Explainer Video Cost in 2025: What Drives the Price?

Explainer videos are an essential tool for businesses. Whether you're a startup looking to introduce your product or an established company aiming to educate your audience, explainer videos offer a concise and engaging way to communicate.

But how much do these videos cost?

The truth is, the cost of an explainer video can vary widely based on several factors. Understanding these factors will help you make informed decisions and set realistic expectations.

Explainer Video Costs Across Production Types

Explainer videos are vital for businesses to convey their offerings. However, the cost of production varies due to different provider types. Options include freelancers, agencies studios, and large companies.

1. Freelancers offer flexible pricing, ideal for small businesses.
2. Agencies studios offer creativity, flexibility at a mid-range cost.
3. Full-service video production companies while large companies provide comprehensive services at higher prices.

Choosing the right provider affects both budget and video quality. Aligning provider choice with business goals ensures effective communication and maximizes ROI. A strategic approach to selecting a provider helps businesses meet their communication objectives.

1. Large Agencies - Cost Range: $8,000 to $20,000+

Large agencies are known for their high-quality production and full-service capabilities, making them a top choice for clients needing comprehensive solutions. They typically work with large corporations on complex, high-stakes projects that require skilled teams. Their services come at a premium, generally costing between $8,000 and $20,000, which reflects their expertise and resources. While these agencies offer superior results and a wide range of services, the high costs and longer turnaround times (averaging 4 to 8 weeks) can be drawbacks. Overall, they are best suited for clients who value quality and need a dependable partner for complex projects, despite the higher expenses and timelines.

2. Small to Medium-Sized Agencies - Cost Range: $3,000 to $8,000

Small to medium-sized agencies play a vital role by providing quality services at affordable prices, typically charging between $3,000 and $8,000 per project. A major benefit of these agencies is their strong quality-to-price ratio, offering clients personalized service and tailored solutions. This individualized attention is advantageous for businesses needing a custom approach.

In this case, their limited resources may pose challenges for more complex projects. These agencies are best suited for small to medium businesses and startups seeking quality services at reasonable prices, with project timelines generally between 2 to 4 weeks.

3. Freelancers - Cost Range: $1,000 to $3,000

Freelancers are essential in the explainer video market, providing a cost-effective option for businesses seeking engaging content without the high costs of larger agencies. Collaborating with freelancers can lead to significant savings, with prices typically between $1,000 and $3,000.

One key benefit of hiring freelancers is their flexibility, often offering adaptable schedules and direct communication, which aids in fully realizing your vision. This is especially advantageous for projects needing quick turnarounds or specific customizations.

The quality can vary among freelancers, necessitating careful vetting to ensure they have the required skills and experience. Freelancers may also have limited capacity and may not efficiently manage multiple projects like larger teams. They are particularly suited for small businesses and tight budgets, enabling cost-effective video production while maintaining creative control.

Typically, freelancers take 1 to 3 weeks to produce an explainer video, depending on project complexity and their workload. While freelancers are a budget-friendly and flexible option, it’s essential to choose carefully to ensure the final product meets your business's needs.

4. Template-Based Solutions - Cost Range: $50 to $500

Template-based solutions offer a cost-effective way for businesses to create digital or print materials. Priced between $50 and $500, they are ideal for startups, small businesses, and internal communications with tight budgets. Their main advantage is quick delivery, ranging from a few hours to a few days, balancing affordability with speed. However, customization is limited, which can result in a generic look, making them less ideal for unique brand identities. Despite this, they are perfect when cost and speed outweigh the need for distinctiveness, allowing efficient resource allocation.

5. In-House Production - Cost Range: High initial investment

In-house production involves creating content using a company's own resources and staff, rather than outsourcing. It requires a significant initial investment in equipment, software, and training, but can reduce long-term costs by eliminating the need to pay external vendors. This method offers complete creative control, ensuring brand consistency and allowing quick adjustments. The main disadvantage is high upfront costs and a learning curve with new tools, which can initially slow production. Ideal for companies with ongoing content needs, in-house production suits those prioritizing brand consistency and having the resources to invest in infrastructure. While initial phases may be slow, an experienced in-house team can achieve faster turnaround times.

Explainer Video Costs Across Animation Styles

Explainer videos utilize various animation types, each offering unique benefits and influencing production costs. Understanding these options is crucial for effective budget planning.

1. 2D Animation: This style is often more budget-friendly and versatile, suitable for straightforward storytelling.
2. 3D Animation: Offers a more dynamic and realistic visual experience but tends to be more expensive due to its complexity.
3. Whiteboard Animation: Known for its simplicity and clarity, this style is ideal for educational content and typically falls in the mid-range of pricing.
4. Motion Graphics: Combines graphic design with animation, perfect for engaging and informative videos, generally priced between 2D and 3D animation.
5. Stop Motion: A unique and artistic approach, often requiring more time and resources, making it one of the pricier options.

Here's a glimpse of how pricing can vary among companies:

• Motion The Agency: $2,000 to $8,000 per video, depending on complexity and duration.
• Explainify: $10,000 to $20,000 per minute of video.
• Blue Carrot: $4,000 to $12,000 per minute.
• Firestarter Videos: $5,000 to $20,000 per minute.

These examples illustrate the importance of selecting the right animation type to match your financial plan.

1. 2D Motion Graphics

2D motion graphics feature flat designs with animated shapes and text. They are ideal for illustrating simple concepts and visualizing data. Typical costs range from $1,500 to $20,000.

2. 2D Character Animation

2D character animation involves creating animated figures with intricate movements. It's ideal for storytelling and portraying relatable situations. The typical cost ranges from $3,000 to $30,000.

3. 3D Animation

3D animation offers a visually stunning and immersive experience, characterized by realistic depth and complex movements. It's particularly effective for product demonstrations and technical explanations where intricate details matter. However, its complexity is reflected in the cost, typically ranging from $5,000 to $50,000 or more.

4. Whiteboard Animation - Cost Range: $1,000 - $15,000

Whiteboard animation is a unique style characterized by hand-drawn illustrations that unfold on a whiteboard surface. This animation style is renowned for its simplicity and clarity, making it ideal for conveying complex ideas in an easily digestible format. The straightforward, illustrative approach is particularly effective for step-by-step explanations and educational content, where clarity and engagement are paramount.

The typical cost for creating a whiteboard animation ranges from $1,000 to $15,000, depending on factors such as length, complexity, and the level of detail required.

5. Stop Motion - Cost Range: $3,000 - $30,000

Stop motion animation involves animating physical objects frame-by-frame, creating a distinctive tactile experience. Its unique appeal makes it ideal for product showcases. Typical costs range from $3,000 to $30,000.

6. Mixed Media - Cost Range: $3,000 - $40,000

Mixed media animation combines various animation styles to create a dynamic and engaging visual experience. Its versatility allows for the seamless integration of different techniques, making it particularly effective for complex topics and captivating storytelling. The cost for mixed media animation typically ranges from $3,000 to $40,000, depending on the project's scope and intricacy.

What Drives the Price? Key Factors in Explainer Video Costs

Several factors influence the cost of an explainer video, and understanding these is essential for effective budgeting and informed decision-making. Key elements include the video's length, complexity of the animation, quality of the script and voiceover, and the expertise of the production team. Additionally, custom graphics, revisions, and the timeline for delivery can further affect pricing. Recognizing these variables helps in setting realistic budgets and ensures you select the right options to meet your objectives without unnecessary spending.

1. Video Duration

Video length impacts cost, with longer videos typically being more expensive, including additional scripting, storyboarding, and editing time.

Standard lengths are 60, 90, or 120 seconds, and each additional minute can increase costs by 20-50%.

2. Animation Complexity

Animation complexity impacts costs significantly. Simple 2D animation is the most affordable, ideal for basic visuals. Complex 3D animation or advanced motion graphics increase costs due to higher production needs. Custom character creation is the priciest option as it involves detailed design and rigging.

3. Script and Storyboarding

Scripting and storyboarding are crucial to the production process, directly impacting costs. Professional scriptwriting services and complex topics that necessitate research can elevate expenses, while revisions to storyboards may also influence the overall budget.

Some agencies will offer scripting as part of their planning workflow. We review hundreds of client briefs and scripts, and to streamline this process, we created a brief template. We will then provide our input based on the completed docs from the client.

4. Voice-over Talent

Voice-over plays a crucial role in explainer videos, enhancing their quality and effectiveness. Professional voice actors can significantly elevate the production value, though they come with higher costs, often charging based on script length. When targeting diverse audiences, incorporating multiple languages or accents may be necessary, further impacting expenses. Opting for celebrity voice-overs can dramatically increase costs as well.

As a cost-effective alternative, AI voice-over tools like ElevenLabs and Artlist provide realistic and customizable voice options. These tools allow you to select tones, accents, and styles that align with your video’s requirements, offering an affordable solution without compromising on quality.

5. Music and Sound Effects

Music and sound effects significantly influence both the quality and cost of video production. Custom music compositions tend to be more costly but can provide a unique and tailored auditory experience. Licensed music tracks, while also adding to the expense, offer a wide range of pre-existing options that can fit various themes and moods.

Platforms like Artlist and Uppbeat are popular choices for sourcing licensed music. Additionally, professional sound design can greatly enhance the overall quality of a video, though it typically comes with a higher price tag.

6. Revisions and Edits

Revision rounds can significantly raise costs. Multiple rounds of revisions increase production time and resource allocation, leading to higher expenses.

Clear communication and detailed project briefs are essential to minimize these costs, as they help ensure the provider understands the client's expectations from the start, reducing the need for extensive revisions. Some providers offer packages that include a set number of revisions, helping clients manage costs.

For example, Motion includes unlimited planning and revision at the storyboard stage, along with two animation revisions for our enhanced plan. Our premium plan provides five storyboard and animation revisions, ensuring flexibility while managing expenses effectively.

7. Licensing and Usage Rights

Licensing and usage rights significantly influence the cost of explainer videos. Costs vary based on the intended use; for example, videos intended for web-only use are generally less expensive compared to those for TV broadcast, which require broader licenses.

Geographic restrictions also affect pricing, videos used globally or across multiple regions require higher licensing fees than those restricted to local markets. Additionally, the duration of usage rights plays a role; longer usage periods (e.g., multi-year or lifetime licenses) tend to be more expensive than short-term licenses, as they grant prolonged access and exposure.

Understanding these variations helps businesses budget effectively based on their distribution goals and reach.

How to Pick the Best Video Partner for Your Needs

Choosing the right video production partner is crucial for ensuring the success of your explainer video. The right provider should align with your goals, fit within your budget, and deliver high-quality work. Below are key factors to consider when selecting the best video partner:

1. Define Your Goals and Budget

Establishing clear objectives and a realistic budget is essential. Define what you want to achieve with the video (e.g., increasing sales, explaining a product, or brand awareness) to communicate your needs effectively to potential providers. Set a budget based on market research and explore providers offering flexible pricing options to accommodate your goals.

This alignment helps you find a partner who can deliver within your financial means while meeting your objectives.

2. Evaluate Portfolio and Experience

Reviewing a provider’s past work and experience ensures they have the necessary skills for your project. Look at their portfolio for work in your industry or similar styles to gauge their ability to produce relevant content.

Checking client testimonials and case studies provides insight into their reliability and ability to deliver results, especially when translating complex concepts into simple visuals, which is often critical for explainer videos.

3. Assess Risk and Quality Assurance

Choosing a provider that offers risk mitigation strategies like money-back guarantees or sample projects can protect your investment. Providers demonstrating a commitment to quality assurance through clear processes and high design standards help minimize the risk of unsatisfactory results. This ensures you work with a partner who values client satisfaction and delivers consistent quality.

4. Consider Turnaround Time and Efficiency

Timely delivery is crucial for project success. Verify if the provider can meet your timeline by assessing their track record with deadlines. Agencies known for efficient, smooth production processes often provide stress-free client experiences without compromising quality. This efficiency is key when you have tight deadlines or need quick turnaround times.

5. Examine Customization and Understanding

A provider’s ability to customize the video according to your specific needs is vital. Ensure they can adapt to your brand’s guidelines and messaging, and look for those who take time to understand your project goals. Avoid one-size-fits-all solutions by checking if the provider offers tailored services that fit your unique requirements.

6. Evaluate Communication and Support

Effective communication is fundamental to successful video production. Assess the provider’s responsiveness during initial inquiries and look for those with clear, structured processes that include regular updates. Providers that offer ongoing support or scalable services are advantageous, especially for long-term or repeat projects.

7. Check Technical Capabilities and Innovation

Verify that the provider has up-to-date technical capabilities to deliver your video in the required format and resolution. Look for agencies using the latest software and techniques, as this indicates their ability to provide modern, high-quality outputs. Evaluate their ability to match innovative ideas with equally creative execution, which is crucial for standing out in a competitive market.

8. Review Client Satisfaction and Impact

Client testimonials and case studies are valuable indicators of a provider’s performance and impact. Read reviews from previous clients to gauge satisfaction levels and consistency in delivering quality work. Consider how the provider’s past projects have positively impacted client businesses, which demonstrates their ability to create videos that achieve tangible results.

Why Look Further? Your All-in-One Explainer Video Solution

After understanding the various aspects of creating an explainer video, from production types to cost factors, you might feel overwhelmed by the myriad of choices. However, there's one solution that can address all your needs: Motion The Agency. Motion The Agency combines competitive pricing, flexible options, and high-quality output to deliver effective explainer videos tailored to your business requirements.

1. Quality Assurance: Motion The Agency offers a 14-day money-back guarantee as a commitment to quality and client satisfaction. This policy provides peace of mind, ensuring that you are satisfied with the final product.
2. Free Sample: The agency provides a free custom sample, allowing clients to preview our capabilities before committing. This transparent approach demonstrates confidence in our services and helps clients see the quality they can expect.
3. Competitive Pricing: Motion The Agency’s pricing ranges from £1,200 to £4,900 per video, which is lower than many larger agencies. Despite this, the agency maintains high standards without extending turnaround times, ensuring you receive great value without sacrificing quality or efficiency.
4. Price Flexibility: The agency offers flexible pricing based on video duration (from 30 to 150 seconds) and animation type (2D or 3D). This adaptability allows for tailored solutions that fit various client needs and budgets, making professional video production accessible to more businesses.
5. Speed and Efficiency: Known for fast turnaround times, Motion The Agency is ranked #1 in delivering high-quality results quickly. This speed ensures that clients meet their project deadlines while still receiving premium, engaging videos.
6. High Quality Design: Despite competitive pricing, the agency commits to creating award-worthy designs that effectively communicate messages. Motion The Agency’s work combines aesthetic appeal with clarity, ensuring each video stands out and connects with the target audience.
7. Client Satisfaction: The agency consistently receives 5-star reviews from clients, highlighting its track record of delivering quality work. Many clients express that the pricing is affordable, especially considering the high level of design and attention to detail they receive.

With Motion The Agency, you no longer need to choose between quality, price, or speed. We offer a complete solution that covers all the critical aspects of creating an explainer video at a competitive price point. Our flexible pricing structure ensures you receive premium content tailored to your specific needs, whether it's a short 30-second spot or a longer, more in-depth 3D animation. This allows you to focus on what matters most: effectively conveying your message to your audience, without breaking the bank.

FAQs on Explainer Video Costs

This section compiles frequently asked questions regarding the costs of explainer videos. By addressing these inquiries, readers can gain a clearer understanding of the pricing structure and what to anticipate when looking to create an explainer video.

How much does it cost to make an explainer video?

The cost of an explainer video can vary widely based on factors like animation type, duration, and complexity. At Motion The Agency, explainer videos start at £1,200 for shorter, simpler animations (such as 30-second 2D videos) and can go up to £4,900 for more detailed, high-quality animations, including 3D or longer duration.

2D vs. 3D Animation:

• 2D Animation is more cost-efficient, ideal for clear and concise messaging.
• 3D Animation involves more complexity and detail, which increases production time and cost but offers a visually engaging and immersive experience.

What's the typical cost for a 60-second explainer video?

A 60-second explainer video is a popular length for delivering engaging and informative content efficiently. At Motion The Agency, the price for a standard 60-second video ranges from £2,300 to £2,700, depending on animation type (2D or 3D) and additional features like voiceovers. For shorter durations, like 30 seconds, prices start at £1,200, while longer videos of around 90 seconds may range from £3,200 to £3,900.

How does the cost of a SaaS explainer video compare to other types?

SaaS explainer videos often require specialized scripts to break down complex features or workflows, and they typically use clear, engaging animations to explain technical aspects. At Motion The Agency, SaaS explainer videos start around £2,300 for 60-second 2D animations and can go up to £4,500 for longer duration.

What factors influence the cost of an animated explainer video?

Factors Influencing the Cost of an Animated Video:

1. Animation Style: The chosen style, whether 2D, 3D, or stop-motion, significantly impacts cost. More intricate styles generally require more time and resources, increasing expenses.
2. Character Complexity: Detailed characters with unique features and movements demand more effort from animators, leading to higher costs.
3. Special Effects: Incorporating advanced effects like lighting, shadows, or dynamic backgrounds can enhance the video but also add to the production budget.
4. Research Requirements: Videos needing extensive research for accuracy or originality may incur additional costs due to the time and expertise required to gather and apply the information.

Each of these factors contributes to the overall pricing by affecting the time, skill, and resources necessary to produce a high-quality animated video.

How long does it typically take to create an explainer video, and does this affect the cost?

At Motion The Agency, the production timeline for explainer videos usually ranges from 8 to 18 working days. This timeline covers everything from storyboarding to animation and final edits.

• Rush Requests: If a client needs a faster turnaround, additional fees may apply to accommodate the expedited schedule and prioritize resources.
• Longer Projects: Complex videos (especially involving 3D animation) may extend to 10-22 working days, impacting costs due to the extended production work.

Motion The Agency's flexibility and efficiency in managing production timelines ensure that clients receive high-quality videos without unnecessary delays, making them a reliable partner for both standard and rush projects.

Final Thoughts

Understanding the costs associated with explainer videos is essential for making an informed decision. Before asking, 'How much does an explainer video cost?', consider what it’s worth to stand out from your competitors and achieve your business goals.

At Motion The Agency, we’re here to help you make the best choice for your business. Whether you need a simple 2D animation or a complex 3D project, we offer solutions that fit various budgets without compromising on quality.

Contact us today to get a free sample and discover how an explainer video can elevate your marketing strategy!