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Explainer Video Production Costs and the Factors That Determine It

Thinking about getting an explainer video made for your business? There are various other things you need to consider while getting one made, majorly, the budget. Even if you consider the production cost as an umbrella term for the charges you’re going to pay, there’s more than that.

For example, consider the factors like extra charges and a few companies holding them as hidden charges. Well, we don’t do that because that’s just how you lose the core value of keeping everything transparent with the clients. Instead, they’re the additional charges, which you should be communicated about while hiring a video production company.

Plus, while getting an explainer video made, the one thing you should be well aware of is that short videos cost more. While getting a shorter video made, you’ll need to pay for every second. The artists need to keep the video precise, without losing the essence of the video. That’s going to cost you more!

Keep reading to find out more about the explainer videos and the production costs that come with them. Moreover, while getting one made, make sure you consider the factors that need your consideration.

So, Why Get An Explainer Video For Your Business?

We get this question a lot, why an explainer video? The answer is, this marketing tool can easily help you get more visible in the digital market. Several businesses try to stand on the top, all trying to get a higher reach. During this, you need something that helps you with this and that’s where businesses, like yours, get explainer videos made.

The most important of all the benefits is providing the visitors with a clear idea of your product or services. You need to avoid every sort of confusion possible and that’s possible when you have something bold and to the point. This aspect is one of the best sales drivers for business, in short, explainer videos are a great source of generation of sales through a clear line of communication with the involvement of cool motion graphics in them.

One of the benefits is getting a better audience, with the animated content, you can’t go wrong with this step. The capacity of the human mind is now more inclined toward video content than a written one. That’s just because the business explainer video is more interesting, eye-catching, and majorly, precise. With tons of things going on in an entire day, there needs to be something, short, informative, and quick. Even if you compare video content with written one, it’s obvious to get more audience on the product explainer video you have.

And yes, don’t think your animated explainer video is the one-man army. You need to use it at the right place, exactly where you know you’re going to make the best first impression and that’s your landing page.

Other than a higher audience, your website also gets a better ranking on google. That’s just how Google works. Websites that are filled with written content with nothing entertaining, for example, motion graphics, animations, videos, you get the point, they’re all pushed on the least rank. That’s due to fewer people wanting to see what’s written in them. Instead, everyone’s looking for something quick, something that serves them directly with what they’re looking for.

The Process - How Creating an Explainer Video Looks Like

Now, you’ve hired a freelancer or decided to get your services from an explainer video production company. They give you the deadline and by then, your animated explainer video will be delivered right to your doorstep. But within this period, there’s an entire team that works on creating the final short explainer video you need for your business.

The process involves brainstorming, creative storytelling ideas, and every aspect you wish to see in your explainer video. Here are the steps which need to go through before you get an explainer video, all ready to get delivered to you.

Types of Explainer Videos and Their Cost

Don’t all the explainer videos cost the same? For sure, that’s the question right in your head and I understand why you get that as well. Different types of explainer videos go through the same steps of a process but the effort put into them is always different. For example, to create a 3D explainer video, make sure you have a lot of space for the stretch in your budget because it’s going to cost high.

The design and animation process, all need to get doubled to get a 3D image, and that’s just more effort. It’s better to stick with other types of explainer videos, go for 2.5D, that’s going to cost less but your video will have a hint of 3D effects as well.

Why don’t you get a brief introduction to different types of explainer videos and learn about their costs as well? Here’s a list of them.

1. 2D Animated Explainer Video

This one is just one of the most famous types of explainer videos and as an animation studio ourselves, we know this should cost you around $5000 or less. In this type, you get a customized and unique explainer video without costing way too high. This communicates your message well and also carries the essence of your services or product in one precise duration.

Animations themselves are what the entire thing is based on. They form a connection with the audience through the characters and that just communicates your message better. Other than that, when the viewers see the video display the daily life problems through the characters, there’s a better understanding of the audience.

2. 3D Animated Explainer Video

As mentioned, these do cost high but they’re one of the best forms we well when it’s about having content that tends to be attention-grabbing for the visitors. Although it’s somewhat hard to mention the standard price of these types of explainer videos still they can start from $5000 to even around $40K. you might want to get a slight detail customized in this and all of them come with a cost, which let me tell you, is high.

3. Live-Action Explainer Videos

This is known to be the most expensive type of explainer video and that’s understandable. This type of content asks for an entire cast or crew to create something for your business. You’ll need to bear the cost of everything that goes into this explainer video, and I wouldn’t suggest it until you have a budget for it.

4. White Board Explainer Videos

Whiteboards are something that you’ll easier get right under a tight budget. It can range from $1000 to $5000. Although, the cost might look pretty convincing for anyone to get one made for the business they’re still considered old school. That’s because of the number of animations that you can now get made from an animation studio. Plus, with the availability of various designs in the market, there’s less inclination towards these types of explainer videos.

Why Different Types of Explainer Videos Come With Different Costs

With the right marketing strategy, there’s a lot your business can achieve. Especially when you have the right tools for stepping up your digital marketing appearance. An explainer video can help you achieve the targets you’ve set for your business but most important of all, the quality of the video determines it all. If the animations, design, and duration of the explainer video are all on point and still, if it doesn’t carry the core message of your business, it’s simply going to flop.

Different styles sure ask for their cost but it’s the quality that determines it all. Yes, it’s the quality of the video that everything stands on, majorly the cost. If you’re getting a 3D animated explainer video made for your business, it’s sure going to attract a mass audience but it’s going to cost you high as well. Just like that, if you’re opting for a live-action video as well, it involves an entire crew and you need to pay for that. And this is going to be expensive for an explainer video.

Whereas a 2D animation video works perfectly for explaining a regular business and its services. Innovation in the design of the final explainer video can prove to be quite beneficial for you. Meanwhile, this works perfectly for creating an impact on the visitors as well. The best part is, this is a lot cheaper than other types of explainer videos.

Other Hidden Costs

If you’ve ever considered getting an explainer video made, there must have been numerous blogs you went through. All of them mention hidden costs. But, let me ask you, what are the hidden costs? Do you get told about them while hiring an agency or something? The answer is, the name says it all. You want to get to know about any of the extra charges, the ones not mentioned in the contract, and in the end, you’ll have to pay for them.

At ByteChimp, I can assure you, that’s not something that we do. Instead, we let you know about everything in one contract which states all you should know while getting an explainer video for your business. Moreover, we love keeping things transparent.

Where You Can Get an Explainer Video Made From

For getting a professional explainer video made, there are different options you can consider. Majorly, you need to have a complete idea about where you’re getting your services from. As your explainer video is going to be the representation of your brand!

Here are a few areas that you should look into while getting an explainer video made. Also, these will provide you with an idea of the costs these come with.

1. An Explainer Video Production Company

It might be anyone, for their business they’d want a perfect representation of their brand, the one they’re paying for. The pros of getting an explainer video made for your business by an explainer video production company are considerably high. It’s mainly due to getting asked about your approval at every step. This helps you involve any missing parts of the concept you have in your explainer video. Coming to the cost, this can cost you a minimum of $2000 to even $10000 or even more. It depends on the details you want to get changed and the additional services you wish to get.

2. Freelancer

For a smaller project, this can be more suitable, else, this is going to cost you an arm and a leg. Their rates are hourly and paying for every hour is just a lot. It’s better to get something that’s basic and not too long. The cost of these options varies from person to person and it’s somehow hard to only mention a certain cost.

3. Online Video and Animation Creators

This can be a great option for you but there are limitations. With this, it’s better to get a teaser or an introductory video for your business. This only restricts you to some basic options and that’s it. But the cost is fair enough, something I’d personally suggest if it’s an introductory video or a teaser for your website. From around $45 to $400, you can get your explainer video.


You must’ve got the right idea about getting an animated explainer video made for your business. While you’ve gone through different options, their charges, and the steps of the process as well, it might’ve sparked that interest in you somewhere.

If you’re looking forward to getting an animated explainer video made for your business, why not take a look at our website? Learn more about us and feel free to contact us if you’ve any questions. We’re always there to help!