In these cut-throat digital times, brand visibility and customer loyalty are everything. If you are not in the minds of your customers, you are not there at all.
For that, brands are investing in creative media to bring in engagement and it is the most important thing. It encourages your viewers to watch, comment on, and share your video rather than skimming past it.
Explainer videos are therefore like commercial gold mines. Wouldn’t it be wonderful if you could use a brief, 60-second explainer to grab your audience’s attention and convey a strong message that would leave a lasting impression? They have a great power to captivate users, and incorporating a video on a landing page can boost conversion rates by 80%.
Now, while you know about the incredible abilities of explainer videos, you might be wondering how much it costs to create one for your business. Well, this blog has everything you need to know about explainer videos and their costs.
What is an explainer video?
An explainer video is a short video used for marketing or sales purposes. These videos typically range from 60 to 120 seconds in length and use a combination of visuals, animation, text, and voiceover to effectively communicate complex information in an easy-to-understand way.
It makes a company’s product, service, or business concept memorable and helps to increase conversions, SEO, and consumer engagement. Explainer films, which are part of bigger digital marketing plans, can be utilized anywhere from company websites and social networks to fundraising platforms and much more.
When done correctly, an explainer video can bring in remarkable results. One of the most impressive video examples comes from a firm named COOLEST. They helped raise an astounding $13 million in funding with the help of their explainer video. It became the largest crowdsourcing effort ever as a result.
Factors Affecting the Cost of Explainer Video
Now, you know the basics of creating an explainer video and it is important to know its cost. But, there are so many factors affecting the cost of an explainer video. And, below we will be listing all the key factors you need to know about to prepare an accurate budget. Dive in to discover how different aspects of video production influence pricing and what to consider when planning your explainer video project.
1. Length of the Video
One of the things that usually determines the price is the duration of the video. Modern marketing tends to be more micro. It implies that the so-called “micro-videos,” or those that last less than a minute, are becoming increasingly more well-known and prominent in the digital sphere.
The 30, 60, and 90-second explanation film lengths are the most widely used. And, you know the good news is that the cost will go down to some extent if your video is of shorter duration. As a result, you will spend less money and receive more traction and engagement. A win-win.
2. Animation style
Next, the animation style will have a significant impact on the cost of your explainer video. When compared to 2D animations, 3D animations are far more expensive. The amount of detail in a 2D or 3D explainer film can still vary greatly within those two categories, which can have an impact on the final cost of your explainer video.
Some of the details in the animation style that can impact the costs are:
- The amount of detail needed in characters, objects, and backdrops
- The quantity of motion, interactions, and scene changes
So, it is better to determine your requirements first, and based on your requirements – you can reach out to your explainer video production company, ask for their help as well, and make the right decision.
3. Custom Video vs Templates based video
Every choice between template-based and custom-made assets has pros and cons of its own that will ultimately impact the project’s overall quality, distinctiveness, and cost.
Custom-made assets provide a greater degree of originality and creative freedom, allowing you to create a distinct visual experience specific to your brand and message, but they are more expensive.
Conversely, Template-Based Assets use stock assets and pre-designed features to offer a time- and money-saving option. However, it offers limited opportunities for customization and artistic expression.
4. Script Development
The script is one of the most significant components of explainer video creation, and it has an impact on the whole production cost.
However, the cost of writing a script is determined by several factors, including the script’s length and complexity, and also the scriptwriter’s qualifications and expertise.
A compelling and successful explainer video requires a well-written screenplay. A well-written script requires researching the topic, soliciting feedback from subject matter experts, and reworking the screenplay numerous times to guarantee accuracy and ease of comprehension.
In general, the more time and effort spent on screenplay development, the higher the cost.
Additional Read:
Explainer Video Production Process Guide to Get it Right!
5. Storyboard Creation
Storyboard creation also affects the cost of video production. Making a storyboard involves time and effort from creative people like writers, artists, and directors. A storyboard shows the visual sequence of the video, ensuring the story flows smoothly and conveys the right message.
The more detailed and complex the storyboard, the higher the cost because it requires more planning and artistic work. Despite these expenses, a well-made storyboard is essential for guiding the production process, preventing misunderstandings, and ensuring the final video is cohesive and effective.
Also, keep in mind that – changes in the storyboard can also add to the cost. So, consider all the hidden expenses and revision charges right from the start.
6. VoiceOver and Music Licensing
Voiceover and music licensing in the explainer video significantly impact the cost of video production. You need to hire a professional voiceover artist involves paying for their time, talent, and experience, which can vary widely based on their expertise and the project’s complexity.
Additionally, acquiring the rights to use music in a video includes licensing fees, which can differ depending on the popularity of the track, the duration of its use, and the distribution channels. Custom music is also an option that many businesses use – but it is quite expensive.
When you hire an experienced video production company, they will take care of the voiceover artists and music licensing and help you reduce the hassles and costs significantly.
7. Revisions
The amount of modifications required during the production process might also affect the cost of an explainer video. However, the cost of revisions will vary depending on the scope of the modifications required and the stage of the production process at which they are requested.
Smaller changes, like fixing a typo or modifying the timing of an animation, don’t increase costs or lengthen the timeframe, though.
However, more substantial changes, like rewriting the script or adding new graphics, may require more time and money, raising the overall cost of the video production.
8. Turnaround Time
Since time is money, turnaround time is another element that may have an impact on the price of an explainer video. Turnaround time is essentially the amount of time it would normally take them, starting from the first inquiry and ending with the finished video.
So, when choosing a video production company, you might inquire about the turnaround time. When you hire an agency to create something new for you, it’s crucial to have some patience – because good things take time. However, if you are in a rush, some companies offer a “quick turnaround fee” if you need your video immediately. But, it will add to the total video production cost.
Types of Explainer Videos and Their Cost
Explainer videos come in various forms, each with unique characteristics that influence the overall production cost. Below, you will find all the types of explainer videos and their associated costs. Discover how different styles and approaches can impact your budget and what to consider when choosing the right type for your project.
1. Live demonstrations
This is widely recognized as the most expensive sort of explainer video, which is understandable. A whole cast or team is required to produce anything for your company while creating this kind of video content. Everything that goes into making this explanation video will be at your expense.
A live-action explainer video requires an investment of between $8000 to $50,000 to produce. Additionally, because real-world events are unpredictable, estimating for live-action videos can be a little more difficult.
2. Digital demos
Digital demos are explainer videos designed to showcase the features and functionality of software, apps, or online services. These videos typically use screen recordings, animations, and voiceovers to guide viewers through the product’s interface and demonstrate its use. So, because of its easy-to-create nature and less complexity, the costs are comparatively lesser.
The costs of producing digital demos are typically around $500 to $2000 and can vary significantly based on various factors. Key expenses vary based on high-quality screen recording software, hiring professional voiceover artists, and animators, scripting, editing, and revisions to ensure the final product is polished and effective.
3. 2D vector animation
2D vector animation is labor-intensive, raising your cost to between $7,000 and $20,000 per minute. An animated video with more sophisticated designs, custom character creation, and detailed scenarios takes longer to create and costs more.
You may have to pay extra for sophisticated animation techniques like fluid motion or interactive aspects, depending on the style of animation you’ve chosen.
Whiteboard animation
Whiteboard animation costs $1,500 to $15,000 per minute, depending on the length of the video and the intricacy of the drawings, which is far less than vector animation. In contrast to elaborate and dynamic drawings that demand more time, and expertise, you can go for simpler graphics with less movement as it is economical and brings in the required results for your business.
Motion graphics
Motion graphics simulate motion and change by combining animation and graphic design approaches. And, it’s frequently used to produce visual effects, clarify difficult ideas, or interestingly narrate a story. Depending on their intricacy, motion graphics can cost anywhere from $500 to more than $10,000 per minute.
Simple motion graphics with conventional designs and simple movements are less expensive. The cost can go up dramatically if you add music effects, intricate transitions, 3D visuals, and bespoke artwork.
Get the Best Explainer Video for Your Business!
This was a simple way of estimating the cost of explainer videos. Although explainer videos have many advantages, there is a cost associated with using them. Keeping your project expenses inside your budget is crucial, but don’t allow them to get in the way of creating an effective explainer.
And, if you are looking for the leading explainer video production company, then Krisha Studio can help you out. We have a talented team of designers, animators, videographers, and project managers – who can understand your business needs and provide you with a detailed cost estimate.
So, what are you waiting for? Connect with us on a call, get a free pricing quote and we’ll help you get started.
