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‍What Are Explainer Videos and Why Are They Important?

Explainer videos are short, engaging video content created to explain complex ideas or messages in an easily understandable format. For businesses, this acts as a tool for introducing products or services, with solutions. This is one strong tool that helps in communicating information and connecting with the audience in just seconds. Due to the rise in popularity of video content, more businesses have integrated explainer videos into their marketing strategy.

But the question is, how much does an explainer video cost? Well, this is not a question that can be answered with just one sentence. The price of an explainer video really varies greatly depending on many factors: animation style, video length, production difficulty, and experience of the crew producing it. In this guide, we walk through factors affecting the price of explainer videos, break prices down by animation type, and share some tips on how to decrease expenditures without hurting quality.

The Process of Creating an Explainer Video 

There are a series of stages in creating an explainer video, and each contributes to the overall explainer video cost. Allow me to give you a detailed view of the process:

Research and Development of Script

Each great explainer video starts with a well-thought-out script. Before one can start the animation or voiceover, one has to define the message that he wants to show and what tone of the video should be. Writing the script may involve some market research in understanding the audience, brainstorming ideas, and setting up the script to meet the business goals.

This might involve hiring professional script writers with the actual capability to write clear, concise content for high-quality explainer videos. The prices will differ here, depending on the experience of the actual writer, but a general average is about $500 to $3,000 for scriptwriting.

1. Style Frames

Style frames are the visual representation of the most important moments of the video. Before full animation, style framing helps set the look and feel of the video. Designers will make a few key images to make sure visuals fit the script and give across the right message. Style frames give insight into how the video is going to look; thus, it enables changes to be made before the project starts, making them the most important.

The explainer video cost of developing a style frame, depending on the designer's experience and the complexity of the visuals, may start from $200 and go as high as $1,500.

2. Storyboard Creation

The next step after the approval of the style frames involves the creation of a storyboard. A storyboard is an overall layout used for mapping the whole video shot-by-shot, showing how the animation would flow. It is almost like a visual outline of the explainer video that helps you figure out the pacing, visual transitions, and camera angles for the video.

After all, a professionally created storyboard will keep the project right on track, while developing a storyboard can range from $500 to $2,000 depending on how complex the video is.

3. Voiceover

Of course, if taken to the next level, an explainer video becomes that much more engaging and accessible with the help of a professional voiceover. Ordinarily, voiceover artists are hired based on tone, accent, and language. Added to that are all sorts of experience, with an awfully popular voiceover artist charging more money than one who is not as experienced. The cost will likely range from $200 for some unexperienced people up to $2,000 or more for a well-renowned artist per 60-90-second video. The price could also be affected by whether the video would have to be localized in multiple languages.

4. Animation

Animation usually represents the most labour-intensive part of any production process, and depending on the style of animation and the level of complexity involved, this can greatly affect the cost. Simple 2D animations will be less expensive than highly detailed 3D animations featuring complex characters and environments.

How long the animation will take depends on the style. However, typically, for a 60-second explainer video, it takes anything from 4 to 8 weeks. Prices for animation depend based on style and complexity and can cost from $1,000 to $20,000 and upwards.

5. Sound Mixing

The sound design really makes your explainer video polished and professional. This is the process of mixing the background music, sound effects, and voiceover with the animated video. The high value of sound mixing can really help in presenting the video well, where the audio doesn't overpower the video. A sound mix costs in the range of $200 to $1,500.

Factors Influencing Explainer Video Cost 

A number of factors go in to affect the overall pricing of an explainer video. Let's have a closer look at each of the factors one by one.

Production Method

DIY: You can save money with a Do It Yourself approach but perhaps sacrifice production quality. If you have experience in video production and have tools at your disposal like Adobe After Effects, you could possibly create an in-house simple explainer video. But let's be real, most DIY videos will have lesser quality that isn't good enough to leave a mark.

Freelancers: Hiring freelancers for certain elements-for example, animation, scriptwriting, or voiceovers-could prove more affordable while not sacrificing quality. Freelancers offer flexibility in that you can scale the project to fit your budget. Freelancer rates vary greatly depending on experience; anything from $25 to $150 per hour, or even higher for specialized skills.

Video Agencies: A professional agency offering video production services is the most expensive option and surely provides high-quality results. Agencies can provide anything from writing a script down to animation, sound design, and post-production services. Prices for agencies range from $5,000 to upwards of $50,000 per project, depending on the scope of the work and the reputation of the agency.

Animation Style and Type Complexity

The level of complexity and style in animation could bring a significant difference to your explainer video cost. Here's a breakdown:

2D Animation: This is the most common and, to some degree, the most affordable style for explainer videos. It's about creating a two-dimensional visual display area featuring basic motion. For simple ideas, 2D animation would be best. The price ranges from $3,000 to $10,000 for a 60-90-second video.

3D Animation: This is somewhat complicated and has a richer aesthetic. It provides depth and reality to the video, and it's normally used in industries like gaming, technology, or medical. The quality of the video should be high, costing from $10,000 to $30,000 or more for a 60-90 second video.

Traditional Animation: More labor-intensive, traditional frame-by-frame animation is generally used in special projects where the budget can afford it. It gives a classical, hand-drawn feel but, when done well, it may cost upwards of $20,000 to $50,000 or more for a 60-90-second video.

Cut-Out Animation: Basically, a cost-effective way of producing animations using flat characters or objects moved frame by frame, cut-out is best suited for simple, visually-heavy videos. Prices range from $2,000 to $7,000.

Whiteboard Animation: Whiteboard animation is great for explaining complex concepts in simple terms. Since it involves drawing by hand, both images and text are some of the relatively cheaper options, where a 60-90 second explainer video cost may range from  $2,000 to $6,000.

Video Length

The length of the explainer video directly influences the price-the longer it is, the more expensive, because it takes so much more time to script write, animate, and mix the sound. Though the average runtime of an explainer video is around 60-90 seconds, a longer video-almost 2 minutes-can raise the price two or three times.

Action Intensity

These types of videos, having either fast action, multiple scenes, or intricately designed transitions, require more time and expertise to animate, which subsequently raises explainer video cost. The more lowly intensive the video in its simplicity, the cheaper it will be. The more complex the animation sequences, dynamic camera movements, or detailed backgrounds, the more expensive such videos will be.

Additional Options and Extras

Extra features, such as custom characters, soundtracks, or multilingual voiceovers, will begin to add more to your total. Marketing service add-ins, SEO optimization, or interactive elements, including clickable CTAs, may raise the explainer video cost even higher.

Cost Breakdown by Animation Style

Following is what you could expect to pay for various styles in a 60-90 second explainer video:

2D Animation

Cost: $3,000 - $10,000

Benefits: Easy to produce and relatively inexpensive, very versatile; hence, it's apt for scores of business types to explain ideas or services in a visually lively manner.

3D Animation

Price Range: $10,000 - $30,000+

Benefits: Quality visuals with depth and realism, perfect for technology firms, product demoes, or any other technical sector that wants to show something in great visual detail.

Traditional Animation

Price Range: $20,000 - $50,000+

Benefits: Delivers unique, creative look; usually animated by hand, frame by frame. Due to the time-consuming nature of this art form, it is generally reserved for special projects with larger budgets.

Cut-Out Animation

Cost: $2,000 - $7,000

Benefits: Affordable yet engaging animation for any business that needs simple, clean animation styles.

Whiteboard Animation

Cost: $2,000 - $6,000

Benefits: Great for tutorial videos or hand-drawn explanations of complex topics. It is one of the most affordable options.

Tips to Reduce Explainer Video Costs 

Sometimes, making a quality explainer video seems expensive, but actually, it doesn't have to be this way. Considering your production thoughtfully, you could have a really engaging yet powerful video without breaking your bank. Here's a look at some of the real-world ways you minimize the expense of an explainer video and make sure quality and professionalism are intact.

1. Opt for a Simplified Style

One way to really cut explainer video cost is by choosing a simpler style of animation. Styles such as whiteboard animation or cutout animation may be quite a bit less expensive compared with complex 3D or traditional frame-by-frame animation. This is mainly because a simplified style entails less detailed detailing, fewer layers to animate, which reduces the overall time and resources necessary for the completion of the video.

One of the best examples is that whiteboard animation is one of the most efficient ways to explain intricately designed ideas. The general hand-drawn style features the drawing of simple characters and graphics on a white backdrop; hence, it was both effective and economical. Cut-out animation relies on flat shapes and designs with minimum movements that can provide an equally compelling storyline with no need for highly elaborate design work.

By focusing on what really counts-effectively communicating your message-you're in a position to choose an animation style that strikes the best balance between quality and cost. While these less complex styles won't have the same depth as true 3D animation, they can be just as effective in capturing your audience's attention while clearly and concisely telling your story. Just make sure the animation serves your message, rather than overpowering it with superfluous complexity.

2. Use Stock Elements

Original illustration, character design, and even the creation of backgrounds can easily drive up the cost of an explainer video. It goes without saying that since bespoke commissioned elements require great designers and a lot of time and creative resources, it will cost much. One of the ways of avoiding this cost is by incorporating existing stock assets into your project.

With many online platforms offering stock elements-from characters to icons, backgrounds, and motion graphics-the cost is either very low or completely free. This will add a professional look to your video without having to create any design elements. Whether you want icons that can represent data points or ready characters which can explain concepts, this is your cost-effective alternative.

Using stock elements doesn't mean your video won't be unique. You could brand those assets with your colors, your logos, or any other visual identifier of your brand. In addition, using stock assets accelerates the production process because animators will not have to create everything from scratch, which results in cost reduction and quicker turnarounds of your project. Sometimes, the perfect middle ground is achieved by mixing stock elements with custom features, such as including a custom-crafted logo that reflects your brand.

3. Plan Ahead

Revisions can be a hidden cost driver in explainer video production, especially if changes occur late in the process. Adjustments to animation or voiceover after production begins can lead to significant extra costs.

To prevent costly revisions, ensure you have a solid plan from the start. Finalize the script, storyboard, and style before beginning animation, and get approvals from all stakeholders early. Clear communication with the production team is also key to avoiding misunderstandings. Planning and collaboration upfront will save time and money in the long run.

Budgeting for Your Explainer Video

The essence of proper budgeting is getting the explainer video that you really want without having to break your bank. Here is how you can set a budget for your video project.

1. Setting a Realistic Budget

Pore over the average cost of the kind of video you would want to produce, and review examples of explainer videos to understand what aligns with your goals. If it's a 2D animated explainer, for instance, be prepared to spend between $3,000 and $10,000. For a high-quality 3D animated video, that cost could rise manifold.

2. Requesting Multiple Quotes

For that, get quotes from a number of agencies or freelancers to have an estimated idea about the pricing. Make the quote as comprehensive as possible to include even the minutest detail about the services covered. In this way, you can compare options and make an informed decision.

3. Prioritizing Quality and ROI

While it might be really alluring to go with the lowest price, remember that quality should always be number one. High-quality investment in an explainer video may bring better long-term results through engagement, conversions, and brand perception.

Conclusion

Explainer videos have become a key part of modern digital marketing, helping businesses simplify complex ideas, introduce products, and engage audiences in dynamic ways. They make information more accessible to customers who might avoid text-heavy formats. Whether your goal is to educate, entertain, or convert, explainer videos are an effective tool to achieve business objectives.

When producing an explainer video, it's essential to plan according to the cost. Prices vary based on factors like animation style, video length, and complexity, ranging from a few thousand for simple 2D videos to tens of thousands for intricate 3D animations.

In summary, creating an effective explainer video requires careful consideration of both cost and quality. By understanding the production process, identifying key factors that influence pricing, and implementing cost-saving strategies, businesses can create high-impact explainer videos that resonate with their audience and provide a strong return on investment. Whether you’re a small startup or a large corporation, the value of a well-produced explainer video cannot be overstated. It’s an investment that, when done right, can elevate your brand, simplify complex ideas, and drive significant business results.

With the right planning, a clear understanding of your objectives, and collaboration with experienced professionals, your business can create an explainer video that not only fits within your budget but also serves as a powerful tool for achieving your marketing goals.