Every marketer is aware of the hype around explainer videos. Yes, every business needs it, and it’s the best opportunity to improve the business ROI and build traffic.
Yet, despite this, 68% of businesses are still waiting or planning to push them into their marketing strategy and generate ROI.
Some other insights about explainer videos include:
- 11% of marketers who don’t use explainer videos think, “They’re too costly.”
- 5% believe they can’t persuade important decision-makers.
- The ROI of video marketing is uncertain to 16% of marketers that don’t use it.
You would be surprised to know that none of these things are true. If you leverage explainer videos well, you can get up to 80% conversion rates from your landing pages.
If you’re planning to invest in explainer videos but aren’t sure, this blog will answer all your objections.
Debunking Myths about ROI of Explainer Videos
1. ROI is all about views, right?
ROI is always about looking at the bigger picture.
Marketers are often under the impression that more visibility means more reach. However, this leads to the ignorance of actual metrics – Conversions, Engagement, CTR, and Retention.
Paying attention to these metrics will tell you whether your explainer videos are contributing to lead generation or not.
To make the best out of your explainer videos, focus on creating high-quality content with a clear CTA.
2. Explainer videos need to be at least 3-4 minutes long
Not really, unless the product or topic demands a detailed video.
While producing over 450+ videos now, we can confidently say that the average and best length for explainer videos falls between 45-90 seconds.
Since length is dynamic, it is bound to vary depending on the message to be presented or communicated.
For example, the best length for SaaS explainer videos is 60-90 seconds. Whereas when it comes to creating corporate videos, it could stretch to approx. 2-3 minutes.
Therefore, it’s not about length. What you need is a clear message that elaborates on a complex topic in the easiest possible way in a short period.
3. Misbalances entertainment & information
Balancing entertainment and information in explainer videos is an art that directly impacts ROI.
The sweet spot lies in creating content that’s both educational and engaging. A 2024 Content Marketing Institute study revealed that videos blending storytelling with clear information see 65% higher viewer retention rates.
The key is using narrative techniques, humor, and relatable scenarios while maintaining core message clarity. Marketing expert Seth Godin emphasizes, “People don’t buy facts; they buy stories.”
Your explainer videos should transform complex information into compelling narratives that not only inform but also emotionally connect with the audience.
For example – We leveraged created visual storytelling for our Cloud Banking partner in helping communicate one of their key products. Check out their video below.
4. You need a big-budget production for a great ROI
If you feel you need a big-fat budget of $30K – $50K and a Hollywood-standard studio, hold on for a second!
Due to their widespread accessibility and usage, these videos have become a normalized commodity.
As a result, the average cost of explainer videos today ranges between $3K – $10K, subject to cost changes based on length, quality, revisions, complexity, etc.
With their robust video production process designed to deliver appealing videos in under 10-14 days, modern-day video production companies have eliminated the back-and-forth hassle.
This way, you can achieve your target business objectives and explainer video ROI without ending up spending millions on an ineffective video.
5. Explainer videos only help with Direct Sales
Again, it’s busting another myth. Although explainer videos form an integral part of sales funnels, their usability extends beyond just sales.
Given their versatility to fit into multiple contexts, these videos offer a wider usability to marketers in catering to their business requirements.
Check out below how different types of explainer videos help fulfill objectives:
6. It’s all about the video; the rest doesn’t matter
Getting an explainer video produced is only half the job done. Apart from that, you would also require strategic planning to make it reach your target audience.
Next, you need an effective video marketing strategy to distribute your video and boost visibility.
As per the Content Marketing Institute, marketers can observe an 80% rise in conversion rates through targeted video marketing.
Choose your demographics, pick appropriate platforms, A/B test different channels, and mix & match formats to amplify your explainer video’s reach in the target market.
7. Explainers become obsolete too quickly
Dismissing explainer videos as a ‘One-time’ tool would be an injustice to its usability.
However, the need is to understand how versatile & fresh they can be based on the agenda for which they were originally produced.
Let’s take an example: For SaaS brands, innovating new product features at regular intervals, they require short explainer videos to highlight new updates.
As a result, these videos offer greater usability for multiple platforms and can stay afloat for a quite longer periods for brands.
8. Long-term ROI from explainer videos is hard to measure
Measuring long-term explainer video ROI goes beyond immediate sales metrics. Advanced tracking reveals deeper value through brand trust and customer engagement.
A 2024 Forrester Research study demonstrated that companies consistently using explainer videos saw a 62% increase in customer loyalty and a 47% improvement in brand perception.
Key performance indicators like repeat customer rates, reduced support inquiries, and enhanced social media engagement provide comprehensive ROI insights.
Are Explainer Videos Expensive?
Want a quick overview? Check out our dedicated video below.
If not, continue reading some critical pointers.
No, they aren’t. Talking about the ROI that you can extract from explainer videos, the cost of getting them created is a worthy investment for brands to make.
Here are a few pointers that will help you deeply understand the pricing factors that go into consideration.
Also, these elements will help you grab the dynamic nuances of why these videos hold subsequent value for over 72% of marketers globally:
1. Price range
Explainer videos typically cost between $2500 and $20,000 globally. Based on the elements involved, it may differ from studio to studio.
2. Factors affecting cost
Portfolio depth, production quality, customization, animation styles, and video length affect the total production cost.
However, there’s a debatable perspective on costs varying based on geographical locations.
In regions like the USA, the UK, Europe, and Australia, the average explainer video price tends to remain slightly high as compared to explainer video production companies based out of Asia or the Middle East.
Now, this could be attributed to advanced production capabilities and stronger currency domination against their counterparts.
But when it comes to creative abilities and the process behind producing stunning animations, you must take into consideration the final output; because that’s what matters at last.
3. Production methods
With AI being actively integrated into the video production spectrum, the AI Animation tools narrative is gaining momentum as brands are experimenting with automation tools.
But in reality, these tools are currently built out of Gen-AI models, which despite offering decent output at minimal costs, lack customization & creative freedom at large.
Whereas professional video production agencies offer end-to-end customization based on your brand’s vision, leading to a stark comparison in terms of costs incurred.
Final Say - DIY vs. Professional Explainer Videos
With AI tools and platforms like Canva, creating an explainer video in-house might seem tempting and cost-effective.
However, this DIY route comes with significant challenges.
From scriptwriting and storyboarding to animation and voiceovers, you need to take up all the roles.
Professional animated explainer video services bring this expertise to the table. They can craft videos that not only look polished but also deliver your message effectively.
Another great thing about working with a professional is the flexibility in customization.
Businesses lean towards quick-fix solutions, often relying on templates and compromising video quality.
So if you’re going to do explainer videos, do it well. Partner with someone who understands the message you want to deliver to your audience.
