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Why Are Explainer Videos So Expensive?

blog author
Vicasso
CEO at What a Story
Updated:
July 22, 2026
Published:
July 21, 2026

Explainer videos can seem expensive because they combine several creative and technical disciplines into one project. 

A custom video may involve strategy, scriptwriting, storyboarding, illustration, animation, voiceover, sound design, revisions, and project management. The final price reflects the time and expertise required across each stage.

First You Need To Know, What You're Actually Paying For

May people assume they're paying only for animation. In reality, animation is just one part of the production process.

A typical custom explainer video includes:

  • Creative discovery
  • Scriptwriting
  • Storyboarding
  • Custom illustrations
  • Animation
  • Professional voiceover
  • Music and sound design
  • Revisions
  • Quality assurance
  • Final delivery in multiple formats

Each step requires different skills, and most projects involve several specialists rather than one person.

Custom Animation vs Template-Based Videos

Not every explainer video is built from scratch.

Here's how they differ:

Template-Based Video Custom Explainer Video
Uses pre-made assets Original illustrations and animation
Faster production Longer production timeline
Lower cost Higher investment
Limited brand customization Designed around your brand and product
Best for simple messages Best for product launches, SaaS, and marketing campaigns

If your goal is to create something unique that reflects your product and brand, custom production naturally requires more work.

What Are The Factors That Affect Pricing?

There are several factors that influence the final cost.

Script Complexity: - A simple product introduction takes less time to write than a technical SaaS product with multiple workflows and integrations. 

Animation Style: - A clean motion graphics video typically requires less production time than detailed character animation or complex 3D visuals. 

Video Length: - Longer videos generally require more scenes, more illustrations, and more animation.

However, a 60-second custom video isn't necessarily half the price of a 120-second video because planning and creative work remain similar.

Number of Revisions: - Projects involving multiple stakeholders often take longer because feedback cycles increase.

Clear and consolidated feedback usually helps keep production moving efficiently.

Turnaround Time: - Rush projects often require teams to reorganize schedules or assign additional resources, which can increase costs.

Why Quotes Can Be So Different

You might receive two very different quotes for similar projects. That doesn't always mean one company is overcharging.

The scope may be different.

One proposal might include:

  • Strategy
  • Scriptwriting
  • Unlimited revisions
  • Premium voiceover
  • Sound design
  • Source files

Another might include only animation based on a script you provide. Always compare what's included before comparing prices.

If you're looking for actual pricing ranges, production costs, and the factors that influence them, read our complete guide on explainer video pricing.

Is the Cheapest Option the Best Choice?

Not necessarily.

Lower-cost providers can be a good fit for straightforward projects with clear requirements.

However, if your video supports a product launch, fundraising campaign, or long-term marketing efforts, experience, communication, and production quality often become more important than securing the lowest quote.

How to Get Better Value From Your Budget

If you want to control costs without compromising quality, consider these approaches:

  • Keep the script concise.
  • Define your objectives before production starts.
  • Consolidate feedback from your team.
  • Choose a style that matches your goals rather than the latest trend.
  • Share your brand guidelines early to reduce revision rounds.

Good planning often saves more money than negotiating the production fee.

Frequently Asked Questions

Are expensive explainer videos always better?

Not really. The right choice depends on your objectives, audience, and the quality of the production process rather than price alone.

Can startups afford custom explainer videos?

Budget expectations vary depending on the video's length, style, and production scope. For a detailed cost breakdown, average pricing, and budgeting tips, see our explainer video pricing guide.

Why do agencies charge more than freelancers?

Agencies typically involve multiple specialists, structured workflows, project management, and quality assurance, while freelancers often manage several parts of the project themselves.

Is a longer video always more expensive?

Generally yes, but animation style, complexity, and revision cycles can influence pricing just as much as video length.

Final Thoughts

An explainer video isn't priced solely by the number of seconds on screen. It's the result of planning, creative thinking, production, and collaboration across multiple stages.

Before comparing quotes, look beyond the final number. Review the scope of work, deliverables, revision policy, and the experience behind the proposal. 

A clear understanding of what's included will help you make a more informed decision and choose the option that fits your goals.

Vicasso

Vicasso built What a Story from the ground up, starting in 2015 in a damp room with zero lighting. Today, as CEO, he operates with an almost unfair level of market intuition. A strategic "third eye" that instantly sees exactly what a business needs to hit the market with a bang.

CEO at What a Story
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I love creating impact and videos