How Much Does An Explainer Video Cost? (2024 Guide)

When you’re in the market to sell products, videos can be the best way to get your proposition to the customer. The world is fully digital now with screens to view video all around you. Explainer videos are one such marketing powerhouse that is being increasingly used for marketing. 

Studies show that 84% of people are convinced to purchase after watching a brand’s video. [Source: wyzowl]

It does not matter if you are a startup or a large corporation. 

You need to invest in several types of video marketing. Videos are the easiest way to break complex ideas down, introduce products, and boost brand visibility. 

By the end of 2025, experts predict that video will account for 82% of all internet traffic. [Soure: vidico]

So, how much do you need to set aside from my annual budget for this? 

Let’s discuss standard video production rates and general explainer video costs in this guide today! How much can you expect to invest in 2024, let’s find out!

Key Highlights: Explainer Video Costs   • Key elements like video style, complexity, video length, voiceovers, scriptwriting, and the production team drive the overall price. • Costs vary from $5000 for basic videos to $15,000+ for fully customized, high-quality explainer videos. • Additional expenses such as revisions, professional voiceovers, custom animations, and multiple rounds of edits can increase the final price. • Prices have seen gradual increases due to inflation and demand for higher production quality, with continued upward trends expected. • Freelancers are more affordable but may lack reliability. Agencies offer comprehensive packages but at higher costs, and DIY solutions are budget-friendly but can compromise on quality.

6 Factors That Affect the Cost of an Explainer Video

With great handheld devices literally in the palm of your hand, you may think creating explainer videos is easy. However, for a professional finish, making one can be a significant investment. Here are a few factors that influence the cost of making an explainer video. 

1. Video Style and Complexity

2D Animation vs. 3D Animation

Most explainer videos are usually made with animations. Now, how complex you want the animation to be will play a big role in how much making such a video will cost. 2D animations are generally more affordable. You can expect them to start at $5,000 to $15,000 per minute. 2D animation also has a flat design and characters. 

On the other hand, 3D animations are more lifelike and complex with many moving frames and characters. This can shoot the price up from $10,000 to $200,000 per minute. Keep in mind these videos tend to generate more hype in comparison. They are best for dynamic brands but require more advanced software and skilled animators to make.

Live-Action vs. Animated

Live-action explainer videos are the most expensive videos to make as they need to be shot on camera. You need to hire actors and scout locations to shoot the video. Expect to pay anywhere from $8,000 to  $500,000 for a live-action video depending on the complexity. 

If you add special effects or need a celebrity actor, this budget can slightly increase. In contrast, animated videos can avoid these costs but may still require intricate post-production. 

Whiteboard Animation

For those on a tighter budget, whiteboard animations can be a cost-effective alternative to the above. These can cost anywhere between $1,000 to $7,000 per minute. Whiteboard videos are simple and rely on minimal animation. It is done using hand-drawn illustrations to explain concepts. Think of it as a digital whiteboard in a classroom. They are still engaging when made right but at a fraction of the cost. 

2. Length of the Explainer Video

How long you want to make an explainer video will also play a role in the cost of production. Longer videos with a lot of animation, scripting, and voice-overs will be costlier to make per minute. Generally, the ideal length for an explainer video should be between 60 to 90 seconds. Shorter videos (around 30 seconds) work well for ads. Tutorials or detailed explainer videos can be as long as 90 seconds. 

3. Scriptwriting and Storyboarding

Professional scriptwriters and storyboard artists can be game-changing when producing an explainer video. Hiring experts can increase your costs but will make sure you get better value for money spent. It can cost you $500 to $2,000 for a well-crafted script. 

Alternatively, you can also check out DIY script writing tools like Google Docs or script templates to lower these costs. But remember, it may lack the expertise that comes from a professional writer. Storyboarding can range from $500 to $3,000 depending on expertise.

4. Voiceover and Sound Design

Professional voiceovers can cost anywhere from $300 to $1,500. If you’re targeting a global audience, you may need to write the same script in multiple languages which will further increase the budget. On the other hand, using a royalty-free soundtrack is definitely cheaper but it may not have the same effect on the viewers that a custom soundtrack or jingle may have. Expect costs to be anywhere from $500 to $3,000. 

5. Production Team

Your production team, made up of video producers, animators, directors, and editors all contribute to different aspects of a video’s concept to the final cut. The combined cost of a professional team can range between $10,000 and $50,000 per minute. However, you can also go the freelancer route for a more affordable alternative at the cost of quality or turnaround times.

6. Revisions and Edits

Every explainer video project needs to be revised. The higher the revisions the more it will add to the final cost. Most production companies will give you the first two to three rounds of revisions with the package. 

Additional rounds will add to the expense by not more than $500 to $1,000 per round. 

To minimize these costs:

• Make sure your direction to the team is clear and detailed in the initial stages.
• Give proper feedback on the first couple of revisions. 

Average Cost of Explainer Videos Based on Industry Standards

Explainer videos can vary in price depending on the type of video, its length, and the complexity of production. Here’s a breakdown of the costs:

Breakdown of Costs by Type of Video

Cost Ranges by Video Length

Cost Breakdown for Each Stage of Explainer Video Production

When it comes to producing an explainer video, costs vary significantly depending on the stage of production. Here’s a breakdown of expenses involved in each phase:

Pre-Production Costs

At pre-production, you develop the concept of your video through scriptwriting, storyboarding, and concept planning. During this phase, you write the script which is the way you can clearly convey your message. This is followed by storyboarding which visually outlines each scene. The costs in this phase range from $500 to $2,000 depending on complexity. 

Production Costs

At this stage, the video you have in mind is created using animations, live video shoots, voiceovers, and sound design. A simple 2D animation may start at around $1,500, while 3D animations or live-action shoots can run into tens of thousands of dollars. Voiceover work and sound design also add to the budget where professional voiceovers can range from $200 to $1,000 per project. 

Post-Production Costs

This is the final stage of production where all the footage is packed into the final output. This is where professionals edit, add special effects, and revise the video according to your feedback. At this stage, the visuals are polished and motion graphics are added. Post-production can cost anywhere from $1,000 to $5,000 depending on the number of revisions and final quality control.

Low-Budget Explainer Video Options (For Startups and Small Businesses)

If you are a small startup with a tight budget, you can also look into cost-effective alternatives to create explainer videos.

DIY Explainer Video Tools

Many startups turn to DIY video software like Powtoon, Animoto, or Biteable. They are affordable and user-friendly and let you create basic explainer videos for a low monthly fee. These fees can be as low as $20 to $50 per month. 

While these platforms are great for saving money, they may be limited with fewer customization options and a steeper learning curve for first-time users. DIY videos may also lack the polish and professionalism that comes from a video production company. 

Pros:

• Cost-effective and accessible.
• Ideal for small-scale projects.

Cons:

• Limited creativity and customizability.
• It can appear less professional compared to agency-produced videos.

Hiring Freelancers vs. Agencies

Alternatively, you can also turn to hire freelancers from platforms like Fiverr if you want professional results without the expense of a full agency. Freelancers generally charge less than agencies, with prices starting as low as $500 for simple projects. However, hiring a production agency is almost always a more reliable way to go. They operate with a structured process with higher-quality output. 

Freelancers

• Pros: Lower cost, flexibility, and faster turnaround times.
• Cons: Potential for inconsistent quality and less oversight.

Agencies:

• Pros: High-quality output, more resources, and a full production process.
• Cons: Higher costs and longer project timelines.

How to Get the Best Value for Your Explainer Video?

Customization vs. Templates

For the best value for money, you can look into using pre-made templates for explainer videos. This can save significant costs, especially for businesses with limited budgets. These templates ensure you have a professional-looking video without investing in complex animation or design teams. However, as they are free, many others may have already used these templates lacking originality. This can make it difficult to stand out in highly competitive markets. 

On the other hand, a customized explainer video can better align with your brand mission and vision. It will have a unique story and design that better reflects your company’s values and message. Custom videos can especially be a valuable way to explain complex ideas simply. 

Negotiating with Video Production Companies

The world works on effective negotiations, so do not hesitate to do the same with any company you choose to go with. To get the best deal start by researching portfolios and quotes from multiple agencies for comparison. Assess their past work and find a production company that aligns with your budget and needs. Don’t hesitate to discuss your budget as they will almost always be willing to adjust. 

ROI of Investing in an Explainer Video

Benefits of High-Quality Explainer Videos

At the end of the day, why should you spend so much on explainer videos? 

Well, we recommend doing so because a well-made one can give you great value for money. It can increase conversions, explaining complex products or services to your viewers ultimately improving user retention. 

Explainer videos capture attention quickly, making it easy for viewers to understand what you have in store for them. These videos are great for industries where products need to be simplified to increase customer trust and interest. A polished video can also enhance your brand’s reputation as it will look more professional.

Cost vs. Value

The upfront costs of a high-quality explainer video can be high but they deliver better results over time. This way the number of revisions is low, ultimately your hard-earned money. Additionally, a polished video will also generate more leads, reduce bounce rates on your website, and help drive more sales. Spending more initially can ensure you have got a better return on investment (ROI). 

Common Explainer Video Cost Myths (Debunked)

Myth 1: “DIY Videos Are Just as Good as Professional Ones”

DIY explainer videos can be a cost-effective alternative for small businesses but they will almost always lack the polish that you get from professionals. Professional videos come with high-quality animations, voiceovers, and visual storytelling. 

All of this combined can increase viewer engagement. DIY tools like Powtoon or Biteable are great for simple content. Professional production teams have research done on target audiences which go a long way in delivering the right message to the right people.

Myth 2: “Longer Videos Cost Significantly More”

Longer videos indeed tend to cost more but remember that it is usually not as significant as people think. Video length alone does not substantially impact the cost. 

What drives up the price is the complexity of the animation, the number of scenes, and the level of detail required. For example, a 90-second video with simple animations could cost less than a 60-second video with intricate 3D effects.

Myth 3: “One Explainer Video Fits All”

Not all explainer videos are made to serve the same purpose. Some businesses assume that creating one explainer video is enough to get the job done. However, remember that how customized a video is will affect how well it is perceived by the audience. 

You need to create different messaging for different audiences. You also need to adjust the video style accordingly. A product demo for an existing customer base may differ from a video created for new leads. Customization ensures that the video speaks directly to the target audience, delivering better results.​

How Much Should You Budget for an Explainer Video in 2024?

Budget Categories

Here’s a quick rundown of the budget you need to have to make explainer videos in 2024:

• Low-Budget ($1,000–$5,000): Low-budget explainer videos are ideal for startups and small businesses. These have basic animations and simple whiteboard designs. You can use DIY software or freelance platforms such as Fiverr to find ways to make these videos at the cost of quality or uniqueness.​
• Mid-Range Budget ($5,000–$15,000): This is balanced in terms of quality and affordability. These videos can be more polished with animations, professional voiceovers, and design. Production companies in this range create high-value videos with greater customization. 
• High-End Budget ($15,000+): If you are a big company, you may need to opt for fully customized, highly polished explainer videos for the best output. These videos come with advanced animations, 3D elements, and extensive post-production work. 

Frequently Asked Questions (FAQs)