Introduction
Explainer videos have become one of the most effective tools in modern marketing. In 60-90 seconds, a well-crafted explainer can communicate what pages of text struggle to convey—clarifying complex products, establishing emotional connections, and moving prospects toward action. For businesses with offerings that require explanation, these videos often become the hardest-working assets in the marketing toolkit.
However, the term “explainer video” gets applied to everything from sophisticated animated productions to hastily assembled slideshows. This creates confusion about what explainer videos actually are, what they can accomplish, and how to create ones that work. Understanding these distinctions matters because the difference between an effective explainer and a forgettable one often determines whether prospects engage or move on.
At Gisteo, we’ve specialized exclusively in explainer videos since 2011, producing over 3,000 videos for clients ranging from early-stage startups to Intel, KPMG, and Harvard University. That experience has taught us what makes explainer videos succeed—and what causes them to fail. This guide shares those insights, covering everything from fundamental concepts to production best practices to strategic integration.
TL;DR
An explainer video is a short video (typically 60-120 seconds) designed to clearly communicate what a product, service, or concept does and why it matters to the target audience. Effective explainer videos combine strategic scripting, engaging visuals, and professional production to simplify complex ideas and drive viewer action. Key components include: understanding your target audience, crafting a problem-solution narrative structure, using visual storytelling that reinforces the message, and ending with a clear call-to-action. Explainer videos work best on homepages, landing pages, sales presentations, and social media. Production options range from AI-powered videos starting at $500 to custom animation typically costing $3,000-$15,000. The most important factor is script quality—a great script with decent visuals outperforms a mediocre script with stunning animation every time.
What Are Explainer Videos?
Explainer videos are short-form video content designed to communicate what something is, how it works, and why it matters—typically in under two minutes. They distill complex ideas into clear, engaging narratives that viewers can understand quickly and remember easily.
Defining Characteristics
Several characteristics distinguish true explainer videos from other video content. First, they’re focused on clarity—the primary goal is helping viewers understand something, not just entertaining them or building brand awareness. Second, they follow a problem-solution structure that positions the viewer’s challenge and presents the product or service as the answer. Third, they’re concise, typically running 60-120 seconds because that’s the window where attention and retention remain high.
Explainer videos also tend to use animation, motion graphics, or stylized live-action rather than traditional video formats. This visual approach allows abstract concepts to be illustrated concretely—showing how software works through screen flows, demonstrating processes through animated sequences, or representing ideas through visual metaphors that would be impossible to film.
Common Types of Explainer Videos
Animated explainers use 2D or 3D animation to tell stories through illustrated characters, scenes, and motion. This format offers maximum creative flexibility and works well for abstract concepts, software products, and services where live-action would be impractical or less engaging.
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Motion graphics explainers combine text, shapes, icons, and kinetic typography to communicate information visually. They work particularly well for data-driven content, B2B products, and situations where a more corporate aesthetic is appropriate.
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Whiteboard explainers simulate hand-drawn illustrations appearing on a whiteboard surface. While this style has become somewhat dated, it remains effective for educational content and situations where a “teaching” feel is desired.
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Live-action explainers use filmed footage, often combined with graphics or animation overlays. This format works well when human connection matters—such as founder stories or services where trust comes from seeing real people.
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AI-powered explainers use artificial intelligence for visuals, avatars, or production acceleration. At Gisteo, we offer AI-powered video options that deliver professional quality at accessible price points, combining AI efficiency with human strategic oversight.
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What Explainer Videos Are Not
It’s worth clarifying what doesn’t qualify as an explainer video, despite sometimes being labeled as such. Product demos that walk through features without narrative structure aren’t explainers—they’re demonstrations. Testimonial videos featuring customer stories serve different purposes. Brand videos focused on emotional connection rather than explanation belong to a separate category. And promotional videos that hype without clarifying miss the fundamental point.
This distinction matters because each format serves different objectives. Conflating them leads to unclear briefs, misaligned expectations, and videos that try to accomplish too much and end up accomplishing nothing effectively.
Why Your Business Needs an Explainer Video
Explainer videos address a fundamental business challenge: communicating value quickly and memorably to people who don’t yet understand what you offer. For businesses with complex products, innovative solutions, or offerings that require education, explainers often become essential marketing assets.
The Communication Challenge
Most businesses struggle to explain what they do in ways that resonate with prospects. Internal teams understand their products deeply, which makes it difficult to see them through newcomer eyes. The result is often messaging filled with jargon, feature lists, and assumptions about what prospects already know.
Explainer videos solve this by forcing clarity. The format constraints—short duration, visual storytelling, single narrative thread—require distilling the message to its essence. This discipline often reveals communication issues that text-based marketing obscures. At Gisteo, we’ve found that the scripting process itself frequently helps clients articulate their value proposition more clearly than they had before.
Engagement and Retention Benefits
Video content captures and holds attention more effectively than text. Viewers retain significantly more information from video than from reading—the combination of visual, auditory, and narrative elements creates multiple memory pathways that reinforce the message.
For homepage visitors deciding whether to explore further, an explainer video can communicate your value proposition in the time it would take them to read a few paragraphs—and with much higher completion rates. This efficiency matters because most website visitors leave within seconds if they don’t quickly understand what’s being offered.
Conversion Impact
Explainer videos consistently correlate with improved conversion rates. Landing pages with video typically outperform those without. Sales teams using explainer videos in outreach see higher response rates. Email campaigns including video generate more engagement. While results vary by implementation, the directional impact is clear across industries and use cases.
The conversion impact comes from multiple factors: clearer communication reduces confusion that causes prospects to leave, emotional connection builds trust that overcomes hesitation, and professional production signals credibility that supports purchasing decisions.
When Explainer Videos Are Most Valuable
Explainer videos deliver the most value in specific situations. They’re particularly effective when your product or service requires education for prospects to understand its value, when you’re entering a market where you need to establish a new category or approach, when your offering is intangible or abstract (software, services, concepts), when competing on features alone isn’t sufficient to differentiate, and when your sales cycle involves multiple stakeholders who need to understand the same message.
Conversely, explainer videos may be less essential if your product is immediately obvious (physical products that speak for themselves), if your market already understands your category thoroughly, or if your primary challenge isn’t explanation but rather awareness or trust.
Core Components of an Effective Explainer Video
Effective explainer videos share common elements regardless of style, industry, or budget. Understanding these components helps you evaluate potential approaches and assess quality in existing examples.
Understanding Your Target Audience
Every effective explainer starts with audience understanding. Who is watching? What do they already know? What problems are they trying to solve? What objections might they have? What would motivate them to take action?
These questions shape every creative decision. A video targeting enterprise IT buyers requires different tone, pacing, and emphasis than one aimed at small business owners—even for similar products. Getting the audience wrong means creating content that feels irrelevant or condescending, either of which causes viewers to disengage.
At Gisteo, our discovery process specifically focuses on audience understanding before any scripting begins. We ask about customer knowledge levels, primary concerns, and decision-making factors because this information shapes the entire video.
Crafting a Compelling Script
The script is where explainer videos succeed or fail. Stunning animation cannot save a confusing script, while a great script can elevate modest production into an effective marketing asset. Therefore, scriptwriting deserves more attention than any other production element.
Effective explainer scripts typically follow a problem-solution-benefit structure. They open by establishing the problem or challenge the viewer faces—creating recognition and emotional engagement. They then introduce the solution (your product or service) as the answer to that problem. Finally, they illustrate the benefits and transformation the viewer will experience, ending with a clear call-to-action.
Within this structure, the best scripts use simple language (avoiding jargon and technical terms unless necessary), focus on benefits rather than features (what the product does for viewers, not what it does technically), maintain a conversational tone (as if explaining to a friend), and stay ruthlessly focused (one core message, not a feature list).
Visual Storytelling
Visual elements should reinforce and enhance the script—not just decorate it. Every visual choice should serve the communication goal, helping viewers understand and remember the message.
Effective visual storytelling includes showing rather than telling (demonstrating concepts visually rather than describing them verbally), using visual metaphors that make abstract ideas concrete, maintaining consistent style that reflects brand identity, guiding attention through motion and composition, and pacing visuals to match the narrative rhythm.
One common mistake is creating visuals that simply illustrate words literally rather than adding meaning. If the narration says “our platform helps you save time” and the visual just shows a clock, that’s decoration rather than storytelling. Better visual storytelling would show the transformation—perhaps a harried worker becoming relaxed as tasks complete automatically.
Professional Production Quality
Production quality affects credibility. Viewers make rapid judgments about brands based on video polish—consciously or not, poor quality signals a company that cuts corners. For marketing content representing your brand to prospects, professional production is essential.
Key quality elements include professional voiceover with clear audio and appropriate tone, smooth animation without jerky movements or timing issues, consistent visual style throughout, appropriate music and sound design, and proper pacing that maintains engagement.
This doesn’t mean every explainer needs a massive budget. AI-powered production has made professional quality accessible at lower price points. At Gisteo, our AI video options deliver professional quality starting at $500—combining AI efficiency with human creative oversight to maintain standards.
Clear Call-to-Action
Every effective explainer ends with a clear call-to-action telling viewers what to do next. Without this direction, you’ve invested in capturing attention and building interest only to let prospects drift away without converting.
The CTA should be specific, action-oriented, and matched to your funnel stage. “Start your free trial” works for decision-ready viewers. “See how it works” suits those still evaluating. “Learn more” is appropriate for early awareness content. The key is designing the video’s narrative to make the requested action feel like a natural next step.
Strategic Applications of Explainer Videos
Explainer videos serve different purposes depending on where and how they’re deployed. Understanding these applications helps you create content optimized for specific contexts rather than generic videos that work nowhere particularly well.
Homepage and Landing Page Placement
Homepage explainer videos introduce your company to first-time visitors, communicating your value proposition quickly before they leave. These videos need to work for cold audiences with no prior knowledge—establishing the problem, presenting your solution, and creating enough interest to encourage further exploration.
Landing page explainers support specific campaigns or conversion goals, often for audiences who’ve already shown initial interest. These can be more focused, addressing specific use cases or objections relevant to the traffic source.
For both placements, position the video prominently above the fold. Autoplay with sound off captures attention without annoying visitors; let them choose to engage with audio. Ensure the video’s message aligns with how visitors arrived—traffic from an ad about feature X should see a video addressing feature X.
Sales Enablement
Sales teams use explainer videos to support outreach and presentations. A well-crafted explainer can replace lengthy introductory explanations, ensure consistent messaging across the sales team, and provide shareable content prospects can forward to other stakeholders.
For sales use, explainers often need to be more detailed than marketing versions—covering specifics that informed buyers want to know. Some companies create multiple versions: a short teaser for initial outreach and a comprehensive explainer for deeper engagement.
Social Media and Advertising
Social platforms favor video content, making explainers valuable for organic reach and paid campaigns. However, social explainers often need adaptation—shorter versions for platforms with limited attention windows, square or vertical formats for mobile viewing, and strong opening hooks that capture attention before viewers scroll past.
For paid advertising, explainer videos can serve as effective top-of-funnel content that introduces your brand to new audiences while providing enough substance to qualify interest.
Email Marketing
Including video in email campaigns typically improves engagement metrics. Even the word “video” in subject lines often increases open rates. While email clients handle video inconsistently, thumbnail images linking to hosted videos provide reliable functionality with engagement benefits.
For email, consider creating shorter teaser versions that entice clicks to the full video on your site—driving traffic while respecting inbox constraints.
Investor and Stakeholder Communication
Startups frequently use explainer videos in fundraising materials. A clear, professional explainer demonstrates that the team can communicate their value proposition effectively—a skill investors value beyond the content itself. Explainers also help investors understand complex products quickly, supporting pitch meetings and follow-up materials.
Measuring the Impact of Explainer Videos
Effective measurement connects video performance to business outcomes. Without proper tracking, you can’t optimize future content or justify continued investment.
Key Performance Indicators
View count indicates reach but says little about effectiveness. High views with low engagement may indicate distribution success but content problems.
Watch time and retention rate reveal whether viewers actually engage with your content. Retention curves showing where viewers drop off identify specific problems—weak openings, pacing issues, or content that loses relevance.
Click-through rate measures whether viewers take requested action after watching. This connects directly to video effectiveness at driving conversion intent.
Conversion rate tracks whether video viewers become leads or customers at higher rates than non-viewers. This requires proper attribution setup but provides the most meaningful effectiveness measure.
Engagement actions like shares, comments, and saves indicate content that resonates enough to warrant social distribution—valuable for organic reach and brand building.
Attribution Considerations
Connecting video views to downstream conversions requires proper tracking. Implement video analytics that capture viewer identity when possible, use UTM parameters for links in video CTAs, and consider post-purchase surveys asking what content influenced decisions.
Accept that attribution will never be perfect—viewers might watch your explainer, leave, and return directly weeks later. Directional data indicating video impact remains valuable even without precise attribution for every conversion.
Common Pitfalls and How to Avoid Them
After producing thousands of explainer videos, we’ve seen consistent patterns in what causes videos to underperform. Avoiding these common mistakes significantly improves your odds of success.
Overcomplicating the Message
The most frequent mistake is trying to say too much. Teams want to include every feature, address every use case, and anticipate every question. The result is overcrowded content that overwhelms rather than clarifies.
Effective explainers focus relentlessly on one core message supported by 2-3 key points. If viewers remember nothing else, what single idea must stick? Build around that, cutting everything that doesn’t directly support it. You can always create additional videos for secondary topics.
Neglecting Production Quality
Some teams assume any video is better than no video, leading to amateur productions that damage rather than help brand perception. Poor audio, awkward animation, and inconsistent visuals signal unprofessionalism—the opposite of the credibility you’re trying to build.
Match production quality to how the video will be used. Flagship marketing content warrants professional investment. If budget constraints are real, AI-powered options like Gisteo’s services can deliver professional quality at accessible price points rather than forcing a choice between poor quality and unaffordable production.
Skipping Audience Research
Creating videos without understanding the target audience produces generic content that resonates with no one specifically. Teams often assume they know their customers without validating those assumptions through actual research.
Invest in audience understanding before scripting. Interview recent customers. Review sales call recordings. Survey your email list. Even basic research provides direction that significantly improves messaging effectiveness.
Ignoring Distribution Strategy
Many teams invest heavily in production then treat distribution as an afterthought—uploading to YouTube and their website with no promotion plan. Great content that nobody sees generates zero ROI.
Plan distribution before production. Understanding where and how your video will be seen should inform creative decisions. Budget for promotion alongside production—a $3,000 video with $5,000 in promotional support typically outperforms a $10,000 video with no distribution budget.
Missing or Weak Call-to-Action
Videos that end without clear direction waste the attention they’ve captured. Viewers who’ve watched through are primed to take action—failing to tell them what action leaves conversion on the table.
Design your CTA during scripting, not as an afterthought. The entire video should build toward making the requested action feel natural and compelling.
Explainer Video Production Options
Understanding production options helps you choose the right approach for your needs and budget. The landscape has expanded significantly with AI capabilities, creating more choices than ever.
DIY and Template-Based Tools
Platforms like Vyond, Animaker, and Powtoon allow non-designers to create animated videos using templates and drag-and-drop interfaces. These work for internal content, rapid prototyping, or situations where budget is severely constrained and professional quality isn’t essential.
Limitations include recognizable template aesthetics, limited customization, and the need to provide your own strategic and scriptwriting expertise. For customer-facing marketing content, template-based output often looks too generic to represent your brand effectively.
AI-Powered Production Services
AI has created a middle tier between DIY tools and traditional custom production. Services like Gisteo’s AI video options combine artificial intelligence for production efficiency with human expertise for strategy, scripting, and creative direction.
This approach delivers professional quality at accessible price points—starting around $500 with delivery in days rather than weeks. The key differentiator from DIY platforms is human involvement in the strategic elements that determine video effectiveness, while AI accelerates the production elements.
Custom Animation Production
Traditional custom production creates unique animated content tailored specifically to your brand and message. Every visual element is created for your project rather than adapted from templates or generated by AI.
Custom production typically costs $3,000-$15,000+ depending on complexity, style, and agency positioning. Timelines run 4-8 weeks including discovery, scripting, and production phases. This approach makes sense for flagship content where brand differentiation and maximum quality matter.
At Gisteo, we offer both AI-powered and custom animation options, allowing clients to match approach to project requirements. Our custom explainers typically range from $3,000-$8,000, balancing quality with accessibility.
Choosing the Right Approach
Match production approach to the video’s purpose. Flagship marketing content that will represent your brand for years warrants higher investment. Supporting content, internal communications, and experimental projects can use more affordable approaches. The key is ensuring quality matches the video’s strategic importance.
Getting Started with Explainer Videos
Explainer videos have earned their place as essential marketing assets because they solve a fundamental business challenge—communicating value clearly and memorably to audiences who don’t yet understand what you offer. When done well, they become tireless salespeople that work around the clock, delivering your message consistently to every prospect who encounters them.
The keys to effective explainer videos aren’t mysterious: understand your audience deeply, craft a script focused on one core message, use visuals that reinforce rather than decorate, maintain professional production quality, and end with a clear call-to-action. These fundamentals matter more than budget level or production style.
At Gisteo, we’ve specialized in explainer videos for over 14 years because we believe in their power to transform how businesses communicate. Whether you need an AI-powered video delivered quickly at an accessible price point or a custom animated explainer crafted for maximum impact, we focus on one thing: creating videos that don’t just look good but actually work.
If you’re considering an explainer video for your business, schedule a free consultation to discuss your objectives, audience, and options. We’ll help you determine the right approach for your situation—with no obligation to proceed.
Frequently Asked Questions
How long should an explainer video be? Most effective explainer videos run 60-90 seconds. This length maintains viewer attention while providing enough time to establish the problem, present the solution, and communicate key benefits. Videos under 60 seconds may feel rushed; those over 2 minutes risk losing viewers. Match length to content requirements—say what needs saying, then stop.
How much does an explainer video cost? Pricing ranges widely. DIY tools cost $20-100/month. AI-powered production services like Gisteo start around $500. Custom animated explainers typically run $3,000-$15,000 depending on complexity and agency. Premium agencies charge $15,000-$50,000+. Match investment to strategic importance—homepage explainers warrant more than internal training content.
How long does production take? AI-powered production can deliver in days to two weeks. Custom animation typically takes 4-8 weeks including discovery, scripting, storyboarding, and production phases. The biggest variable is often client feedback speed—build in time for internal reviews at each stage.
What’s more important: script or animation quality? Script quality wins every time. A great script with decent animation will outperform a mediocre script with stunning visuals. The script determines whether viewers understand your message and feel compelled to act. Prioritize scriptwriting investment over production bells and whistles.
Should I write my own script or have the agency write it? Professional scriptwriting typically produces better results. You understand your product deeply; professional writers understand how to communicate to audiences who don’t. The combination—your expertise informing their craft—yields the best scripts. At Gisteo, every project includes professional scriptwriting based on discovery conversations about your business.
What style of explainer video works best? Style should match your brand, audience, and content. 2D animation offers flexibility for storytelling. Motion graphics suit data-driven B2B content. Live-action works when human connection matters. There’s no universally “best” style—the right choice depends on your specific situation.
Where should I put my explainer video? Primary placements include your homepage (for first-time visitors), product/service landing pages, sales team outreach materials, and social media profiles. Secondary uses include email campaigns, paid advertising, investor materials, and trade show displays. Create versions optimized for each platform’s requirements.
How do I measure explainer video success? Key metrics include view count (reach), retention rate (engagement), click-through rate (action intent), and conversion rate (business impact). Set up proper tracking before launch to connect video views to downstream conversions. Accept that attribution won’t be perfect—directional data still guides optimization.
Can I update my explainer video later? Yes, though ease depends on production approach. Some agencies retain source files allowing relatively easy updates. Others treat projects as standalone, requiring new production for changes. Discuss update policies before production, especially if your product evolves frequently. Subscription models like Gisteo’s unlimited plan handle ongoing updates naturally.
Do explainer videos work for B2B businesses? Absolutely. B2B buyers are humans who appreciate clear, engaging communication. Complex B2B products often benefit most from explanation. The style may differ—motion graphics over cartoon animation, professional tone over playful—but the format works effectively across B2B contexts. Many of Gisteo’s clients are B2B companies including technology, professional services, and healthcare organizations.
