So let me guess, you’re about taking the bold step of investing in an epic explainer video but you’re troubled with the question “how much does an explainer video cost?” Well, you’re not alone.
The “explainer video cost” largely depends on several factors… however, before I delve into this, in a nutshell, the cost of creating an explainer video ranges from $200 to $45000 per 60 seconds (1 minute).
Explainer video is one of the easiest ways to digest a complex idea in a clear and concise way. And that’s the reason why it’s becoming popular for startups to huge corporations. According to Cisco, video will account for a staggering 75% of that traffic by 2020. That’s up from 55% in 2015.
Inquiries about the production cost of an explainer video is a common question we receive almost on a daily basis. The answer to this question for most explainer video agencies isn’t fixed since several factors can influence the overall cost and which most are dependent on the buyer’s needs.
However, this cost can start from $200+ depending on the option (explained below) you choose to make your video.
In this article you will find out:
- The different factors that influence explainer video cost
- 4 options to make your explainer video according to your budget
- 3 Best Practices that can save you cost
This article is perfect for anyone:
- who want to know how the cost of an explainer video is obtained,
- who wish to create the video himself/herself
- and who wants to know the various options to create an explainer video.
If you are thinking about creating an explainer video yourself or wish to know the different pricing options to make an explainer video, then this article is just for you!
We made sure we covered all the necessary information you need to make an informed decision before investing in an explainer video.
The different factors that influence explainer video cost
When it comes to buying an explainer video, there are different factors to consider before an accurate cost is given out by the video company. Below are some of the main factors that influence explainer video cost.
1 Explainer Video style
2. The length of the video
3. Delivery Timeline
4. Custom graphics and characters
5. Voice over
1. Explainer Video Style
There are several explainer video styles available. These video styles come with their distinctive look and unique properties. The explainer video cost is largely affected by the style you choose to go with.
Take, for instance, a 2d or 3d explainer video will cost more than a whiteboard video. This is because whiteboard videos are mainly for basic explanations and don’t require much graphics customization, illustrations, coloring, and animation as 2d and 3d video does.
The different styles of explainer video are; 2d Animation, 3d Animation, Whiteboard explainer video, Live Action, Stop Motion, Motion Graphics Animation, Kinetic Typography explainer video, and Screencast explainer video.
2d Animation Video:
2d animation is the most popular type of explainer video style used by most B2B and B2C companies.
The clear and concise graphics/imagery used in 2d animation makes it easier to explain difficult and most complex idea in a simple and understandable manner. This is one of the major factors behind the resulting high cost for this style of explainer video over other styles.
Below is an example of a 2d explainer video.
2D Explainer Video Cost Summary (for a 1-minute video):
Maximum Cost: Up to $50,000
Minimum Cost: $200
Average Cost: $5370
3D animated explainer video:
This style of animation has both characters and scenes created in a 3d space. Considering its cost, 3d animation video unlike 2d animation or other explainer video styles isn’t suitable for start-up or those with a small budget due to its high cost of production.
Also, if you have the money for this style of explainer video, you should put into consideration the production time which is quite long compared to the other explainer video style.
Below is an example of a 3d explainer video.
3D Explainer Video Cost Summary (for a 1-minute video):
Maximum Cost: Up to $100,000
Minimum Cost: $2500
Average Cost: $8540
Whiteboard Explainer Video:
The whiteboard animation can tackle the technical and amazing ideas that may be difficult for the audience to understand and can do it in an engaging and educational way.
This style uses black illustrated characters and objects with a white background. The use of white background is to minimize the distractions caused by colored backgrounds as in other explainer video styles.
Whiteboard Explainer video is also a preferred explainer video style after 2d animation for B2C and B2B companies.
Below is an example of a whiteboard explainer video.
Whiteboard explainer Video Cost Summary (for a 1-minute video):
Maximum Cost: Up to $40,000
Minimum Cost: $250
Average Cost: $7000
Motion Graphics:
This is almost similar to 2d animation, but the difference is it’s primarily made of graphical elements (shapes) rather than characters.
This can be an elegant and engaging way to inform and enlighten your target audience on all the incredible things you do.
Below is an example of a motion graphics explainer video.
Motion Graphics Explainer Video Cost Summary (for a 1-minute video):
Maximum Cost: Up to $35,000
Minimum Cost: $200
Average Cost: $6500
Live-Action:
Live-action video means that it’s a video with actual shot video footage, i.e: not animation or motion graphics, but videos that were captured with an actual video camera.
One major importance of this style of an explainer video is that it helps companies build a personal relationship between them and their potential customers by showing real people (possibly their employees) in real scenes.
Below is an example of a Live-action explainer video.
Live-action explainer video Cost Summary (for a 1-minute video):
Maximum Cost: Up to $40,000
Minimum Cost: $500
Average Cost: $4500
Stop Motion:
Stop motion also called stop-frame is one of the oldest styles of an explainer video.
This animation technique basically involves starting and stopping a camera to make a series of images/frames which when combined together form a motion.
This style of animation has high engagement but it takes quite a lot of time and cost to produce.
Below is an example of a Stop motion explainer video.
Stop Motion explainer video Cost Summary (for a 1-minute video):
Maximum Cost: Up to $40,000
Minimum Cost: $500
Average Cost: $7000
Kinetic Typography:
Kinetic typography is basically the animation of fonts to explain an idea.
Due to the absence of characters, illustrations, and other visual elements, this style of explainer video is often used to motivate rather than explain technical ideas.
The main advantages of this style are its simplicity, affordability, and shorter production time.
Below is an example of a Kinetic Typography explainer video.
Kinetic Typography Explainer Video Cost Summary (for a 1-minute video):
Maximum Cost: Up to $10,000
Minimum Cost: $200
Average Cost: $3500
Screencast Explainer Video:
Screencast videos are typically used to show how a website, software, or mobile app works.
This style of video is mostly used for tutorials. You can use this style of video to walk your visitors or potential customers through the various features of your website, mobile, or desktop application.
This explainer video style is not really expensive and it’s a great option for a start-up.
Below is an example of a screencast explainer video.
Screencast Explainer Video Cost Summary (for a 1-minute video):
Maximum Cost: Up to $12,500
Minimum Cost: $250
Average Cost: $2,500
So before making your final decision on budget, it’s important to understand the animation style that will best convey your message.
Selecting the right explainer video style has the potential to turn your business into an overnight success, so think carefully about what you really want before you invest.
2. The length of the video
Creating animated videos can be time-consuming especially when dealing with a lengthy video.
The length of the video is another factor that greatly influences the explainer video cost. The longer the length of the video, the more work will be required in pre-editing and post-editing, and the higher the cost of production.
Take, for instance, our 2d explainer video costs $350 for 30 seconds, $550 for 60 seconds, and $750 for 90 seconds.
This is why most explainer video studio begins their pricing conversation with a question like “How long would you like your explainer video to be?” asking this question allows the video agency to 1) make a correct estimate for the video, 2) know the number of animators and designers they will need from the beginning and 3) know how long it will take to complete the video (i.e. turnaround or delivery time).
3. Delivery Timeline
This is the actual time it takes from purchasing the video, creating the video to the delivery.
The delivery time normally takes from 1 week up to 3 months depending on the video agency, style, and length of the video.
There is also a “fast delivery or quick turnaround option”, using this option permits the video agency to work at an exceptionally fast speed to help you meet your deadlines and be one step ahead.
However, this option increases to a large extent the overall cost of the video.
4. Custom graphics and characters
Graphics customization aid visual communication and it is an aesthetic expression of concepts and ideas using various graphic elements and tools.
Depending on the nature of graphics customization and characters your video might need to convey your message, the video agency might choose to charge you more especially if your demand is tedious and require a lot of time to complete.
Some agencies may charge you depending on the number of characters you need in your video, i.e. the more the character, the higher the explainer video cost.
5. Voice-Over
The voice-over is one of the most important components of an explainer video. The voice-over has the ability to make or mar the success of your video marketing campaign. This also affects the explainer video cost.
Some video agencies neglect the importance of using a professional voice over artist for their explainer video; however, here at Ideaexplainer, we understand how vital it is to the overall outcome of your marketing campaign.
Using a professional voice over artist will give your video and brand, complete credibility, and can boost its level of professionalism that will make your viewers feel you actually want to assist them to proffer solutions to their problems.
The actual cost of the explainer video can also be influenced by your choice of the voice-over artist (depending on their dialect, gender, emotion, and language).
Four (4) Options To Make Explainer Video According To Your Budget
When it comes to creating an explainer video, there are several options available. We have summarized these options below starting with the affordable to the most expensive option.
1. Explainer Video software or DIY tools:
This option is for start-ups or businesses with little or no money to invest in an explainer video.
DIY tools allow you to use free or premium explainer video or animation Softwares like Powtoon, Wideo, Biteable, Animoto, Adobe animate, Pencil 2d, and many more to create your own explainer videos.
Some of these tools offer free or premium plans for users with prices ranging from $50 to over $500 monthly.
However, explainer video Softwares come with pre-designed templates that give you little or no option for customization.
Advantages of Explainer Video Softwares:
Affordable: These Softwares have a cheap monthly plan and some of them are even free to use.
Fast Turnaround Time: Completing your video on time is totally up to you. You can decide to finish it in a day or anytime.
Disadvantages of Explainer Video Softwares:
Lack of experience: As a new user, it will be quite hard to get familiar with the different tools available in an explainer video software.
Time Consuming: This can take a lot of time and can be difficult to learn especially if you aren’t tech-savvy or good at CAD software.
Limited Control: Most DIY tool gives you limited control over your designs. You can only do little or no customization on the pre-designed templates.
Lower Quality: Since you are using a free version of the software, your output video quality is likely to be in very low quality.
Lack Of Professional Voice Artist: VoiceOver is one of the most important components of an explainer video. Using explainer video agencies give you access to a large number of voice-over artists and this isn’t available if you are using a DIY tool.
2. Hiring A Freelancers
This is another affordable option if you want to reduce costs.
Freelancers are basically people who are self-employed and work via a variety of platforms like Upwork, people-per-hour, Guru, and many more. Clients hire a freelancer to complete basic tasks, projects, or services for them.
Freelancers often work on a range of projects at the same time for various clients.
However, using a freelancer for your explainer video project can be quite tricky, you need to give clear instruction and follow up time to time on your project lest it gets abandoned or the seller’s focus will be diverted to the other clients’ projects.
Advantages:
Affordable: This option is quite cheaper than most known video agencies. You can get your video completed for as little as $200 to a few thousand.
Fast Turnaround: You can have your video completed on time, and if you want it delivered on a specified time, all you need is tell your seller, and this option, however, may cost you a little more bucks.
Many Artists: Using a freelance website gives you access to numerous artists (who are offering the same service) to choose from.
Disadvantages:
Difficult to find the right Talent: Most freelancers may claim to be good at a particular task, however, this might end up a lie that will cost you time and money. If you must use a freelancer, it’s very important you request for previous work samples or portfolio before you invest.
Low Quality: High-quality service and customer satisfaction aren’t guaranteed when using freelancer services. Some of these freelancers also use explainer video software which also limits the control they have over the pre-designed templates.
Poor Communication: Since this is a one-person business, it’s quite difficult for the freelancer to keep a timely or fast response to all queries. You should bear in mind of poor communication and expect answers to your questions 24 to 48 hours.
Poor Research: If you decide to use a freelancer, you should get your script written yourself or written by a professional scriptwriter. Most freelancers aren’t good at crafting an engaging script. Since they have many orders in the queue, they may tend to rush the whole work without doing proper research on your product or service.
Unprofessional Voice-over artist: This is quite common when you use a freelancer to make your video. You will be limited to just one voice-over artist and on some occasions, the freelancer could be the voice artist. Be sure to ask questions before you commit.
Outsourcing: A freelancer outsources some of the services he/she is offering or those they aren’t good at, thereby causing an unnecessary delay which could result in late delivery.
3. Small-Sized explainer video agency:
Looking for a one-stop solution for your explainer video needs? Then this option is just for you.
A small-sized explainer video production company is made up of a team of professionals who handles all the entire video production processes from beginning to end at an affordable cost.
These companies will help you achieve your marketing goals by creating a full custom animated explainer video that’s tailored to your needs. Most B2B and B2C businesses use the small-sized explainer video company to make their explainer videos.
Just like the first and second options mentioned above, some of the small-sized explainer video companies also use pre-made images, backgrounds, and character templates to make their videos except that they can fully customize theirs (unlike the first two options).
Using these pre-made templates will save them and the client a great amount of time since they don’t have to recreate the graphics again but rather modify existing ones to suit their client’s needs.
Advantages:
Affordable: Small-sized explainer video companies offer their services at a reduced rate. Their cost ranges from $250 to $15,000 per minute.
One-stop solution: Unlike working with a freelancer, who may or may not have the time to take care of everything, using the small-sized video company gives you access to a team of professionals who will take care of your scriptwriting, voice-over, editing, animation and so on.
Regular Updates: With this option, you can rest assured to get 24/7 updates on the progress of your project.
Experience: You’ll get access to a dedicated team of professionals who have wealth of experience in scriptwriting, voice-over, editing, animation, and so on.
Dedicated Project Manager: Some of the small-sized companies will assign you a dedicated project manager who you can always communicate with concerning your projects.
Faster Turnaround Time: Using this option guarantees you a faster turn-around time. Sometimes, this comes at an additional cost.
In-depth Research: In order to craft a compelling script and make an awesome design for your video, a good understanding of your service, product, and audience is required. And when it comes to doing in-depth research on your product or service, you really need professionals to handle it. This option is your best bet.
Disadvantages:
Use of pre-made templates: Some video agencies make use of pre-made templates since it helps them save time and cost. While you use their service, please ensure you give them clear instructions to match their designs to suit your brand colors and other needs.
Price Can be expensive: At times, the cost of making your video using this option can also be expensive. However, this depends on certain factors as I listed at the beginning of this article.
4. Medium to High sized Explainer Video company:
These are big video agencies with over 30 professionals working together. Using this option gives you the opportunity to work with highly experienced personnel.
Here, your request is well taken care of and you’ll get a fully custom high-quality explainer video that’s tailored to your needs.
The cost of creating a one-minute explainer video by most companies under this option ranges from $10,000 to over $50,000.
Advantages:
In-depth Research: Thorough research of your idea, service, product, and audience is conducted.
Full Custom Video: With this option, you’ll get a full custom video made specifically for your brand. Pre-made templates are rarely used here.
Experienced Personnel: You will get to work with professionals who are really good at what they do.
Offers all services: Outsourcing of services are common with a freelancer business model. However, this option provides in-house service to clients.
Dedicated Project Manager: You’ll be assigned a dedicated project manager who will update you every step of the way.
Disadvantages:
Very Expensive: The cost for a one-minute explainer video is very high, and so this option won’t be a good choice for start-ups or businesses with a lower budget.
Three (3) Best Practices That can save you cost
1. Always have a sample or reference video
Before you embark on purchasing an explainer video, please make sure you have a reference video.
A reference video is what you will present to the video company to give them an idea of the type or style of video you would like them to create for you.
You can get the reference video from Youtube, your competitors’ website, or from the portfolio section of the explainer video company you intend to use.
Presenting a reference video is a quick way for the video company to understand your need and the best way to get a quick estimate of the cost of your video.
2. Disclose your actual budget
Disclosing a budget can be hard for some clients, but I must tell you it makes the bargaining stage a whole lot easier.
Some video agencies don’t disclose their explainer video pricing lists because they first want to understand your needs before they can give you the right estimate for your video.
To get the right price, ensure you share a reference video, and state your budget. That way, you will be given a fair price for your explainer video.
3. Get A Script Ready
Do you know you can get a discount for your video?
This is possible (with some video agencies) if you already have your script ready. This will reduce the time that will be spent on research and scriptwriting.
However, this option isn’t available for all video agencies, so before you make a payment, ask questions to see if any discounts are available.
FINAL THOUGHT
Hey, I’m glad you made it here.
In conclusion, since explainer video is a great way to explain your business or idea across your audience in a simple and engaging way, it is, therefore, an effective marketing tool and a must use in 2020 if you wish to increase your ROI.
However, although the cost of creating an explainer video is quite expensive and has caused most start-ups from investing in them, that shouldn’t stop you from trying them out. There are a few other companies out there that can create a high-quality explainer video for you at a low price.
This article has explained all you need to know about explainer video costs. The different factors that influence the cost of explainer video, the different ways to get your video done, and the options available that can help you reduce cost.
Thanks for reading and if you have any questions, do let me know in the comment section. Also, if you need an explainer video, kindly contact us. We will be happy to assist you.
