What Are Animated Explainer Videos? A Quick Guide

So what are animated explainer videos?

Listen up, because I’m about to share something that could dramatically transform your business results, almost overnight.

If you’re struggling to explain your product or service clearly, watching prospects slip away because they “just don’t get it,” or finding your conversion rates stubbornly stuck despite your best efforts — what I’m about to reveal could be the game-changer you’ve been searching for.

The Million-Dollar Communication Problem Most Businesses Face

In my many years working with entrepreneurs and businesses of all sizes, I’ve noticed one persistent problem that plagues even the smartest business owners: the inability to communicate what they do in a way that instantly clicks with prospects.

You know your product inside and out. You understand every feature, benefit, and technical specification. But when it comes time to explain it to someone who knows NOTHING about your industry or offering — you’re suddenly speaking a foreign language.

The result? Confused prospects. And confused prospects NEVER buy.

Enter the Animated Explainer Video — Your 60-Second Sales Machine

So, what are animated explainer videos really all about?

An animated explainer video is exactly what it sounds like: a short, visually engaging video that explains your product, service, or complex concept in simple, easy-to-understand terms using animation rather than live action.

Think of it as your best salesperson working 24/7, never getting tired, never going off-script, and delivering your message with crystal clarity to every visitor on your website or landing page.

But don’t be fooled by the cartoonish appearance. These aren’t just cute videos with dancing characters. When properly created, they’re sophisticated sales tools engineered to:

• Grab attention within seconds

• Create instant understanding of your offer

• Build emotional connection with viewers

• Answer objections before they arise

• Drive specific action

If you’ve ever found yourself asking, “what are animated explainer videos and why are they so effective?” — the answer lies in their ability to cut through the noise and deliver your message directly to your prospect’s brain.

The Anatomy of a Killer Explainer Video

Not all explainer videos are created equal. The mediocre ones (which, sadly, make up about 90% of what’s out there) are little more than moving brochures that waste both your money and your prospects’ time.

A truly effective animated explainer video contains these critical elements in some shape or form:

1. A Problem-Focused Opening
   The cardinal sin of marketing is talking about yourself first. Great explainer videos open by identifying a specific pain point that resonates with the viewer.
   “Tired of complicated accounting software that requires a PhD to operate?”
   This immediately tells the viewer: “This is for ME” and earns those crucial first 10 seconds of attention.

2. Clear, Benefit-Driven Solution Presentation
   After establishing the problem, the video introduces your solution in direct, benefit-oriented language. This isn’t the time for technical specifications or features lists. It’s about answering the question: “How does this make my life better/easier/more profitable?”

3. Simple Visual Metaphors
   The power of animation lies in its ability to use visual metaphors to explain complex ideas simply. A good explainer video might show a frustrated character drowning in paperwork to represent administrative overload, then show your software as a life preserver pulling them to safety.

4. Strategic Emotional Triggers
   The best explainer videos aren’t just informative—they’re emotional. They tap into fundamental desires and fears that drive decision-making: the desire for security, recognition, profit, or the fear of missing out, being left behind, or making costly mistakes.

5. Clear, Direct Call to Action
   A great explainer video doesn’t leave the viewer wondering what to do next. It ends with a clear, compelling call to action that builds on the momentum created by the video.

The Six Major Types of Animated Explainer Videos

Depending on your business, audience, and objectives, different animation styles might be more effective:

2D Character Animation
The most common and versatile type, using flat, cartoon-like characters to tell a story. This style works for nearly any industry and offers the perfect balance between professionalism and approachability.  Gisteo example:

Motion Graphics
More abstract and sophisticated, motion graphics use animated shapes, text, and icons rather than characters. Ideal for B2B companies, technical products, or data-heavy explanations. Gisteo example:

Whiteboard Animation
Simulates drawing on a whiteboard in real-time. This style leverages the psychological principle that watching something being created holds attention longer. Excellent for educational content or complex process explanations.

3D Animation
More realistic and visually impressive, 3D animation brings depth and dimension to your explanation. While more expensive, it’s particularly effective for physical products where showing precise details matters.

Mixed Media

Combines various forms of media—such as live-action footage, motion graphics, text overlays, and other effects—to create a dynamic and engaging video. This style is excellent for storytelling that requires multiple visual approaches to convey complex ideas effectively. For example, integrating real-world footage with animated elements can illustrate how a product functions in real-life scenarios while highlighting its features through animation.

Why Animation Trumps Live Video for Explanations

You might be wondering: “Why not just film a real person explaining my product?”

Good question. But before you go down that path, ask yourself again: what are animated explainer videos doing that live videos simply can’t?

Here’s why animation can sometimes outperform live-action video for explanations:

• Simplified Complexity
  Animation can make the abstract concrete. You can literally show how your software sends data to the cloud with a visual metaphor that clarifies instead of confuses.

• Complete Creative Control
  With live video, you’re constrained by physical reality. With animation, if you want your character to shrink down and venture inside a smartphone to demonstrate how your app works, you can do it in seconds.

• Brand Consistency
  Your animated explainer video can perfectly match your brand colors, style, and personality, creating a seamless experience for viewers.

• Timelessness
  Live videos quickly become dated due to changing fashions, technologies, and settings. A well-designed animated video can remain relevant for years.

• Attention-Grabbing Power
  In a sea of talking-head videos, animation stands out. Our brains are wired to notice movement and color, making animation naturally more engaging.

It’s not just about aesthetics. It’s about effectiveness. When people search “what are animated explainer videos?” they’re often surprised to discover how much more power they have compared to traditional video.

The Undeniable ROI of Animated Explainer Videos

I’m not a fan of marketing that can’t prove its worth. Fortunately, animated explainer videos deliver measurable returns:

• Increased Conversion Rates
  Companies report conversion increases of 20% to 150% after adding an explainer video to their homepage or landing page. One of my clients saw their conversion rate jump from 2.5% to 4.7% within the first week of implementing their explainer video—nearly doubling their results without changing anything else.

• Improved SEO Performance
  Google owns YouTube, and they reward sites that include video content. Videos increase the time visitors spend on your site (dwell time), a critical ranking factor. Plus, a video is 53 times more likely to generate a first-page Google ranking than traditional SEO techniques alone.

• Enhanced Email Click-Throughs
  Including the word “video” in an email subject line boosts open rates by 19% and increases click-through rates by 65%, according to research from Syndacast.

• Better Information Retention
  Viewers retain 95% of a message when watching it in a video, compared to just 10% when reading text. This means your prospects actually remember your key selling points.

• Higher Share Rates
  Social video content is shared 1200% more times than text and images combined. An engaging explainer video turns viewers into distributors of your message

Meet Gisteo: Where Strategy, Story, and Style Come Together

If you’re ready to explore what animated explainer videos can really do for your business, Gisteo is a great place to start.

We’ve been in the explainer video game since 2011—before most people even knew what explainer videos were. Since then, we’ve produced over 3,000 videos for clients of all shapes and sizes, from startups and nonprofits to Fortune 500 companies.

What sets Gisteo apart?

For starters, we don’t lock ourselves into one animation style. We offer a diverse range of formats—from character-driven 2D to sleek motion graphics, whiteboard, hybrid, kinetic typography and mixed media. Our goal is always the same: tell your story in the most compelling, clear, and cost-effective way possible.

We believe the script is king. The right visuals help, of course—but if the story’s off, the whole thing falls flat. That’s why we obsess over messaging and use proven frameworks to turn your product or service into a narrative that clicks.

Need ongoing content? Our Unlimited Explainer Video Plan is designed for brands that need multiple videos on a rolling basis—perfect for SaaS companies, marketing teams, or agencies that require a steady stream of fresh content without breaking the bank.

And now, we’re pushing innovation even further by offering AI-based explainer videos. These use digital avatar presenters and synthetic voices for fast, super budget-friendly storytelling—ideal for internal comms, training, or short product demos where speed matters.

In short: if you’re wondering what are animated explainer videos and who can help bring yours to life, we’d love to show you how Gisteo can make it happen.

How Much Should You Invest in an Animated Explainer Video?

Let me be direct: quality animated explainer videos aren’t cheap. But cheap explainer videos are a waste of money.

The investment range is typically:

• Budget tier: $1,000–$2,000 (generally not recommended for serious businesses)

• Mid-range: $3,000–$7,000 (solid quality for most small to medium sized businesses)

• Premium: $7,000–$15,000+ (professional-grade with custom animation and strategy)

Before you experience sticker shock, consider this: what’s the value of a marketing asset that:

• Works 24/7/365

• Delivers your perfect pitch every time

• Can increase conversions by 20% or more

• Will continue performing for 2–3 years minimum

This is another area where people start Googling, “what are animated explainer videos actually worth?” And the answer depends entirely on what they’re designed to do. If your goal is more conversions, better clarity, and longer customer retention, they’re worth every penny.

When viewed as an investment rather than an expense, the ROI becomes obvious.

The Seven Deadly Sins of Explainer Videos

Avoid these common mistakes that render many explainer videos ineffective:

1. Making It All About You
   Leading with company history or excessive feature descriptions is the fastest way to lose viewers. Remember: prospects care about themselves, not you.

2. Excessive Length
   The optimal length for most explainer videos is 60–90 seconds. Every second beyond that risks decreases completion rates. Be ruthless in editing your message.

3. Confusing Visuals
   Animation that’s too complex, changes too quickly, or doesn’t clearly connect to your narration will confuse rather than clarify.

4. Weak Script
   The visuals may catch the eye, but it’s the script that sells. A poor script with unclear benefits, confusing structure, or weak calls to action dooms even the prettiest animation.

5. Poor Audio Quality
   Cheap voiceover work, bad mixing, or annoying background music can make even the best visual content unwatchable.

6. No Clear Call to Action
   Many explainer videos end without telling the viewer what to do next, wasting the engagement they’ve built.

7. Trying to Explain Everything
   Your explainer video should have ONE job: to get the prospect to take the next step in your sales process. It’s not meant to answer every possible question.

How to Get Started With Your Explainer Video

If you’re convinced that an animated explainer video could benefit your business (and if you’re not, you haven’t been paying attention), here’s how to move forward:

Step 1: Clarify Your Core Message
Before contacting any production company, get crystal clear on:

• The specific problem you solve

• Your unique solution

• The key benefits to your customer

• The exact action you want viewers to take

Step 2: Research Production Companies
Look for providers who:

• Have experience in your industry

• Show a diverse portfolio of styles

• Include scriptwriting in their services

• Provide client testimonials and results

• Have a clear, structured production process

Step 3: Review Scripts Carefully
The script is the foundation of your video. Be actively involved in its development and ensure it:

• Speaks directly to your ideal customer

• Addresses specific pain points

• Clearly communicates your unique value proposition

• Includes a compelling call to action

Step 4: Plan Your Distribution Strategy
The best explainer video in the world is worthless if no one sees it. Plan to:

• Feature it prominently on your homepage

• Include it in relevant email campaigns

• Embed it in landing pages for paid traffic

• Share it across social media platforms

• Use it in sales presentations and meetings

The Bottom Line on Animated Explainer Videos

In a world of shrinking attention spans and increasing competition, clarity wins. And that brings us back full circle to the original question: what are animated explainer videos and why do they matter so much?

They cut through complexity. They deliver your message with impact. They engage. They convert. And they stick.

Is it an investment? Yes. Will it require thought and planning? Absolutely.

But in my years of marketing experience, few tools offer the combination of engagement, persuasion, and versatility that a well-crafted animated explainer video provides.

The businesses that thrive in today’s environment aren’t necessarily those with the best products—they’re the ones that explain their value most effectively. What are animated explainer videos? They might be the difference between your prospect “getting it” instantly or clicking away forever.

And that difference is worth every last bit of the investment.

Have an animated video project that you would like to discuss?  Contact us at Gisteo or schedule a free consultation today.