Are Explainer Videos Effective? The Brutal Truth

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Picture of Stephen Conley
Stephen Conley
Stephen is Gisteo's Founder & Creative Director. After a long career in advertising, Stephen launched Gisteo in 2011 and the rest is history. He has an MBA in International Business from Thunderbird and a B.A. in Psychology from the University of Colorado at Boulder, where he did indeed inhale (in moderation).

Here’s a good question: are explainer videos effective?  Listen up, because I’m about to save you thousands of dollars and countless hours of wasted time.

Every day, some fresh-faced marketing “guru” is telling business owners they absolutely MUST have an explainer video. That without one, they’re practically committing business suicide.

But here’s what nobody’s asking: are explainer videos effective for YOUR specific business and YOUR specific customers? Or are you just following the herd straight off the cliff?

The Explainer Video Gold Rush (And Why Most Fail)

Make no mistake – the explainer video industry was booming, especially several years back. But so was the pet rock business in the ’70s, and that doesn’t mean it was always a good investment.

When clients ask me, “Are explainer videos effective?” I always respond with another question: “Effective at what exactly?”

Because here’s the unvarnished truth most video production companies won’t tell you:

An explainer video is just a TOOL. It’s not a magic bullet. It’s not a comprehensive marketing strategy. And it’s certainly not going to save a fundamentally flawed business model or weak offer.

When Explainer Videos Actually Work (And When They’re a Waste)

So, are explainer videos effective when used correctly? Absolutely. But only under specific conditions:

  • When they’re addressing a REAL problem your prospects already know they have

  • When they’re delivering a CLEAR and COMPELLING solution

  • When they’re part of a strategic marketing funnel with direct response principles baked in

  • When they’re driving specific, measurable ACTION

Most explainer videos I see commit the cardinal sin of marketing: they’re company-focused, not customer-focused. They drone on about features instead of demonstrating tangible benefits and results.

The Direct Response Approach to Explainer Videos

If you want to know if explainer videos are effective for YOUR business, you need to apply the same standards you would to any other marketing asset:

  • Does it target a specific audience with a specific problem?

  • Does it make a specific, compelling offer?

  • Does it include a clear call to action?

  • Is it trackable, measurable, and accountable?

An explainer video without these elements often is just expensive digital decoration.

My $27,000 Lesson on Explainer Video Effectiveness

One of my clients once spent $27,000 on a slick, professionally produced explainer video. Animation, professional voiceover, the works. It looked fantastic.

It also generated exactly zero sales.

When we examined why, the answer was obvious: the video explained what the company DID, not how the customer would BENEFIT. It was all about them, not their target audience. It answered questions nobody was asking.

We scrapped it and created a simple, direct response explainer video that focused entirely on the prospect’s pain points and a clear path to relief. Within 30 days, that video had generated over $50,000 in new business.

The difference wasn’t production quality – it was marketing fundamentals.

Why Gisteo Is Different

At Gisteo, we understand that an explainer video is only as effective as the strategy behind it. Since 2011, we’ve helped thousands of organizations—from startups to Fortune 500s—cut through the clutter and connect with their audiences.

Here’s what sets us apart:

  • Script-First Philosophy: We believe the script is the foundation of any successful video. Our team crafts compelling narratives that resonate with your target audience.

  • Transparent Pricing: No hidden fees or surprise charges. Our pricing is clear and upfront, ensuring you know exactly what you’re investing in.

  • Diverse Styles: From 2D and 3D animations to motion graphics and live-action, we tailor the visual style to match your brand and message.

  • Efficient Process: Our streamlined production process ensures timely delivery without compromising quality.

  • Client-Centric Approach: We collaborate closely with you at every step, incorporating your feedback to produce a video that truly represents your brand

The Bottom Line on Explainer Video Effectiveness

So, are explainer videos effective? Like most marketing questions, the answer is: it depends.

If you’re considering investing in an explainer video, here’s my advice:

  • Start with your offer and your customer, not with the video format

  • Focus relentlessly on benefits, not features

  • Include direct response elements – especially a clear call to action

  • Test and measure actual results, not views or shares

  • Be willing to scrap what doesn’t work, regardless of how much you paid for it

Remember: in business, there are no participation trophies. Either your marketing generates more in profit than it costs, or it’s a liability.

And if someone tells you that explainer videos are effective without asking about your specific business goals, customer profile, and marketing strategy, show them the door. They’re interested in your money, not your results.

That’s the no-nonsense truth about explainer videos. Take it or leave it.

Final Thoughts

Whether you’re looking to explain a complex product, onboard new customers, or boost conversions, Gisteo is here to help you achieve your goals with a video that delivers results.

Ready to create an explainer video that works? Contact us or schedule a free consultation today.

 

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