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  • Writer's pictureKlussterMedia

The Cost of Explainer Videos

Updated: Mar 9, 2022

Explainer videos are an increasingly popular video marketing strategy used by businesses of all sizes to help explain products and services, drive conversions, and improve search engine optimization. How much does an explainer video cost?

To help you determine the budget, you will need to create an explainer video, considering these three factors as you set your goals:

  • The length of your video,

  • The production quality you are looking for, and

  • Whether you plan to hire an agency or create it in-house.

Learn more about what each factor means and how it will affect your final price tag.

Length of Video

An explainer video is a short video describing a business or product. It is typically two to three minutes long and focuses on one main idea. It would be best to consider some things before hiring an explainer video company, and essential in understanding your goals before deciding how much you should spend on an explainer video. Some companies also offer detailed proposals at no cost, so be sure to ask if a price estimate is in your decision-making process.

Production Quality

In this digitalization era, explainer video plays a crucial role in attracting viewers to company products/services. A good quality explainer video is an investment for enhancing business.

The million-dollar question is, How much budget should be kept aside for making an explainer video? There are factors that can influence how an explainer video works best for you.

A few factors on the price of an explainer video are:

  • Length of the video

  • Animation style

  • The live-action

  • The studio used for making the video

However, price is not the primary concern. What matters most is the value. A video created by a reputed studio might be expensive, but it would recover its cost in the long run. In comparison, an introductory explainer video might not get you the desired results.

The explainer video should be able to help you in achieving your business goal.

Hire an Agency or Create it In-house

Like any other digital marketing medium, you can make an explainer video at a bare minimum price or get it done by the top professional studio, which might dig deeper holes in your pockets. Just remember a simple rule, a good quality, informational, and creative video has more potential to attract viewers' attention than video created by naïve freelancers or DIY software.

Today's customer is brilliant. They have an eye to spot a good explainer video. Also, a good video has more potential to get viewers' attention. Thus, the actual value of an explainer video includes not only the production cost but also the amount of business you might lose by using a not-so-effective video.

Production Costs of an Explainer Video

Hopefully, you agree that a good quality video is worth your time, effort, and money by now. However, there'll be many questions popping up in your mind, including what outcome you are getting for the money spent. Why does a good-quality explainer video cost so much? What is required to make a good Explainer video?

Below we have covered a step-by-step process for creating an Explainer Video.

Explainer Video development is a six-phase process.

Research - Thorough research is vital for creating a good explainer video. The video must succeed in fulfilling the company's and customers' needs. Thus the first and the foremost step is understanding the company, its product/service, and what message the company wants to send. Similarly, understanding the target audience is also very important. This will help the production find the most suitable words and images that appeal to the viewers.

Scripting - Getting the suitable script. A professional explainer video's main aim is to help the business achieve its targets. It is achieved by understanding the company's message to its customers and using a creative and innovative script to channel it to the target audience. To get the perfect script, a professional studio runs several revisions.

Storyboard/Animatic – Once the script is ready, next comes the creation of still images. At this phase, the explainer video comes to life. Scenes are created, and characters are given life. At this stage, your feedback plays a crucial role.

Voiceover or narration – At this stage, the characters are given voices. Again, selecting the right voice for the characters is very important. Recording for the script's spoken parts is completed at this stage.

Animation – Selecting a professional and experienced animator will help you get an attractive video. Though everything is created using software, the process needs lots of technical know-how, a creative mind, and time.

Sound Design – It is the final phase of the process. At this stage, background score and other sound effects get added to the video.

The steps mentioned above might look easy, but every step involves many tasks that finally create a quality video. Some of the functions include:

  • The casting of voice characters

  • Creating the right background music

  • Licensing music

  • Making amendments based on your feedback

Besides technical requirements, other factors affect the video cost, including the time duration of the video. The longer the video duration, the higher the price will be.

Factors on Deciding the Budget

Duration of video

Animation videos are one of the most common types of Explainer Videos. The price of an animated explainer video is based on length. The production house planning and execution are based on these numbers. The first one minute of the video is the most expensive. However, the latest research has shown that shorter videos attract more viewers than longer ones.

Style of video

Another factor that directly affects the cost of an explainer video is the style chosen. Nowadays, different types of video styles are available in the market. Most of the styles follow the cost-per-second calculation method. Choose a style that suits your company image, marketing goals, and, most importantly, your budget.

Some of the most common video styles

  • Whiteboard Animation

  • Motion Graphics

  • 2D Animation

  • 3D Animation

  • Live-Action

  • Stop-Motion

  • Motion Capture

Stop-motion and Motion Capture are very expensive, and always better to go for production houses that have expertise in these styles.


Explainer videos have become a marketing necessity in the current digital market. Thus having a good video is essential to have a competitive edge and attract potential buyers.

Also, while working out the cost of the video, don't forget to consider the business you might lose by cutting down the quality.

Lastly, a good explainer video helps you achieve your marketing goals and pays for itself.

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