Why video content is so important in the first place
So you realize that your company needs an explainer video. Good! That’s smart because video has quickly shifted from “nice to have” to “need to have” in the marketing world. As a recent Forbes article stressed, video is where we all need to be.
Here are a few other quick stats:
- Businesses that use video get 41% more search traffic than businesses without video content
- Video can increase a landing page’s conversion rate by 80%
- 64% of people are more likely to purchase a product online after watching a video about it
The Cisco Video Networking Index forecasts that video traffic will grow fourfold from 2017 through 2022. Video will make up 82% of internet traffic by the end of that period—up from 75% in 2017.
So how much does an explainer video cost and how long do they take?
Wyzowl, an explainer video production company, undertook some clandestine research to estimate the average cost of an explainer video. They contacted 70 explainer video companies and found that:
- The lowest price for a 60-second explainer video is $700
- The highest price for a 60-second explainer video is $72,000
- The average price for a 60-second explainer video is $7,972
- The average turnaround time for a 60-second explainer video is 38.5 days (5.5 weeks)
This is consistent with our own internal research as our clients have shared plenty of information with us over the years. One recent prospect that turned into a client told us about a particular studio that quoted them $1,000 per second. Yes, per second. And this was for 2D animation, not 3D. So a 60 second animated explainer video from the firm in question would run you $60,000. Not quite as high as the highest quote that quote Wyzowl received but that’s pretty freaking expensive.
How much should you spend on your explainer video?
So now we know how much an explainer video costs so how much should you spend? Don’t get me wrong. Some of the high-end folks do fantastic work. Their illustrations are beautiful and their animation is silky smooth. If you have a massive budget to work with, going with the big-budget guys may make sense because you will get a truly stunning video. It may take you some months, but the end product will likely be great.
But, at the same time, you really need to evaluate your objectives and what you plan on getting out of your explainer video. If you are launching a new brand, product or service, for instance, and want to gauge the initial market response to your idea, this type of super high-end video may be like “killing a fly with a sledgehammer.” Or if you plan on making updates to your branding in the next 6 months, you might want to think twice about investing huge dollars into a video that will need to be changed in the relatively near future (at a high cost). Plus, as we’ve said before, the first and most important aspect of explainer videos is the script. If your script isn’t compelling, no amount of “eye candy” will make your video successful.
As the founder of Gisteo, I’m biased but I think you need to strike a healthy balance between quality and value. We’re not cheap like some of the low-end vendors uncovered in Wyzowl’s research but we’re not on the higher end of the spectrum either. We like to think that we do great work at a fair price. Plus, we’re super transparent with our pricing. Our typical 2D or motion graphics explainer videos cost $4,000 for 60 seconds, everything included. We’ve got an efficient process that takes weeks, not months. We don’t use templates and customize every project from scratch.
This is a formula that works for the vast majority of companies out there. With us, you could produce an entire series for what some studios charge for a single production. And we do just that on a regular basis. Will you be getting a top-of-the line Ferrari? Nah, that’s not our thing. We’re more like the well-built and trustworthy BMW or Volvo that’s perfect for 99% of what one needs to do on the road or, in this case, the marketplace.
Looking to get an explainer video produced at a fair price? Contact us and we’ll be happy to discuss your project.