By: Filip Pietraszkiewicz

September 6, 2017

How much does it cost not to have the explainer video?

Video Marketing - Strategy

The most common question I’m asked about animation is how much does it cost to have a video? Undoubtedly it is a very important question, but to show you the bigger picture of the explainer video let me flip the question a little bit.

Let me ask you this – how much does it cost NOT to have an explainer video?

Reasons to pay your website a visit. Just a visit.

How many people visit your website every day? A hundred? Couple hundreds, thousands, maybe even more? And how many of them become your clients, request a demo or sign-up for the service?

The number is probably way lower. Why?

Each person visiting your website has a purpose – they have a problem and they believe you have a solution for them. So they are looking to find the way out using your product or service. It may turn out they simply do not need exactly what you offer.

But what happens too often your visitors may just not understand what it is all about! And I do not mean how does your product or service work.

They have no idea how does it work for them! They simply see no benefit in using your product and that is why they leave empty-handed.

How much can I loose?

So we are back our previous question – how much does it cost not to have an explainer video? It costs you a client. Hundreds, thousands, maybe more.

They visited your website but that is it. No other actions were taken so there is no profit for you. They did not convert from a visitor to a client.

If you calculate how much you would be able to earn on each of clients if your product or service was explained properly you see the real but not so obvious cost or loss should I say?

Animation is the investment.

Explainer video, as any other investment in your business, should be considered in terms of ROI (Return On Investment). What does it actually means?

You should think about the relation between the cost of the video to the customers you can attract and the money they can spend on your product or service.

If you ordered the video for 7,000, copywriter had time to look deeply into your business, craft a really good script and illustrator and animator had time and resources to make a professional looking video that had finally make clients spending $35,000. It means you have earned $28,000, so your ROI = 400%.

On the other hand, if you decided to make it as cheap as possible and for $2,000 you got the script from upwork and images from the stock, and your video made clients for $5,000 it means your ROI is 150%. Which one is better or “cheaper” for you?

Why the animation converts so well?

In most cases, people do not buy something they do not understand, especially if they do not see the benefits for them. If properly explained it makes people more interested and attracted.

Animation has the advantage over landing pages and even perfectly crafted headlines, that it catches the attention on many levels — image, sound, and motion. Thanks to that most of them are watched until the end. It means the client can fully understand benefits of product or service and is more likely to convert.

We estimate that on average, companies with no explainer video on they landing page could simply increase their conversion rate by 40% at least.

So, can you afford not to have it?

Every business needs investments in order to grow and the explainer video is such an investment, a smart investment.

It not only catches your visitors attention – it makes them understand the benefits coming from your product or service, so it is way easier for them to make a decision to use it. It makes them want to use it.

Without it, the visitors would simply leave your website and keep looking somewhere else and it is not what you want, I suppose? Thanks to short, animated video you allow a visitor to convert into your client, simply answering the most important question for any visitor – “how does it work FOR ME?”.

You show the benefits of your product and in return, the client will show you the benefit of having the explainer video.