Explainer video cost varies widely depending on several factors. The length, style, and studio all impact your final price point. If you’re working with a production studio, an explainer video can cost between $4,000 and $25,000 per minute.
When setting your budget, value is just as important as cost. Paying bargain-basement prices might net some uninspiring results. Whereas working with a professional studio will probably cost more up front, but your video is more likely to pay for itself in the long run.
We’ll explain why video is worth investing in. Then we’ll explore the elements that can impact explainer video cost and show you how to balance your video budget for maximum return on investment.
How Much Is Video Worth?
A good video is worth far more than you’ll pay for it. It plays a vital role in B2B purchasing decisions, according to 95% of B2B buyers. More specifically, explainer video can help your brand:
And keep potential customers engaged over the long-term. Video is sharable, bingable, and just plain fun. In most cases, it’s also more effective than written marketing copy.
The only thing worse than not having a video is having a bad one. Poor video quality reflects badly on your brand and makes customers wonder where else you’re cutting corners. Think of the cost of quality video as an investment toward your marketing and sales goals.
Figure out your ROI
To see the difference a high quality explainer video can make, you can run the numbers. We use the calculator below to help our potential customers calculate ROI on their videos. Go ahead and try it out.
Great explainer videos convert viewers into customers. That’s the whole point. The best explainer videos keep converting for years. A high quality video isn’t something you make, post, and forget about. It’s an investment in your company and your future success.
Explainer Video Production Process
Hopefully you’re convinced that it’s worth paying professional-level prices to get a professional product. But you might still be wondering what you’re actually getting for that investment. Why does it cost thousands of dollars to make a quality explainer video?
Because video production is a process that involves the creative vision and work of multiple talented professionals.
The six phases of explainer video development:
1. Research – We get to know you and your customers so we understand what differentiates your product or service, what messages you’re trying to send, and what words and images are likely to appeal to your customers.
2. Scripting – We help you hone your message and identify your target and goals. The script may go through several revisions to get it just right.
3. Storyboard/Animatic – Based on the script, our in-house animators create still images including scene and character designs. This is when your video starts to come to life, with feedback from you of course.
4. Voiceover or narration – Working with a carefully selected voice artist (or several), we’ll record the spoken parts of the script.
5. Animation – Our experienced animators put the storyboard and character designs in motion. Even with help from computers, this step is time consuming and requires skill to achieve excellence.
6. Sound Design – The often overlooked final step where we add and balance sound effects and music to polish off your video. This could include licensing existing music, or contracting for something custom.
This summary makes it sound straightforward, but each step includes dozens of small decisions that add up to a quality video. We work with our clients every step of the way to accurately represent their brand and integrate feedback from multiple stakeholders.
Of course, longer videos can multiply these costs.
Why Time Really is Money
The cost for animated videos is calculated per finished second. That’s why most animated video studios start the pricing conversation by talking about length.
Knowing how long your video should be helps the studio budget its time and resources. They can get an idea of how many people they need and how long it might take to complete your project.
Often, the first 60 seconds are the most expensive. After that, many production costs scale so the studio will give you a break on the per-second price.
Keeping your video as short as possible isn’t just good for your budget. The latest video length research indicates that shorter videos tend to perform better on most platforms.
Speed of Production Matters Too
Speaking of time, your production schedule can also impact the cost of video production. Production studios may charge a premium for rush jobs.
If possible, start working on your video production months before you want it to go live. Keep in mind that the highest-quality studios may schedule projects well in advance. So if there’s a production partner you really want to work with, get on their calendar early.
Changes Add Up
You can help keep your project on budget by being thoughtful about when and how you request changes. It’s easy to change the script during the initial drafting process. Changes are much harder, and more time consuming, as the project nears completion.
Closely review script drafts, character designs and animatics to make changes before the animation step begins. Late-stage changes can add cost to your project.
It helps to make one person within your organization responsible for communicating with the production team. If an executive or legal department needs to review the video, get them involved from the beginning, to avoid major edits at the end of the process (when they’re most expensive).
Style Affects Explainer Video Cost
Style is the other major factor that can influence explainer video cost. Different video animation styles are more or less labor intensive, which feeds into the cost-per-second calculation. While you should choose your style based on how it fits with your marketing goals and brand, knowing the relative costs of different video styles can help you figure out your budget.
Here we’ve ranked video styles by relative cost from least to most expensive. There’s considerable overlap but this should give you a sense of the entry points for each style.
Whiteboard Animation – $
This is the least expensive explainer video option, but it can pack a big punch. The clear, simple style fits most budgets. But buyer beware, tons of low-quality studios produce cookie-cutter whiteboard animation videos that garner lukewarm results. Look for a studio with a portfolio of quality videos.
Motion Graphics – $$
Motion graphics are computer animations of shapes, and sometimes words, rather than characters. These may be 2D or 3D and are perfect for brands that want to avoid character-led messaging.
2D Animation – $$$
2D animation can give your explainer video a classic look. Don’t be fooled by their simplicity–2D videos require hours of iteration and character design. Yet many video companies try to skimp by simply sliding, rotating, and replacing elements on the screen. This technique lacks what makes animation so powerful, movement. Look for a studio that understands frame by-frame-character animation.
3D Animation – $$$
Rich, dimensional imagery is the hallmark of 3D animation. From engaging characters to realistic product showcases, there’s almost nothing 3D animation can’t do. The cost depends on the complexity of the animation. Really 2D and 3D can cost about the same. The choice between the two is more a question of style than price.
Live Action – $$$$
Costs for live action video can add up quickly. Well-known actors, multiple recording locations, and post-production all add up. In this example, we’ve even added some animation into the mix.
But what about…
You’ll notice we didn’t mention stop-motion in this list. That’s because it’s so labor intensive that it tends to be prohibitively expensive for many brands. Even a 30-second spot can take weeks to complete so allow for at least 50% more time for stop-motion explainer videos. Also, be mindful that revisions are extremely costly once production begins.
Then there’s motion capture. This hyper-realistic animation style really is its own beast. If you’re considering mocap, look for a studio that specializes in that technology and be prepared to pay for their expertise.
Explainer Video Price: Worth Every Penny
Quality explainer videos are an investment that grows your business. When you consider the cost, make sure you consider both the out-of-pocket expense and the business you might miss by skimping on quality. In the end, an explainer video really should pay for itself.
To make sure you’re getting the best value for your money, review portfolios and get price estimates from several animated video production companies. Weigh the quality they deliver against the cost, and use the ROI calculator above to find the potential value.
These general guidelines should give you a better idea of how much an explainer video costs. If you’re ready to get specific, contact an IdeaRocket video expert today. We create explainer videos for tech companies, HR departments, health care companies, and much more.
