How Much Does Advertising Explainer Video Production Cost In 2025?
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Advertising Explainer Video Pricing
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Key Takeaways
- 83% of businesses report higher engagement rates with videos compared to other formats.
- 37% of businesses cite finding skilled animators as their biggest challenge in video creation.
- 62% of businesses track click-through rates and conversion rates as key performance indicators (KPIs) for their videos.
Factors
What factors influence the cost of advertising explainer video creation?
Understanding the factors that influence advertising explainer video costs empowers you to make informed decisions. Let's break down the key elements that can affect your budget, enabling you to plan effectively for a successful video production.
Primary Factors:
1. Video Length: A longer advertising explainer video, say three minutes, naturally requires more production time and resources than a shorter 60-second video, directly impacting the overall cost.
2. Video Design Complexity: Intricate designs and detailed animations in your advertising explainer video, like a 3D product demo, will typically be more expensive than a simpler whiteboard animation.
3. Video Production Scope: Extensive pre-production for your advertising explainer video, including in-depth market research and multiple script revisions, adds to the project's complexity and cost.
Secondary Factors:
4. Scriptwriting & Storyboarding: A compelling script and detailed storyboard are fundamental to a successful advertising explainer video and influence the overall production effort.
5. Motion Graphics Style Complexity: Highly complex motion graphics in your advertising explainer video, such as intricate transitions and character animations, require more specialized skills and time, increasing the cost.
6. Voice-over Talent Selection & Direction: Professional voice-over artists with extensive experience in advertising explainer videos often command higher rates, impacting your budget.
How to optimize advertising explainer video creation budget?
Managing your advertising explainer video budget requires a strategic approach. These 6 factors can impact the cost by as much as 40%. Remember, 83% of businesses report a positive ROI from explainer videos, so investing wisely is key. Ready to budget effectively?
Our simple budgeting guidelines are:
Define Must-Haves: Prioritize essential elements for your advertising explainer video, like a clear message and strong visuals.
Collaborate Early: Engage your chosen video production agency early to discuss your vision and budget constraints for your advertising explainer video.
Explore Options: Discuss different video styles, such as 2D animation or whiteboard animation, with your agency to find cost-effective solutions for your advertising explainer video.
How to get exact budget for your advertising explainer video production?
Start by gathering information and communicating your needs effectively. This proactive approach will help you secure accurate pricing and avoid surprises.
Engage with potential agencies and clearly outline your requirements. What are your objectives? A well-defined brief is crucial. 18% of businesses are willing to experiment with new video ad formats, so explore options. This can affect the cost.
Share References & Objectives: Provide 1-2 reference videos and a clear brief outlining your objectives for the advertising explainer video.
Scope & Milestones: Request a detailed scope of work, including milestones, payment terms, and revision flexibility for the advertising explainer video.
Premium Extras: Inquire about any premium extras included in the package, such as different versions or raw files for your advertising explainer video.
Client Input: Understand the level of creative input expected from you throughout the advertising explainer video production process.
Discounts & Partnerships: Explore potential discounts and long-term partnership opportunities, which can save money, especially if you plan to create multiple advertising explainer videos.
Negotiate: Don't hesitate to negotiate pricing and clearly communicate your budget expectations for the advertising explainer video. 37% of businesses use a data-driven creative strategy, so emphasize your goals.
Overall average cost of advertising explainer video
The average cost of a 60-second advertising explainer video is $3,050, with prices ranging from $1,000 to $16,000.
Geographical spending on video marketing production -
Companies types and their video production budgets -
With remote work and advanced software paired with modern ai powered graphics software, agencies are able to deliver the same quality in 2025 at a lower budget of 15% compared to previous year. Returning clients expect to get the same quality of advertising videos at a discounted price of 28% to 34% on average.
Data source - Advids surveyed in 2025 , 80 of its clients and 12 agencies to calculate the average cost & spending.
Advertising Explainer Video Pricing List
Understanding the nuances of each advertising explainer video style empowers businesses to choose the perfect fit for their message and budget. We'll break down the scope of production for each style, including ideal length, use cases, video elements, production timeline, and cost.
Below is average per minute pricing
1. Whiteboard Animation Pricing: $1,000 - $2,000
Use Cases: Product Explanation, Feature Highlight, Problem/Solution, Brand Storytelling, Tutorial
Ideal Length: 30 seconds, 60 seconds
Video Elements: Hand-drawn animation, Simple characters, Text overlays, Icons
Production Timeline: 2-3 weeks
2. UI Mockup Animation Pricing: $1,500 - $3,000
Use Cases: App Demo, Software Tutorial, Website Walkthrough, User Interface, Onboarding
Ideal Length: 30 seconds, 60 seconds
Video Elements: Screen recordings, Animated UI elements, Transitions, Text, Cursors
Production Timeline: 2-4 weeks
3. 2D Animated Product Demo Pricing: $2,000 - $4,000
Use Cases: Product Launch, Feature Explanation, Benefits Showcase, How-to Guide, Brand Storytelling
Ideal Length: 30 seconds, 60 seconds
Video Elements: 2D characters, Animated objects, Backgrounds, Text, Transitions
Production Timeline: 3-4 weeks
4. Motion Graphics + Product Demo Pricing: $2,500 - $4,500
Use Cases: Product Launch, Brand Promotion, Event Promotion, Social Media Ads, Explainer Videos
Ideal Length: 15 seconds, 30 seconds
Video Elements: Animated graphics, Text animations, Kinetic typography, Transitions, Sound design
Production Timeline: 3-5 weeks
5. Animated Explainer Pricing: $3,000 - $5,000
Use Cases: Company Story, Product Overview, Service Explanation, Brand Messaging, Educational Content
Ideal Length: 60 seconds, 2 minutes
Video Elements: Character animation, Backgrounds, Props, Special effects, Sound design
Production Timeline: 4-6 weeks
6. Isometric Product Visualization Pricing: $4,000 - $6,000
Use Cases: Product Showcase, Technical Explanation, Industrial Design, Architectural Visualization, 3D Modeling
Ideal Length: 30 seconds, 60 seconds
Video Elements: 3D models, Isometric angles, Animated camera movements, Textures, Lighting
Production Timeline: 5-7 weeks
7. 3D Product Demo Pricing: $5,000 - $7,000
Use Cases: Product Launch, Detailed Product View, Complex Animations, High-End Visuals, Cinematic Storytelling
Ideal Length: 30 seconds, 60 seconds
Video Elements: 3D models, Realistic textures, Lighting, Animations, Special effects
Production Timeline: 6-8 weeks
8. Live Action + Product Demo Pricing: $3,500 - $5,500
Use Cases: Product Demonstration, Testimonial, Behind-the-Scenes, Event Coverage, Brand Storytelling
Ideal Length: 30 seconds, 2 minutes or longer
Video Elements: Filmed footage, Product shots, Actors/Presenters, Locations, Graphics
Production Timeline: 4-6 weeks
How much does advertising explainer video production cost?
Ever wondered how much an advertising explainer video actually costs? In our experience, advertising explainer video production typically ranges from $1,000 to $7,000 for a one-minute video. A radical thought: quality doesn't always demand exorbitant prices. A well-crafted whiteboard animation can be surprisingly effective and budget-friendly. balancing quality and affordability is key. Achieve this by focusing your message and choosing the right visual style. A powerful statement: quality is not solely defined by cost, but by the effectiveness of your message. Consider 2D animated product demos for showcasing features cost-effectively. We typically include scriptwriting, voiceover, music licensing, and revisions. Many production companies offer tiered packages—basic, standard, and premium—to suit various budgets. Remember, 83% of businesses report a positive ROI from explainer videos. Cost varies based on video length, complexity, and post-production needs. A 15-second video might cost between $500 and $2,000, while a 30-second video could range from $1,000 to $4,000. Custom production allows for tailored storytelling and branding, unlike generic templates, potentially leading to higher engagement and ROI.
How does advertising explainer video creation pricing work?
How do you compare different video production quotes? Pricing often reflects the production company's expertise, team size, and the complexity of your chosen style. One key thing often overlooked is the value of revisions and ongoing support. Approach pricing strategically by aligning your video goals with your budget. comparing quotes requires careful consideration of both cost and quality. A lower price might mean compromising on animation quality or scriptwriting. Similarly, a higher price doesn't always guarantee better results if the production team lacks experience in your specific niche. For example, an isometric product visualization, while visually appealing, might be more expensive than a 2D animated explainer video due to the technical complexity involved. Focus on value, not just the bottom line.
Data roundup
Do you plan to increase or decrease video content budget?
79%
Increasing
Source: Advids
9%
Decreasing
Source: Advids
12%
No Change
Source: Advids
What is the average pricing range for custom advertising explainer video creation?
When does fully custom become the best choice? Truly custom productions, like UI mockup animations, offer unparalleled flexibility and control over every detail. These are ideal when showcasing complex software or apps, requiring meticulous attention to user interface and user experience. In our experience, this level of customization typically falls within the $5,500 to $7,000 range for a one-minute video. Custom videos allow for deep integration of your brand identity and messaging, resulting in a more impactful and memorable experience for your audience. This approach is best suited for projects where a unique and highly polished look is essential.
What is the estimated cost range for a 60 seconds advertising explainer video?
Considering a 60-second explainer video? The average cost ranges from $1,000 to $7,000. Negotiate value by asking for additional deliverables like different versions with varied calls to action or aspect ratios. Maximize your 60 seconds by crafting a compelling narrative that keeps viewers engaged. Sixty seconds is valuable. Leverage this time by creating versions tailored to different user personas or including raw files for future edits. This allows for greater flexibility and repurposing of your video content. For instance, a live-action product demo within this timeframe can effectively showcase your product in a real-world setting, adding credibility and relatability. Consider which length best suits your message and platform. A shorter video might be more effective for social media, while a longer format could be suitable for your website.
Data roundup
Are you happy with the quality vs cost of your current video creation agency?
79%
Yes
Source: Advids
11%
No
Source: Advids
10%
Not applicable
Source: Advids
What are your costs for different advertising explainer video production types
How should we select an appropriate advertising explainer video production method? Creating advertising explainer videos ourselves utilizing DIY software, commissioning a freelancer, establishing an in-house team, or collaborating with a basic or specialized advertising explainer video production agency can vary depending on individual project needs, which typically costs around a certain price range. Let's examine each option's benefits and drawbacks.
| Production Type | Pros | Cons | Pricing Range |
| DIY Software | Cost effective, Full control, Easy to learn | Limited features, Time consuming | $ 40 to $ 220 |
| Freelancer | Flexible, Specialized skills, Cost effective | Limited resources, Inconsistent quality | $ 500 to $ 2,000 |
| In-house Team | Brand consistency, Direct communication, Quick turnaround | Higher overhead, Requires management | $ 1,000 to $ 4,000 |
| Basic Video Agency | Professional quality, Project management, Creative expertise | Less specialized, Limited availability | $ 800 to $ 2,500 |
| Advertising Explainer Video production Agency | High quality, Industry expertise, Strategic approach | Higher pricing | $ 1,000 to $ 7,000 |
How much does it cost to hire a professional Advertising Explainer Video production agency?
Is finding the right balance between cost and agency expertise a challenge? In our experience, hiring a professional agency for Advertising Explainer Video production typically ranges from $3,000 to $5,000 for a one-minute video. A radical thought: consider an agency as a long-term content solution partner, not just a one-off expense. This shift in perspective can lead to more cohesive and effective video marketing strategies. We recommend thoroughly reviewing agency portfolios and client testimonials on Google Reviews. Comparing proposals from at least three to five agencies is crucial, ensuring each quote aligns with your specific needs for a fair comparison. Develop a shortlist based on cost, production quality, responsiveness, and creative vision. This approach allows you to select an agency that best fits your budget and long-term goals. Benefit: a professional agency brings expertise in storytelling, animation, and marketing, potentially leading to higher engagement and ROI for your videos.
How much does freelancers cost to create Advertising Explainer Videos?
How do you navigate the cost-effectiveness of freelancers? Freelancers can be a cost-effective option, often 30% to 70% cheaper than agencies, with prices ranging from $1,000 to $3,000 for a one-minute video. A radical thought: while freelancers offer cost savings, project management can become more involved due to their solo nature. If you choose this route, prioritize freelancers with proven experience in Advertising Explainer Videos. In our experience, freelancers typically charge hourly rates, varying from $4 to $30 based on location and skill level. While cost-effective, freelancers may lack the collaborative resources and pre-production expertise of a full-fledged agency. Benefit: working directly with a freelancer can offer greater creative control and a more personalized experience. However, be prepared to manage the project closely and ensure clear communication throughout the process.
How much does DIY cost to create Advertising Explainer Videos and their limitations?
Are DIY video creation tools a viable option? While we generally recommend professional production, DIY tools like VideoGen ($220/month) and Animoto ($40/month) offer affordable alternatives. A radical thought: focus on finding templates that align with your specific goals for Advertising Explainer Videos. Success with DIY relies heavily on your ability to craft a compelling narrative and select the right template. In our experience, using AI-powered content research tools can significantly enhance your scriptwriting process. Benefit: DIY offers maximum budget control and the ability to experiment quickly. However, be prepared to invest significant time in learning the software and refining your video. Always test your DIY videos with a small audience first to gather feedback on quality and engagement before wider distribution.
FAQs about advertising explainer video production costs
Get answers to common questions about the cost of advertising explainer video production below!
How much does advertising explainer videos creation cost in 2025?
On average, advertising explainer videos production cost $1,000 to $7,000 per minute. Early-stage startups often spend under $1,900 per minute, while established brands focus on quality and tend to spend upwards of $3,100 per minute.
Source Data
| Cost | % of marketers |
| $1,100 - $1,700 | 19.97% |
| $1,701 - $2,500 | 20.17% |
| $2,501 - $4,000 | 33.57% |
| $4,001 - $5,000 | 15.29% |
| $5,001 - $7,000 | 4.84% |
| More than $7,000 | 6.16% |
How much is higher pricing relevant to higher advertising explainer videos quality?
Higher pricing is directly related to higher quality (68% of respondents). And (26% of respondents) think cost increase does not guarantee a great output always for advertising explainer video.
Source Data
| Cost | % of marketers |
| High Price is equal to High Quality | 68% |
| High Price sometimes get High Quality | 26% |
| Low Price can get High Quality | 6% |
What budgets should be allocated for advertising explainer videos production for the entire year?
Marketers who have already produced video content in 2025 are 76% more likely to increase budgets. While marketers creating advertising explainer video content for the first time plan to spend less than $7,000 in 2025.
Source Data
| Budget | % of marketers |
| $4,000 - $6,000 | 19.97% |
| $6,001 - $10,000 | 25.17% |
| More than $10,000 | 54.86% |
What factors can significantly increase the cost of producing an advertising explainer video?
Video length, animation complexity, voiceover talent, script revisions, and the number of revisions requested all contribute to increased production costs.
What is a reasonable budget to allocate for a high-quality advertising explainer video?
Depending on your needs, a reasonable budget could range from $500 for a simple freelancer project to $7,000 or more for a complex agency production.
Is it possible to get a professional advertising explainer video with a limited budget, and how?
Yes, explore working with newer freelancers or agencies with competitive pricing, or opt for a simpler video style to lower costs.
How does the pricing for an advertising explainer video differ between a freelancer and a production agency?
Freelancers typically charge between $500 and $2,000, while agencies range from $1,000 to $7,000, reflecting varying expertise and overhead.
Aside from the production itself, are there other hidden costs I should factor into the overall price?
Potential hidden costs include music licensing fees, stock footage costs, and translation or localization expenses if needed.
