How Much Does an Explainer Video Actually Cost? [New Data]

During the pandemic, I found myself taking on an unexpected role—becoming an expert in creating explainer videos almost overnight. As a teacher, it was essential to make complex topics digestible for students through engaging video content. If I had the option, I would have outsourced the work, but with no budget for that, I had to learn the process myself.

That experience led me to a question many professionals face: How much does an explainer video cost?

In the world of marketing, you’re constantly juggling multiple tasks—whether it’s managing social media campaigns, planning lead-generation strategies, or creating engaging video content. Given the workload, it’s no surprise that outsourcing video creation has become a popular solution.

In this post, we’ll break down the costs of explainer videos, helping you better allocate your marketing budget while also saving time for you and your team.

What is an Explainer Video?

Before diving into costs, let’s first define what an explainer video is. Essentially, it’s a short, engaging video that educates viewers on a specific topic. Businesses often use them to showcase how their products or services w ork and why they provide value to customers.

Videos are a powerful branding tool—62% of consumers watch videos such as unboxings, product reviews, and promotional content to learn more about a company.

A well-crafted explainer video can help bridge the gap between a product and its audience, making it easier for potential customers to understand how the product or service solves their problem.

One key aspect of explainer videos is their length. In the early days of YouTube, longer videos performed well. However, with the rise of platforms like TikTok and YouTube Shorts, consumer behavior has shifted towards short-form content.

With the average human attention span at 8.25 seconds, it’s critical to keep videos concise. In fact, 83% of marketers recommend keeping explainer videos under 60 seconds, as anything longer risks losing viewer interest. Additionally, 71% of marketers report that shorter videos yield a higher return on investment (ROI).

So, if you’re considering adding explainer videos to your marketing mix, keeping them short and engaging is key.

How to Create an Explainer Video

During my time as a teacher, I quickly learned that the secret to maintaining student engagement was creating short, focused explainer videos. The same rule applies to marketing—videos must be clear, concise, and engaging to capture and retain your audience’s attention.

You might be wondering: Can you explain a concept effectively in just 60 seconds?

The answer is yes—with the right approach. Here’s how you can create an effective explainer video.

1. Identify Your Audience and Purpose

You likely already have a clear idea of your target audience. However, when creating an explainer video, it’s essential to narrow it down further. Identify the specific segment of your audience that would benefit most from the video.

To ensure your video is valuable, consider the most pressing questions your audience has about your product or service. List them out and choose one key question that your video will address. Keeping the focus on a single topic makes your video clearer and more impactful.

2. Write a Script

If you’re anything like me, you might find yourself losing your train of thought while speaking on camera. Writing a script helps keep your video structured and to the point.

Your script can either be fully written word-for-word or formatted as bullet points if you prefer a more natural, conversational tone. The key is to ensure your message is clear and concise.

3. Plan Your Visuals

Effective visuals enhance engagement and help explain your message more clearly.

Many creators use slide presentations as backgrounds to reinforce key points. This technique works well because you can highlight or emphasize specific areas of the slide to direct your audience’s attention.

Before recording, think about which visuals—images, animations, or text—will best support your explanation.

4. Choose Your Video Style

There are various styles of explainer videos, and choosing the right one depends on your message and audience.

• Talking-head videos – These feature a speaker on screen, making the content more personal and engaging.
• Animated videos – Great for breaking down complex topics into easy-to-understand visuals.
• Whiteboard animation – Effective for illustrating ideas in a simple, engaging way.
• Live-action demonstrations – Useful for showing products in real-world scenarios.

Each style has its advantages, so select the one that aligns best with your message.

5. Record Your Content

Recording your explainer video can be as simple as using a smartphone camera or leveraging a microapp designed for video creation.

If you’re camera-shy, tools like Clip Creator allow you to turn your script into a slide presentation video—no need to be on camera! This is especially useful if you’re looking to create content quickly while maintaining high-quality visuals.

6. Edit Your Video for a Polished Look

Raw footage can feel unpolished, so spending time on video editing is crucial. Even minor adjustments can make a huge difference in making your video look professional and engaging.

Some elements to consider adding during the editing process:

• A strong hook – The first few seconds should grab attention.
• Transitions – Smooth scene changes keep the video dynamic.
• B-roll footage – Helps provide context and maintain visual interest.
• Sound effects and music – Background music and subtle effects enhance the viewing experience.
• Voiceovers – Can improve clarity and storytelling.
• Call-to-actions (CTAs) – Encourage viewers to take the next step.

Many free and paid video editing tools are available, making it easy to polish your video before sharing it with your audience.

7. Review and Publish

Before posting your video, take some time to review the final product. I find that stepping away from the project for a few hours and returning with fresh eyes helps catch any errors.

Once you’re satisfied, publish the video on your preferred platforms. Since short-form videos don’t provide much time for detailed explanations, use the video description box to direct viewers to additional resources. This could include:

• A blog post for more in-depth information.
• A landing page to drive conversions.
• A downloadable guide to provide further value.

By strategically placing your CTA in the description, you can maximize engagement and drive traffic to longer-form content.

What’s the Real Cost of an Explainer Video? [New Data]

During the pandemic, I had to master explainer video creation overnight. As a teacher, outsourcing wasn’t an option—my budget was nonexistent. But that got me thinking: How much does an explainer video cost?

In marketing, you’re juggling everything—social media campaigns, lead magnets, and, of course, video content. With so much on your plate, it’s no surprise that outsourcing explainer videos is a common solution.

Let’s break down the numbers so you can better budget for video production—and maybe even free up some time for you and your team.

What Is an Explainer Video?

Before we talk cost, let’s define what an explainer video is. It’s a short video designed to introduce a topic, often used by brands to showcase how their product or service works.

Videos are an incredible way to boost brand awareness—62% of consumers watch video content like product reviews, promos, or unboxing clips to learn about businesses.

Creating short explainer videos helps customers quickly understand how your product or service solves their problems.

And when I say “short,” I mean it. Consumer behavior has shifted—thanks to TikTok and YouTube Shorts, audiences now prefer bite-sized content.

With the average human attention span at just 8.25 seconds, it’s no wonder 83% of marketers recommend keeping videos under 60 seconds. Plus, 71% of marketers report better ROI on shorter videos.

In other words, adding short explainer videos to your content strategy is a smart move.

How to Create an Explainer Video

During the pandemic, I realized that keeping videos short and engaging was key to holding my students’ attention. That meant cutting the fluff and focusing only on the most crucial points.

But can you really explain a concept in 60 seconds? Yes—you just need a plan. Here’s how:

1. Define Your Audience and Goal:
   Your brand already has a target audience, but for each video, identify the specific segment you’re addressing.
   Make a list of common questions they have. Pick one and structure your video around answering it.
2. Write a Script:
   If you tend to lose your train of thought while speaking (guilty!), a script is a lifesaver.
   It doesn’t have to be word-for-word—bullet points work, too. Just make sure you stay focused and concise.
3. Plan Your Visuals:
   Great visuals keep viewers engaged and reinforce your message.
   I used slide presentations as backgrounds, adding highlights and pointers to emphasize key points. Choose visuals that enhance, not distract from, your content.
4. Choose Your Video Style:
   You can go with:
   • Talking head videos (where you appear on screen)
   • Animated videos (great for step-by-step explanations)

   Editing apps make both options easy. Choose the style that best suits your message and audience.

5. Record Your Content:
   Recording doesn’t have to be complicated. While a camera works, microapps like Clip Creator let you turn scripts into slideshow videos—great for avoiding camera jitters and saving time.
6. Edit for Engagement:
   Raw footage is rarely perfect. Take time to refine your video. Simple edits can make a big difference, like:
   • An engaging hook
   • Transitions & B-roll footage
   • Sound effects & trending music
   • CTAs (Call to Actions)

   Editing polishes your video and keeps viewers interested.

7. Review and Post:
   Before you hit publish, step away for a few hours and come back with fresh eyes. This makes spotting errors easier.
   Since short videos have limited time, use the description box for your CTA—link to a blog, ebook, or landing page for deeper engagement.

How Long Does It Take to Make an Explainer Video?

After reading the steps, you’re probably wondering: How long does this process take?

For me, making explainer videos took a few hours—but let’s be honest, my videos were not professional-grade.

For high-quality brand videos, it takes significantly longer.

According to Yum Yum Productions, a professional explainer video can take anywhere from two weeks to several months. Explain Ninja estimates about four to five weeks for planning and production.

If video is a key part of your marketing, expect to have multiple videos in production at any given time. Outsourcing can save time, but turnaround times vary, so plan accordingly.

How Much Do Explainer Videos Cost?

To get real numbers, HubSpot surveyed 300+ video marketing professionals. Here’s what they found:

• 30% of brands create 8–10 videos per month
• 36% focus primarily on educational content

With that volume, outsourcing is common—but what does it cost?

The Cheapest Explainer Videos

According to Wyzowl, some brands pay as little as $600 for an animated explainer video.

While budget-friendly, beware of hidden fees—some agencies charge extra for voiceovers, revisions, or additional edits.

The Most Expensive Explainer Videos

On the high end, brands have spent up to $250,000 on a single explainer video.

Premium agencies cater to enterprise businesses with larger budgets, ensuring top-tier production quality. But ROI matters—investing heavily means you’ll need significant returns to justify the spend.

The Average Cost

According to Wyzowl’s survey, the average cost of an explainer video is $10,983.
Here’s a breakdown of typical costs:

• Creative talent: $300–$2,000+
• Music & sound effects: $250–$2,000+
• Equipment: $500–$5,000
• Editing software: Varies based on tools
• Time: Priceless (literally!)

Don’t panic if this seems high—there are ways to cut costs.

How AI is Lowering Explainer Video Costs

Brands looking to stretch their video budget are turning to AI. Here’s how they’re using it:

• 24% use AI for video outlines
• 21% use AI for scripting
• 36% use AI for visual effects
• 20% use AI for virtual avatars with voiceovers

Micro apps like Clip Creator can turn a script into a video slideshow in minutes, drastically cutting costs.

You can even use ChatGPT to generate scripts for free and then refine them with AI-powered editing tools.

With AI, brands can spend less on basic videos and reallocate funds to high-production projects that require professional studios or actors.

Explainer Videos: Worth the Investment

Back when I was teaching, my budget didn’t allow for outsourcing. But if I had access to AI-powered tools, explainer video creation would have been faster and more affordable.

Explainer videos are valuable for educating audiences and boosting ROI—but they don’t have to break the bank.
With the right mix of AI and strategic budgeting, brands can create high-quality explainer videos at a fraction of the cost—and save precious time in the process.