Explainer Videos: Explainer Videos & How Much Do They Cost

In today’s fast-changing digital world, the focus of marketers always remains on driving more value to users in several ways. At a time, digesting such an enormous amount of content is quite difficult for people, videos come out as the most preferred option for marketers looking to make a substantial and deeper impact on their audience. Today, we will learn about “What Are The Explainer Videos and How Much Do Explainer Videos Cost?”. Let’s Dive In!

Not only explainer videos carry an amazing power to grab one’s attention, but they can also be used to explain complex things in a very simple and engaging manner. As videos can be of different types given the purpose of making such an element, the most promising way to explain a process or product is to create an explainer video. These videos are of length not more than 90 seconds that highlight the offerings of a company or describes the essential features of a product in a highly engaging way. Their popularity level can be easily understood from the fact that a large number of companies used explainer videos as an integral part of their internal as well as exterior communication. Both B2B and B2C companies have been using animated explainer videos to help them with their marketing and business promotion. So, let’s start by knowing each & every aspect of this popular content format.

What Is An Explainer Video?

In the simplest words – An explainer video refers to a short, revealing video that is created to explain the details of a company, product, process, person or even a concept. The best thing about this video is its engagement level which remains quite high. The length of such a video ranges between 30 seconds and 3 minutes.

Table Of Contents

What Are Explainer Videos Used For?

The simple thing is that whenever you come across the need to explain something, these videos are the best. However, the following purpose can ask for the creation of an explainer video.

Introductions and Summaries: Explainer videos are a wonderful way to bring a subject or concept in an engaging way. This may be a rapid overview of your product, service, or business. In other words, it’s an easy point of introduction for your audience.

Processes: Explainer videos are also used to simplify a process or concept in an easy-to-know way. For example, in your classroom, it was always exciting to learn new things through a video. Isn’t it?

Tutorials: It is always cumbersome to go through a manual or browse the web for information. This is where explainer videos are found to provide simple demos, step-by-step tutorials, or other explanations. These kinds of videos are immensely popular as revealed in Levels Beyond survey done in 2014 which discovered that 67% of consumers watch instructional videos.

What Are The Popular Formats Of Explainer Videos?

Basically, the chosen format depends on its purpose, budget, and the audience. The major formats are:

LIVE Action: As evident, these videos are used to broadcast real people or LIVE exhibitions. These videos are great in explaining a concept or transmit a lifestyle.

Whiteboard Animation Videos: These videos are prepared using whiteboard animation soft and can be used to described a case or situation. No matter how complex a situation or concept is, whiteboard animation explainer videos can be used to simplify them amazingly. The best part of these videos is that all its constituting elements are easily available which means they are quicker and easier to create.


In recent times, the concept of videos or video marketing has gained immense popularity. They are more engaging, compelling, communicable and most importantly relatable.

How Explainer Videos Influence Our Minds?

This video format is an amazingly powerful communication tool from a scientific viewpoint. This is because it processes information through various channels, both visually and auditorily.

According to a scientific research, it has been found that Audio and visual channels function separately on the human brain. Each can be overawed by an ambush of info. But, when content is presented that counts on both visual and audio channels, the given information becomes easier to engross and process.

Why Explainer Videos Are Popular Among The Audience?

According to research done by Social Science Research Network, visual learners constitute almost 65% of the total audience. This is why videos are quite popular in regard to business promotion. By 2021, more than 80% of the web content will be based out of videos.

Explainer Videos Are Time Saving – What would you prefer – a 2-minute videos or a 20 slides presentation? The answer itself shows which is popular. A study done by Levels Beyond revealed that 51% of millennials would prefer video over other content options.

The Information Is Easily Ingestible – When it comes to displaying a pitch or exhibiting a product personally, most of the marketers encourage their audience to put up questions. However, a large number of people feel uneasy or shy about asking questions of they don’t get the information. However, in case of an explainer video, the audience gets what they want to know in the simplest yet effective way. And it’s always there for them to reference.

The Information Is Easily Accessible – The best part of these videos is that they can be accessed from anywhere. Whether you’re on mobile or a laptop, these videos present the information seamlessly.

Are Explainer Videos Great For Brands?

These videos are not just meant to explain the details of a product or a business, but they have the potency to deliver great value for brands as well. Let’s get to know about them below.

Boost Your Website Traffic – Whiteboard animation explainer videos can be a great way to convert your prospects into valuable customers which in turn increased your website traffic. According to a study, websites with videos along with text are supposed to get 3 times more visibility among the audience than plain text websites. Convert more customers – Google discovered that 1 in 3 millennials agree that they purchase a product as a direct outcome of viewing a tutorial or how-to video about it. At the same time, marketing platform, Unbounce witnessed a remarkable 100% bounce in conversion by including video in its landing pages.

Augment Your Reach and Exposure – A PPT or personal meeting is a one-way communication. However, by featuring whiteboard animation videos, you can make a seamless connect with your audience with better reach and exposure. As people love to share nicely done video, this in all turn into better reach.

Instill Trustworthiness – An explainer video or animation video can be the first thing your potential customers may see at your website. Therefore, it could be a great opportunity to exhibit who you are and what you offer. Even for startups, explainer videos are nothing less than a goldmine. On the other hand, for renowned brands, they can be a way to humanize their business.

Save On Internal Resources – For salespeople, it is always a stiff challenge to repeat the same sales pitch to new customers again and again. And in case of any customization, the time and resources take a heavy toll. On the other side, an explainer video ensures consistent messaging across all channels without relying heavily on manpower and power.

How Much Do Explainer Videos Cost?

The most important query among people regarding this video is the cost to develop such a video. Generally the cost ranges betThough you may get to know a wide range of prices, the truth is that the cost of making an explainer video varies a lot as every video is unique in itself in terms of length, complexity, things involved and others. Quite obviously, a 5-minute explainer video would cost a lot more than a 15-second video.

The major factors that determine the actual cost of an explainer video are:

  • Animation Pattern And Its Complexity
  • Video Length
  • The Delivery Timeline For The Final Product
  • Custom Graphics, Characters, And Scripts
  • The Technical Complexity Of The Product And The Need Of The Script

With so many elements involved in determining the cost of explainer videos, it becomes quite difficult for anyone to promise a fixed cost.

In the case of explainer video cost, it is more like the more you pay the better results you can expect to get. So, let’s find out what contributes more to it.

Detailed Research And Proper Knowledge Ff Your Business And Product

High-end explainer videos are not usually script-based videos but they are prepared after thorough research of your brand and the product. Obviously, an intuitively planned video backed by extensive brand research tends to make a lasting and seamless connection with the audience than a low-cost video. In simple words, it would be quite unique in the market.

An Explainer Video Created For A Specific Purpose

The key to a successful explainer video is high-quality graphics and animations that make it stand out from the rest. Though there is always an option to choose pre-fixed templates and elements to prepare such a video, it is really a good deal if you can go for the customized version. And, cost certainly remains on the higher side in this case.

Fully Custom Graphics, And Characters

Though there is an option to use a readily available whiteboard animation software, good videos are made keeping in mind the sole purpose behind it. In addition, they are prepared using customized graphics and characters that related with the brand deeply and deliver the intended appeal.

In-Depth Whiteboard Animation

Low-cost animation is typically 2D combined with tasteless backgrounds and little detailing. By putting in more money, you can go for 3D videos that are combined with clear shadows, highlights and more. When applied remarkably and logically, all these elements play a crucial role in making the final output worthwhile.

How Can I Create Explainer Videos?

There are several ways you can create an explainer video like:

  • Do-It-Yourself Options Like Whiteboard Animation Software
  • Gig-Based Video Creation
  • Low-Cost Video Providers
  • Mid- And High-Tier Explainer Video Companies

DIY options

DIY options mean easily available whiteboard animation software available on the web. These tools provide pre-made video templates and characters that can be used in different forms to prepare the video. The cost of making such an explainer video costs nearly $500.


Affordable: DIY videos are classically your lowest cost option for explainer video creation.

Quick Turnaround: The timeline depends on you—for faster results, give more time and get it done quickly.


Lower Quality: as these videos are not done by professionally, the overall quality such explainer videos remains lower.

Lack of Guidance: You may feel a lack of guidance and the strategy and goal-orientation that is much needed to be successful. As great explainer videos are built with particular goals in mind, DIY videos lack that edge.

Lost Time: Since you aren’t a video expert, preparing your own video can end up asking a lot of your time. It’s quite difficult to use these tools in the beginning.

Ownership Ambiguity: When you make a video using templated graphics and scripts, you may not get the ownership of the final product.

Gig-Based Explainer Video Creation

In simple terms, this model asks you to hire a freelancer or independent contractor who develops the video for you.

Explainer Videos Pros

Cheaper – Alike DIY options, this way of making a video is also cheaper than other options.

Faster Results – As you hire a freelancer or contractor, you can ask for a quicker turnaround.

Explainer Videos Cons

Single-Point Job – You just need to consult with the contractor or freelancer for any query you have. So, there is no need to contact multiple people.

Subordinary Quality – Not every claimed video editor is truly the best. It takes time to find a real expert.

Not Focused – Some contractors introduce the level of expertise it asks to come up with an explainer video that gets the specific results you’re searching for.

Low-Cost Video Makers

Lower cost explainer video firms are able to look after your whole video production process and usually provide services between $5k – $35k cost range. They can offer affordable services because they use pre-designed graphics and character templates to prepare explainer videos.


Lower Cost: As it takes fewer efforts to prepare a video from templated graphics, they tend to cost lower.

Faster Turnaround: Since it takes less time with the use of templates, these low-cost video makers can often explainer videos quicker than a customized video.High-end Explainer Video Making Firms

This option involves an association with high-end and premium video making firms that not only have dedicated video making teams but also high-end video making tools. With them, one thing is guaranteed and that is awesome quality. The initial cost of these companies ranges between $10,000-$15,000 per minute.


High-Level Customization: These companies provide 100% customized to your brand and character.

Detailed Research And Strategy: At higher price points, explainer video pros have more time to get to know your product and audience and build a strategy to guide your explainer video.

Experience: These companies have experience using video to drive results, like conversion or lead generation. Most of high-end video production companies also specialize, so you can find one with video experience specific to your niche.

Built-in Feedback Opportunities: The best explainer video companies have a tested and efficient process that involves timely and proper feedback.

Application & Strategy Support: These video experts are more likely to help you avert faults and stay on your purpose so that you realize the defined objective.

How Much Should You Pay For An Explainer Video?

In most of the cases, it is the ultimate objective of making such a video and the level of worth that is behind the initiative that determines how much you should pay to create an explainer video. In simple terms, the more the worth, the more the cost.

If you think that your video is going to matter a lot to your brand in the long run, it is always advisable to go for high-end video making companies that don’t leave a single stone unturned and come up a video that makes you gain a competitive edge in the industry.

Want to create one for your company? Contact RankOn Technologies for best explainer video services in India. Contact us now and get one created for you!

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