Explaining a product, or a new technical service or wanting to stand out online in a crowded market can be an especially difficult task. Animated explainer videos have emerged as an effective way for brands to communicate information in a simplified yet engaging way that drives action.
For small and medium-sized businesses (SMBs), creating a video often requires finding someone to help them create one that aligns with their brand and marketing goals.
What Are Animated Explainer Videos, and Why Do They Work?
An animated explainer video is a short video, usually about a company’s product, service, or concept, that uses motion graphics, organized messaging, and a voiceover to simplify the message and make it easier to comprehend.
Video has an advantage over static content. According to Ofcom’s Adults’ Media Use and Attitudes Report 2024, 69% of men and 61% of women use video streaming services to watch videos or clips. Audiences already absorb information in video form.
Because videos are structured around a visual sequence, people process information more quickly. It engages users and is easier to remember.
The Problems Explainer Videos Solve for Modern Businesses
Organizations can use explainer videos to address several of the roadblocks SMBs face in converting visitors into existing customers. One of the most common problems is a high bounce rate. Users arrive at the page and leave immediately because the unique value proposition (UVP) is unclear. An explainer video placed on the landing page lets users understand the offerings much faster.
Another challenge is low attention span, as most users skim content rather than read it. Video allows brands to communicate key messages to consumers quickly.
Explainer videos can simplify complex messages. Many industries — such as SaaS, healthcare or finance — rely on technical messages that may confuse potential customers. Concepts are more intuitive when visualized through animation.
The format also ensures a consistent message across the different media through which customers interact with a brand or product. A single video can appear on a landing page, in social media posts, in email marketing and in a sales presentation.
4 Key Elements of a High-Converting Explainer Video
Not all explainer videos work. The highest performing ones usually possess certain qualities.
- Clear writing: Write with a single focus and avoid convoluted messages. Ensure the value proposition is clear within the first few seconds.
- Visual direction: Visual direction is a way to support the message by directing attention to important content and not distracting the audience.
- Smooth pacing: Videos that move too fast may be overwhelming, while those that move too slowly will fail to hold viewer interest. The best videos maintain a specific pace or beat, which helps hold the viewer’s attention.
- Actionable CTA: Include a call-to-action (CTA). Make the next step clear.
What Companies Make Animated Explainer Videos? 5 Standout Options for SMBs
Many businesses can benefit from the use of explainer videos in their online content, but not many companies are equipped with the in-house team needed to produce these videos on their own. That’s why we’ve put together the following shortlist of some of the leading options in today’s marketplace.
The companies below were judged on the following criteria that addresses the needs of owners and marketers of small to medium-sized businesses:
- Flexible approach suitable for a variety of businesses and goals
- Experience creating explainer videos
- Ability to handle complex or technical messaging
- Portfolio quality and visual impact
- Range of services offered
- Industry awards or prominent clients
1. Early Light Media
Full-service creative video agency Early Light Media excels at producing high-end animated explainer videos for businesses around the world. Clients find that Early Light Media goes above and beyond production.
The agency offers a service that works in partnership with creative directors to transform video strategies and projects. It transforms complex concepts into stories that capture the human experience. The focus is on strong visual impact. The goal is to create a perfect combination for brands that want to increase their messages and create something memorable for their audience.
Productions from Early Light Media have won 51 Emmy Awards and 10 Addy Awards, and have been screened at over 45 film festivals. It has produced content for Nat Geo, PBS, Microsoft, HBO Max, CNN, Viacom and The New York Times.
2. Explainify
Explainify is an explainer video company that helps clients make difficult concepts easier to understand through video animation and build a better messaging framework. Clients have included health and tech companies.
Explainify provides a consistent rubric and methodology that allows organizations to strive for a clearer communication standard when they need to translate complicated jargon to a general audience. The company has worked with Panasonic, hotjar, Bosch and Costco Wholesale.
3. Demo Duck
Demo Duck produces animated and live-action videos for clients, and has produced videos for clients ranging from household brands to companies early in their video production use.
Its explainer videos frequently combine a storytelling approach with a clean design, making it a good choice for companies that want creativity balanced with professionalism. The company has worked with ConnectWise, Atlantic 10, Lithium Valley and the American Cancer Society.
4. Yum Yum Videos
Yum Yum Videos is a video production agency specializing in animated explainer videos to help its foreign clients increase engagement and conversion rates with attractive, easy-to-understand messages.
Its structured production process also helps ensure that projects remain true to the business and are of high caliber. Its clients include Amazon, Google, Bayer and American Express.
5. Sandwich Video
Sandwich Video is known for its humorous and quirky explainer videos. The company is a good match for brands looking to create unique and memorable videos for their audience. It specializes in user engagement. Clients served include Figma, Robinhood, Brex, TikTok and Square.
Comparison of Top Explainer Video Companies
| Company | Strengths | Ideal For | Industries | Global Reach |
| Early Light Media | Full-service, award-winning and high-end production videos | Brands with complex messaging | Corporate, media and tech | Yes |
| Explainify | Clear messaging | Companies wanting videos with a strong structure | Technical, healthcare and SaaS | Yes |
| Demo Duck | Creative flexibility and mixed formats | Midsize businesses | Technology and education | Yes |
| Yum Yum Videos | Animation-focused | Global brands | SaaS and enterprise | Yes |
| Sandwich Video | Signature visual style | Brand advertising | Startups and technology | Yes |
Choosing the Right Explainer Video Partner for Your Business
Of course, not every explainer video company will be the best fit for every SMB. Decision makers should take into account more than the provider’s portfolio to find out whether they are a good fit. Look at a provider’s past work: their experience or ability to solve similar industry problems or messaging challenges, and whether leadership feels their work meets your standards.
Collaboration is equally important. Around 81% of video marketers believe the format increases sales. The best type of partner collaborates closely with creative directors and decision-makers to develop a strategy to achieve business goals. Full-service capabilities can be valuable. Companies offering script-to-screen services can produce projects of higher quality than those with outsourced services.
Industry recognition or client recognition, in the form of awards and long-term clients, may also be a sign of reliability. There is also the question of scalability. Larger businesses may find they have a need for more video content and on more platforms, the question arises about who can service them.
Frequently Asked Questions
What is the cost of an animated explainer video?
Production costs will vary considerably based on the length, complexity and quality of the production, so businesses should consider value and results when choosing a vendor. Ask for a custom quote to gauge budgetary constraints.
How long should an explainer video be?
Most explainer videos are kept concise so that viewers can quickly understand the core message without losing interest.
Bringing Your Message to Life Through Video
When selecting from companies that make animated explainer videos, it’s crucial to find the right video that presents the company’s value proposition effectively and helps the audience understand, trust and act on the message across channels and platforms.
SMBs that wish to build engagement and help their audiences make sense of complex messages may benefit from investing in a well-made explainer video.
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