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Explainer Video: What They Are and Why They Work

About 97% of businesses find explainer videos helpful for people to get a clearer picture of what they do. That makes sense, right? Because 95% of users have watched explainer videos to learn more about stuff we're interested in.In 2024, the rise of explainer videos for almost every type of business, especially in the SAAS industry is at its peak.
Written by

Shariful Islam

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5 min

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Aanalytics

About 97% of businesses find explainer videos helpful for people to get a clearer picture of what they do. That makes sense, right? Because 95% of users have watched explainer videos to learn more about stuff we're interested in.

In 2024, the rise of explainer videos for almost every type of business, especially in the SAAS industry is at its peak.

What is it and why it’s so important? Keep reading to find out.

What is an Explainer Video?

An explainer video is a brief video typically utilized for marketing or sales that showcases a company's product, service, or business concept engagingly and concisely. Many businesses display explainer videos on their landing pages or their website's homepage. 

Additionally, some companies use these videos to advertise their products or services on platforms like Facebook or other social media sites.

What Makes a Good Explainer Video

So you want to make an explainer video that converts? Here are the key ingredients:

  • Keep it snappy: People these days have short attention spans, so aim for under 2 minutes ideally.
  • Tell them what to do next: Wrap up your video with a clear call to action, like visiting your website or subscribing to your channel.
  • Solve a pain point: Focus on a specific problem your audience faces and show how your product or service is the hero that saves the day.
  • Be yourself, but speak their language: Match the tone and style of your video to your brand and tailor it to resonate with your target audience.
  • High quality, high impact: Invest in making your video look good, with clear visuals and sound. Remember, you're making a first impression!

The secret sauce? Focus on WHY. A lot of explainer videos get bogged down in the what and the how, but forget to tell the audience WHY they should care. Explain your company's mission and how it uniquely connects with your viewers. By understanding your audience and showcasing your purpose, you'll create a video that sticks.

12 Types of Explainer Videos For Your Business

  1. 2D
  2. 3D
  3. Live Action
  4. Screencast
  5. Whiteboard

There are around 12 types of explainer videos that can work for your business.

2D Motion Graphics Explainer Videos

2D Motion Graphics explainer videos use animation magic to transform static images – think stock photos or custom creations – into engaging narratives.

This style is a perfect fit for showcasing apps, explaining complex tech concepts, visualizing financial data, or crafting a clear picture of your company. Explainer videos unlock the power of your message in a way that resonates.

Where To Use

They’re ideal for meetings, marketing campaigns, social media, landing pages – anywhere you want to grab attention. They're perfect for promoting digital products, apps, online services, and even retargeting ads.

Cost

Costs can vary, typically ranging from $5,000 to $10,000 or more.

3D Animated Explainer Videos

3D explainer videos take things to another dimension, literally! These animations bring objects and characters to life in a full 3D space, allowing for hyper-realistic movement and intricate details.

While they require powerful software and computers, the results are worth it. 3D explainer videos can create characters and environments that resonate deeply with your target audience, boosting engagement and effectiveness as marketing tools.

Where to Use

They're perfect for showcasing apps, digital products, and online services. But their applications go beyond marketing – use them for meetings, storytelling on social media, or even educational purposes like teaching and health training.

Cost

Expect to invest roughly $8,000 to $20,000 for a 3D explainer video.

Live Action Explainer Video

Live-action explainer videos put a human face on your product or service. Real people interacting with real things create a genuine connection with viewers.

Live-action isn't always a solo act – it can be a dynamic duo with animation! This combination adds visual flair and emphasizes key moments.

Where to Use:

Live-action is a great choice for showcasing physical products or people-oriented services. Think commercials, social media content, or any platform where building trust and connection is key.

Cost:

Live-action explainer videos can vary in price, ranging from $5,000 to $20,000 or more. While they might seem pricier initially, the impact on your audience can be significant.

Whiteboard Animation

Whiteboard animation explainer videos bring ideas to life with a hand-drawn charm. Imagine a whiteboard filled with illustrations that magically come together to tell your story. This engaging style excels at simplifying complex concepts through creative storytelling.

While extensive brand customization might be limited, whiteboard animations are a powerful tool for explaining processes, outlining your brand history, or creating educational content. The key is finding the right balance between cost and quality to ensure your video reflects your brand consistently.

Where to Use

Whiteboard animations are a popular choice for B2B companies, explaining physical and digital products, online services, and even educational content. Expect to invest roughly $5,000 to $15,000 for a whiteboard explainer video.

Benefits of Explainer Videos

If you want to explore the benefits of explainer videos, you can check these major points out.

People Prefer Video When Learning About a Company or Product/Service

It's no secret that video marketing is powerful, but the numbers behind it are truly staggering. The average person devours over an hour and a half of online video content daily [source needed]. This goes beyond just entertainment – consumers crave video content from brands at every step of their buying journey, especially when they're first discovering a product or service. In fact, a whopping 96% of people have used explainer videos to learn more about something, and 86% have been swayed to buy after watching a video [source needed].

The key to a successful marketing strategy is understanding your audience and meeting them where they are. If, like most audiences, they favor video over text, tailoring your content to their preference is a surefire way to grab their attention and turn them into customers.

It Saves Time

We all know video is king these days, but explainer videos take it a step further. Think of them as super-efficient summaries of your company, all under 3 minutes (VMG Studios even recommends that!).

Helps Customer to Take Fast Decisions

Imagine summarizing a ton of information into a short, digestible video. That's the magic of explainer videos. They let potential customers quickly understand who you are and what you do, saving them time researching or sitting through long meetings to figure it out. It's a win-win!

And it doesn't stop there.  salespeople, we feel your pain – that constant battle against the clock. Explainer videos can be your new best friends. Attach them to your emails or invites, and poof! 

Potential customers can learn the basics about your company (location, services, experience) before the meeting even starts. This lets your sales team ditch the introductory spiel and jump right into what matters most – the client's specific needs and questions.

The Presentation is Lucrative

Explainer videos are presentation ninjas too. Start your pitch with a bang by showcasing your video. This sets the stage for your company's value and lets you dive straight into the details of how you can help your audience. It's a time-saving tactic used by supplier diversity managers at big names like Facebook and Microsoft. 

They use explainer videos to organize their message, stand out from the crowd, and keep their presentations tight and efficient. So, what are you waiting for? Unleash the time-saving power of explainer videos!

Grabs Attention Very Fast

Grabbing attention fast is important. That's where explainer videos come in.

People naturally gravitate towards video over text. So, you're already ahead of the game when you use an explainer video to hook your audience. Animated explainer videos are fantastic for showcasing your business in a creative and visually captivating way. Think bright colors, fun characters, and clear messaging – all in a short, digestible format.

But maybe animation isn't your style. If a live-action video feels like a better fit, you can still grab attention with powerful storytelling. Combine a compelling narrative with B-roll footage that's thoughtfully chosen and purposeful. This one-two punch will paint a vivid picture of your company and what you offer.

Improves SEO

Search engines? We pretty much live there. Google, YouTube, Bing – they're our go-to for everything from "What's the capital of Mongolia?" to "how to fix a leaky faucet" (seriously, YouTube tutorials are lifesavers).

Search engines know this video love affair is real, and they reward websites that embrace it. That means videos can actually boost your website's ranking in search results – by a whopping 157%, according to the stats gurus!

So, put an explainer video on your website's homepage. It's like a flashing neon sign saying "Hey new customers, come on in!" The higher your ranking, the easier it is for people to find you. Win-win!

People Tend to Share Explainer Videos More

Explainer videos aren't just homepage heroes – they're social media superstars too! Think about it: someone might discover your company first on LinkedIn, Facebook, or Twitter. Wouldn't it be awesome to have your explainer video pinned right there at the top, ready to give them a quick company intro?

Explainer videos can also be your YouTube channel's "trailer," just like VMG Studios does it. Or, include a link to your explainer video in your Instagram bio – a little taste of what your company's all about.

But sharing goes way beyond social media. You can easily send a link to your explainer video to potential clients through emails, social media messages, calendar invites – the options are endless! This is especially handy when it comes to referrals. Say a happy client wants to recommend you to a friend or colleague – they can simply share your explainer video along with your website link. Explainer videos: the gift that keeps on giving (and sharing)!

Become a Brand Recognition Rockstar!

Ever heard it takes 5-7 tries for someone to remember your brand? That's a lot of "hey-who-are-you?" moments. Explainer videos can be your secret weapon to change that!

Think of them as tiny brand ambassadors, packed with your company's personality, colors, logo, slogans, and of course, your awesome voice. The more someone sees your brand (and explainer videos are super shareable!), the more likely they are to remember you.

Plus, explainer videos let you show the faces behind the brand – your mission, your values. It's a way to connect with potential customers on a deeper level. So, share your explainer video everywhere you can (website, social media – the whole shebang!), and watch your brand recognition soar!

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