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Published: January 2, 2025

How Much Does Software Explainer Video Production Cost In 2025?

On average, software explainer video pricing can range from $1,500 and $7,000, with starting estimates as low as $1,100. We've found that many common video formats like whiteboard animation, 2D character animation, and motion graphics, fall within these costs; however, motion graphics videos often have a tighter average cost range of $2,000 and $3,000 and a quicker 2 to 4 week production timeline.
Software Explainer Video
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 Advids
Software Explainer Video Pricing

  • Advids Expertise
    • 48 award-winning creatives with deep expertise in software explainer videos.
    • Full-service production delivering impactful video marketing using whiteboard, 2D, and motion graphics.
    • Custom design for engaging videos that drive results through expert video creation.
  • What Sets Advids Apart

    At Advids, our explainer video specialists are ready to help you boost conversions with compelling video ads. We leverage proven strategies and cutting-edge creative expertise.

    • Dedicated team: A dedicated video production manager and creative team plans, executes, and delivers your projects.
    • Compelling narratives: Expertise in crafting compelling narratives, impactful visuals, and persuasive calls-to-action for SaaS products and services.
    • SaaS expertise: Deep understanding of SaaS customer journeys and pain points.
    • High-quality assets: Delivery of high-quality video assets optimized for various platforms.
    • Engaging scripts: Engaging scripts tailored to resonate with SaaS target audiences.
    • Motion graphics: Motion graphics and animation expertise.
    • Ongoing communication: Ongoing project communication and feedback integration.

 

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who trust us to elevate their brand with compelling software 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 software animation 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 software explainer video creation?

Understanding the factors that influence video production costs is crucial for effective budgeting. Let's break down the key elements that can affect your software explainer video's price tag.

Primary Factors:

1. Video Length: A longer video, say three minutes showcasing extensive software features, naturally requires more production time and resources than a shorter, 60-second overview, impacting the overall cost.
2. Video Design Complexity: A software explainer video with intricate 3D animations, like a detailed walkthrough of your platform's interface, will be more expensive than one with simpler 2D motion graphics.
3. Video Production Scope: Extensive pre-production, such as in-depth competitor analysis and multiple rounds of script revisions for your software explainer video, adds to the project's cost.

Secondary Factors:

4. Scriptwriting & Storyboarding: A compelling script and detailed storyboard are fundamental to a successful software explainer video, and their creation contributes to the overall cost.
5. Number of Revisions: Multiple revisions to the animation style or voiceover in your software explainer video can extend the production timeline and increase the cost.
6. Motion Graphics Style Complexity: Highly detailed animations or complex micro-interactions within your software explainer video require more design and animation time, thus impacting the cost.

How to optimize software explainer video creation budget?

Managing your software explainer video budget requires a strategic approach. These 6 factors can impact the cost by as much as 40%. A well-defined budget ensures you get a high-quality video that effectively showcases your software without overspending. Remember, 37% of businesses already use data-driven creative for their videos – be one of them. How can you achieve this? Engage a video production agency early on. Their expertise can guide you through the process and tailor a quote to your specific needs. What are your budget expectations?

Our simple budgeting guidelines are:

Define Must-Haves: Prioritize essential elements for your software explainer video, separating them from desirable but non-essential features.
Early Agency Collaboration: Consult with your chosen agency early to leverage their expertise in crafting a cost-effective production plan.
Transparent Communication: Clearly communicate your budget and objectives to your agency for a tailored and transparent quote.

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

Getting an accurate budget for your software explainer video production involves a proactive approach. By following these steps, you can ensure a smooth and transparent budgeting process. Ready to get started?

Engage with potential agencies and provide them with one or two reference videos that align with your vision. Clearly outline your objectives for the software explainer video and provide a brief overview of your software's key features. Request a detailed scope of work for the project, including milestones, payment terms, revision flexibility, and provisions for future video updates. Inquire about any premium extras included in their packages, such as advanced animation techniques or 3D modeling. Understand the level of creative input expected from you and your team. Don't hesitate to ask about potential discounts for long-term partnerships or volume-based projects. Remember, 49% of businesses are open to using a video production agency. Negotiating a special price can save money, so clearly articulate your budget constraints and desired outcome. What are your long-term video marketing goals?

Here's a streamlined workflow:

Share Your Vision: Provide reference videos, a brief, and a clear outline of your objectives for the software explainer video.
Scope Clarity: Request a detailed scope of work, including milestones, payment terms, and revision policies. This can affect the cost significantly.
Premium Extras: Inquire about any premium services offered and how they can enhance your software explainer video.
Client Input: Understand the level of creative input expected from your side and how it can influence the production process.
Negotiate & Partner: Discuss potential discounts for long-term collaborations or volume-based projects. 18% of businesses are willing to experiment with new video formats, so explore your options.

Overall average cost of software explainer video

The average cost of a 60-second software 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 $3,500 and $8,000, balancing quality, customization, and value.
  • Geographical spending on software video production -

  • US-based companies spend average of $6,575 for 60 seconds
  • European companies spend average of $4,250 for 60 seconds
  • Asian companies spend average of $1,915 for 60 seconds
  • Companies types and their software explainer 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 $1,625 to $4,175 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 software 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.

    Software Explainer Video Pricing List

    Understanding the nuances of each software explainer video style empowers you to choose the perfect fit for your needs 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 Explainer Pricing: $1,500 - $2,500
    Use Cases: Onboarding, Feature Highlight, Problem/Solution, Product Demo, Tutorial
    Ideal Length: 30 seconds, 60 seconds
    Video Elements: Hand-drawn animation, Simple characters, Text overlays, Icons
    Production Timeline: 2-3 weeks

    2. Simple Software Demo Pricing: $2,000 - $3,500
    Use Cases: Software Tutorial, Feature Overview, Quick Demo, Product Launch, User Training
    Ideal Length: 30 seconds, 60 seconds
    Video Elements: Screen Recording, Text Animations, Basic Transitions, Cursors
    Production Timeline: 2-4 weeks

    3. Animated UI Walkthrough Pricing: $2,500 - $4,500
    Use Cases: User Interface Demo, App Walkthrough, Mobile Tutorial, Software Navigation, Onboarding
    Ideal Length: 30 seconds, 60 seconds
    Video Elements: UI animations, Screen recordings, Transitions, Motion Graphics, Icons
    Production Timeline: 3-4 weeks

    4. Motion Graphics Demo Pricing: $3,000 - $5,000
    Use Cases: Abstract Concepts, Data Visualization, Brand Storytelling, Product Launch, Explainer
    Ideal Length: 15 seconds, 30 seconds
    Video Elements: Animated shapes, Kinetic typography, Transitions, Background music, Sound effects
    Production Timeline: 3-5 weeks

    5. Isometric Software Demo Pricing: $3,500 - $6,000
    Use Cases: Software Overview, System Integration, Complex Processes, Data Visualization, Network Architecture
    Ideal Length: 30 seconds, 2 minutes
    Video Elements: Isometric illustrations, 3D elements, Animated transitions, Camera movements, Icons
    Production Timeline: 4-6 weeks

    6. 3D Software Demo Pricing: $4,500 - $7,000
    Use Cases: Product Visualization, Feature Demonstration, Virtual Tours, Complex Animations, Game Trailers
    Ideal Length: 30 seconds, 2 minutes
    Video Elements: 3D models, Textures, Lighting, Animation, Camera angles
    Production Timeline: 5-7 weeks

    How much does software explainer video production cost?

    Ever wondered how video production costs are structured? In our experience, software explainer video production typically ranges from $1,500 to $7,000 for a one-minute video. We've seen starting costs as low as $1,100 for simpler projects. A radical thought: quality doesn't always necessitate exorbitant spending. A well-crafted script and clear visuals can significantly elevate a simple production. Prioritize strategic storytelling to maximize impact. Included services like scriptwriting, voiceover, music licensing, and revisions are often bundled, but clarifying this upfront ensures transparency. Many studios offer tiered packages—basic, standard, and premium—catering to various budgets and needs. Remember, 83% of businesses report a positive ROI from explainer videos. Costs can vary based on video length, with 15-second videos potentially starting lower, 30-second videos falling within the average range, and 60-second videos offering more room for in-depth explanations, justifying the higher end of the spectrum. Custom production means tailoring every element—from script and visuals to music and animation—to your specific software and target audience, maximizing engagement and return compared to generic templates.

    How does software explainer video creation pricing work?

    When comparing quotes, don't just look at the bottom line. Evaluate the value proposition. A lower quote might skimp on quality, while a higher one could include premium services like advanced animation or 3D modeling. Consider the production team's expertise. A seasoned team justifies a higher cost, bringing experience and creativity to the table. One often-overlooked factor is the revision process. Unlimited or limited revisions can significantly impact the final cost. Align your video goals with your budget. If you need a simple Isometric Software Demo to showcase core features, a basic package might suffice. However, if you're aiming for a high-impact, emotionally resonant piece, a premium package with a specialized team might be necessary. Approach pricing strategically, balancing quality with affordability.

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

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

    For truly custom software explainer videos, like a meticulously crafted 3D Software Demo, expect a higher investment. These productions involve intricate modeling, animation, and rendering, demanding specialized skills and software. Consider this style when you need to showcase complex software functionalities in a visually stunning and engaging way. In our experience, the pricing range for such high-end custom creations typically falls between $5,500 and $7,000. Custom videos offer unparalleled flexibility and impact, justifying the higher cost for projects demanding a premium look and feel.

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

    A 60-second software explainer video typically costs between $1,500 and $7,000. Don't hesitate to negotiate for added value. Ask for multiple versions with different calls to action or aspect ratios tailored to various platforms. Requesting raw files allows for future repurposing. Sixty seconds provides ample time to showcase your software's benefits and features comprehensively. Maximize this by creating versions targeting different user personas with minor edits. A simple software demo within this timeframe can effectively demonstrate key functionalities and user interface elements. Sixty seconds is an asset, use it wisely.

    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 Software Explainer Video production agency?

    Finding the right agency for your software explainer video—balancing cost and quality—can feel overwhelming. We understand that! To navigate this, we recommend carefully examining agency portfolios and Google reviews to gauge their expertise and client satisfaction. Comparing detailed proposals from several agencies—at least three to five—is crucial; don't just focus on the headline price. Ensure each quote precisely addresses your specific needs for a fair comparison. Create a shortlist based on cost, production quality, responsiveness, and creative vision. In our experience, professional agency pricing for a one-minute video typically ranges from $2,500 to $4,500. A long-term partnership with an agency can provide ongoing content solutions, streamlining your marketing efforts. What are your top priorities when choosing a video production partner?

    How much does freelancers cost to create Software Explainer Videos?

    Considering freelancers for your software explainer video? It's a valid option, but proceed with caution. While experienced freelancers can be reliable, remember they often lack the support of a full team. Project management can be more challenging, and pre-production research might be less thorough. Freelancers may also lack the same level of polish and expertise as an agency. However, they can be significantly more affordable. While agency costs typically range from $2,500 to $4,500 for a minute-long video, freelancers might charge 30% to 70% less, often billing hourly at rates between $15 and $25 per hour, depending on their experience and location. We've found that a radical thought is to consider the total cost of ownership, including potential revisions and delays. What are your thoughts on balancing cost and potential risks when working with freelancers?

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

    Creating a software explainer video yourself using platforms like VideoGen or Animoto is tempting, especially given their monthly subscription models (around $40-$220). While we wouldn't necessarily recommend this route for a professional-quality video, if you must, these platforms offer user-friendly tools. However, remember that your success hinges on having a solid narrative and choosing the right template. Test your video with a small group before launching it widely to get feedback on quality and engagement. We strongly advise against relying solely on text-to-video AI; instead, use AI tools to support your scriptwriting process. A well-crafted script is essential, regardless of your production method. What are your concerns about the potential quality limitations of DIY video production?

    FAQs about software explainer video production costs

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

    How much does software explainer videos creation cost in 2025?

    On average, software 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 software explainer videos quality?

    Higher pricing is directly related to higher quality (68% of respondents). And (22% of respondents) think cost increase does not guarantee a great output always for software explainer videos.

    Source Data

    Cost % of marketers
    High Price is equal to High Quality 68%
    High Price sometimes get High Quality 22%
    Low Price can get High Quality 10%

    What budgets should be allocated for software 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 software 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 factors that influence the cost of a software explainer video?

    Factors like video length, animation style, script complexity, voiceover talent, and revisions all contribute to the overall cost.

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

    A reasonable budget for a high-quality video ranges from $1,500 to $7,000 when working with a professional studio.

    How can I keep the price of my explainer video down without sacrificing quality?

    Explore using simpler animation styles, shorter video lengths, and clearly defined scripts to manage project costs effectively.

    Is there a significant price difference between a 60-second and a 90-second explainer video?

    Yes, longer videos typically require more animation and production time, leading to a higher overall price for the project.

    Are there hidden costs associated with working with a professional studio for my explainer video?

    While less common with reputable studios, potential hidden costs could include revisions beyond the agreed limit or additional fees for music licensing.

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