%, proving its power to drive tangible business growth.
Get your Free 30 Minute strategy
session with an experienced digital animators
A Winning Strategy
Whichever format you choose, both 2D and 3D explainer videos are proven tools for enhancing brand visibility, driving engagement, and simplifying complex ideas. The key is to align the video style with your business goals, target audience, and budget.
When done right, an explainer video is more than just a visual asset—it’s a bridge that connects your brand with your audience, making your message memorable and impactful. So, which side of the animation spectrum are you leaning toward?
What Influences the Cost of Explainer Videos?
When budgeting for an explainer video, it’s essential to know where your money goes. These factors can dramatically impact pricing, so choose wisely to balance cost and quality.
1. Customization: Fully Unique or Pre-Made Perfection?
Custom animations are the gold standard of explainer videos. Every detail is crafted to reflect your brand’s essence, delivering a one-of-a-kind, engaging, memorable experience. But this bespoke touch comes at a premium.
- Why It Costs More: Fully customized designs involve deeper research, intricate animations, and detailed iterations to align perfectly with your brand identity.
- The Affordable Alternative: Template-based animations. They’re pre-designed and tweakable, providing a clean, professional look without the heavy price tag. Perfect for businesses needing efficiency without sacrificing clarity.
2. Video Length: The Clock is Ticking
Time is money, literally. Most explainer videos clock in at 60–90 seconds, a duration that keeps audiences engaged. However, your costs will rise accordingly if your story demands more time.
- Behind the Price: Longer videos mean extended scripting, storyboarding, voice recording, and animation work.
- Expert Advice: Keep it concise. Trim your message to its core to save costs and maintain viewer attention.
3. Animation Complexity: Simple Elegance or Cinematic Grandeur?
The sophistication of your animation style significantly influences the budget.
- Basic Motion Graphics: Affordable, sleek, and effective for conveying clear messages. Ideal for startups or small businesses.
- Immersive 3D Animations: These create a cinematic experience ideal for products or brands needing a wow factor. However, they require advanced techniques, longer production timelines, and higher costs.
4. Turnaround Time: Rushed Deadlines, Rushed Wallets
Tight deadlines demand extra resources, leading to increased costs (often 20–50% more). Fast-tracking requires a studio to rearrange schedules and prioritize your project over others.
- Pro Tip: Planning ahead saves money and ensures you have ample time for feedback and revisions.
5. Script & Voiceover Talent: Words That Sell, Voices That Resonate
A compelling script and professional voiceover can take a video from good to unforgettable.
- The Impact: High-quality talent brings authenticity and connection to your story, whether it’s a charismatic narrator or a sharp, on-point script.
- Worth the Investment: Engaging voiceovers and well-crafted scripts often deliver ROI by making your video more relatable and shareable.
Cost-Saving Hacks for Explainer Videos
Check Portfolios
Look for quality storytelling and attention to detail. A smaller portfolio of excellent work is far better than hundreds of average videos. Testimonials from previous clients can provide invaluable insight.
Bundle Services
Many production companies offer bundled services, such as scriptwriting, voiceovers, animations, and revisions, at discounted rates. Ask about packages to maximize your value.
Opt for Motion Graphics
Tight on budget? Motion graphics are your friend. These versatile animations effectively convey complex ideas without the hefty price tag of 3D animation.
Ownership Rights
Ensure the contract guarantees full ownership of the video and its assets. This ensures you can use the content freely across platforms, avoiding additional licensing fees.
Explainer Videos: ROI in Action
Case Study: SaaS Startup
- Cost: $8,000 (90 seconds, 2D animation)
- Results: 45% increase in demo sign-ups within three months.
Why It Matters:
- 82% of marketers say explainer videos have boosted lead generation (HubSpot).
- Videos are shared 1,200% more often than text and images combined!
Investing in an explainer video isn’t just about cost—it’s about value.
Final Takeaways and How to Get Started!
Explainer videos are an investment in your business’s growth. Whether you’re a startup or an established brand, there’s a video style and budget that fits your needs.
Actionable Steps:
- Define your goals and audience.
- Research top explainer video companies.
- Set a realistic budget.
- Collaborate closely to ensure your vision is brought to life.
Want to create high-quality animated explainer videos for your business? Contact Cloud Animations!
Providing animation services to clients in
multiple cities across USA & Canada
Collaborate with Cloud Animation
Learn why creative explainer videos can revolutionize your internal business training and communication strategies.
Want to upgrade your team’s learning? Contact us today!
You Might Also Like
Filter
Give us your e-mail so
we can give you Update
