Explainer video costs usually range from €2,000 to €6,000.
Many people wonder why there is such a wide price range and what factors influence the final price of the service. The style of the video, its length, and purpose are key elements that are taken into account when preparing a price estimate. In addition, the prestige, experience, and reputation of the company producing the explainer videos are also important.
A well-established company with a strong market position and a portfolio of over 400 explainer videos for large clients operating on the global market will price their services much higher than a novice freelancer with little experience.
Honestly, determining the cost of producing an explainer video has always been a challenging task. When potential clients contact us, we seldom provide exact prices immediately. Instead, we first assess the project’s complexity and the client’s specific needs and requirements.
However, given that this is one of the most frequent inquiries we receive, we’ve decided to create this explainer video production pricing guide. This guide outlines the thought process behind the pricing clients see in their quotes.
What is an explainer video? – Definition and purpose of an explainer video
Let’s begin with the fundamentals, specifically the definition and concept of explainer videos. An explainer video is a brief, engaging video that effectively and clearly explains a product, service, or idea. It combines visuals, animation, narration, and music to captivate the audience. These videos are crafted to grab attention and educate potential customers, serving as a powerful tool for attracting new clients.
Explainer videos have quickly become incredibly popular worldwide. Their adaptability and effectiveness mean they are utilized by businesses across various sectors, from tech startups to large corporations. The rising popularity of explainer videos is evident in Google Trends statistics.
Why does visualization work?
Visualization plays a crucial role in the success of explainer videos. As visual beings, we tend to process and retain information better when it’s presented visually. Animated explainer videos, which utilize various animation styles like 2D, 3D, motion graphics, and whiteboard animation, are especially effective for grabbing and holding the viewer’s attention.
Moreover, visualization simplifies complex ideas, making them easier to understand compared to text or static images alone.
Types of explainer videos | Explain Visually offer
Explainer videos come in different formats, each designed for specific needs and audiences. At Explain Visually, we focus on producing a range of explainer videos, each with its distinct style and purpose.
What exactly do we create?
- Whiteboard animations – Ideal for breaking down complex ideas in an engaging and straightforward way.
- Digital whiteboard animations – A contemporary version of traditional whiteboard animations, providing enhanced flexibility and digital features.
- Vector animations – High-quality, scalable animations that are perfect for professional and corporate settings.
- Infographics and illustrations – These are effective for quickly conveying information, making them great for presentations, reports, and marketing materials.
- Posters – Eye-catching posters can serve multiple purposes, including advertising, educational content, and event promotions.
- One-pagers – Brief, single-page documents that summarize essential information about a product, service, or concept.
- Presentations – Crafted to captivate and inform your audience, these combine striking visuals with clear, concise content to create memorable presentations.
Vector animation for Mitsubishi Electric
How much does an explainer video cost?
We move on to the issue that, right next to the quality and scope of services, is of most interest to potential customers – the cost of an explanatory film. Learn about the 6 factors that shape the final price. The price of an explainer video depends on:
1. Length of the animation and explainer video
The length of the video is a significant cost determinant. Longer videos require more work and resources, thus increasing the cost. For example, a 2-minute video will generally cost more than a 1-minute video due to the additional content and animation required.
The longer the explainer video, the more expensive it will be.
2. Complexity of the explainer video, number of elements and animation style
The more elements and the more scenes and details need to be presented, the more expensive the explainer video will be. A simple video about hand washing procedures will cost less than a complex explainer video about how a rocket engine assembly machine works.
Additionally, different animation styles have different costs. For example, 3D animation is usually more expensive than 2D animation due to the complexity and time required to create detailed 3D models and scenes.
Vector Animation
Whiteboard digital
3. Project complexity and number of explainer videos in one order
The complexity of the project, including the number of elements, scenes, and details, can significantly affect the cost. More intricate designs and animations require more time and effort from the production team.
If a client wants more than one explainer video in a series, the price per video will usually be lower. This is because this streamlines the work for the agency. The same applies to the process of working with a client. The work goes much faster when both parties are on the same wavelength.
That is why producing a series of explainers is beneficial for both the client and the agency.
We have made several animations for KUL
4. Where the explainer video will be displayed
The cost of an explainer video depends on where it will be displayed – the internet, television, or city displays, and whether the campaign will cover only Poland or the entire world. Why?
Similar to purchasing the rights to show “Star Wars” the cost of displaying the film in cinemas across Europe will be higher than watching it at home with friends. This is due to copyright laws, which also apply to explainer videos. The broader the distribution fields, the higher the cost of the license.
Additional Factors Influencing Cost:
- Licenses for music and narration – Explainer videos often include narration and music. The cost of licenses for these elements increases with the expansion of distribution fields. For example, a license for music used in an explainer video displayed globally will be significantly more expensive than a license for the same track used only in a national campaign.
- Production costs – Producing an explainer video for television or large city displays may require higher production quality, which involves higher costs. This necessitates the engagement of a professional production team to ensure high-quality visuals and sound, which are crucial for an effective marketing campaign.
- Adaptation to different platforms – Explainer videos may need to be adapted for different platforms, which also affects costs. For instance, an explainer video intended for television may require a different format and technical specifications than a video meant for the internet. Adapting the video for various platforms can involve additional production and post-production costs.
5. Number of language versions of an explainer video
Some people will say, “Just add one more voiceover and that’s it” . Unfortunately, it’s not that simple. Want to know why?
- Cultural differences and script adaptation – Cultural differences need to be taken into account when writing a script. What works in one culture may not resonate, or could even be offensive, in another. Therefore, the script needs to be adapted to the cultural context of the target audience. This includes not only translating the text, but also localizing it to ensure it is culturally appropriate and engaging. Voiceover and Native Speakers
- Voiceover and Native Speakers – The voiceover text needs to be translated and ideally recorded by a native speaker. This ensures that the pronunciation, intonation, and overall presentation are natural and authentic, which can significantly impact the effectiveness of the video. Native speakers can also provide insight into cultural nuances that may not be apparent to non-native speakers.
- Editing Requirements – Editing requirements can also vary by language version. Some languages are more concise, while others are more verbose. For example, a phrase that takes five seconds to say in English may take seven seconds in German or three seconds in Mandarin. This should be taken into account when speeding up or slowing down certain scenes in the video to ensure that the visuals and the voiceover are in sync.
- Editing Requirements – Editing requirements can also vary depending on the language version. Some languages are more concise, while others are more verbose. For example, a phrase that takes five seconds to say in English might take seven seconds in German or three seconds in Mandarin. This should be taken into account when speeding up or slowing down certain scenes in your video to ensure that the visuals and voiceover are in sync.
Do you know that…
Creating explainer videos in multiple languages can significantly increase your reach and impact. Studies show that multilingual content can break down barriers and increase engagement in different markets. For example, Disney’s Frozen has been translated into 42 languages, contributing to its global success and over $1 billion in revenue.
While creating this explainer video in Arabic we had to be cautious of cultural differences and do some extra research
Sample pricing for explainer videos
Project 1
- Video length: 2 min
- 2 The level of complexity: low
- The number of videos executed under the order: 1
- Field: Internet
- Number of language versions: DE and EN (voice-over and subtitles)
- Production time (based on a deadline): 5 weeks
Price: 3-5 thousand EUR (depending on the studio and how busy the studio is at that time)
Project 2
- Video lenght: 1 min
- Complexity level: high
- The number of videos: 2
- Field: Internet
- Number of language versions: EN (voice-over and subtitles)
- Production time (based on a deadline): 4 weeks
Price: 3-4 thousand EUR for two animations (depending on the studio and how busy the studio is at that time)
Cost breakdown of explainer videos
The cost of an explainer video can vary widely based on the factors mentioned above. Here is a general breakdown:
- Entry-level videos (low cost explainer videos): €2,000 – €5,000. These videos typically use basic motion graphics or whiteboard animation with simple graphics and minimal custom elements.
- Standard videos: €5,000 – €10,000. These include mid-level animations, standard sound design, and more detailed graphics.
- High quality explainer video: €10,000 – €20,000 or more. These videos feature high-quality animations, advanced sound design, and intricate designs, often involving 3D animation or complex motion graphics.
Remember!
One of the risks associated with hiring freelance specialists is the lack of assurance that they will complete the project, as they might abandon it midway, leaving you with an incomplete task.
Why does an explainer video cost thousands?
In professional agencies at least several specialists work on an explainer video simultaneously. Each is needed at a different stage of production.
Creating an animation video is a multifaceted endeavor that necessitates the expertise of at least five or six professionals, each bringing their unique skill set to the table:
- producer,
- scriptwriter,
- illustrator,
- animation designer,
- voice-over artist,
- sound designer.
Having these specialists on your team is essential to ensure effective results and to avoid wasting your budget.
Client needs analysis
The Project Manager talks to the client and gets to know their goals and then a specific style or length of animation is suggested. At this stage, the client is asked to complete a Brief. Then the client provides factual materials – product brochures, articles, design presentations or links to websites. The role of the explainer video is to convey the subject matter in an interesting and engaging manner.
The Project Manager will outline the work schedule, keep an eye on deadlines, take care of the constant flow of information and make sure that all the client’s comments are considered.
At ExplainVisually, in order to better understand our client’s target audience and needs, we conduct workshops at Mural – so the explainer video can better meet the company’s goals.
Workshop and script creation
The explainer video script is usually created following an online workshop with the client. During the workshop we will organize the information about the product or project and wrap it up in a story. Then the script is created.
The script consists of voiceover text and a description of what will happen in each scene. Usually up to three rounds of alterations to the script are included in the production price.
Storyboard preparation
A storyboard is a working illustration of the scenes from the script. They aim is to help the client to imagine the final product and to give the illustrators in the studio guidelines about the essential elements of the explainer.
The explainer video production price usually includes between 1 and 3 revision rounds of the storyboard.
Example storyboard
Drawing an explainer video or preparing vectors
In the case of whiteboard animation, the illustrators shoot the video in the studio. Recording a 2-minute video usually takes 3-4 days of intensive work.
The same is true for the implementation of vector animation. Preparation of the storyboard for animation requires a lot of time, because each graphic needs to be divided into small pieces (for example, the face divided into eyes, nose, ears, tongue and mouth) and designed according to the guidelines of the animator.
Editing and animating
The next step is putting the explainer video together. The video is synchronized with voiceover, music and sound effects. Logos and additional materials provided by the client are also added.
This process can take up to seven days, depending on the length or complexity of the video. Two animators work on more complex animations.
The draft explainer video is sent to the client and revisions are made if required
The project manager collects comments and passes them to the team. Sometimes changes require fine-tuning editing. Sometimes they require adding a voiceover. And sometimes even an extra scene.
The agency compensates its employees for each such revision, which must be reflected in the price.
Explainer video pricing and profitability
Is it worth investing in explainer videos?
Yes, if you approach it head on. Just like Więcej Niż LEK course which our animation helped to earn the first 400K PLN.
No, if you make a video “because you want to have an animation”, without thinking about how to use it so that it pays off.
We discuss this further in the article about explainer video profitability. You can there download an Excel ROI calculator to help you estimate the potential ROI of an explainer video for your company.
Explainer video pricing and profitability
Is it worth investing in explainer videos?
Yes, if you approach it head on. Just like Więcej Niż LEK course which our animation helped to earn the first 400K PLN.
No, if you make a video “because you want to have an animation”, without thinking about how to use it so that it pays off.
We discuss this further in the article about explainer video profitability. You can there download an Excel ROI calculator to help you estimate the potential ROI of an explainer video for your company.
Video production costs – tips
How to budget your animation video production? When deciding what budget to allocate for marketing video production we always advise to base your decision on the ROI you expect to get. Basically you want to identify how the $X investments in business video will improve your conversions on a particular stage of the Sales funnel, and based on this information determine the budget for your video and distribution channels.
Animated explainer video cost considerations
Follow these rules:
- Prioritizing production quality over cost
- Focusing on ROI rather than cost
- Investing in high-quality production
- Balancing budget with production value
- Allocating budget effectively
- Ensuring production quality meets budget
- Considering the ROI of an explainer video
- Measuring the effectiveness of an explainer video
- Calculating the return on investment
Engaging a video agency
Collaborating with a video agency ensures more predictable outcomes in terms of quality, delivery timeline, and production budgets for explainer videos. Unlike freelancers, a video agency approaches your project from a marketing perspective rather than just a design standpoint. This enables them to provide tailored advice on what will work best to achieve your desired results.
With a video agency, you don’t need to constantly monitor the progress of the work. Professional production agencies have project managers or producers who oversee all processes. These individuals handle all the micro-management tasks, such as adjusting the color of the sky or tweaking the shadow of a table, saving you from having to provide extensive micro-feedback.
An experienced production team is versatile and can work in various styles and animation types, ensuring that your vision and brand mission are not compromised. Additionally, working with a production team mitigates the risk of project delays due to individual absences, as the project manager can reassign tasks or bring in another specialist to maintain the project’s momentum.
Summary
Wow, it looks like we’ve covered every aspect of custom explainer video costs in this guide. Now, when you receive a price quote from a video agency, you’ll understand where the numbers are coming from.
We always recommend setting a production budget that aligns with your goals. You don’t need to spend €10,000 on an animation; even smaller investments can yield highly effective videos.
If you still have any questions about the pricing of explainer video production services, feel free to reach out to us, and we’ll be happy to help. Let’s talk!
