Explainer videos have become an indispensable part of business communication. From simplifying complex concepts to captivating audiences, these short, engaging videos are taking the business world by storm, and when done right, the explainer video ROI proves their real value.
In 2025, the focus on data-backed results has made measuring the return on investment (ROI) of explainer videos a crucial factor for businesses. As demand for quality explainer video production grows, understanding their impact can help companies achieve higher engagement, drive conversions, and foster loyalty.
This article explores “explainer video ROI”, breaking down their role in business, the metrics that matter, and the steps to maximize returns.
What Are Explainer Videos?
Explainer videos are short, engaging clips designed to make complex ideas easy to understand. They blend storytelling, visuals, and often audio narration to guide viewers through a concept in just a few minutes.
Key characteristics include:
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Concise format: Most run between 60 and 180 seconds.
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Clear structure: They follow a problem-solution-action flow.
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Visual appeal: Use animation, live action, or a mix to reinforce the message.
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Narration or text: A friendly voiceover or on-screen captions keep the audience on track.
These videos work well across many contexts:
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Product launches: Introduce new features or services.
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Onboarding: Walk new users through a platform or process.
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Training: Teach internal teams or clients how to use a tool.
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Marketing: Capture attention on social media or landing pages.
By combining concise scripts with compelling visuals, explainer videos cut through information overload. They give viewers a clear takeaway and a call to action, whether it’s signing up, learning more, or sharing the video with colleagues.
Why Are Explainer Videos Effective?
Explainer videos stand out because they engage multiple senses at once. Viewers see motion, hear narration, and often read on-screen text. This multi-modal experience boosts understanding and recall.
Studies show:
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95% of viewers retain information better from video than text.
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Retention rates can be up to 60% higher compared to reading alone.
Core benefits include:
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Instant clarity: Complex topics are broken into simple steps.
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Emotional connection: Tone, music, and visuals evoke feelings that reinforce the message.
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Shareability: People are more likely to forward a short video than a long article.
Brands use explainer videos to achieve a variety of goals:
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Boost conversions on landing pages.
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Reduce support tickets by clearly demonstrating common tasks.
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Increase social engagement through easy-to-digest content.
In short, explainer videos transform dense information into memorable stories. They deliver rapid understanding and encourage viewers to take the next step—whether that’s signing up for a demo, subscribing to a newsletter, or exploring a new feature.
Benefits of Investing in Explainer Videos
1. Increased Customer Engagement
You only get a few seconds to capture attention online. Research highlights that video content outperforms text and image-based content across platforms. According to Wyzowl’s 2023 survey, 73% of marketers stated that explainer videos significantly increased user engagement on their landing pages.
Engaging visuals and relatable narratives help brands hold viewers’ attention longer, encouraging deeper interaction. Whether it’s increased video views, clicks, or shares, explainer videos drive meaningful engagement.
2. Higher Conversion Rates
Explainer videos have a proven track record of motivating customer actions. For example, businesses that use explainer videos reported average conversion rate improvements of 20–30%. A study by Animoto found that 84% of consumers are more likely to purchase a product after watching a video.
By clearly presenting the value proposition and addressing customer pain points, these videos build trust and confidence to close sales faster.
3. Improved Brand Trust and Recall
Creating positive brand associations is critical for growth, and explainer videos excel in this area. By simplifying communication and addressing customer challenges, they showcase a brand’s credibility and commitment to its audience.
Examples like Slack’s launch video demonstrate how effective storytelling can elevate brand recall. Slack’s explainer video simplified the platform’s value, contributing to its exponential growth by converting curious visitors into loyal users.
How to Measure Explainer Video ROI
Understanding the ROI of an explainer video involves analyzing various metrics that reflect viewer behavior and business impact. Here are the most relevant measures to track results effectively:
1. Website Traffic Growth
Monitor traffic spikes after embedding your explainer video. A/B testing pages with and without video can highlight the impact of video on site visits. Tools like Google Analytics provide clear insights into how video content contributes to page impressions.
2. Conversion Rate Uplift
Calculate the percentage of users taking desired actions (sign-ups, purchases) after watching your video, compared to those who didn’t. For instance, if 500 users complete a form post-video, compared to 50 without it, the video’s effectiveness becomes clear.
3. Customer Retention and Reduced Churn
Track changes to customer lifetime value or churn rates after deploying explainer videos as part of onboarding or support. Customers who effectively understand your product are more likely to stay engaged.
4. Post-Video Actions
Count how many downloads, inquiries, or subscriptions occur after video views. Integrating your CRM with tools like HubSpot makes tracking customer actions seamless.
Example ROI Calculation
Suppose you spend $2,000 on an explainer video. Post-launch, it generates 10 conversions at $500 each. Your ROI can be calculated like this:
ROI = (Revenue – Cost of Video Production) ÷ Cost of Video Production
($5,000 – $2,000) ÷ $2,000 = 150% ROI.
This hypothetical example demonstrates the financial efficiency of videos when well-implemented.
Steps for Effective Explainer Video Production
1. Research and Scripting
Start by understanding your audience’s key pain points. Craft a script that highlights how your product or service solves these problems in simple, relatable language. Partner with experienced “brand explainer video production” companies to get it right.
2. Production and Animation
Focus on quality visuals and sound. High-quality animation or live-action production ensures your video feels polished and engaging. Ensure the tone matches your brand voice.
3. Distribution and Analytics
Embed the video on your website, social media platforms, and email campaigns. Once live, use analytics tools like Vimeo or Wistia to monitor performance and optimize your approach. Regularly track engagement and adjust distribution strategies.
How Explainer Videos Will Replace Traditional Marketing in 2025
Video-first communication is taking center stage as more people turn to moving images for information. Long articles and slide decks still have a place, but they often fail to hold attention. In fact, 55 percent of consumers say they prefer video over text when learning about a product or service.
Why video works better:
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Viewers process visuals faster than text
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Sound and motion combine to clarify ideas
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Emotions come through in ways static content cannot
In the coming year, several trends will make explainer videos even more powerful. First, vertical videos fit how people hold their phones. This format feels natural on social feeds and in messaging apps. Second, personalized storytelling lets brands speak directly to viewer interests. By tailoring scenes and narration, videos feel more relevant and engaging. Third, interactive features such as clickable chapters or on-screen prompts invite viewers to take action, improving both understanding and response rates.
For many organizations, embracing brand explainer video production will be key to keeping pace in a market driven by visual content.
What this means for marketers:
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Map your key messages to short video clips
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Choose the right format for each channel, from social to email
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Add simple interactive elements to guide viewer actions
As video consumption grows, businesses that prioritize explainer videos will connect with audiences more deeply than ever. In a world where attention is scarce, the ability to explain ideas quickly and clearly will become a major advantage. Video will not just supplement marketing; it will lead the way.
Take the Next Step with Explainer Videos
Explainer videos can clarify complex ideas and strengthen your audience relationships.
Here’s how we can help:
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Discuss your objectives and project requirements
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Recommend proven video approaches tailored to your needs
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Outline a clear, step-by-step roadmap for execution
To explore how an explainer video could support your goals, schedule a call.
