Companies will look for the $500 option for their explainer videos so they can save money initially. However, the result of all that money saved up front will typically be extremely limited (or no) engagement, conversion, and revenue.
This guide will highlight the top reasons why low-cost films are ineffective and contrast them with quality options to help you properly invest in the most profitable films.
We will examine data/reports from leading experts and industry-sector analysis to identify gaps in many top-performing articles, such as the absence of real-world conversion numbers and case studies.
Defining Cheap vs Quality Explainer Videos
Explainer videos from budget vendors generally offer prices under $2000; these use templates and stock assets while employing an automated voice to narrate with minimal customization.
Conversely, quality productions typically fall into the $3000 to $10000 range for a minute-long production, which includes: original scripts, custom storyboards devoted to the client, professionally created animation, and several rounds of revision.
These inexpensive options claim to provide a fast turnaround on an explanation video while producing generic content that lacks uniqueness and cannot connect with potential buyers.
Common Production Shortcuts in Cheap Videos
Pre-made templates, low-resolution graphics that resemble clip art, and robotic narration are common shortcuts taken by providers. As a result, many viewers are immediately turned off by the quality of their experience when viewing explainer videos; ultimately, 96% of viewers stated that they use explainer videos to learn about products.
Key Reasons Cheap Videos Fail to Convert
Video quality can diminish a company’s brand value, leading to a lack of trust in its products because they are perceived as having low quality. Viewers may view a sense of high production value as a positive attribute, while they may perceive lower production values as negative attributes.
Landing pages that incorporate explainer videos convert visitors to customers 86% better than pages without explainer videos. However, landing pages that feature low-quality explainer videos convert visitors to customers at lower rates since low-quality videos are less likely to be retained by viewers.
Additional Read:
How Animation Explainer Video Helps Build Confidence in Patients for Plastic Surgery
Impact on Viewer Perception and Engagement
Viewers often leave budget videos because they appear less professional than quality ones. However, viewers typically stay engaged with a quality video 3–5 times as long. By using a low-quality animation style, the chances of effective storytelling are diminished, leaving minimal return on investment.
Cost Breakdown and True Value Comparison
Quality videos justify costs through longevity and reuse across platforms, while cheap ones become obsolete quickly
Real-World Evidence: Stats and Case Studies
According to industry predictions, the global market for explainer videos will amount to $4.7 billion by 2025, with a growth rate of 4.1 percent per year. However, approximately 89 percent of consumers will stop buying inexpensive explainer videos, making them “unsuccessful” compared to quality explainer videos.
Experts say inexpensive explainer videos have no real return on investment because of their very short life span and relationship to current trends.
When Cheap Might Work (And When It Won’t)
Although tools like Animaker are suitable for ultra-low budgets and basic needs in a DIY capacity, they support low-quality production. For high-stakes conversions, choosing value rather than a low price is a smart decision when targeting a B2B audience or communicating complex ideas.
How to Choose Videos That Deliver ROI
Put more weight on finding creators who have established themselves through strong portfolios or have received good feedback. Additionally, run some tests using mid-range priced video and focus on content clarity rather than a visually flashy production.
Conclusion:
Value will outweigh price in the long run; lower-priced explainer videos are often lower quality than their higher-priced counterparts. That translates into fewer customers due to poor impressions of your brand (as illustrated by the 86% increase in conversion rates associated with high-quality Explainers). Working with KrishaWeb and its production division.
KrishaStudio can help you gain targeted audiences by producing quality explainer videos in both 2D & 3D, allowing your company to utilize quality video to improve conversion rates by 85%. Reach out to KrishaStudio for professional service tailored to your specific needs and to help convert your visions into high Return On Investment (ROI) videos.
