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Published: January 2, 2025

How Much Does Business Explainer Video Production Cost In 2025?

On average, explainer videos for businesses production cost can range from $1,500 and $8,000, with starting estimates as low as $1,100. We've found that many popular animation styles like whiteboard animation, 2d animation, and motion graphics, fall within these costs; however, motion graphics videos often have a tighter average cost range of $2,000 and $4,000 and a quicker 2 to 4 week project turnaround time.
Business Explainer Video
methodology:
  • Join the 3,400+
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Business Explainer Video Pricing

  • Advids Expertise
    • 40+ award-winning creative team specializing in all business explainer videos.
    • Full-service video production for impactful marketing with whiteboard and 2d animation.
    • Custom design and motion graphics expertise to elevate your brand's video impact.
  • What Sets Advids Apart

    Our team is ready to help you boost conversions with compelling explainer videos.

    • Compelling Storytelling: Crafting engaging narratives and impactful visuals that resonate with your target audience.
    • Visual Expertise: Motion graphics and animation expertise to bring your brand story to life.
    • Strategic Approach: Deep understanding of customer journeys and pain points to maximize impact.
    • Dedicated Support: Dedicated video production manager and creative team for seamless project execution.
    • Ongoing Communication: Ongoing project communication and feedback integration throughout the process.
    • Optimized Delivery: Delivery of high-quality video assets optimized for various platforms.

 

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trusting Advids to elevate your brand with compelling business explainer videos. Many video providers rely on generic templates. That’s not how we create at Advids.

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Key Takeaways

  • 83% of businesses are happy with the return on investment (ROI) they receive from videos.
  • 37% of businesses use a data-driven strategy for their videos.
  • 62% of businesses plan to increase spending on business mission videos in 2025.
  • 18% of businesses are willing to experiment with new video formats
  • 49% of businesses say they're currently using, or are open to using, a video production agency for their video production.

Factors

What factors influence the cost of business explainer video creation?

Understanding the factors that influence video production costs empowers you to make informed decisions. Let's break down the key elements that can affect your business explainer video budget.

Primary Factors:

1. Video Length: A longer business explainer video, say three minutes versus one, naturally requires more production time and resources, thus increasing the cost.
2. Video Design Complexity: Intricate animations, custom character designs, or complex visual effects in your business explainer video add to the design workload and overall cost.
3. Video Production Scope: Extensive pre-production for your business explainer video, including in-depth market research, multiple script revisions, and complex storyboarding, impacts the overall project scope and budget.


Secondary Factors:

4. Voice-over Talent Selection & Direction: A professional voice-over artist with experience in business explainer videos can elevate your production but may come at a higher cost.
5. Motion Graphics Style Complexity: The complexity of motion graphics in your business explainer video, such as intricate transitions or kinetic typography, directly influences the production time and cost.
6. Number of Revisions: Multiple rounds of revisions to your business explainer video, while ensuring a polished final product, can add to the overall project timeline and budget.

How to optimize business explainer video creation budget?

Managing your business explainer video budget requires understanding these 6 factors, which can impact the cost by as much as 40%. A well-defined budget ensures your business explainer video is engaging and effective without overspending. Ready to start? Work with an agency early on; they can tailor a quote to your specific needs, maximizing your investment. Remember, 49% of businesses are open to using a video production agency for their explainer videos.

Our simple budgeting guidelines are:

Define Must-Haves: What core elements are essential for your business explainer video's success?
Collaborate Early: Engage your chosen agency early to discuss your vision, budget, and desired outcomes.
Strategic Flexibility: Be open to creative solutions that can save money without compromising quality. What's your priority?

How to get exact budget for your business explainer video production?

Getting an accurate budget requires proactive communication and a clear understanding of your needs. By following these steps, you can ensure your business explainer video project stays on track and within budget. 37% of businesses already use data-driven creative strategies for their explainer videos, demonstrating the importance of a planned approach.

Here's how to get started:

Share Your Vision: Provide 1-2 reference videos, a brief outlining your objectives, and a basic video outline. What's your goal?
Scope of Work: Request a detailed scope of work, including milestones, payment terms, revision flexibility, and future video update options.
Premium Extras: Inquire about any premium extras included in the package, such as different aspect ratios or source files. What's included?
Client Input: Understand the level of creative input expected from you throughout the production process.
Negotiate Value: Discuss potential discounts, especially for long-term partnerships. This can save money. How can we collaborate?
Special Pricing: Don't hesitate to ask for a special price, clearly presenting your budget and project scope. 18% of businesses are willing to experiment with new video ad formats and strategies, so explore your options. What's your best offer?

Remember, factors like video length and complexity can affect the cost. By proactively addressing these points with your chosen agency, you'll be well-positioned to receive an accurate and tailored budget for your business explainer video.

Overall average cost of business explainer video

The average cost of a 60-second business explainer video is $3,185, with prices ranging from $1,000 to $16,000.

  • Key factors affecting the cost include production quality, customization, and the provider's geographic location.
  • We identified a 'sweet spot' between $3,480 and $8,120, balancing quality, customization, and value.
  • Geographical spending on business video production -

  • US-based companies spend average of $6,570 for 60 seconds
  • European companies spend average of $4,250 for 60 seconds
  • Asian companies spend average of $1,910 for 60 seconds
  • Companies types and their video production budgets -

  • For startups and SMB businesses, a budget of $1,160 to $3,480 is recommended for an optimal balance of affordability and quality.
  • Founders of early stage companies, achieve the most rich content for better investment ROI, a budget of $1,620 to $4,180 is average spend per minute.
  • Enterprise companies spend a higher price for rich aesthetics and branding, an average of $4,640 to $8,120 for top quality videos.
  • 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 21% compared to previous year. Returning clients expect to get the same quality of business explainer videos at a discounted price of 28% to 33% on average.

    Data source - Advids surveyed in 2025 , 80 of its clients and 12 agencies to calculate the average cost & spending.

    Business Explainer Video Pricing List

    Understanding the nuances of each business explainer video style and its associated costs is crucial for making informed decisions. We'll break down the scope of production for each style, outlining its typical use cases, ideal length, common video elements, estimated production timeline, and pricing range.

    Below is average per minute pricing

    1. Whiteboard Animation Pricing: $1,500 - $2,500
    Use Cases: Product Demo, Onboarding, Training, Feature Highlight, Problem/Solution
    Ideal Length: 30 seconds, 60 seconds
    Video Elements: Hand-drawn animation, Simple characters, Text overlays, Icons
    Production Timeline: 2-3 weeks

    2. Animated Icons + Text Pricing: $2,000 - $3,500
    Use Cases: Product Demo, Feature Highlight, Data Visualization, List-Based Explainer, Social Media Content
    Ideal Length: 15 seconds, 30 seconds
    Video Elements: Animated icons, Kinetic typography, Background music, Transitions
    Production Timeline: 2-4 weeks

    3. Simple 2D Animation Pricing: $2,500 - $4,500
    Use Cases: Product Demo, Brand Storytelling, Explainer, Tutorial, Social Media Content
    Ideal Length: 30 seconds, 60 seconds
    Video Elements: Basic characters, Simple backgrounds, Solid colors, Transitions
    Production Timeline: 3-4 weeks

    4. Motion Graphics Explainer Pricing: $3,000 - $5,500
    Use Cases: Product Demo, Data Visualization, Abstract Concepts, Brand Storytelling, Social Media Content
    Ideal Length: 15 seconds, 45 seconds
    Video Elements: Shapes, Kinetic typography, Transitions, Sound effects, Background music
    Production Timeline: 3-5 weeks

    5. Animated Character Demo Pricing: $4,000 - $7,000
    Use Cases: Product Demo, Brand Mascot Introduction, Character-Driven Narrative, Onboarding, Tutorial
    Ideal Length: 30 seconds, 60 seconds
    Video Elements: Character animation, Backgrounds, Props, Sound effects, Voiceover
    Production Timeline: 4-6 weeks

    6. Isometric Software Visualization Pricing: $5,000 - $8,000
    Use Cases: Software Demo, SaaS Product Explainer, User Interface Showcase, Tutorial, Onboarding
    Ideal Length: 60 seconds, 2 minutes
    Video Elements: Isometric design, 3D elements, User interface, Transitions, Motion graphics
    Production Timeline: 5-7 weeks

    7. 3D Product Demo Pricing: $6,000 - $8,000
    Use Cases: Product Showcase, E-commerce Product Demo, Detailed Product Features, Industrial Design, Mechanical Design
    Ideal Length: 30 seconds, 2 minutes
    Video Elements: 3D models, Textures, Lighting, Camera movement, Product features
    Production Timeline: 6-8 weeks

    How much does business explainer video production cost?

    Ever wondered how much a compelling business explainer video might cost? In our experience, business explainer video production typically ranges from $1,500 to $9,000 for a one-minute video. Quality doesn't always demand exorbitant prices; strategic planning can achieve both. Balancing quality and cost involves choosing the right format for your message and budget. A Simple 2D Animation might be perfect for a concise product overview, while a Motion Graphics Explainer could better suit a complex service demonstration. Included services like scriptwriting, voiceover, music licensing, and revisions are often standard, but clarifying this upfront is key. Many production companies offer tiered packages—basic, standard, and premium—with varying features and price points. Remember, 83% of businesses report a positive ROI from explainer videos, making it a worthwhile investment. Cost also varies based on video length, complexity, talent fees, and post-production needs. A 30-second explainer can effectively introduce a product, while a 60-second format allows for deeper dives into features and benefits. Custom production, unlike templates, offers bespoke visuals, messaging, and branding, maximizing your return.

    How does business explainer video creation pricing work?

    When comparing quotes, don't just focus on the bottom line. Evaluate the balance between quality, cost, and the production team's expertise. A lower quote might mean less experienced animators or compromised quality. One often overlooked aspect is the value proposition. Does the quote include revisions, or are they an added cost? Consider your video goals. If you need a 3D Product Demo to showcase intricate details, expect a higher price than a simpler Animated Icons + Text video. Approach pricing strategically, aligning your budget with your desired outcome. comparing quotes effectively involves understanding what each quote includes and how it aligns with your specific needs and expectations.

    Data roundup
    Do you plan to increase or decrease video content budget?

    What is the average pricing range for custom business explainer video creation?

    For truly custom business explainer videos, where every element is tailored to your brand, consider a 3D Product Demo. This style demands high-level animation skills and meticulous attention to detail, making it ideal for showcasing complex products with intricate functionalities. When you need to demonstrate the value of a tangible product in a visually stunning way, a fully custom approach like this shines. Fully custom videos, like 3D Product Demos, typically fall within the $7,500 to $9,000 range for a one-minute video, reflecting the increased production effort and expertise involved. This investment is justified by the enhanced engagement and conversion potential of a truly bespoke video.

    What is the estimated cost range for a 60 seconds business explainer video?

    A 60-second business explainer video typically costs between $1,500 and $9,000. Negotiating value doesn't always mean lower prices. Ask for additional deliverables like versions with different calls to action, various aspect ratios, or raw files. These extras can significantly increase your video's versatility and reach. Sixty seconds gives you ample time to tell a compelling story. Maximize this by creating versions tailored to different user personas with minor edits. Maximize your sixty seconds by focusing on delivering value in every second and tailoring your message to resonate with your target audience. A Whiteboard Animation, for example, can effectively explain complex concepts in an engaging and digestible format within this timeframe.

    Data roundup
    Are you happy with the quality vs cost of your current video creation agency?

    How much does it cost to hire a professional Business Explainer Video production agency?

    Are you concerned about finding the right balance between cost and agency expertise? In our experience, hiring a professional Business Explainer Video production agency typically costs between $3,500 and $5,500 for a one-minute video. We recommend thoroughly reviewing agency portfolios and client testimonials on platforms like Google Reviews. This provides valuable insights into their past work and client relationships. Comparing proposals from multiple agencies (3-5 is ideal) is crucial. Ensure each agency quotes on the same specifications for an apples-to-apples comparison. Shortlist based on factors like cost, production quality, responsiveness, and creative synergy. Think long-term; the right agency can become an ongoing content partner, streamlining your video production needs. A radical thought: consider the lifetime value of a high-quality explainer video versus potential cost savings. A well-crafted video can significantly boost conversions and brand awareness, offering a substantial return on your investment.

    How much does freelancers cost to create Business Explainer Videos?

    How do you ensure reliability when working with a freelancer? While freelancers can be a cost-effective option, typically 30% to 70% less than an agency (ranging from $1,050 to $3,850 for a one-minute video), managing the project effectively is key. If you choose this route, prioritize freelancers with a proven track record in explainer video creation. Be aware that freelancers, often working solo, may have limitations in project management, pre-production research, and overall bandwidth. They often charge hourly, with rates varying significantly ($4 to $30 per hour) based on experience and location. Clear communication and well-defined milestones are essential for a successful freelancer collaboration. A benefit of working with freelancers is the potential for greater flexibility and personalized attention.

    How much does DIY cost to create Business Explainer Videos and their limitations?

    Is DIY video production truly feasible for businesses? While we generally recommend professional services, if you're determined to create your own Business Explainer Videos, platforms like VideoGen ($220/month) and Animoto ($40/month) offer user-friendly interfaces and stock assets. Success with DIY hinges on selecting the right template and crafting a compelling narrative. Don't rely solely on text-to-video prompts; invest time in solid scriptwriting using dedicated content research tools. Test your DIY video with a small audience first to gauge its effectiveness and gather feedback on quality and engagement. While DIY can be budget-friendly, it often requires a significant time investment and may not achieve the same level of polish and impact as professionally produced videos.

    FAQs about business explainer video production costs

    Get answers to common questions about the cost of business explainer video production below!

    How much does business explainer videos creation cost in 2025?

    On average, business explainer videos production cost $1,500 to $8,000 per minute. Early-stage startups often spend under $1,400 per minute, while established brands focus on quality and tend to spend upwards of $3,400 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 business explainer videos quality?

    Higher pricing is directly related to higher quality (68% of respondents). And (27% of respondents) think cost increase does not guarantee a great output always for business explainer videos.

    Source Data

    Cost % of marketers
    High Price is equal to High Quality 68%
    High Price sometimes get High Quality 27%
    Low Price can get High Quality 5%

    What budgets should be allocated for business 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 business 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 35.17%
    More than $10,000 44.86%

    What are the factors that influence the cost of a business explainer video?

    We find that video length, animation style, script complexity, voiceover talent, and revisions all contribute significantly to the overall cost.

    What is a reasonable budget to allocate for a high-quality explainer video?

    We recommend a budget between $1,500 and $8,000 for professional studio production, or $500 to $2,000 for freelance work, depending on your needs.

    How does the pricing for a longer explainer video compare to a shorter one?

    We observe that longer videos typically require more animation and voiceover work, leading to a proportionally higher production cost.

    Are there ways to lower the price when working with a professional studio?

    We suggest exploring options like limiting revisions, using simpler animation styles, or providing a detailed script to potentially reduce costs.

    Aside from production, what other costs should I factor into my budget for an explainer video?

    We advise considering costs for marketing and distribution, music licensing fees, and potential translation or localization expenses.

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