Explainer Video 101: What It Is and Why Your Business Needs One

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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).

Introduction

You land on a website. Within seconds, a short video tells you exactly what the company does, why it matters, and how it solves your problem. That’s an explainer video—and it just did in 90 seconds what paragraphs of text couldn’t.

Explainer videos like those we produce at Gisteo have become essential tools in B2B marketing. They distill complex ideas into clear narratives, build trust quickly, and move prospects from curious to convinced—often before a sales call even happens.

This guide covers what makes explainer videos work, the different formats available, and why businesses across industries continue to invest in them.

Quick Answer: An explainer video is a short video (60–120 seconds) that explains what a company does, what problem it solves, how its product or service works, and why it matters to viewers. Businesses use explainer videos to simplify complex ideas, increase conversions, build trust, support sales teams, and create scalable content that works across multiple marketing channels.

What Is an Explainer Video?

An explainer video is a short, focused piece—typically 60 to 120 seconds—designed to answer four questions: What does this company do? What problem does it solve? How does the product or service work? And why should the viewer care?

The goal isn’t entertainment for its own sake. It’s clarity. A strong video takes something that feels confusing, technical, or abstract and transforms it into a story the viewer can follow—and remember.

What Makes an Explainer Video Effective?

Not all explainer videos deliver results. The ones that work share several characteristics.

A Recognizable Problem

The video opens by showing viewers a problem they already experience. If the audience doesn’t see themselves in the first few seconds, they’ll move on.

A Clear Solution

The product or service enters as the guide—not the hero—that helps solve the problem. This framing keeps the focus on the customer’s journey rather than a feature list.

Plain Language

No buzzwords. No jargon. Just clear, direct language that respects the viewer’s time and intelligence.

Purposeful Visuals

Whether animated or live-action, the visuals reinforce the message rather than compete with it. Every frame should earn its place.

A Direct Call to Action

The viewer should know exactly what to do next—book a demo, sign up for a trial, or learn more. Ambiguity kills conversions.

Why Businesses Invest in Explainer Videos

These videos solve real business problems. Here’s why companies continue to prioritize them.

They Communicate Complex Ideas Quickly

Many B2B companies sell products or services that resist easy explanation. An explanatory video bridges that gap by combining visuals, narration, and story into one coherent message. Instead of forcing prospects to work to understand you, you make it easy for them.

They Drive Conversions

When placed on a homepage or landing page, explainer videos consistently increase time on site, engagement, and form submissions. People are far more likely to watch a 90-second video than read a 500-word block of text—especially when they’re still in research mode.

They Build Trust Faster

Video humanizes a brand. It demonstrates that you understand the audience’s problem and have developed a thoughtful solution. For newer companies or complex offerings, this trust-building happens in minutes rather than months.

They Support Sales Teams

A well-crafted explanatory video works like a 24/7 sales assistant. Sales teams use them to warm up leads before calls, follow up after meetings, and align prospects around a clear message. The video handles the explanation so the salesperson can focus on the conversation.

They Scale Across Channels

A single video works across your homepage, product pages, email campaigns, sales outreach, trade shows, and social media. It becomes a core asset that compounds in value rather than a one-off piece of content.

Types of Explainer Videos

Different messages and audiences call for different formats.

Animated explainer videos work well for abstract concepts, software products, and technical ideas that would be difficult or expensive to film. Animation gives you complete creative control over how ideas are visualized.

Live-action explainer videos suit service businesses and companies where human connection matters. Seeing real people builds a different kind of trust.

Whiteboard videos take a simpler, educational approach that works well for training content and step-by-step explanations.

AI-assisted explainer videos offer faster turnaround and lower costs for certain use cases, though the best results often come from combining AI efficiency with human creative direction.

The format matters, but the script matters more. A mediocre script with beautiful animation won’t outperform a sharp script with simpler visuals.

Where Explainer Videos Work Best

Explainer videos perform best where visitors are actively trying to understand what you do: homepage hero sections, SaaS product pages, “How it works” sections, and sales landing pages.

If a visitor is asking “So… what exactly do you do?”—that’s where an explainer video belongs.

How Long Should an Explainer Video Be?

Shorter is almost always better. The 60-to-90-second range works for most businesses. Complex offerings may stretch to two minutes. Anything longer should probably be broken into a series.

The goal isn’t to say everything—it’s to say enough to move the conversation forward.

Why Explainer Videos Still Matter

Explainer videos have been around for years, but they’re more relevant than ever. Attention is limited. Competition is fierce. And businesses that communicate clearly have an advantage over those that don’t.

A well-crafted explainer video doesn’t just explain what you do—it helps the right people understand why they should care. And that understanding is where conversions begin.

What Next?

If you would like to discuss a video project, don’t hesitate to schedule a free consultation now!

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