Engagement is the most valuable online currency. It takes your audience from scrolling past your video to watching, commenting, and sharing it.
That’s why explainer videos are like gold mines for businesses. They have an incredible ability to hook viewers, and including a video on a landing page can increase conversion by 80%.
Wouldn’t it be great if you could capture your audience’s attention and deliver a powerful message with the impact of a blockbuster movie using a short, 60-second explainer?
This post covers:
- How much you need to spend to strike gold with your content
- How videos that captivate and convert don’t have to break the bank
- What it takes to produce these videos (and how to get started)
- Tips on how to minimize your explainer video production costs
What is an explainer video?
An explainer video is a short-form video made for marketing or sales purposes. It makes a company’s product, service, or business idea memorable and works to boost conversions, SEO, and customer engagement.
Since explainer videos fit into broader digital marketing strategies, they can be used anywhere from company websites and social networks to fundraising platforms.
When executed well, an explainer video can generate mindblowing results. One of the best video examples comes from a startup called COOLEST. They used their explainer video to help raise a mindblowing $13M in funding. That made it the biggest crowdfunding campaign ever. Check out the high-quality video below.
What are the video production costs of an explainer video?
The cost of an explainer video ranges from $500 to $2000+ per minute, depending on voiceover quality, animation or live-action or stock footage, storyboard and script development, and post-production.
You could make your own AI explainers for $22/month, billed annually, with Synthesia. Or you could outsource video creation to one of the lower-priced production companies like Wyzowl, whose prices start at $1,500. Alternatively, companies like Yum Yum Videos charge between $7,000 and $15,000 per animated explainer video. And companies like Demo Duck start at $16,000 for 60 seconds of video content.
Depending on your needs, a single video could set you back $200,000!
What factors impact your explainer video cost?
If you're thinking " how much will MY explainer video cost?", the answer hinges on a range of factors, with the production method and style being the most significant. This complete list should give you a relatively accurate idea of how much you'll need to spend depending on your needs.
How explainer video production methods impact cost
The biggest cost determinant is the production approach. Opting for a video production company is a popular choice, with the industry average hovering around $1,000 per minute of video.
Alternatively, hiring an in-house team can be cost-effective. For instance, if a salaried videographer crafts a five-minute video weekly, the rate boils down to approximately $350 per minute.
If you’re into DIY, online tools are available and mainly involve subscription fees for editing and effects software. AI-driven tools and editing software can help you create a quality explainer video for under $30 a month.
And if you’re considering outsourcing to freelancers or videographers, know they typically charge between $30 and $100 per hour. However, they mainly focus on enhancing existing footage rather than filming and creating custom visuals. So, freelancers may not be the best option if you can't provide them with custom footage.
How the explainer video production style impacts cost
The style you choose also plays a critical role in shaping your explainer video cost. Here are the most common video styles that would fit an explainer video, along with some price ranges:
Live demonstrations can range from $1,000 to $3,000 per minute, depending on topic complexity and the required expertise. Specialized equipment like quality cameras, highly skilled professionals, shooting in a special location, or making it longer than 60 seconds pushes expenses toward the higher end.
Digital demos, such as screen recordings or AI avatar-led explanations, are more budget-friendly, at approximately $22 per 10 minutes. You could even record one yourself for free using basic screen capture software.
2D vector animation is labor intensive and elevates your price tag to between $7,000 and $20,000 per minute. An animated video with more intricate designs, custom character creation, and detailed scenes is more time-consuming and demands higher costs. Depending on the chosen animation style, you might pay more for advanced animation techniques like fluid motion or interactive elements.
Whiteboard animation fees are much lower than vector animation, coming in at $1,500 to $15,000 per minute, depending on video length and drawings' complexity. Simpler illustrations with minimal movement are the most cost-effective, unlike detailed and dynamic drawings that require more time and skill and possibly hiring an animation team.
Motion graphics can be anywhere from $500 to over $10,000 per minute, based on the complexity of the graphics. Basic motion graphics with simple movements and standard designs are more affordable. Adding 3D elements, complex transitions, sound design, and custom-designed graphics can significantly increase the price.
Other factors to consider
Next to video type and production method, the following several factors will impact costs:
- Filming location: You can keep costs low by filming in a place where you don't need to pay for a permit or location rental
- Video length: The shorter your video, the more cost-effective it is. Most explainer videos won't exceed 2 minutes.
- Number of shooting days: Each day you film is a day you pay.
- Crew size: The process can be handled by a single person with the right software or by a small, multi-talented production team.
- Equipment: High-quality cameras or specialty shooting setups (e.g. underwater cameras) can cost more to rent than their basic counterparts.
- VFX and animation: Adding titles, removing blemishes, or adding a photorealistic dinosaur will all incrementally increase your costs.
- Stock footage, sound, and B-rolls: Using stock footage can help reduce the amount of footage you need to capture and keep your budget low.
- Editing: Editing and color-grading is essential. The more you pay, the higher quality video you'll receive.
- Distribution and tracking: You’re creating these videos for specific marketing goals and want to keep your ROI in check. Consider extra costs of performance-tracking software and marketing integration.
How to reduce explainer video costs with the right software
Synthesia is an AI video generation platform where even users without technical knowledge can easily create videos, reducing production time and costs.
This tool turns written scripts into professional-looking videos with talking heads. All with a combination of AI avatars (digital twins of real, human actors) and text-to-speech technology, without the need for traditional filming.
Here's how Synthesia can help reduce your explainer video cost:
- Save on actors: Instead of hiring actors, showing up on camera yourself, or setting up your recording, you can choose from over 160 avatars. These avatars can speak whatever you type in. They’ll deliver your message flawlessly and create a connection with your audience.
- Save on voiceovers: With support for over 130 languages, you no longer need to hire voiceover artists. Text-to-speech technology ensures clear, accurate narration, and you can simultaneously translate a video into multiple languages.
- Save on editing: The built-in 60+ video templates make it easier to start a quality video from a professional framework. In your chosen template, you can insert screen recordings, your own footage, brand assets, and other elements by simply using the drag-and-drop function.
- Save on collaboration: The platform facilitates easy collaboration on video projects in a common workspace. You can set different permissions for which users can edit and which can only view and comment.
Unlike recording yourself, videos produced with AI avatars look and sound professional with no defects or quality issues. Check out one of Synthesia's video examples below:
Ready to create engaging explainer videos with AI?
Your next explainer video project can really put your business under the spotlight.
IPC Mobile used Synthesia to create four high-quality videos in only 48 hours and played them at a trade show. In return, they got 40% more views and booked 35% more meetings.
If you’d like to reduce your explainer video cost and streamline production with no effort, click here to check out how the explainer video maker works.
