Why Every Business Needs a Company Explainer Video

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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).

These days, capturing attention and communicating your value quickly is crucial. It’s getting harder and harder, seemingly by the year.

That’s where a company explainer video comes in. Whether you’re a startup, small business, or an established enterprise, an explainer video can help break down your offering in an engaging and digestible way. Gisteo specializes in creating company explainer videos or, as we call them, Weapons of Ma$$ Persuasion.  We’ve been doing this since 2011 so we definitely know a few things about how and why you should produce a company explainer video.

Let’s dive in.

What Is a Company Explainer Video?

A company explainer video is a short, engaging video that clarifies what your business does, how it helps customers, and why you stand out. These videos often use animation, live-action, or a combination of both to tell a compelling story in under two minutes.

Explainer videos serve as a powerful marketing tool that can be embedded on websites, shared on social media, included in email campaigns, used in presentations or pitches…and so much more.

They provide a visually engaging and simplified way to communicate complex ideas, ensuring that your audience quickly understands what your business offers.

These videos can take different forms:

Animated Explainer Videos – Use motion graphics, 2D, or 3D animation to present ideas in a visually appealing way. This is our bread and butter at Gisteo and we’ve produced thousands of animated company explainer videos over the years. Here’s just one recent production for a healthcare staffing software solution:

Live-Action Explainers – Feature real people, whether it’s company representatives, customers, or actors, to create an authentic connection. Gisteo also does live-action explainer videos, including our very company explainer video:

Whiteboard Videos – Simulate a hand drawing on a whiteboard to visually illustrate a message. This has also been a popular company explainer video style of ours. Here’s just one example of our many whiteboard videos for a events/ticketing solution:

Mixed Media/Hybrid Videos – Combine animation and live-action elements for a dynamic storytelling experience. This style of company explainer video has grown in popularity over the past few years and we’re producing many of them here at Gisteo, such as this recent production for a company that specializes in a Tile-like solution but for business inventory, not your phone, wallet or keys:

Why a Company Explainer Video is a Must for Your Business

1. Grabs Attention Quickly

People have short attention spans—about 8 seconds on average. While that might be somewhat of an exaggeration or outlier study, attention spans are undoubtedly shrinking in today’s digital world. An explainer video condenses your message into a concise, visually appealing format that hooks viewers instantly.

2. Boosts Conversion Rates

Studies show that explainer videos can increase conversions by up to 80%. A well-crafted video builds trust, highlights your value proposition, and encourages prospects to take action.

3. Improves SEO & Google Rankings

Websites with video content are 53 times more likely to rank on Google. A company explainer video keeps visitors engaged, reducing bounce rates and signaling to search engines that your content is valuable.

4. Simplifies Complex Information

If your business offers a product or service that requires explanation, an explainer video can break it down in an easy-to-understand and visually engaging way.

5. Increases Brand Awareness & Retention

People remember 95% of a message when they watch it in a video, compared to only 10% when reading text. A well-designed explainer video ensures your brand sticks in the minds of potential customers.

Best Practices for a Great Company Explainer Video

  • Keep it short & sweet: Aim for 60-90 seconds.
  • Focus on the problem & solution: Address customer pain points early.
  • Use clear visuals & a compelling script: Avoid jargon and make the message easy to digest. Check out this article for more tips on how to spin a good company explainer video story.
  • Include a strong call-to-action (CTA): Guide viewers on what to do next—visit your website, sign up, or request a demo.

Examples of Highly Successful Company Explainer Videos

Dropbox – Their famous explainer video helped them grow to over 100 million users. It’s a golden oldie!

Dollar Shave Club – A humorous, viral video that put them on the map.

Gisteo- in another golden oldie, this video put Gisteo on the map way back in 2011. The “Gisteo Guy” did all the heavy-lifting for us back when we started. Creating an fun company explainer video from the onset was the best decision we could have made. Check it out here:

Ready to Create Your Own Company Explainer Video?

If you want to make a high-quality, engaging explainer video that converts, Gisteo is here to help. We’ve produced thousands of explainer videos that drive real results. We’re a marketing-first, no BS studio that gets the job done right- on time, every time.

Contact us today or schedule a free consultation to get started on your company explainer video!

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