Explainer videos can make all the difference for a startup trying to stand out in today’s crowded market. With millions of businesses competing for attention, it’s difficult for any new venture to break through the noise and get noticed. This is where the power of a well-crafted explainer video comes in.

Through concise storytelling and engaging visuals, explainer videos have the ability to communicate complex concepts in a way that is both entertaining and educational.

By effectively communicating what your business does and why it matters, you can capture your audience’s attention from the first few seconds of your video.

But it’s not just about grabbing attention – explainer videos have been shown to increase website conversions by up to 80%.

With such impressive results, there’s no denying that explainer videos are an essential tool for startups looking to make their mark in a crowded market.

Let’s take a closer look at how explainer videos can benefit your business.

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6 Benefits of Using Explainer Videos for Startups

Explainer videos have become a crucial tool for startups to communicate their message and showcase their product or service. The rise of online video content has made explainer videos an essential part of a startup’s marketing strategy, as they offer an engaging way to explain complex concepts and demonstrate how a product works.

Dollar Shave Club’s video is a prime example of how effective startup videos can be. Their witty and captivating style helps them to stand out amidst the competitive market and quickly catch the attention of potential customers. This sort of innovation is just one possible outcome of using such videos.

But, if you still need more convincing, here are six spellbinding reasons why investing in explainer videos is worth every dime:

  1. Explainer videos can help increase conversion rates by up to 80%. They enable startups to quickly communicate their value proposition to potential customers while grabbing their attention and keeping them engaged. This helps generate interest in the business’s offerings and encourages viewers to take action.
  2. Explainer videos can boost search engine rankings by up to 50%. Since video content is highly favoured by Google’s algorithm, adding relevant keywords and descriptions could make your website more visible on search engines.
  3. Explainer videos offer great versatility. They can be shared on various platforms such as social media channels or pitch decks during investor presentations. The ability to be accessed from anywhere gives explainer videos an edge over other forms of advertising.
  4. Animated video production costs less than traditional advertising campaigns which often include billboards or TV ads. With efficient budget allocation, startups can create high-quality explainer videos without worrying about high production costs.
  5. Compared to long-form text content which can be strenuous on users’ attention span; explainer videos improve viewer retention rates substantially. Viewers retain more information when they watch an engaging video with visual aid.
  6. Explainers are a way for start-ups to establish a brand identity while conveying brand messaging with visuals people remember even years later. Using custom-made animated characters or visual metaphors along with company branding guidelines ensures sustainable growth and continued connection with audiences who prefer dynamic content over typical static labels.

Why Animated Explainer Videos are a Budget-Friendly Advertising Solution

Animated explainer videos have become increasingly popular for startups and small businesses as effective advertising tool. One of the reasons behind this is their cost-effectiveness, which stems from a number of factors. Firstly, compared to live-action videos or TV commercials, animated explainer videos are cheaper to produce because they don’t require actors, sets or expensive equipment. Instead, all that’s required to bring the story to life is animation software and a skilled animator.

Additionally, creating an animated explainer video generally takes less time than producing a live-action video. This provides businesses with the advantage of having their video up and running in a shorter amount of time, thereby enabling them to start promoting their product or service more quickly.

Another key benefit of animated explainer videos is that they offer greater flexibility and control over the final product. Companies can easily make changes to the script, graphics or voiceover until they achieve a satisfactory result without incurring additional production costs associated with reshoots.

Furthermore, these videos can be easily updated and repurposed for different marketing campaigns. So companies can save money on production costs by simply updating the graphics or voiceover to reflect new product features or target audiences instead of creating new ones from scratch.

Another advantage of animated startup videos is that they can be easily shared and distributed across multiple platforms such as social media channels, email campaigns or websites thereby increasing reach and engagement with the potential customer.

Marketing MethodCost RangeProsAlternative Considerations
TV Commercials$200,000 – $1,500,000High production value, wide audience reachLimited targeting options, high cost
Print Advertising$5,000 – $50,000Targeted audience, long shelf lifeDeclining readership, limited engagement
Radio Ads$1,000 – $10,000Cost-effective, targeted audienceLimited audience reach, declining listenership
Social Media Ads$500 – $10,000Targeted audience, customizable ad formatsLimited ad lifespan, high competition
Animated Explainer Video$3,000 – $20,000Cost-effective, customizable, high engagementLimited audience reach, requires a skilled animator
Animated explainer videos vs other advertising methods

How to use a startup explainer video to boost revenue?

There are few things more powerful than a startup explainer video when it comes to boosting revenue. They can be used in three different ways, depending on the current stage of your business: sales and marketing content, investor pitches, or how-to tutorials.

Firstly, startup explainer videos make for excellent sales and marketing content. Creating these high-quality videos that showcase your product in action with compelling benefits, helps viewers understand the product easily. This makes it a quick way to pitch to potential clients and increase brand recognition.

Secondly, an explainer video can be used as an investor pitch for showcasing what makes your product stand out from competitors along with details about the industry you’re in while staying away from competitive analysis. In this way, investors get a good idea about your business model and how it represents growth and earnings potential.

Lastly, how-to tutorials in video format are becoming increasingly popular among audiences looking for easy-to-understand information about products or services. An explainer video format is an excellent tool for providing how-to instructions because visuals aid the learning experience better when they follow clear scripts with step-by-step instructions.

How to get funded using explainer videos

By leveraging high-quality visuals plus a compelling narrative via an effective explainer video, startups stand much better chances at securing funding for their next round of financing–which is essential for growth and sustainability in today’s competitive marketplace. Let’s explore how else such videos could help attract new users for businesses moving forward…

  • An explainer video gives potential investors insight into what makes your business unique. Developing a well-crafted explainer video script allows you to highlight key points and show why your product or service stands out from competitors. This helps create powerful visual storytelling that resonates with investors who have limited time and many pitches to review.
  • A promotional video establishes credibility with investors by humanizing your brand’s story. It’s not enough these days simply to provide facts and figures – people want to connect with companies they invest in, which means showing them who’s behind it all. By creating an engaging, informative explainer video that tells prospective investors about the history of your organization and its mission, you’ll make a more lasting impression on them than if you presented only data-driven slides during the pitch meeting.
  • Explainer videos showcase any awards or recognition received by the company as well as media coverage it has earned. Potential investors will appreciate seeing evidence of industry success before committing funds; this kind of positive press also speaks volumes about how reputable and reliable a company is compared with others in its market space.
  • Finally, having an experienced video production company produce your explainer increases its quality tenfold while giving off professional vibes that impress potential investors even further—and potentially open doors for future investment opportunities too!

Explainer Video Examples That Have Helped Launch Startups

Startups often struggle with conveying complex information to their target audience. A highly effective solution is creating a startup demo video that not only explains what the product or service does, but also engages the viewer from start to finish. Several startups have successfully launched their businesses using innovative and compelling explainer videos.

One such example is Dollar Shave Club which used humour and a straightforward message to introduce its subscription razor blade service. The video went viral as it resonated with viewers who were tired of overpriced razor blades and appreciated the simplicity of Dollar Shave Club’s offering.

Another startup, Dropbox, created an animated explainer video that quickly communicated how users can access their files from anywhere. The simplicity of the animation and clear communication of their value proposition has helped them grow into one of the most successful cloud storage providers in the world.

For more technical products like Slack, an explainer video can demonstrate how to use it for optimal productivity. Their highly stylized animated video introduced their messaging platform as a versatile tool that integrates with other popular apps.

Explainer videos by startups are not restricted to tech companies alone. Purple Mattress, for example, created an informative yet humorous explainer video about why they’re different from traditional mattress companies. The result was increased brand recognition and customers who felt they understood exactly why Purple Mattress was right for them.

Wistia is another company that creates stunning product videos with an educational slant. These “teacher training” explainer videos help businesses explain how they solve customer problems in a fun way.

5 Tips on how to make a great explainer video for your startup

As the founder of a startup, you know that creating an explainer video to help introduce potential customers to your product can be a great way to get them excited about what you have to offer. But what does it take to make a great explainer video? Here are five tips for making sure your explainer video stands out:

  • Creating a compelling explainer video is crucial for your startup’s success. Nailing it with these five tips will ensure your audience will stick with you to the end:
  • Conciseness is key: Keep your video less than 90 seconds and focused on the essential features of your product or service, using plain and simple language.
  • Tell an engaging story: Your video must give viewers a reason to care about your product by highlighting the problem it solves with a straightforward narrative that draws them in.
  • Consider style and tone: Choose visuals, animation or live-action footage that match your brand personality and make sense for your target audience. The tone should help sell your product effectively.
  • Unique benefits shine: Your video should showcase what sets you apart from competitors. Use clear examples to demonstrate how your solution makes viewers’ lives better than any other available option.
  • Make the call-to-action unambiguous: Close with a clear next step for the viewer, like visiting your homepage, subscribing to mailing lists or signing up for a trial offer. Ensure links are clickable or include simple URLs, keeping the process as intuitive as possible.

By following these tips, you can create an amazing explainer video that will show off all the incredible features of your startup and help draw in more customers!


What Is The Average Length Of An Explainer Video?

The average length of an explainer video usually ranges from one minute to two minutes. This is because attention spans online can be quite short, and viewers need time to process the information given in the entire video. The optimal length for most explainer videos is around 90 seconds; this gives you enough time to convey your message while still keeping the viewer’s interest alive. You will also want to keep in mind that longer videos may require more production costs, so budget accordingly when creating a longer explainer video.

How Do I Measure The Success Of My Explainer Video?

The first thing to consider is analytics. Look at how many people viewed and interacted with your video – this will tell you how successful it was at engaging potential customers. You could also track other metrics such as shares, comments, likes and views which will give you a deeper understanding of performance levels. As well as measuring these more traditional measures of reach and engagement, there are now tools available which enable you to measure brand sentiment associated with each particular video content piece.

It’s also worth considering qualitative feedback from viewers about the quality and effectiveness of the video itself – what did they think about the visuals, sound effects etc.? Was the length appropriate for their requirements? Did it make them feel something? These insights can help inform future decisions around production values and ensure that every penny spent on producing videos is used wisely.

What Is The Best Way To Market My Explainer Video?

One of the most effective methods of marketing an explainer video is through social media platforms like Facebook, Instagram and Twitter. Social media offers incredible potential for connecting with people who are interested in your field or product. Not only can you share posts about your explainer video but also start conversations, answer questions from users and even post sneak peeks into upcoming projects! This helps create excitement around what you’re doing and gets more eyes on your content.

Another approach to consider is leveraging influencers within your niche or industry – individuals who already have large followings who may become passionate advocates for your startup after viewing the explainer video. You could also explore creating partnerships with other brands in order to gain exposure and build relationships with larger audiences. With these strategies combined, you’ll be able to ensure maximum visibility for both existing followers and potential new customers alike!

What Is The Best Way To Ensure My Explainer Video Stands Out?

First off, focus on telling an engaging story with the content of the video. Your audience should be able to relate to what’s being presented in some way – this will help them remember who you are and why they should care about your product or service. Additionally, make sure you utilize visuals that catch the eye; using animation-style graphics along with high-quality audio production will really bring your message to life.

Finally, keep things concise and memorable. While having lots of information may seem like a good idea, too much detail might cause confusion instead of clarity for viewers. Try not to go over two minutes if possible; providing just enough information so that viewers feel informed but still wanting more is a great way to drive customers back towards you when they’re ready!


Explainer videos are a powerful tool for startups that can help to quickly explain their product or service. Not only do they capture attention and engage viewers, but they also allow businesses to create connections with potential customers on a deeper level than just words. With the right approach, an explainer video can be a great marketing asset as well as provide opportunities to monetize it.

When creating an explainer video, it is important to consider its length, how you will measure success, and how you will market it. Additionally, ensure your video stands out by leveraging creative visuals and animations that bring your message alive. Finally, if done correctly, there are numerous ways to monetize these types of explainer videos through branded content partnerships or sponsored campaigns.

Overall, investing in an explainer video is essential for any startup looking to grow its business. By utilizing this type of content strategy within their marketing mix, companies increase visibility amongst key target audiences while simultaneously building relationships with potential customers. Ultimately leading them one step closer towards achieving their long-term goals.

This article was written by Creative Island's founder Filipe Bastos. Beyond being the owner of the studio, Filipe has a background in philosophy and psychology, and loves reading and writing about anything related to human nature. He brings his unique perspective and insights to the work he does, including creating engaging and effective animated explainer videos for startups and small businesses.

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