Introduction
Hiring an explainer video company feels straightforward until you start looking. Then you discover hundreds of options ranging from solo freelancers to full-service agencies, with prices spanning $500 to $50,000 for seemingly similar deliverables. The differences aren’t always obvious from portfolios alone.
The stakes are real. A great explainer video becomes a marketing asset that works for years—generating leads, educating prospects, and shortening sales cycles. A mediocre one wastes budget and, worse, misrepresents your brand to potential customers at the exact moment they’re deciding whether to engage.
After producing thousands of explainer videos over 14 years at Gisteo, we’ve seen what separates successful projects from disappointing ones. The difference rarely comes down to animation quality alone. It’s about alignment—finding a company whose process, expertise, and pricing model fit your specific situation.
This guide walks through what actually matters when choosing an explainer video partner, with practical criteria you can apply to any company you’re considering.
Quick Summary: To choose the best explainer video company, start by defining clear objectives (brand awareness, lead generation, product education) and understanding your target audience. Evaluate companies based on portfolio quality, scriptwriting expertise, production process transparency, and relevant industry experience. Request detailed proposals that outline timeline, revision policies, and deliverables. Budget $3,000-$10,000 for quality custom animation—enough to get professional results without overpaying. Red flags include vague processes, unrealistic timelines, poor communication, and reluctance to share references. The best partnerships happen when a company’s strengths align with your specific needs rather than simply choosing the cheapest or most expensive option.
Start with Clear Objectives
Before evaluating any explainer video company, you need clarity on what success looks like. Vague goals lead to vague results—and make it impossible to evaluate whether a company can actually deliver what you need.
What Should This Video Accomplish?
Different objectives require different approaches. A video designed to explain a complex SaaS product to first-time visitors needs a different structure than one meant to convince qualified leads to book a demo. Be specific about the primary goal—companies that try to accomplish everything usually accomplish nothing.
Common explainer video objectives include increasing website engagement and time-on-page, educating prospects about how your product solves their problem, generating qualified leads through compelling calls-to-action, reducing support tickets by answering common questions, and strengthening brand perception through professional presentation. The most effective videos focus on one primary objective with perhaps one secondary goal. Trying to accomplish all five in a single video dilutes every message.
Who Is This Video For?
Your target audience shapes everything—tone, pacing, visual style, and vocabulary. An explainer video for enterprise IT buyers will look and sound completely different from one targeting small business owners, even if the underlying product is similar.
Consider where your audience is in their buying journey. Top-of-funnel videos need to establish the problem and hint at the solution. Middle-of-funnel videos can dive deeper into features and differentiation. Bottom-of-funnel videos should address objections and make the next step obvious.
At Gisteo, we start every project with a discovery conversation about audience. Companies that skip this step—or treat it as a formality—typically produce generic videos that don’t resonate with anyone specifically.
What Action Should Viewers Take?
Every effective explainer video has a clear call-to-action. This doesn’t mean ending with a generic “visit our website”—it means designing the entire video to make a specific next step feel natural and compelling.
Strong CTAs include scheduling a demo or consultation, starting a free trial, downloading a resource, requesting a quote, or signing up for an account. The CTA should align with your objective and your audience’s stage in the buying process. Asking first-time visitors to “request a quote” is premature; inviting them to “see how it works” matches where they are.
Evaluating Company Expertise
Not all explainer video companies bring the same capabilities. Some excel at creative animation but struggle with strategic messaging. Others write great scripts but produce uninspired visuals. Understanding what to look for helps you identify the right fit.
Portfolio Assessment
A company’s portfolio reveals more than visual quality—it shows their range, their typical clients, and their storytelling approach. When reviewing portfolios, look beyond surface appeal to evaluate substance.
Watch videos with the sound off first. Does the visual storytelling make sense without narration? Then watch with sound. Is the script clear and engaging, or does it rely on jargon and generic claims? Finally, consider whether the videos feel similar to each other or show genuine variety. A company with a signature style works well if that style fits your brand—and poorly if it doesn’t.
Look for work in your industry or adjacent industries. A company that’s produced explainers for other B2B SaaS products understands the conventions and challenges of that space. That experience translates into fewer missteps and faster production.
Scriptwriting Capability
The script is where most explainer videos succeed or fail. Stunning animation can’t save a confusing or boring script, while a great script can elevate modest animation into an effective marketing asset.
Ask potential partners about their scriptwriting process. Do they conduct discovery calls to understand your business deeply? Do they research your competitors and market positioning? How many revision rounds are included? Who writes the scripts—dedicated writers or whoever’s available?
At Gisteo, we’ve found that scriptwriting deserves at least as much attention as animation. Our process includes dedicated discovery, competitive analysis, and multiple script iterations before any animation begins. Companies that jump straight to visuals often produce beautiful videos that don’t convert.
Client References and Case Studies
Portfolios show finished work; references reveal what the process was actually like. Any reputable explainer video company should be willing to provide references from recent clients.
When speaking with references, ask about communication responsiveness, how the company handled feedback and revisions, whether the project stayed on timeline and budget, and whether they’d work with the company again. Case studies that include measurable results (increased conversions, reduced support tickets, improved engagement) are particularly valuable—they demonstrate that the company cares about outcomes, not just deliverables.
Understanding Explainer Video Types
Explainer videos aren’t one-size-fits-all. Different formats serve different purposes, and the best choice depends on your brand, audience, and objectives.
2D Animation
2D animated explainers are the most common and versatile format. They work across virtually every industry and can range from simple motion graphics to elaborate character-driven narratives. 2D animation is typically more affordable than 3D and offers enormous creative flexibility.
Best for: Most businesses, especially those explaining services, software, or abstract concepts.
Motion Graphics
Motion graphics use animated shapes, typography, and icons rather than characters or scenes. This style feels modern and professional, making it popular for B2B, fintech, and enterprise software. Motion graphics excel at visualizing data, processes, and abstract ideas.
Best for: B2B companies, professional services, products involving data or complex processes.
Whiteboard Animation
Whiteboard videos simulate hand-drawn illustrations appearing on a white background. The format feels educational and approachable, making it effective for training content, how-to explanations, and audiences that respond to a teaching-style presentation.
Best for: Educational content, training videos, explanations of complex topics.
3D Animation
3D animation creates dimensional, realistic visuals. It’s particularly effective for physical products, medical devices, architectural visualization, and anything where showing precise detail matters. 3D typically costs more and takes longer than 2D.
Best for: Physical products, medical/scientific content, architecture, engineering.
AI-Powered Video
AI video tools have advanced significantly, enabling professional-quality production at lower costs and faster timelines. AI can generate realistic footage, avatar presenters, and motion graphics that would have required extensive manual production just a few years ago.
At Gisteo, we’ve integrated AI tools into our workflow where they add value—accelerating production without sacrificing quality. This hybrid approach lets us offer AI-powered videos starting under $1,000 while maintaining professional standards through human creative direction and scripting.
Best for: Businesses testing video for the first time, projects with tight timelines or budgets, companies producing high volumes of content.
Production Process and Timelines
Understanding how explainer video production works helps you evaluate whether a company’s process will mesh with your needs—and spot warning signs before they become problems.
Typical Production Phases
Professional explainer video production follows a structured process, though the specifics vary by company.
Discovery and strategy comes first—understanding your business, audience, and objectives. This phase should involve real conversation, not just a form to fill out. Companies that skip meaningful discovery produce generic videos.
Scriptwriting translates strategy into narrative. Expect multiple rounds of revision. The script should be locked before animation begins—changes after this point are expensive.
Storyboarding visualizes the script scene by scene. This is your opportunity to catch visual direction issues before full animation. Good companies welcome detailed feedback at this stage.
Animation production is typically the longest phase. Professional animation takes time—be skeptical of companies promising finished videos in a few days (unless using AI-assisted production).
Voiceover and sound design happen in parallel or after animation. Quality voiceover makes a significant difference; professional voice talent is worth the investment.
Review and delivery includes final revisions and delivery of files in appropriate formats for your use cases.
Realistic Timelines
Quality custom animation typically takes 4-8 weeks from kickoff to delivery. This includes time for your feedback at each stage—client delays are the most common cause of extended timelines.
AI-powered production can compress timelines dramatically. Gisteo’s Express Explainers, which use AI tools with human oversight, can be delivered in days rather than weeks. The tradeoff is less customization, but for many use cases the speed advantage outweighs that limitation.
Be wary of companies promising traditional custom animation in under two weeks. Either they’re cutting corners on quality, or they’re being unrealistic about timeline—both are red flags.
Revision Policies
Understand revision policies before signing any contract. How many rounds are included? What counts as a “round”? What happens if you need changes beyond the included revisions?
Most professional companies include 2-3 revision rounds at each major milestone (script, storyboard, animation). Unlimited revisions sound appealing but often indicate a company that doesn’t have a clear process. The goal is getting it right efficiently, not revising indefinitely.
Additional Services to Consider
The best explainer video companies offer more than basic video production. Additional services can streamline your marketing efforts and ensure consistency across your content.
Video Strategy and Consulting
Some companies simply execute your vision; others help shape it. If you’re new to video marketing or uncertain about the best approach, look for partners who offer strategic guidance—not just production.
At Gisteo, we often advise clients on video placement, distribution strategy, and how explainer videos fit into their broader marketing funnel. This consultative approach typically produces better results than treating video as an isolated project.
Ongoing Production and Subscriptions
If you need more than a single video, look for companies that offer package pricing or subscription models. Producing multiple videos with a single partner is almost always more efficient than shopping each project individually.
Gisteo’s unlimited subscription plan, for example, lets companies produce ongoing video content at a predictable monthly cost. This model works particularly well for marketing teams managing multiple campaigns, product launches, or content calendars.
Localization and Multiple Versions
If you serve international markets or multiple audience segments, consider whether a company can produce localized versions efficiently. Re-recording voiceover in different languages, adjusting on-screen text, or creating different length versions (full explainer plus social cuts) can significantly extend your video’s reach.
Setting the Right Budget
Explainer video pricing varies enormously, and understanding what drives cost helps you budget appropriately without overpaying or under-investing.
Price Ranges and What They Buy
Under $1,000: AI-powered or template-based production. Appropriate for internal content, social media clips, or businesses testing video for the first time. Gisteo’s AI-powered avatar videos fall in this range while maintaining professional quality through human oversight.
$1,000-$3,000: Entry-level custom animation. May involve templates or limited customization. Can work for straightforward projects with clear briefs.
$3,000-$8,000: The sweet spot for most businesses. Custom animation with professional scripting, multiple revision rounds, and quality voiceover. This range delivers genuine value without premium pricing.
$8,000-$15,000: Premium production with senior creative teams, extensive strategic involvement, and high-end animation. Appropriate for flagship marketing assets or brands where visual quality directly impacts perception.
$15,000+: Luxury production from top-tier agencies. Often includes brand strategy, multiple concepts, and production values approaching broadcast quality. Reserved for major campaigns or well-funded brands.
Cost Factors
Several factors influence explainer video pricing: video length (60 seconds vs. 2+ minutes), animation complexity (simple motion graphics vs. character animation), voiceover talent (standard vs. premium voice actors), revision rounds, timeline (rush projects cost more), and strategic involvement (pure execution vs. consultative partnership).
Be transparent about your budget when talking with potential partners. Good companies will tell you honestly what’s achievable within your range—and whether your expectations are realistic.
Hidden Costs to Watch For
Ask about costs that might not be included in the initial quote: additional revision rounds beyond what’s included, voiceover in multiple languages, different length versions (social cuts, etc.), music licensing fees, and rush delivery charges. Understanding the full cost picture upfront prevents unpleasant surprises later.
Communication and Collaboration
The production process involves ongoing collaboration between you and your video partner. How well that collaboration works often determines whether the final product meets expectations.
Communication Style and Responsiveness
Pay attention to communication during the sales process—it’s a preview of what working together will be like. Do they respond promptly? Do they ask thoughtful questions? Do they listen more than they pitch?
Establish communication expectations upfront. What’s the typical response time? Who’s your primary contact? How will updates be shared? What project management tools do they use?
Feedback and Revision Process
Understand how feedback works at each stage. Good companies make it easy to provide input and respond constructively to criticism. They also push back when your feedback might hurt the final product—a willingness to have honest conversations is a positive sign.
The best partnerships involve real collaboration, not just order-taking. You want a partner who brings expertise and perspective, not one who simply executes whatever you ask without question.
Red Flags to Watch For
Experience has taught us the warning signs that often predict disappointing outcomes. If you encounter these red flags, proceed with caution—or walk away.
Vague processes and timelines. Professional companies have defined processes and can explain exactly how production works. Vagueness often indicates disorganization or inexperience.
Unrealistic promises. If someone promises custom animation in three days or guarantees specific results (“this video will double your conversions!”), they’re either cutting corners or being dishonest. Quality takes time, and no one can guarantee outcomes.
Poor communication during sales. If they’re slow to respond or hard to reach when they’re trying to win your business, imagine how it’ll be once they have your deposit.
No references or reluctance to provide them. Reputable companies are happy to connect you with past clients. Reluctance suggests there’s something they don’t want you to discover.
Prices significantly below market rates. If a quote seems too good to be true, it probably is. Either quality will suffer, or hidden costs will appear later.
No interest in understanding your business. Companies that jump straight to talking about animation styles without asking about your goals, audience, and competitive landscape are likely to produce generic content that doesn’t convert.
Final Thoughts: Making Your Decision
Choosing an explainer video company comes down to alignment. The best partner isn’t necessarily the most expensive or the most acclaimed—it’s the one whose process, expertise, and pricing model fit your specific situation.
Start with clear objectives. Evaluate portfolios critically, focusing on storytelling and results rather than just visual polish. Understand the production process and timeline. Be honest about your budget and expectations. Trust your instincts about communication and cultural fit.
The right partnership produces more than a video—it produces a marketing asset that works for your business for years. The wrong one wastes budget and opportunity. Taking time to choose carefully pays dividends.
At Gisteo, we’ve spent over 14 years refining our approach to explainer video production. We offer multiple options—from AI-powered Express Explainers delivered in days to fully custom animated productions—because different situations call for different solutions. Our focus is on finding the right approach for each client’s goals and budget, not pushing a one-size-fits-all package.
If you’re exploring explainer video options, we’d welcome the opportunity to discuss what makes sense for your situation. Schedule a free consultation to talk through your objectives, timeline, and budget—with no obligation to proceed.
Frequently Asked Questions
How much should I budget for an explainer video?
Most businesses get quality results in the $3,000-$8,000 range for custom animation with professional scripting. AI-powered options start under $1,000. Premium productions from established agencies run $10,000-$25,000+. Your budget should reflect the video’s strategic importance and how long you’ll use it.
How long does production take?
Custom animated explainers typically take 4-8 weeks from kickoff to delivery. AI-powered production can be completed in days to two weeks. Rush timelines are possible but usually cost more. The biggest timeline variable is often client feedback speed—build in time for internal reviews.
What’s the ideal length for an explainer video?
60-90 seconds works for most use cases. This is long enough to cover the problem, solution, and call-to-action without losing viewer attention. Videos under 60 seconds suit social media; videos over 2 minutes should only be used for complex topics with engaged audiences.
Should I write the script myself or have the company write it?
Professional scriptwriting is worth the investment. Explainer video scripts have specific requirements—pacing, word count per second, visual cues—that differ from other copywriting. You should provide detailed input about your business, but let professionals craft the narrative.
What’s more important: animation quality or script quality?
Script quality wins every time. A mediocre script with beautiful animation will underperform a great script with decent animation. The script determines whether viewers understand your message and feel compelled to act. Prioritize companies that invest heavily in scriptwriting.
How do I evaluate an explainer video company’s portfolio?
Look beyond visual style to evaluate storytelling effectiveness. Watch with sound off—does the visual narrative make sense? Listen to the scripts—are they clear and engaging? Look for variety that shows adaptability. Most importantly, look for work in your industry or similar industries.
What should I prepare before starting a project?
At minimum, prepare clarity on your target audience, the main problem you solve, your key differentiators, and what action you want viewers to take. Helpful additions include brand guidelines, competitor examples, videos you like (and why), and existing positioning documents.
Can I use AI to create explainer videos?
Yes, AI video tools have improved dramatically. AI can generate professional-quality videos including realistic footage, avatar presenters, and motion graphics at lower costs and faster timelines. The best results come from combining AI tools with human creative direction—the approach Gisteo uses for Express Explainers.
How many revisions should I expect?
Most professional companies include 2-3 revision rounds at each major stage (script, storyboard, animation). Additional revisions typically cost extra. Provide thorough, consolidated feedback at each stage rather than trickling comments—this keeps the process efficient and the project on budget.
What if I need ongoing video production, not just one video?
Look for companies offering package pricing or subscription models. Gisteo’s unlimited subscription plan, for example, provides ongoing video production at a predictable monthly cost—ideal for marketing teams with continuous content needs.
