How Much Does An Explainer Video Cost? A Detailed Breakdown For Businesses

Creating an explainer video is an excellent way to simplify complex ideas, pitch products, or onboard employees. But before making your first video, you'll want to know how much an explainer video costs so you can budget for your project. Understanding how to make an explainer video can also help you tailor it effectively to your audience and objectives. This article will provide valuable insights to address your goals, like learning how much an explainer video costs for businesses.

Moonb's explainer video production services are a helpful tool for reaching your goals, like learning how much an explainer video costs for businesses. With Moonb, you can get straight to the good stuff, like how to make an explainer video and get a video that matches your vision to a tee!

What is Explainer Video?

Explainer videos are like a pitch meeting wrapped in a visually engaging package. They’re short, snappy videos designed to grab attention and showcase a company’s product, service, or idea compellingly and efficiently. These videos often find a home on:

• Landing pages
• Website homepages
• Social media platforms

They are used to drive interest and engagement. The magic of an explainer video lies in its ability to simplify complex concepts. Whether it’s a new app, a groundbreaking service, or a unique business model, these videos distill the key information into an easy-to-digest, visually appealing format. 

And it works! Studies show that explainer videos don’t just entertain; they persuade. Eighty-four percent of consumers report being convinced to purchase after watching one. Add to that the potential for an 80% boost in conversion rates when an explainer video is embedded on a website, and it’s no surprise that they’ve become a top choice for marketers. 

With nearly three-quarters of marketers now relying on explainer videos, it’s clear that this engaging format is here to stay, and for good reason. Explainer videos make understanding your product or service effortless while leaving a lasting impression on your audience.

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How Much Does an Explainer Video Cost?

When you budget for an explainer video, consider pricing in tiers. Each tier represents a different production value and service level, allowing you to align your needs with your budget. Let’s break it down into a few key categories so you can make an informed choice.

Templates, Free Tools, and AI — $50 to $500

If you’re just dipping your toes into video production, tools like ready-made templates, online animation apps, or AI-based explainer video creators can be an incredibly budget-friendly option. You can create a video quickly and affordably, with prices ranging from $50 to $500.

These tools simplify the process by providing pre-designed layouts and stock assets, so you only need to plug in your content. Some even come with monthly subscription options starting as low as $50 per month, which is ideal if you want to experiment with multiple videos over time.

Limitations of DIY Video Creation

There’s a catch. While these solutions are cost-effective, they’re often limited in customization. Your video might look generic, with overused animations and visuals that don’t truly reflect your brand. Even with templates, you’ll still need to handle tasks like writing a script, recording voice-overs, tweaking the design, or hiring someone to help.

This tier could be a good starting point if you’re looking for something quick and don’t need a polished, highly branded video. But for profound marketing impact, you might want to consider stepping up a level.

Freelancers — $1,000 to $3,000

Hiring a freelancer is a great middle-ground option for a more personalized approach without breaking the bank. Freelancers often wear multiple hats. They will:

• Write your script
• Storyboard the concept
• Animate the video themselves

This hands-on approach usually results in a video that feels more tailored to your needs than what you’d get with a template.

The typical cost for a freelancer-produced explainer video ranges from $1,000 to $3,000. Platforms like Fiverr or Upwork are good places to find professionals specializing in this type of work.

Potential Drawbacks of Hiring a Freelancer

The quality can vary widely depending on the freelancer’s skillset. Since one person is handling multiple aspects of the production, there’s a chance some elements—like the animation’s polish or the sound quality—might fall short compared to what you’d get from an entire team.

A skilled freelancer can deliver significant value if you’re on a budget but still want a custom touch. Just make sure to check their portfolio and reviews before hiring.

Boutique Agencies — $3,000 to $8,000

Boutique agencies, sometimes called small production companies, are like the Goldilocks of explainer video production—not too big, not too small, and just right for mid-tier budgets. These companies typically have a small team (1–3 people) but can bring in additional specialists as needed for more complex projects.

Partnering with a boutique agency means you’ll get a more refined, professional video compared to freelancers, as they often have:

• Better equipment
• More specialized skills
• A team-based workflow

Prices in this category usually range from $3,000 to $8,000, depending on the length and complexity of the video.

The downside? Smaller agencies may juggle fewer projects at a time, resulting in longer turnaround times if they’re already booked. Nevertheless, if time isn’t a critical factor, you’ll likely get a high-quality video that feels polished and professional without the hefty price tag of a large agency.

Large Production Agencies — $8,000 to $50,000

If you aim to create a show-stopping explainer video that truly captures your brand’s essence, partnering with a large video production agency is your best bet. These agencies offer full-service production, assembling a dream team of:

• Writers
• Animators
• Marketers
• Project managers

Professional Production Quality and Expertise

You’ll get a highly polished product tailored to your audience and goals with their expertise. Agencies also bring years of experience and tested processes, which means they can guide you in making the best creative decisions. Many agencies can expedite production without compromising quality if you're on a tight deadline.

Of course, this level of service comes at a cost, ranging from $8,000 to $50,000 per video, depending on factors like complexity, length, and animation style. If you’re serious about making a big marketing splash, this investment can be worth every penny.

How Video Style Impacts Cost

Beyond the production tier, the style of your video also plays a big role in determining cost:

• Screen Capture or Live Demo ($500–$2,000): These straightforward and affordable styles are great for showcasing software or physical products in action.
• 2D Animation ($3,000–$15,000): This popular style offers versatility, from simple animations to more dynamic, fluid designs.
• Whiteboard Animation ($2,000–$10,000): Ideal for explaining complex concepts visually, though less dynamic than 2D animation.
• Motion Graphics ($5,000–$15,000) are perfect for industries like tech or finance, especially when presenting data or stats.
• 3D Animation and Stop-Motion ($20,000+): These high-end styles require advanced skills and a larger team, making them the most expensive but also the most visually impactful.
  

Choosing the right option depends on your goals, budget, and how much customization your brand requires. With these insights, you’re now equipped to make a decision that delivers value and resonates with your audience.

What Factors Drive Explainer Video Production Costs?

Many people calculate the costs of an explainer video solely based on its overall length. While this makes sense, the number of scenes in the video has a more significant impact on cost. 

Explainer videos are designed to tell a story and sell a product or service, not overload viewers with information. Therefore, focusing on the number of scenes rather than just the total length helps create a better video. On average, a scene lasts between 5 and 15 seconds. A 90-second explainer video typically contains 7 to 13 scenes. The more scenes your video has, the more it will cost. 

Animation Complexity: How Intricate Animation Will Affect Your Budget

The quantity of scenes isn’t the only factor that can affect the cost of your explainer video. The complexity of the animation within each scene can also impact your budget. The more complex the animation, the higher your explainer video costs. 

From Concept to Screen

Creating intricate graphics for 3-D animation is much more time-consuming than developing simple animations for a 2-D explainer video. While 2-D animation is the easiest, fastest, and cheapest animation type, choosing 3-D animation results in a more costly production than a 2-D video, not least because of labor-intensive design work and time-consuming rendering steps.

Extra Assets: Unique Features That Can Drive Up Costs

Sometimes, clients ask for “extra” options, which certainly affect the cost of an animated explainer video. These include creating a music track from scratch, developing a detailed 3-D model, or drawing unique characters or environments. 

If you don’t want to splash out, consider whether you need these extras or if they are only embellishments. In other words, would these assets help to make your video a better sales pitch, illustrate your product better, or increase viewer engagement? From our experience, you might not need extra assets in most cases. 

Suppose you need a video to promote a physical, tangible product. In that case, 3-D modeling is an option to consider to vividly showcase it, while a detailed environment or characters can support the story you tell in a convincing.

Live Action Explainers: Real Footage, Real Costs 

Live-action videos use real footage and actors to explain a product or concept and motivate viewers to try it. Film equipment rentals, location fees, and actors and crew salaries are undoubtedly costly. But the good news is that actual shooting with all the bells and whistles listed above is not the only way to create a live-action explainer video! 

First, you can use stock videos that fit your topic, create the right mood, and insert these live scenes into your animated video. Second, you can get professional advice on how to shoot a video suitable for business needs, record it on your own, and use this film as one of your assets for a future video.

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How To Reduce The Explainer Video Costs

Working with a Creative-as-a-Service (CaaS) company can save you significantly if your business needs multiple explainer videos throughout the year. These companies operate on a subscription model, providing ongoing video production services at a fixed monthly fee. 

This approach spreads costs over time and eliminates the need for hefty one-time payments, making it a cost-effective solution for companies with regular video needs.  

Write a Shorter Script to Cut Explainer Video Costs  

The length of your script directly impacts the cost of your video—shorter scripts equal lower costs. A general rule of thumb is that one minute of video requires about 160 words. If you want to cut costs, aim for a concise, punchy script that gets straight to the point. Not only will this reduce production expenses, but it will also make your video more engaging by holding viewers’ attention.  

Choose a Cost-Effective Animation Style  

The animation style you select significantly affects your video’s budget. While 3D animation or highly complex motion graphics can be stunning, they come with a hefty price tag due to the technical expertise required. 

2D animation is the best option for most businesses—it’s versatile, visually appealing, and cost-effective. Whiteboard animation is another affordable option, especially for explaining complex ideas.  

Don’t Rush the Project   

Time is money, especially when it comes to video production. If you request a quick turnaround, production companies must allocate additional resources, such as hiring extra animators or paying overtime. This can drive up costs significantly. 

To save money, plan and allow for a reasonable timeline. Giving the team more time to work also ensures better quality without the pressure of tight deadlines.

Choosing an Explainer Video Company

Before you vet different video creation agencies, you must know what you’re looking to achieve:

• What message are you trying to convey through the video?
• Who is your target audience?
• What kind of style do you envision?
• What is your budget and deadline?
• Answering these questions will give you a starting point and help you narrow your options.

Experience and Portfolio Matter

The experience of a video company is crucial in determining its competence in delivering quality videos. A company that has been in the business for a considerable period will likely have honed its skills and fine-tuned its processes, ensuring a smoother experience for you. 

Nevertheless, experience alone isn’t enough. You should also look at the company’s portfolio to see the range and quality of their work. This will give you a better sense of their creativity and ability to diversify their styles to fit different industries. Remember, your industry’s nuances can significantly impact how your video content should be presented.

Read Client Reviews and Testimonials

Testimonials are powerful tools for assessing a company's reliability and professionalism. They provide insights into the company’s work ethic, ability to meet deadlines, quality of customer service, and willingness to go the extra mile for its clients. Read reviews on independent platforms or ask the company for references if they aren’t readily available.

Customization and Personalization Are Key

The best explainer videos are tailored to resonate with a specific audience. Look for a company that emphasizes customization and personalization. They should be willing to learn about your brand, understand your unique selling points, and translate these into your video. 

Companies that use templates or a one-size-fits-all approach may need help effectively capturing the essence of their brand.

Comprehensive Services Save You Time

While the focus here is on explainer videos, you may need other types of video content in the future. Selecting a company that provides a broad spectrum of video services will save you the hassle of looking for a new agency each time your video needs to change.

Communication and Collaboration Ensure a Smooth Process

Clear communication is key throughout the video creation process. Look for a company that values transparency and keeps you in the loop at every stage. They should also be open to your ideas and input. After all, you know your business better than anyone else. The right company will welcome your thoughts and work collaboratively to bring your vision to life.

Value for Money Is Important

While it’s important not to compromise on quality, the price should also be a consideration. The most expensive company isn’t necessarily the best, and vice versa. You need to ensure you get the best value for your investment. 

Be cautious of companies offering exceptionally low prices - they may not deliver the desired quality. To sum up, finding the right explainer video company involves:

• Careful consideration of your specific needs
• Company’s experience and portfolio
• Client testimonials
• Level of customization they offer
• Range of services
• Communication style
• Value they provide for their price

At the same time, this may seem like a lot of work, but taking the time to make an informed decision will pay off in the end with a fantastic explainer video that effectively communicates your message and resonates with your target audience. 

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Explainer video pricing can vary significantly based on several factors, including:

• Animation style
• Experience of the video production company and more

To help you better understand how explainer videos are priced, let’s break down some key factors that influence the cost. First, what is your animation style of choice? Explainer videos can be created using a variety of animation styles, including:

• 2D animation
• 3D animation
• Stop motion 
• Animation used with real-life footage

Choosing the Right Animation Style for Your Budget

Each of these animation styles has its unique artistic qualities and visual appeal. Generally, 2D animations are the simplest to create and will cost the least. 3D animations are more complex and take longer to build, making them more expensive. Stop motion animations feature a unique look that many businesses love, but they can be time-consuming to create, leading to a higher cost. 

Animations that incorporate real-life footage can also be expensive because they require filming a live-action video before editing in animated elements. Your choice of animation style will greatly impact the overall cost of your explainer video.

Who Will Create Your Explainer Video?

The experience and expertise of your chosen video production team will affect the cost of your explainer video. Freelancers typically charge the least for their services, but they often need more resources and experience of larger agencies, which can lower their video quality. 

Established video marketing agencies may charge more for their services, but they have a proven track record of success that you can rely on. They also have the resources to help you create high-quality videos that meet your business goals.

What Features Do You Want?

Then, consider any special features you want for your explainer video. For example, would you like a custom script or a professional voiceover? Do you want to include sound effects or background music? Will your video incorporate footage of existing products? Each of these features will enhance the quality of your video but will also increase the overall cost.

How Long Will Your Explainer Video Be?

The length of your video will affect the overall price. Most businesses aim for an explainer video between 60 and 90 seconds long. This length will allow you to cover your key points without losing viewer interest. You can expect to pay a premium if you go overboard and create an explainer video longer than three minutes.

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