Explainer videos are a digital marketers dream. They can make complicated ideas easier to understand, increase brand awareness, and build emotional connections.
The only sticking point seems to be cost. How much should I budget? And, more importantly, how can ensure you get a good return on investment? These are critical questions for marketing managers. The answers can greatly affect your marketing plan and how you spend your budget.
This article aims to shed light on explainer video production costs. We'll delve into the factors that influence these costs, from video length to animation style. We'll also explore different pricing models, including DIY tools, freelancers, and professional production companies.
Finally, we'll provide actionable strategies to maximise your ROI, helping you make the most of your explainer video investment. Let's dive in.
You can download our animation pricing guide with pricing examples to get a sense of how far your budget will go.
Explainer videos are concise and engaging tools in digital marketing. They distill complex information, engage through stories, create brand loyalty, or clear up misunderstandings.
This makes them great for showing off products or services and for promoting brand awareness.
There's no doubt that these type of videos are incredibly effective for capturing attention. With a strong narrative, clear visuals, captivating animation, not much else can come close on the engagement scale.
Furthermore, explainer videos can boost conversion rates. They often incorporate a clear call-to-action, prompting viewers to take the next step.
Ultimately, their value lies in their versatility. Whether on social media, websites, or emails, explainer videos can seamlessly integrate into various marketing efforts, improving engagement and brand visibility.
Explainer video production costs can vary widely. Several key factors influence these costs. Let's go through each one.
The first major factor is video length. Longer videos generally require more resources to produce. It's also worth noting that longer does not equal better. A video of around 1 minute is far more likely to retain attention and lead to action, than a 2 or 3 minute one.
Rule of thumb: A 140-word script equals about one minute of animation.
The style you opt for has a huge impact on cost. If you want a basic 2D vector icon animation, it will generally cost less than a character-based animation.
The same goes with things like building scenes. A full scene is going to cost a lot more to design (and animate) than a minimalistic design.
The best approach you can take is to seek out examples of videos that inspire you. Share these with a production company and ask how much they would cost to produce. It's all about aligning expectations from the start.
This is probably the most misunderstood aspect of pricing a video. Complexity is something far more subtle than meets the eye. It isn't how complex the animation looks, it's about how much work is involved behind the scenes.
For example, a simple text-based animation has a lower production complexity than rigging and moving a character. Same goes for transitions, movements, 2D/3D, etc, etc. If you do opt for a character-based animation, here's how to ensure your characters are diverse.
A professional animated video production company usually covers the voice-over cost in the overall budget. However, please make sure that your use follows the terms of the license you are buying.
For example, you'll need an additional licence for any paid advertising.
Whether you are making the video by yourself or with a team of freelancers, many agencies are ready to help you. Such as Voicerealm, Bodalgo, and many others. You can also contact voice over artists directly. You'll find plenty on LinkedIn.
Getting good ROI means making the most of the media, in as many ways as you can. If you're producing long form content (say, a 1 minute explainer), think about creating some social loops. These are short sections of the animation made into seamless loops (you can't see where they start and end).
Social loops are highly engaging on social. Just make sure they are less than 20 seconds, and most platforms will auto loop them, like LinkedIn and Facebook.
If you haven't come across the term 'Lottie', then here's the place to start. They are code-based animations that you can integrate into your website. They are wonderful tools for engagement. For SaaS brand in particular, Lotties should be high up your list of 'must have's'. Here's a look at how to make highly effect SaaS explainer videos.
The great news is that a Lottie file can be exported through AE (with the help of plugins). The downside is that they still have some limitations. The details are too technical and numerous to cover here. Don't assume that every animation you create can be converted.
Length: Keep it short—one minute or less.
Style: Find inspiring examples and align expectations.
Complexity: Understand what adds time and cost.
Voiceover: Clarify usage and licences.
Social Cuts: Repurpose your video into loops for social.
Lotties: Explore website interactivity options.
When considering explainer video production costs, several pricing models are available. Each has its advantages and disadvantages.
A word of caution. Animated video production is one of the hardest services to price. You're buying something that is get to be imagined.
This is why it's critical to align expectations before deciding on a route. Ensure everyone is on the same page as to the quality and approach.
DIY tools and templates are cost-effective for explainer video production. Platforms like Animoto and Powtoon make creating videos easy and affordable.
These tools provide templates for quick edits. However, customisation options might be limited, impacting unique branding efforts.
It's important to remember that, like any marketing material, your animated explainer video reflects the quality of your brand. If you go down this route, ensure you have the expertise in-house to make it a success in all aspects of production. All the way from narrative and visual storytelling to pacing and sound design.
Freelancers offer a middle-ground solution. They bring expertise without the overhead of an entire team. Rates can vary based on experience and skill level. Hiring freelancers often provides flexibility and tailored services.
They can be a great option if you're strapped for budget. However, their knowledge and skillset has limits.
For instance, a good animated production company will hire experts for each step of making a video. This includes a script writer, illustrator, animator, and sound designer.
In contrast, a freelancer takes on all these roles themselves.
You can of course build your own team. However, you may notice that costs can rise quickly. You also still need to manage the whole production process, including communication with freelancers.
Professional production companies provide top-tier quality. They handle all production stages, ensuring a polished final product. The investment is higher, but the results are often unmatched. These companies have the resources to create engaging, high-quality videos.
Clearly we have a stake in the game. In short, we're bias. And we would be remiss to say that all professional production companies produce the goods. Do some digging into their background, experience, examples, process and the questions they ask about your project.
These are great indicators of what you'll get at the end of it all.
We have talked about the basic costs. Now, let's look at some other important parts that affect how well your explainer video works.
Start by setting clear objectives. Determine what success looks like for your campaign. If you have multiple stake holders, ensure they are all aligned on what this video needs to do, and who it's talking to.
It's much easier to address concerns at the beginning than to deal with differing opinions later while you're in the middle of production.
A guaranteed way to weaken your animated video is to target too wide an audience. How can you relate to everyone, all at once? The more targeted your video is, the better it will engage.
You may find this kicks up some discussion - that's great. It's a wonderful opportunity to get down to the bass tax, and align everyones thinking.
A client often wants to make an explainer video because they realise how effective it can be. They see how a video can be an excellent solution to their problem.
However, it's worth taking some time to really drill down into what (exactly) you need this video to do. When/where will the viewer be watching it? Why did they click on it? What do they expect to get from watching it? What one message do you want to leave them with? What action do you want them to take?
Plan ahead. Ensure you know which platforms you'll want to use the media on. This can have a marked impact on cost, so getting ahead of it is wise. Converting a video designed as 16:9 aspect ratio is not easy to convert to 9:16 (for TikTok say).
However, knowing you want 9:16 aspect ratio from the start ensures the designer can plan with this in mind. This will save you a chuck of cash over letting the decision be an after-thought.
It goes without saying that there's value in analysing performance data to gain insights. Track metrics like view count, engagement, and conversion rates. Use this data to refine future videos. Continually optimise your approach based on analytics.
This helps you put your resources into the areas that give you the best results.
You can also track video performance using analytics tools. Focus on metrics like watch time, click-through rates, and shares.
An animated explainer video is often the first introduction a potential client has to your brand. Make sure it represents the quality you want to portray.
There are many aspects to producing high quality animated video production. If you do decide to go it alone, it's a good idea to get a good grip of what's actually involved.
Or if you opt for a professional animated explainer video production company, ensure you're aligned re budget vs expectations. Share examples and be clear on the level of quality you're after. If you're after some inspiration, we've put together a list of some of the top marketing animated videos.
Download our animation pricing guide for pricing examples and see how far your budget goes.
