Explainer video pricing depends on the length, style, and service provider. If you’re working with a production studio, an explainer video can cost $4,000 to $25,000 per minute. Freelance and DIY options may come with a smaller price tag, but often at the expense of quality.
When setting your explainer video budget, value is just as important as cost. Although working with a professional studio will probably cost more up front, the resulting video is more likely to pay for itself in the long run.
We’ll explain why video is worth the investment and give you a tool for calculating video ROI. 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. 95% of B2B buyers say video plays a vital role in their purchasing decisions. More specifically, explainer video can help your brand:
- generate more leads
- convert leads into customers
- improve your Google ranking
- keep potential customers engaged over the long-term
Video is sharable, bingeable, 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
Run the numbers to see the difference a high quality explainer video can make. 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 brand and its future success.
Why Time Really is Money
The cost of animated explainer 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. Adjustments 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 influences 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 if you want well-known actors or multiple recording locations. Post-production also demands some investment. In the example above, 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 Pricing: 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.
