Explanatory video costs: What you have to reckon with!

Videos are becoming an increasingly important part of content marketing. In addition to image films, tutorials and short cell phone commercials, explanatory videos are particularly popular with companies. No wonder, because the 30 to 90 second short video spots can explain almost any topic without the need for expensive real filming. Nevertheless, explanatory videos also come at a cost. And these can vary considerably depending on the explanatory film provider. We have compiled the individual components so that you have an idea of the budget you need to calculate for your explanatory videos.

Idea & concept

Not everyone realizes this, but this is the most important part. As with all content, you are pursuing a specific goal with your explainer videos. This needs to be formulated.

Briefing

And the clearer the strategy and briefing, the better and more targeted your explanatory video agency can produce the explainer video. Rule of thumb: the less input you can provide, the more time the explainer video provider should take to obtain or question and supplement the briefing themselves. This is because it is very important for the success of an explainer video to know what your messages are, who exactly the potential viewers will be and what they should do or have in mind after watching the video. Also essential: through which channels should the video be distributed and in which formats do you need the explainer video? This is where you set the course for the success or failure of your explainer video.

Explanatory video concept & storytelling

Your explainer video agency will develop a concept from the briefing. You should also give them time for this. They have to deal with the briefing, do research on the topic, your company and your target group. They need to extract all this information so that they can develop the creative idea for the video. The story, the graphic style and the type of animation emerge from this. These are summarized in the script. The more creative and individual you want the video to be, the more hours the agency will need. Cost point: approx. 1,000 to 3,000 euros.

Storyboard and graphics

Once the story has been created, it's time for the graphics, images or illustrations. Depending on your requirements and budget, ready-made icons, images or graphics are licensed and adapted for you or a graphic designer, illustrator or photographer creates your own images and drawings. These are put together in a storyboard. This shows exactly what will happen in which scene of the later video. The costs for this point can vary greatly: do you rely on inexpensive stock material, high-quality and therefore more expensive licensed images, individual simple graphics or very detailed or many graphics per scene? And how long is the running time of your video? The longer the video, the more graphics are needed, the longer the graphic designer will be working on it. Cost point: on average between approx. 500 euros and 5,000 euros.

Tip: Which style suits you? It's best to talk to your explainer video agency. You can find initial suggestions and an overview of possible styles here.

Voiceover and narrator

If you want a voiceover artist for your video, a copywriter will write the voiceover text. Not that easy! Not only does the copywriter have to get all the content to the point in around 50 to 150 words, they also have to write it in such a way that a) it is suitable for a voice recording and b) it can be animated well. As a rule, one or two correction phases are included, as this is where you check whether what is later said is correct and complete and correctly reflects your position. Expect to pay around 400 to 800 euros for the voiceover text.

Now the voice-over artist comes into play. Depending on the level of recognition, experience and language, the voice-over costs from approx. 400 to 1,000 euros for up to 3 minutes, including online usage rights. If you also want to show the explanatory film on TV or in the cinema, the fees for the usage rights increase. A good point of reference is the list of fees for German voice actors. In addition, there is often a fee for studio rental of around 50 to 100 euros.

Animation

Once all the graphics, photos or illustrations have been created, the motion designer comes into play. He brings the static images to life - they move! The more or more fluid the movement and the longer the duration of the video, the higher the costs. For a typical explanatory video of up to 90 seconds, calculate with approx. 2,000 to 4,000 euros.

Sound design and music

If you look at the video in this state, it often seems rather boring despite the animation - unless it was specially designed as a video without sound. But if sound is provided, it doesn't seem very lively without it. Only the right sounds turn it into a real adventure for the viewer, and they can really immerse themselves in the action. Here too, a distinction can be made between standard sound design with sounds from databases and individual sound design, where a sound designer composes the sounds and music especially for the video. Another important question: royalty-free or licensed music? This can also make a difference later on and entail follow-up costs! Costs including online usage rights from approx. 250 to 2,000 euros. The same applies here: TV or movie rights cost more.

Rendering & provision

Once the video is finished, it still has to be "rendered" from the animation program. This means that it is saved in a format in which your viewers can also watch it. This must therefore match the use case and the channels on which it is to be published. As you are dealing with large amounts of data here, rendering takes up a certain amount of time and capacity where the motion designer's Mac or PC cannot be used for other work. A flat-rate rendering fee is usually charged for this. Costs around 100 euros.

Video usage rights

The usage rights for the video can also be a major cost factor. Think about what you want to license your video for beforehand: is online use for your website and social media enough? With this license, you can also play the video on site at the customer's premises or at trade fairs and other events. This is usually already included in the costs mentioned above. If you also need TV usage rights, you pay more. And if you want to use the graphics from the videos for other purposes, this also usually costs usage fees. If you want all open data, you also pay for this. The costs vary greatly depending on the type of rights and use cases. If necessary, it is best to contact the explainer video provider of your choice directly.

Conclusion: Calculating explanatory video costs

Not all explainer videos are the same. The explanatory video costs depend on many small factors. That's why there can't really be one price for an explainer video. Ultimately, you have to decide which components are particularly important to you and what best suits your goals and budget. If your budget is very limited, you may want to consider not making an explainer video at all as a first step, but perhaps starting with an infographic or maybe just an eBook or blog article. There is also the option of making an explainer video yourself using explainer video software. But even here, as an explainer video beginner, you have to invest a lot of time with the risk of ending up with mediocre and, above all, interchangeable results... Our tip: if you want to integrate explainer videos into your content marketing strategy, approach the topic properly. The preparatory work and possibly higher initial costs will pay off in the long term. All in the spirit of content marketing. We wish you every success!

Have we inspired you?

If you would now like to tackle your own explainer video: Take a look at our explanatory video offer!