What's the Cost of an Animated Explainer Video in 2023?

by Andre Oentoro

What's the Cost of an Animated Explainer Video in 2023?


How much would it cost to produce an animated explainer video?

Well, the answer varies. There's no fixed price for animated explainer production.

To give you a number, studios normally charge you anywhere between $2,000 - $50,000 or even more.

Such hefty figures, you might gasp. But explainer videos serve as worthwhile assets for your business and marketing efforts. Consider it an investment for the long run. 

However, this doesn't justify you to spend all the money on an explainer video. When it comes to the production budget, you should carefully reflect on your business scale.

It's essential to ensure that you have sustainable financial resources on the side, even though explainer videos offer high ROI for nearly eight times the initial investment.

If you plan to create one for your business this year, you've come across the right place. This blog provides an infinite guide for answering this common question: "How much should I spend on an explainer video?"

We'll present the factors that influence the cost of animated explainer videos and help you determine how much you should spend on creating one for your business.

Let's get straight into it!


Explainer Video in 2023

Hmm, are explainer videos still relevant in 2023? The short answer is an absolute YES! But you might still doubt it, and that's understandable. We'll break down the solution for you.

Almost nine out of ten people worldwide watch videos online. With that, 88% of marketers agree that videos bring positive ROI to their marketing efforts. What's more, explainer videos influence 85% of audiences to make a purchase. 

Those data have explained why explainer videos are still powerful today. From the F&B industry to the travel industry, many businesses now need to use explainer videos. The high-quality performance indeed compensates for the thousand dollars worth of investment.

Different types of explainer videos exist, but the two most common are animated and live-action. What's the difference?

Animated Explainer Videos

The name tells you everything. Animated explainer videos use animation techniques. It usually involves a combination of graphics, characters, and narrative voiceovers to explain a concept or tell a story. Conversely, live-action explainer videos include scenes from real-life people, settings, and props. 

The animated ones are usually more versatile in creativity, as they can visualize ideas that are challenging to convey with live-action footage. While both have merits, animated explainer videos often offer more creative freedom and flexibility in delivering your message.

In most cases, producing the animated version is slightly more expensive, as the making process is more complex. Let's see what contributes to the production cost of animated explainer videos.

Production Cost

To understand the cost breakdown of an animated explainer video, what components influence the production process?

Length and Complexity

Longer videos with knotty animations, detailed motion graphics, and advanced special effects require more time and resources. As the saying goes, time is money. This concept applies as well in the video production. A longer, more complex video will demand a more extensive investment.

Producing short-form videos under 60 seconds will be way cheaper than long-form ones. A 30-second explainer video introducing a simple product might have minimal animation and straightforward graphics. Meanwhile, a five-minute video packed with multiple characters and complex scenes will undoubtedly charge you more than a penny.


High-quality visual elements, professional voiceovers, and impeccable sound design come at a premium compared to more basic options. Imagine you're comparing two explainer videos side by side. One features crisp and vivid animations with well-crafted audio, while the other uses more straightforward drawings and a standard voiceover. The former will require a more noteworthy budget. You'll get what you pay for.

Script and Storyboard

You can't ignore script and storyboard when it comes to explainer video production, especially animated ones. Studio uses these creative elements to help you convey a message effectively. You guessed it right: they also contribute to the overall production cost.

Explainer Studio needs to hire professional scriptwriters and storyboard artists to compose a narrative that resonates with your target audience. The thing is, the more skilled they are, the more expensive their rate would be. You should expect a higher cost if you want to create a killing story with your explainer video. 

Voiceover and Music

Voiceovers and music are the auditory elements that breathe life into your explainer video. Again, hiring professional voiceover artists and obtaining the rights to use high-quality music can significantly impact the overall production cost.

Excellent narration and captivating visuals mean nothing if the audio fails to deliver quality. Good voiceover artists should be able to spread your message clearly, not only in terms of pronunciation and punctuation but also in terms of tone, emotion, and empathy. 


Here comes the fun part. Most clients love revisions, don't they? You surely want to ensure the best result for your animated explainer videos. However, we should understand that modifications can consequently extend the production time, involving additional work and extra budget. 

Indeed, aligning your explainer video with your business vision, persona, and audience expectations is essential. Use your revision opportunities wisely. Establish clear communication with your production team to keep costs in check. Plus, provide comprehensive feedback during each revision round.

Budget Considerations

Producing an animated explainer can be costly, but the price is always negotiable. Let's first understand your budget. If you're still clueless about how much someone should spend on an explainer video production, consider these parameters before investing in explainer videos. 

Your Business Scale Matters

You need to weigh the scale and size of your business when budgeting for an explainer video, as financial resources will determine your budgetary decisions.

Startups in a funding round with limited resources should go with a more budget-friendly explainer video. Simple and clear explainer videos won't be a problem if it aligns with your business goals. Maintaining a positive cash flow should be a priority in this case. Remember that explainer videos don't have to be fancy to be effective. 

In contrast, well-established companies often have more financial leeway to invest in high-quality production. That means you can work with top-tier animation studios, professional voiceover talent, and a creative team that can bring your vision to life in the most captivating manner. 

Align with Your Marketing Goals

Before deciding on your explainer video budget, align it with your marketing goals and objectives. If your primary goal is to enhance brand awareness, a concise and visually appealing video presentation can work wonders for your business to create a lasting impression.

In cases where you need to demonstrate a product use case, a more in-depth and how-to video might be necessary. This could involve additional production costs for scripting, visual animation, and narration that help convey your message in a simpler and easier way.

If you want to boost conversions, your explainer video might need to go the extra mile. This can include advanced animations, personalized storytelling, and a deeper emotional connection with the audience. While you have to expect a higher budget for this kind of video, it won't disappoint with better conversion rates.

How Much ROI Do You Expect?

It's crucial to remember that explainer videos are famous for delivering impressive ROI, as we mentioned in the introduction. Consider this as you plan your budget: view your explainer video not as a one-time purchase but as a long-term investment. A well-crafted animated explainer video can become a valuable asset for your business. It supports your marketing strategy.

Why You Should Invest in Explainer Videos

Now that we've discussed the cost factors and budget considerations, let's highlight why explainer videos are worth investing in:

  • Effectively engage and educate your target customers. People love being entertained while also getting informed. More often than not, explainer videos incorporate a dash of humor or creativity. They help educate your audience through an entertaining experience.

  • Boost your conversions and sales. This point stands clear and needs no further explanations. Animated explainer videos are game-changers, from converting leads into buyers to turning buyers into loyal customers.

  • Build a positive brand identity. High-quality explainer videos help reinforce your brand identity. Audiences who watch your explainer video will perceive your brand as trustworthy, reliable, and committed to delivering a superior customer experience.

  • Reach more audiences, as explainer videos are easy to share. Positive virality is a thing nowadays across many social platforms. If you want to reach broader audiences, explainer videos, especially short-form ones, can easily do that for you. 

  • Be unique in your voice and colors. Having an explainer video can provide a competitive edge for your business. It persuasively communicates your unique value proposition and sets you apart.

Back to You

While the cost of producing an animated explainer video in 2023 can vary widely, it's an investment worth considering for your business. When determining your budget, consider your business scale, marketing goals, and expected ROI. 

Isn't it interesting that explainer videos remain relevant and influential today? Whether you're a startup or an established enterprise, don't hesitate to explore the possibilities of creating an animated explainer video—it's a step toward unlocking boundless marketing opportunities for your business.

Andre Oentoro

CEO at Breadnbeyond

Andre Oentoro is the founder of Breadnbeyond, an award-winning explainer video company. He helps businesses increase conversion rates, close more sales, and get positive ROI from explainer videos (in that order).