Do Explainer Videos Work?
You’ve probably seen an explainer video before, either on YouTube or on some random website, possibly even on Facebook or Instagram. Whether you’ve seen several explainer videos from the same brand, or multiple from different brands, you’re probably wondering, “Do explainer videos work?” And, more importantly, how effective are these videos are connecting consumers with the products and services sold by your brand?
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Based on the frequency at which we see explainer videos being produced and shared online, it’s relatively safe to say that they work! But, what you may not know is just how effective explainer videos actually are. How do explainer videos work and why?
We’ve got you covered!
At Beverly Boy Productions we get asked that question a lot. The truth is, explainer videos are powerfully effective in delivering explanations of your products or services that connect consumers with your brand.
A well-produced and properly distributed explainer video has the potential to drive substantial revenue growth for your business. Give us a call to learn more about explainer video production and the next steps that you should take to achieve success for your brand!
How Effective are Explainer Videos?
It all sort of depends on the video itself and the distribution or promotion steps that are taken to extend the video to the appropriate audience for your brand.
A typical explainer video can range between $1,000 and $10,000 per finished minute. Most explainer videos are under two minutes and have a price of between about $5,000 and $10,000.
Why are we telling you all of this? Because we need to justify the expense, just as you’ll want to justify the expense as you plan and budget. So, in answering the question, do explainer videos work or how effective are explainer videos, we first look at the total cost of production and then we look at the potential ROI.
According to recent studies of various brands, the following returns can be achieved:
-A recent review by Hubspot of an explainer video series that cost $16K to produce and resulted in increased engagement, higher landing page views, increased email click through rates, and higher sales resulted in a total of $126K in return on investment for a total of almost 8X the cost of the video.
-A recent explainer video that was produced by Dropbox resulted in an ROI of $48M on their investment in the video. In fact, 78% of marketers report that video results in a substantial ROI.
-In another scenario, an explainer video with a production cost of $6K resulted in an ROI in the form of increased landing page conversions of 11% and 13%, and a 7% conversion rate which was up from 4%.
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Why Do Explainer Videos Work?
What is it that makes explainer videos so powerfully effective? Explainer videos work because people who are not familiar with a product or service find the detailed visual and narrative explanation of the product or service offering to be powerfully influential.
Explainer videos combine the use of audio and visual stimuli to deliver detailed concept explanations in a simple, easy to understand, and equally easy to digest manner.
Rather than simply provide text or a photo representation, the pairing of video and audio helps to improve the total value of the message being delivered and equally works to improve the rate of message retention.
The Power of Explainer Video Production
Explainer videos have the power to help the consumer retain up to 70% of what they see. When compared to the minimal 10% of understanding that typically comes from what is heard or the 40% of what is read — 70% is a powerful figure.
Explainer videos work because:
-They help people feel more comfortable with their decision to purchase a product or service.
-They increase time on retail websites which increases the chance for a sale.
-They improve consumer confidence in online purchase decisions.
-They are preferred over other forms of content such as written content or still photos.
Do explainer videos work for your business? Of course they can! Give Beverly Boy Productions a call today to learn more!