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Published: January 2, 2025

How Much Does Service Explainer Video Production Cost In 2025?

Production pricing for service explainer videos can range from $1,500 and $7,000, with starting estimates as low as $1,100. We've found that many popular video styles like whiteboard animation, 2d animated explainer, and motion graphics explainer, fall within these costs; however, motion graphics explainer videos often have a tighter average cost range of $2,000 and $3,000 and a quicker 2 to 4 week production timeline.
Service Explainer Video
methodology:
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Service Explainer Video Pricing

  • Advids Expertise
    • 40+ award-winning creative team specializing in whiteboard, 2d animated and motion graphics explainer videos.
    • Full-service video production delivering high-impact results through expert execution.
    • Custom design maximizing engagement and impact, ensuring unique video experiences.
  • What Sets Advids Apart

    Our team is ready to help you boost conversions with compelling videos through proven strategies and cutting-edge creative expertise.

    • Dedicated Team: Dedicated video production manager and creative team to plan, execute, and deliver your explainer video projects.
    • Compelling Storytelling: Expertise in crafting compelling narratives, impactful visuals, and persuasive calls-to-action.
    • Target Audience Focus: Deep understanding of customer journeys and pain points.
    • Visual Expertise: Motion graphics and animation expertise.
    • Clear Communication: Ongoing project communication and feedback integration.
    • Optimized Delivery: Delivery of high-quality video assets optimized for various platforms.
    • Engaging Scripts: Engaging scripts tailored to resonate with target audiences.

 

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trusting Advids to elevate your brand with a compelling service explainer video. 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 screencast explainer 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 service 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 service explainer video budget.

Primary Factors:

1. Video Length: A longer video, such as a three-minute explainer showcasing multiple service features, naturally requires more production time and resources than a shorter, 60-second overview.
2. Video Design Complexity: A service explainer video with intricate 3D animations, like a 3D Software Product Demo, will be more expensive than one using simpler 2D graphics.
3. Video Production Scope: A service explainer video requiring extensive pre-production planning, including detailed storyboarding and multiple script revisions, will have higher upfront costs.

Secondary Factors:

4. Scriptwriting & Storyboarding: A compelling script and detailed storyboard are essential for a successful service explainer video, and their development contributes to the overall cost.
5. Number of Revisions: Unlimited revisions for your service explainer video can offer peace of mind but might be reflected in a slightly higher initial quote.
6. Voice-over Talent Selection & Direction: Choosing a professional voice actor with the right tone and experience for your service explainer video can impact the overall budget.

How to optimize service explainer video creation budget?

Managing your service explainer video budget requires considering these 6 factors, which can influence cost by as much as 40%. A well-structured budget helps create engaging videos without overspending. Our advice? Ready to start? Engage a video production agency early and allow them to tailor a quote to your specific service explainer video needs. Remember, 83% of businesses report a positive ROI from explainer videos, making a strategic investment worthwhile.

Our simple budgeting guidelines are:

Define Must-Haves: Prioritize the essential elements for your service explainer video.
Early Collaboration: Discuss your needs and budget with your chosen agency upfront.
Strategic Flexibility: Be open to cost-effective alternatives that maintain quality.

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

Securing an accurate budget requires a proactive approach. By following these steps, you can gain clarity and ensure your service explainer video aligns with your financial goals. 18% of businesses are willing to experiment with new video ad formats and strategies, so explore your options.

Start by sharing 1-2 reference videos, a brief outlining your objectives, and a basic video outline with potential agencies. This provides a clear starting point for discussion. Next, request a detailed scope of work for your service explainer video project, including milestones, payment terms, revision flexibility, and potential future video updates. Knowing these details upfront can save money and prevent surprises.

Premium Extras: Inquire about any premium extras included in the package, such as expedited delivery or additional file formats.
Client Input: Understand the level of creative input expected from you throughout the service explainer video production process.
Discounts & Partnerships: Explore potential discounts for your service explainer video and the possibility of a long-term partnership.
Negotiation: Don't hesitate to ask for a special price, clearly presenting your budget and objectives. This can affect the cost and potentially lead to a more favorable agreement. 49% of businesses are open to using a video production agency, so leverage this competitive landscape.

Overall average cost of service explainer video

The average cost of a 60-second service explainer video is $3,050, 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 $3,300 and $7,800, balancing quality, customization, and value.
  • Geographical spending on service explainer video production -

  • US-based companies spend average of $6,300 for 60 seconds
  • European companies spend average of $4,100 for 60 seconds
  • Asian companies spend average of $1,800 for 60 seconds
  • Companies types and their service explainer video production budgets -

  • For startups and SMB businesses, a budget of $1,100 to $3,300 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 $1,550 to $4,000 is average spend per minute.
  • Enterprise companies spend a higher price for rich aesthetics and branding, an average of $4,400 to $7,800 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 15% compared to previous year. Returning clients expect to get the same quality of service explainer 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.

    Service Explainer Video Pricing List

    Understanding the nuances of each service explainer video style and its associated cost is crucial for making informed decisions. We'll break down popular styles, exploring their scope of production, including ideal length, use cases, video elements, production timelines, and pricing ranges to help you choose the best fit for your needs.

    Below is average per minute pricing

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

    2. Kinetic Typography Pricing: $1,700 - $2,700
    Use Cases: Promotional Content, Event announcements, Social media ads, Short explainers, Quotes/testimonials
    Ideal Length: 15 seconds, 30 seconds
    Video Elements: Animated text, Transitions, Background music, Sound effects
    Production Timeline: 2-3 weeks

    3. Screen Recording + Annotations Pricing: $2,000 - $3,000
    Use Cases: Software Tutorials, Product demos, Training videos, Troubleshooting guides, Customer support
    Ideal Length: 30 seconds, 2 minutes
    Video Elements: Screen capture, Annotations, Voiceover, Zoom/pan effects, Cursor highlights
    Production Timeline: 2-4 weeks

    4. UI Mockup Animation Pricing: $2,500 - $4,500
    Use Cases: App walkthroughs, Website demos, Prototype showcase, Feature explainers, User interface design
    Ideal Length: 30 seconds, 60 seconds
    Video Elements: Animated mockups, Transitions, Icons, Button clicks, User interface elements
    Production Timeline: 3-4 weeks

    5. Animated Explainer Pricing: $3,000 - $5,000
    Use Cases: Product Overview, Brand Storytelling, Service Promotion, Educational Content, Marketing campaigns
    Ideal Length: 60 seconds, 2 minutes
    Video Elements: 2D animation, Characters, Backgrounds, Voiceover, Sound effects
    Production Timeline: 3-5 weeks

    6. Isometric App Visualization Pricing: $3,500 - $5,500
    Use Cases: App demonstrations, Software visualization, System overviews, Data representation, Complex process explanation
    Ideal Length: 30 seconds, 2 minutes
    Video Elements: Isometric visuals, 3D models, Animations, Transitions, Camera movements
    Production Timeline: 4-5 weeks

    7. 2D Animated Software Demo Pricing: $4,000 - $6,000
    Use Cases: Software tutorials, Feature demonstrations, Onboarding videos, Product walkthroughs, Training materials
    Ideal Length: 60 seconds, 2 minutes
    Video Elements: 2D animation, Screen capture, Character interactions, Software interface elements, Annotations
    Production Timeline: 4-6 weeks

    8. Motion Graphics Product Demo Pricing: $4,500 - $6,500
    Use Cases: Product launches, Feature highlights, Marketing campaigns, Social media ads, Explainer videos
    Ideal Length: 30 seconds, 60 seconds
    Video Elements: Animated graphics, Text overlays, Transitions, Sound design, Visual effects
    Production Timeline: 4-6 weeks

    9. Animated Character Demo Pricing: $5,000 - $7,000
    Use Cases: Brand mascots, Product personification, Storytelling, Engaging narratives, Character-driven explanations
    Ideal Length: 30 seconds, 90 seconds
    Video Elements: Character animation, Backgrounds, Props, Voice acting, Sound effects
    Production Timeline: 5-7 weeks

    10. 3D Software Product Demo Pricing: $6,000 - $7,000
    Use Cases: Complex software demonstrations, Detailed product showcases, Interactive walkthroughs, Virtual tours, High-end visualizations
    Ideal Length: 60 seconds, 3 minutes or longer
    Video Elements: 3D models, Animations, Textures, Lighting, Camera movements
    Production Timeline: 6-8 weeks

    How much does service explainer video production cost?

    Want a captivating service explainer video? In our experience, service explainer video production typically costs between $1,500 and $7,000 for a one-minute video. A radical thought: sometimes, a slightly higher upfront investment yields significantly better long-term returns. A well-crafted video boosts conversions and brand recognition. Prioritize strategic storytelling over excessive length to maximize impact within your budget. Quality doesn't always demand exorbitant prices; smart planning and clear communication with your production team can achieve both. Choosing the right format, like a 2D Animated Software Demo, which includes scriptwriting, voiceover, music licensing, and revisions, further refines your budget. Many companies offer tiered packages, from basic to premium, catering to various needs and budgets. Remember, 83% of businesses report a positive ROI from explainer videos. Costs can vary based on video length, with 15-second videos potentially starting around $1,000, 30-second videos around $2,000, and 60-second videos within the average range. Custom production ensures your video uniquely reflects your brand and message, unlike generic templates.

    How does service explainer video creation pricing work?

    Ever wonder how to decipher video production quotes? comparing quotes requires looking beyond the bottom line. Evaluate the quality of previous work, the team's expertise, and what's included. A key overlooked factor is the revision process – unlimited revisions can save you headaches and unexpected costs. Align your video goals with your budget. If you're aiming for a simple Isometric App Visualization, a smaller team might suffice, whereas complex projects demand more specialized skills. Approach pricing strategically, focusing on value over the cheapest option.

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

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

    When does fully custom become essential? For highly specialized needs, like a 3D Software Product Demo, custom creation is paramount. This style demands intricate modeling, animation, and rendering, pushing the price range to $5,500 - $7,000. Fully custom videos offer unparalleled control over every detail, ensuring a perfect match for your brand and message. This level of customization justifies the higher cost when aiming for maximum impact and a truly unique representation of your service.

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

    A 60-second service explainer video typically falls within the $1,500 to $7,000 range. Negotiating value involves discussing deliverables beyond the final video. Requesting versions with different calls to action, aspect ratios, or even raw files can significantly extend your video's lifespan and reach. Maximize your 60 seconds by thinking beyond a single output. Delivering tailored versions for different user personas or platforms amplifies your message and ROI. Consider a Motion Graphics Product Demo, which can effectively showcase features and benefits within this timeframe, while including standard services like scriptwriting and revisions.

    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 Service Explainer Video production agency?

    Is agency cost a concern? In our experience, hiring a professional Service Explainer Video production agency typically costs between $3,500 and $5,500 for a one-minute video. A radical thought: consider viewing this expense as an investment in a long-term content solution partner, rather than a one-off project. This shift in perspective can lead to a more strategic and fruitful relationship. Thoroughly review agency portfolios and Google reviews. Comparing proposals from at least three to five agencies ensures you're evaluating apples to apples. Shortlist based on cost, production quality, responsiveness, and creative synergy for the best fit. A benefit of working with an agency is their ability to handle the entire production process, from concept to completion, freeing up your internal resources.

    How much does freelancers cost to create Service Explainer Videos?

    How reliable are freelancers? While freelancers can be 30% to 70% cheaper than agencies, typically ranging from $1,050 to $2,450 for a one-minute video, managing the project effectively becomes crucial. A radical thought: if you choose a freelancer, prioritize those with a proven track record in Service Explainer Videos and excellent project management skills. This mitigates potential risks. Freelancers often charge hourly rates, varying between $25 and $75 depending on experience and location. While cost-effective, freelancers might lack the collaborative resources and pre-production expertise of a full-fledged agency. This can impact the overall quality and strategic depth of your video. Benefit - if you have a small budget, freelancers can be a good option.

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

    Is DIY truly an option? While we generally recommend professional production, DIY platforms like VideoGen ($220/month) and Animoto ($40/month) offer accessible alternatives. A radical thought: focus on crafting a compelling narrative, even with DIY tools. A strong script can elevate even template-based videos. Benefit - you have complete control over the creative process. Successfully using these platforms requires careful template selection aligned with your goals and thorough testing with a small audience before wider release. DIY often lacks the nuanced storytelling and visual polish of professional production, potentially limiting impact and engagement.

    FAQs about service explainer video production costs

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

    How much does service explainer videos creation cost in 2025?

    On average, service explainer videos production cost $1,500 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 service explainer videos quality?

    Higher pricing is directly related to higher quality (68% of respondents). And (24% of respondents) think cost increase does not guarantee a great output always for service explainer videos.

    Source Data

    Cost % of marketers
    High Price is equal to High Quality 68%
    High Price sometimes get High Quality 24%
    Low Price can get High Quality 8%

    What budgets should be allocated for service 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 service 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 are the key factors that influence the pricing of a service explainer video?

    We find that video length, animation style, script complexity, voiceover talent, and revisions required significantly impact the overall pricing.

    What is the average budget I should allocate for a professional explainer video?

    We recommend allocating a budget between $500 and $7,000, depending on your specific needs and desired quality for the video.

    How much does a short, simple explainer video cost compared to a longer, more complex one?

    We see that shorter, simpler videos generally cost less than longer, more complex ones due to production time and resources involved.

    Are there ways to reduce the cost of producing a high-quality explainer video with a studio?

    We suggest exploring options like pre-made templates, stock footage, and limiting revisions to potentially lower production costs.

    Does the price of an explainer video typically include revisions and edits?

    We typically see that revisions and edits are included in the initial price, but it's crucial to confirm this with the chosen freelancer or studio.

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