Many businesses invest in animated explainer videos expecting immediate results, only to be disappointed. The problem is rarely the animation itself. More often, businesses focus on visuals before defining their message and strategy.
When used correctly, animated explainer videos help businesses simplify complex information, improve conversions, educate customers, and support marketing efforts across multiple channels. From websites and landing pages to social media and customer onboarding, animation has become a valuable communication tool for modern organisations.
What Is an Animated Explainer Video Company?
An animated explainer video company is a specialist agency that creates animated content designed to explain products, services, systems, or ideas clearly and effectively.
Unlike traditional video production, animation does not require filming, actors, or locations. Instead, agencies use storytelling, illustration, motion design, voiceovers, and sound to communicate messages in a visually engaging way.
Animated explainer videos are widely used by:
- SaaS and technology companies
- Healthcare providers
- Financial and fintech businesses
- Ecommerce brands
- Corporate organisations
- Educational institutions
Most animated explainer video agencies provide:
- Strategy and messaging
- Scriptwriting
- Storyboarding
- Design and animation
- Voiceover production
- Sound design
- Final delivery
The best agencies focus on solving communication challenges rather than simply creating attractive visuals.
Types of Animated Explainer Videos
Different animation styles serve different business objectives.
2D Animated Explainer Videos
2D animation is the most common format used by businesses. It combines illustrations, icons, typography, and motion graphics to explain information in a simple and engaging way.
Common applications include:
- Product explainers
- SaaS demonstrations
- Website videos
- Customer onboarding
- Educational content
2D animation remains popular because it offers a strong balance of affordability, flexibility, and effectiveness.
3D Animated Explainer Videos
3D animation creates realistic visuals and greater depth, making it ideal for technical products and complex demonstrations.
Industries that frequently use 3D animation include:
- Manufacturing
- Engineering
- Healthcare
- Construction
- Automotive
Although production costs are generally higher, 3D animation can provide a stronger visual impact when realism is important.
Motion Graphics Videos
Motion graphics focus on animated text, icons, charts, and interface elements rather than character-based storytelling.
They are commonly used for:
- Corporate communication
- Financial services
- Investor presentations
- Data visualisation
- Software platforms
This style is particularly effective for information-heavy content that requires clarity and professionalism.
Why Animated Explainer Videos Work
Animated explainer videos are effective because they combine visual storytelling, motion, and audio to make information easier to understand and remember.
Simplifying Complex Information
Animation can visualise concepts that are difficult or impossible to film, including:
- Software workflows
- Technical systems
- Financial processes
- Internal operations
- Future products
This makes animation especially valuable for technology, healthcare, and fintech businesses.
Increasing Engagement
Stories and visual movement naturally capture attention. Even simple animations can create emotional connections that encourage viewers to stay engaged with the content.
Improving Retention
People tend to remember information more effectively when it is presented through both visuals and sound. As a result, animated explainer videos often outperform text-heavy content for education and communication.
The Animated Video Production Process
Professional animated explainer video production typically follows a structured process.
Strategy and Scriptwriting
Every project begins with defining the audience, objectives, key message, and desired outcome. The script serves as the foundation for the entire video.
Storyboarding and Design
A storyboard maps the visual flow of the video, while style frames establish the look and feel through colours, typography, illustrations, and character design.
Animation and Audio
Once approved, the animation is produced and combined with voiceovers, music, and sound effects to create a polished final product.
Delivery
The completed video is exported in formats suitable for websites, social media, advertising campaigns, and other distribution channels.
Animated Explainer Video Cost
The cost of animated explainer video production varies depending on factors such as length, complexity, animation style, voiceovers, and revision requirements.
Typical Australian pricing ranges include:
- Basic motion graphics: $3,000–$8,000
- 2D animated explainer videos: $8,000–$20,000
- High-end 3D animation: $15,000–$50,000+
When evaluating providers, businesses should consider strategy, process, quality, and scalability rather than focusing solely on price.
How to Choose the Right Animated Explainer Video Agency
Selecting the right agency can have a significant impact on the success of a project.
Key factors to consider include:
- Portfolio quality and consistency
- Experience within your industry
- Clear production workflows
- Strong communication and project management
- Transparent revision policies
- Strategic understanding of business goals
The strongest agencies combine creative expertise with a clear understanding of marketing, communication, and customer behaviour.
Final Verdict
Animated explainer videos have become essential communication tools for modern businesses. They help simplify complex ideas, engage audiences, improve understanding, and support marketing efforts across every stage of the customer journey.
Whether using 2D animation, 3D animation, or motion graphics, success depends on more than visual quality alone. Clear messaging, strategic planning, and audience understanding are what ultimately drive results.
Businesses that treat animation as part of a broader communication strategy often achieve the greatest long-term value from their investment.