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How do you Measure the ROI of an Explainer Video?

Explainer videos, produced by a top video animation company, have gained popularity as a powerful tool for businesses seeking fresh ways to captivate their audience, enhance brand visibility, and boost conversion rates. These brief, engaging, and visually captivating videos have demonstrated their efficiency in conveying complex messages, simplifying concepts, and captivating the audience.

However, the true differentiating factor of an explainer video lies in their potential ROI, going beyond just their creative appeal.

Let’s dive right into the advantages of explainer videos and how they contribute to the success of businesses. We’ll also explore why these videos are so effective and ways to measure their impact.

Understanding the ROI of an Explainer Video

ROI is a financial metric used to evaluate the profitability or success of an investment relative to its cost.

When we talk about explainer videos, ROI sheds light on the benefits these videos bring in terms of better brand performance, higher conversion rates, and increased customer engagement.

To figure out the ROI of an explainer video, we analyze both concrete and intangible factors to understand its impact on achieving business goals.

Higher Conversion Rates

Explainer videos are powerful tools that can greatly increase conversion rates. Studies have shown that when you add an explainer video to a landing page, the chances of people taking action, like buying something or signing up for a service, go up by as much as 80%.

These videos are engaging and to the point, making it easy for people to understand the information. They also help build trust with the viewers.

Enhanced Brand Recognition

By captivating audiences and having the potential to go viral, explainer videos become powerful tools for significantly increasing brand exposure and awareness. Through widespread sharing on social media and online platforms, these videos can reach a vast audience, creating a ripple effect that amplifies brand recognition. The lasting impact of this heightened visibility contributes to the establishment of a loyal customer base, resulting in long-term benefits for the brand.

Improved SEO Effectiveness

Incorporating explainer videos on websites can enhance search engine optimization (SEO) strategies.

Search engines give preference to websites featuring engaging multimedia content, leading to better organic rankings.

As a consequence, explainer videos not only boost website traffic but also attract relevant visitors who are more likely to convert.

Distinctive Advantage

In today’s saturated market, businesses must rely on innovative and contemporary ideas to distinguish themselves. Differentiating a brand from its competitors is crucial.

To gain a competitive edge, demonstrating creativity and adaptability is vital. Such attributes help consumers recognize the uniqueness of the business.

Clear Communication

Explainer videos are great at simplifying complicated ideas, products, or services, making them easy to understand for viewers.

By using visually appealing and short segments, explainer videos improve communication and understanding, which leads to more customer interest and satisfaction.

Narrating the Brand's Story

Explainer videos created by a top video animation company offer a chance to share a captivating brand story. Through captivating visuals, persuasive storytelling, and emotional connections, these videos create a memorable brand experience. Successful storytelling can foster brand loyalty and deeply resonate with customers.

Flexibility and Seamless Integration across Multiple Channels

Explainer videos are flexible assets that can be used across diverse marketing channels and platforms.

Whether they are embedded on a website, shared on social media, included in email marketing campaigns, or used during presentations, explainer videos can consistently convey a unified message and reinforce brand identity.

This adaptability empowers businesses to maximize the reach and impact of their investment in explainer videos.

Assessing the ROI for Explainer Videos

To determine the ROI of an explainer video, it involves monitoring and analyzing various metrics, such as conversion rates, website traffic, engagement levels, and sales figures.

By comparing these metrics before and after the implementation of an explainer video, businesses can gain valuable insights into its impact.

To gauge the ROI of an explainer video, you can track the following metrics to evaluate its effectiveness and impact:

Assessing the ROI for Explainer Videos


1. Definition: The number of times the video has been viewed by users. It indicates the overall exposure of the video.

2. Measurement: Platforms like YouTube and Vimeo provide view counts for each video. Social media platforms may also display view counts for videos shared on their platforms.

Play Rate:

1. Definition: The percentage of visitors who click “play” on the video after seeing it. This metric indicates how engaging the video thumbnail or preview is.

2. Measurement: Divide the number of video plays by the number of impressions (views of the video thumbnail or preview), then multiply by 100 to get the play rate percentage.


1. Definition: Measures the average time viewers spend watching the video. High engagement suggests that viewers find the content interesting and relevant.

2. Measurement: Analytics tools typically provide information on the average view duration for each video.

Click-Through Rate (CTR):

Definition: The percentage of viewers who click on a Call-to-Action (CTA) or link associated with the video. It indicates how compelling the video’s CTA is.

Measurement: Track the number of clicks on the CTA or link and divide it by the total number of video views, then multiply by 100 to get the CTR percentage.

Conversion Rate:

1. Definition: The percentage of viewers who take the desired action after watching the video. This could be signing up for a service, filling out a form, or making a purchase.

2. Measurement: To measure the conversion rate, you need to set up conversion tracking. This can be done using various methods such as tracking pixels, UTM parameters, or integrating with your website’s analytics tool. Then, divide the number of conversions by the total number of video views and multiply by 100 to get the conversion rate percentage.

Net Profit:

1. Definition: The total revenue generated by the video minus the production cost. It represents the actual financial gain or loss from the video.

2. Measurement: Calculate the revenue directly attributable to the video (e.g., sales made through the video’s CTA) and subtract the total production cost to get the net profit.


Not only are explainer videos created by a top video animation company visually captivating and compelling, but they also provide a substantial return on investment. Their advantages go beyond surface-level appeal, encompassing enhanced conversions, heightened brand recognition, seamless communication, and gaining a competitive edge.

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