How Much Should An Animation Explainer Video Cost in 2023?

How Much Should An Animation Explainer Video Cost in 2023?

June 7, 2023


October 09, 2023

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In today’s fast-paced digital world, animated explainer videos have become a powerful tool for businesses to effectively communicate their message, engage their audience, and drive conversions. These engaging videos have the ability to simplify complex ideas, showcase products or services, and create a memorable brand experience. As a result, more and more companies are recognizing the value of incorporating explainer animated videos for business into their marketing strategies.

However, some common questions that arise when considering animation is, “How much should an animation explainer video cost?” “How much do animators make?” “How long does it take to make an animated movie?” Understanding the cost factors involved in animation production is crucial for making informed decisions and ensuring that your investment aligns with your goals. 

In this article, we will understand the key factors affecting animation costs, provide a breakdown of costs per tier, address common doubts about animation production, and guide you in choosing the right animation studios in New York and other countries.

Key Factors Affecting Animated Explainer Video Costs:

Several factors come into play when determining the cost of an explainer video. By understanding these factors, including how much does a 30 second animation costs, and 1 minute video animation cost, you can better evaluate the pricing offered by different video animated services providers. We’ve created a very simple four stage process depending on these key factors.

1. Animation Styles:

The animation style you choose can significantly impact the cost. Different styles, such as 2D, 3D, motion graphics, or stop motion, require varying levels of expertise and resources. A 2D animation video can be made for a lot less money than a 3D one. Because it requires less production time and process. Some animation art styles may be more time-consuming or require specialized 2d animation software’s, which can affect the overall cost.

2. Customization Level:

The level of customization you require will impact the cost of your animation. Highly customized animations, with detailed characters, complex backgrounds, and movements, will naturally cost more than simpler animations with basic elements.

3. Video Length: 

The duration of the video is a significant determinant of cost, it’s important to consider the length of the video and its impact on the production process. Each additional second of video requires more work in terms of scripting, designing, filming, or animation. While the typical length of a 2D animation video is around 30-60 seconds. According to the statistics, animated videos shorter than 60 seconds have the highest audience retention rate.

4. Production Timeline:

The timeline for animation production can affect the cost as well. Tight deadlines often require additional resources and manpower, which can increase the overall price. Planning your project well in advance allows for a smoother production process and can potentially save you money.

5. Team Expertise:

The skills and experience of the animation team also influence the cost. Highly professional animation studios have skilled video animators and command higher rates due to their expertise and ability to deliver high-quality work. 

Even a simple animation project can take approximately 1 week to complete, especially when considering the time required for consulting with animation studios. If you’re looking for guidance and insights, Ideas Animation Studio offers a free 15-minute consultation. Schedule a friendly call with us to discuss your ideas and get professional advice

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Schedule a free 15-minute video consultation with our experts

Cost Breakdown per Tier: 

To give you a better understanding of animation costs, let’s categorize them into different tiers based on the type of vendors or service providers. Each tier represents a range of costs and comes with varying levels of quality and customization of animation  

a. Amateur/Free Tools – $0 – $100 Per Minute:

For those on a tight budget or with simple and little animation needs, there are free or low-cost online tools available, such as Animaker and Toon Boom, which can serve as an anime video maker. These tools provide basic templates and limited customization options. While they can be a cost-effective solution, it’s important to note that they come with limitations in terms of quality, flexibility, and uniqueness.

b. Freelance Level – $50 – $3000 Per Minute:

Freelancers offer a wide range of prices and expertise. Prices vary based on their skills, experience, and the complexity of the project. Working with freelance animators can be a good option for small-scale projects or when you require specific customization. However, it’s important to note that freelancers may have limitations in terms of project management and additional services such as scriptwriting or voice-over. If you’re a beginner/professional freelancer in the field of animation, you may find it helpful to explore animation ideas to kickstart your creative journey. This article on animation ideas for beginners provides valuable insights and examples that can inspire and guide you in your projects.

c. Mid-Tier Animation Studio – $3000 – $7000 Per Minute:

Small animation studios, which offer business animated services, often consist of small-size teams with experienced staff. These studios understand the complexities of animation techniques and have a deep understanding of the animation process. 

They can provide higher quality animations, more creative input, and a certain level of project management. If you’re looking to hire an animator, these studios can be a great choice. However, it’s important to note that animation is a complex and challenging process, and it requires expertise and skill. It’s not something that can be easily done by amateurs.

The explainer video created for “Wacom” provides a reliable guide on how to boost conversions without having to spend too much on production. We have calculated the estimated cost of the explainer video by considering the number of professionals involved and their respective hourly rates. 

The total cost of the video is approximately $4,632. Based on available information, the production involved a team of 4 professionals. 

RoleHourly RateNo. of HoursTotal (Rounded)
1 manager $37.6412 $452
1 creative and art director$97.4416 $1,599
1 illustrator$48.6120 $973
1 animator + music and SFX specialists$50.2332 $1608
Total80 $4,632

d. Professional-Level Animation Company – $8000 – $25000 Per Minute:

Professional animation companies, also known as animation makers or animated video service providers, offer a comprehensive range of services and expertise. They have a dedicated team of animators who specialize in different animation methods and techniques. When you hire animators from a professional company, you can expect them to handle all aspects of the animation production process, including scriptwriting, storyboarding, animation, voice-over, and sound design. 

The “AliBaba” explainer video showcases exceptional creativity by team of ideas animation through its clever use of geometric shapes and vector graphics to deliver powerful messages in a concise format. The production of such a well-crafted video likely involved substantial costs. Let’s examine the cost breakdown for creating AliBaba’s explainer video based on the number of professionals involved in the production explainers and their respective hourly rates. According to available data, the video was created by a team of 9 professionals. 

Based on this information, the estimated total production cost amounts to $13,436.

RoleHourly RateNo. of HoursTotal (Rounded)
1 manager$37.6416$602
1 producer$43.118$345
1 creative director$97.4416$1,559
1 art. director$82.1220$1,642
2 illustrators $48.6140$3,889
2 animators $50.2340$4,018
1 music and SFX specialists$50.2320$1,381

e. Broadcast-Level Animation Company – $25000 – $100000+ Per Minute:

Top-tier animation studios cater to large-scale projects and are known for their exceptional quality and creativity. These studios work with major brands and produce best marketing animation videos for TV commercials, movies, and high-budget campaigns. While their expertise is unparalleled, they may not be suitable for all projects due to the high costs involved. These studios are generally reserved for companies with significant budgets and ambitious projects.

The “The Story of Two Twins” explainer video is one of the best examples of good products in the genre. To create a visually appealing and detailed animation with layered audio and smooth transitions, the team carefully planned out each scene, created storyboards, and brought the characters to life with hand-drawn illustrations. “RethinkX” contacted Giant Ant – a US-based video production company.

The agency is quite famous for top-notch clients, such as Ali Baba and World Skills UK. Considering the expertise of their professionals, it can be assumed that their hourly rates are relatively high. Now, let’s examine the number of people involved in the creation of the RethinkX explainer video and calculate their wages.

In total, it likely took around 16 individuals to produce the video. Based on this estimate, the total budget for the production is approximately $26,743.

RoleHourly RateNo. of HoursTotal (Rounded)
1 manager$37.6416$602
1 producer$43.118$345
1 creative director$97.4416$1,559
1 art. director$82.1220$1,642
4 illustrators $48.6140$7,778
6 animators $50.2340$12,055
2 music and SFX specialists$50.2320$2,762

Answering Common Doubts about Animation Production:

To address additional questions and concerns you may have about animation production, here are some commonly asked questions:

Animation production requires a highly skilled team, specialized software, and significant time and effort. The costs are justified by the expertise, creativity, and attention to detail that go into creating a professional animation. 

Animation costs can vary widely depending on the factors discussed. On average, animation costs can range from $50 per minute for simpler animations to $500+ per minute for high-end productions. It’s important to evaluate your specific needs and budget when considering animation costs.

The time required to animate one minute can vary based on the complexity of the project, the style of animation, and the resources available. On average, it can take 2 to 4 weeks to complete one minute of animation. 

The production of a 30-second animated explainer video can be completed within a 1 week, considering a reasonable timeframe for planning, creation, and revisions.

When it comes to cheap explainer videos, the cost can range from $5 to $1500. However, it’s important to consider that opting for a low-cost option may result in a negative return on investment and waste of time. Remember, you typically get what you pay for in terms of quality and effectiveness.

Video production typically involves three stages: pre-production, production, and post-production. 

  • During pre-production, the planning, scriptwriting, and storyboarding take place. 
  • Production involves the actual creation of the animation, including animation, voice-over recording, and asset creation. 
  • Post-production includes editing, sound design, and final touches to ensure a polished end product.

Conclusion and Choosing the Right Animation Company:

Animation explainer videos are a valuable asset in today’s competitive digital landscape. By understanding the key factors affecting animation costs and the breakdown of costs per tier, you can make informed decisions that align with your budget and desired level of quality and customization. Whether you choose to work with freelancers, mid-tier studios, or professional animation companies, it’s essential to consider their expertise, portfolio, and client reviews to ensure a successful collaboration. 

By carefully evaluating your options and selecting a reputable and suitable animation partner, you can create an impactful explainer video that effectively communicates your message, engages your audience, and enhances your brand’s presence in the digital realm.


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