Why Your Business Needs an Explainer Video in 2025
A business explainer video is a short, engaging video (typically 60-90 seconds) that simplifies your product, service, or brand message using visuals, narration, and storytelling. Here’s what you need to know:
What is a Business Explainer Video?
- A concise video that explains what your business does and why it matters
- Combines visuals (animation, live-action, or motion graphics) with voiceover and music
- Designed to convert viewers into customers by addressing pain points and showcasing solutions
Key Benefits:
- 86% higher conversion rates on landing pages with video
- 72% of businesses report improved conversion rates after using explainer videos
- 97% of marketers say videos help users better understand their product
- 47% reduction in customer support requests
Common Types:
- Animated (2D/3D, motion graphics, whiteboard)
- Live-action
- Screencast/product demos
- Mixed reality (live-action + animation)
If you’re a small business owner struggling to explain what you do—or watching potential customers bounce from your website—you’re not alone. In today’s digital landscape, attention spans are shorter than ever. People scroll fast, read less, and expect brands to show rather than tell.
That’s where explainer videos shine.
Video isn’t just a nice-to-have anymore. It’s the secret weapon that transforms confusion into clarity, browsers into buyers, and complex ideas into compelling stories. Landing pages with explainer videos see an 86% higher conversion rate, and companies using video grow revenue 49% faster than those that don’t.
But here’s the challenge: creating a video that actually works requires more than flashy animation. It demands strategy, storytelling, and an understanding of what makes your audience tick.
I’m Christian Daniel, founder of Christian Daniel Designs, and I’ve spent over 20 years producing award-winning business explainer videos for brands like The Plaza Hotel and Park Hyatt Chicago. I’ve seen how the right video can turn a struggling brand into a conversion machine—and I’m here to show you exactly how to do it.
Why Explainer Videos are a Game-Changer for Your Brand
In today’s digital world, creating content that captures attention is a major challenge. Your potential customers are bombarded with messages and have limited time. Explainer videos are a powerful tool to cut through the noise, connect emotionally, clarify your message instantly, and drive conversions. We’ve seen clients transform their engagement simply by adding the right video to their website.
The Undeniable Impact on Conversions and Sales
Let’s focus on the results. Adding a business explainer video to your landing page isn’t just an aesthetic upgrade—it’s a strategic move that fundamentally improves performance. Landing pages with video see an 86% higher conversion rate. A confused visitor can watch a 90-second video, understand the value, and convert. It’s a powerful, data-backed strategy.
The benefits extend beyond immediate conversions. Companies that use video grow revenue 49% faster than those that don’t. This sustained growth is why investing in Strategic Video Marketing is so crucial. You’re not just solving today’s conversion problem; you’re building a long-term revenue engine.
The market confirms this: 72% of businesses believe videos improved their conversion rate. These are real business owners tracking real results. When shoppers watch your explainer video, they’re making purchase decisions based on what they see. Video doesn’t just inform—it persuades and sells.
Simplify the Complex and Build Customer Trust
Explaining a complex product or service through text can be ineffective and confusing. This is where explainer videos truly shine, changing your most complex ideas into simple, memorable stories. A well-crafted video can show in 60 seconds what might take 30 minutes to explain in person. In fact, 97 percent of marketers say videos help users understand their product.
When customers understand your offer, trust builds naturally, leading to confident purchasing decisions. This clarity also pays off by reducing customer service inquiries. Nearly half of all brands—47% to be exact—report that explainer videos helped reduce their support requests because the video preemptively answers common questions.
Furthermore, people retain information from video at a dramatically higher rate than from text alone. Your message doesn’t just land—it sticks. Weeks later, when they’re ready to buy, they remember your story and how clearly you solved their problem. This is the foundation of How to Create Engaging Video Content that builds lasting relationships and trust.
Boost Your SEO and Online Visibility
A great product is useless if customers can’t find you. A business explainer video can be a powerful SEO weapon. Google’s algorithm favors pages with video content because it signals high user engagement. Video outperforms other content in search, so adding an explainer video to your site can significantly boost your rankings.
When visitors watch a video, they spend more time on your page. This increased “dwell time” is a positive signal to search engines, telling them your content is valuable. Quality videos also earn shares and backlinks as people reference them, further enhancing your online authority.
Integrating video into your overall Web Design for Business Owners strategy creates a virtuous cycle: better visibility leads to more traffic, which leads to more conversions and continued growth.
The Anatomy of a High-Converting Explainer Video
Not all explainer videos are created equal. The difference between a video that converts and one that gets skipped lies in a few core elements. Let’s break down what makes a business explainer video effective.
Key Elements of a Successful Business Explainer Video
Think of a high-performing business explainer video like a well-oiled machine—every component needs to work in perfect harmony. Miss one element, and the whole thing falls apart.
- Start with the Problem-Solution Formula. Begin by addressing a specific pain point your audience faces to create an immediate connection. Then, present your product or service as the ideal solution. This narrative structure is highly engaging.
- The script is everything. A weak script will sink even the most beautifully animated video. It must be customer-centric, focusing on benefits over features. A strong script clarifies your value proposition and builds trust.
- Make your value proposition crystal clear. Within the first 15 seconds, viewers must understand what you offer and the tangible benefits they’ll receive, such as saving time or increasing revenue.
- Visuals should simplify, not complicate. Whether you choose animation or live-action, your visuals must support the narrative and be understandable even without sound. Effective visual storytelling uses color, movement, and characters to guide the viewer and clarify complex ideas.
- Invest in professional voiceover. A professional voiceover sets the tone and conveys authority. The voice should match your brand’s personality—be it friendly or expert—and guide the viewer clearly. A relatable voiceover creates a strong emotional connection.
- End with a strong Call-to-Action. After watching your video, what should viewers do next? A vague ending wastes all the momentum you’ve built. Your CTA needs to be clear, specific, and compelling, like “Sign Up Now” or “Get Your Free Demo.”
- Keep it tight: 60-90 seconds. This is the sweet spot for most business explainer videos. It’s long enough to tell a complete story but short enough to hold attention. For social media ads, 30 to 45 seconds is often more effective.
Popular Explainer Video Styles and When to Use Them
Choosing the right visual style isn’t just an aesthetic decision—it impacts your budget, timeline, and how your message lands with your audience. Here’s what you need to know about the most popular styles:
| Style | Cost (Relative) | Complexity (Relative) | Best Use Cases |
|---|---|---|---|
| 2D Animation | Medium | Medium | Great for explaining abstract concepts, software, or services. Versatile and cost-effective. |
| 3D Animation | High | High | Perfect for product demos, technical explanations, or when you need that “wow” factor. |
| Whiteboard Animation | Low-Medium | Low-Medium | Ideal for educational content, step-by-step processes, or building trust with a personal touch. |
| Live-Action | Medium-High | High | Best for testimonials, brand storytelling, or when human connection is paramount. |
| Motion Graphics | Medium | Medium | Excellent for data visualization, tech products, or modern, sleek brand presentations. |
| Screencast | Low | Low | Perfect for software tutorials, app demos, or product walkthroughs. |
Motion graphics work beautifully for presenting data, statistics, or technical concepts in a visually engaging way. They’re sleek, modern, and captivate audiences with dynamic transitions and effects.
2D and 3D animation give you unlimited creative freedom. You can create any world, any character, any scenario—without the constraints of reality. This makes them perfect for explaining complex or abstract ideas that would be difficult to film.
Whiteboard animation videos have a unique charm. Watching an illustration come to life stroke by stroke is compelling. They feel educational and personal, making them ideal for explaining processes or building credibility.
Live-action brings authenticity and human connection. When you need to showcase real people, real emotions, or your actual product in use, nothing beats the genuine feel of live footage. It’s especially powerful for testimonials and brand stories.
Screencast videos are your go-to for software demonstrations or app tutorials. They show exactly what users will see and experience, removing any guesswork.
Want to see these styles in action? Check out this motion graphics example and this live-action example to see how different approaches create different feelings.
Newer techniques like AI product videos are also emerging, offering faster production times and personalized content at scale.
Common Mistakes to Avoid
I’ve reviewed hundreds of explainer videos over the years, and I see the same mistakes repeatedly. Here’s what to avoid:
- Making it too long: Viewers lose interest quickly. Respect their time and cut ruthlessly. Every second should earn its place.
- Burying the message: If viewers can’t figure out what you do in the first 20 seconds, they’re gone. Lead with clarity.
- Skimping on audio quality: Poor audio is unforgivable. Bad sound—crackling, echo, or background noise—makes your brand look unprofessional.
- Weak or missing CTA: Your video is a business tool. Tell viewers exactly what to do next so they don’t do nothing.
- Using too much jargon: Speak in plain language. If your grandmother wouldn’t understand it, simplify it.
- Forgetting who you’re talking to: Every element should be chosen with your specific audience in mind. Know your audience and speak their language.
Need inspiration for getting it right? Explore these creative video marketing ideas to see how top brands create videos that convert.
Introduction
A business explainer video is a short, engaging video (typically 60-90 seconds) that simplifies your product, service, or brand message using visuals, narration, and storytelling. Here’s what you need to know:
What is a Business Explainer Video?
- A concise video that explains what your business does and why it matters
- Combines visuals (animation, live-action, or motion graphics) with voiceover and music
- Designed to convert viewers into customers by addressing pain points and showcasing solutions
Key Benefits:
- 86% higher conversion rates on landing pages with video
- 72% of businesses report improved conversion rates after using explainer videos
- 97% of marketers say videos help users better understand their product
- 47% reduction in customer support requests
Common Types:
- Animated (2D/3D, motion graphics, whiteboard)
- Live-action
- Screencast/product demos
- Mixed reality (live-action + animation)
If you’re a small business owner struggling to explain what you do—or watching potential customers bounce from your website—you’re not alone. In today’s digital landscape, attention spans are shorter than ever. People scroll fast, read less, and expect brands to show rather than tell.
That’s where explainer videos shine.
Video isn’t just a nice-to-have anymore. It’s the secret weapon that transforms confusion into clarity, browsers into buyers, and complex ideas into compelling stories. Landing pages with explainer videos see an 86% higher conversion rate, and companies using video grow revenue 49% faster than those that don’t.
But here’s the challenge: creating a video that actually works requires more than flashy animation. It demands strategy, storytelling, and an understanding of what makes your audience tick.
I’m Christian Daniel, founder of Christian Daniel Designs, and I’ve spent over 20 years producing award-winning business explainer videos for brands like The Plaza Hotel and Park Hyatt Chicago. I’ve seen how the right video can turn a struggling brand into a conversion machine—and I’m here to show you exactly how to do it.
Why Explainer Videos are a Game-Changer for Your Brand
When everyone’s scrolling at lightning speed, cutting through the noise feels impossible. But here’s the thing: explainer videos don’t just cut through—they captivate. They’re your chance to connect with viewers in seconds, turn confusion into clarity, and transform casual browsers into loyal customers. This isn’t about flashy marketing tricks; it’s about genuine connection and real results.
The Undeniable Impact on Conversions and Sales
Let’s get straight to what matters most: your bottom line. The numbers around explainer videos aren’t just impressive—they’re game-changing.
Picture this: you add a business explainer video to your landing page, and suddenly your conversion rate jumps by 86%. That’s not a typo. We’re talking about nearly doubling your conversions with one strategic addition. I’ve watched this change happen with clients who were struggling to explain their value proposition in text alone. Once they deployed a well-crafted video, everything clicked for their audience.
Want proof beyond the statistics? Dropbox famously grew from zero to 100 million users largely thanks to a single animated explainer video. That’s the kind of impact we’re talking about.
But here’s where it gets even better: this isn’t just a short-term spike. Companies that accept video marketing grow revenue 49% faster than those that don’t. This sustained growth advantage makes video an essential pillar of your Strategic Video Marketing strategy, not just a nice-to-have add-on.
And I’m not alone in seeing these results. A whopping 72% of businesses report that explainer videos have genuinely improved their conversion rates. When your potential customers watch a compelling explainer video, more than half of them will make a buying decision based on what they’ve seen. That’s the power of showing rather than telling—your video doesn’t just inform, it influences. It doesn’t just explain, it sells.
Simplify the Complex and Build Customer Trust
Ever tried explaining your product or service in an email and felt like you were writing a novel? Or worse, watched someone’s eyes glaze over mid-pitch? You’re not alone. Complex ideas and text-heavy explanations are where customer interest goes to die.
This is where explainer videos become your secret weapon. They take complicated concepts and transform them into clear, engaging stories that actually stick. Whether you’re selling SaaS software, financial services, or innovative tech, a well-crafted video can make the complex feel simple.
The statistics back this up powerfully: 97% of marketers agree that videos help users better understand their product. And this understanding isn’t just about clarity—it’s about trust. When people actually get what you’re offering without confusion or frustration, their confidence in your brand skyrockets.
Here’s a bonus that’ll make your support team smile: 47% of brands have seen their customer support requests drop after introducing explainer videos. Fewer “how does this work?” emails means your team can focus on high-value interactions while customers get instant answers. Everyone wins.
But the benefits go deeper than just comprehension. Viewers retain more than three times as much information from video compared to text alone. Your message doesn’t just land—it sticks. This improved retention builds brand recall, turning one-time viewers into repeat customers who remember exactly why they chose you. By connecting pain points directly to solutions through compelling visuals and narration, you’re creating Engaging Video Content that educates, resonates, and builds lasting trust.
Boost Your SEO and Online Visibility
Here’s something most business owners don’t realize: Google absolutely loves video content. And when Google loves something, your website rankings benefit big time.
The data is clear—video consistently outperforms other content types in search results. Embedding a business explainer video on your site isn’t just good for conversions; it’s a powerful SEO strategy that helps potential customers actually find you in the first place.
Think about it: when someone lands on your page and sees a video, they stick around. They watch. They engage. This increased “time on page” sends a powerful signal to search engines that your content is valuable and relevant. Google notices when visitors spend three minutes watching your video instead of bouncing after ten seconds, and rewards you with better rankings.
But the SEO benefits don’t stop at your own website. Quality explainer videos are incredibly shareable. When people share your video on social media, embed it on their blogs, or reference it in articles, you’re building valuable backlinks that further boost your search authority. Your video becomes a marketing multiplier, working 24/7 to expand your reach and bring in organic traffic.
When you integrate explainer videos into your broader Web Design for Business Owners strategy, you create a virtuous cycle: better visibility leads to more traffic, more engagement leads to higher rankings, and higher rankings lead to even more visibility. It’s the kind of compound growth every business dreams about.
The Anatomy of a High-Converting Explainer Video
Creating an explainer video that truly converts isn’t just about pressing record; it’s a careful blend of strategy, creativity, and psychology. Let’s dissect what makes a business explainer video not just good, but exceptional.
Key Elements of a Successful Business Explainer Video
Every high-performing explainer video shares a common DNA, built on a few critical components that work in harmony to deliver your message effectively.
- The Problem-Solution Formula: A great explainer video first identifies a pain point your audience faces, then positions your product as the clear solution. This narrative hooks viewers and shows empathy.
- A Compelling Script: The script is the backbone of your video. It should be customer-centric, concise, and focus on benefits over features. A strong script clarifies your message and builds confidence.
- Clear Value Proposition: Your video must clearly articulate your value proposition—what makes you unique and why it matters to your audience.
- Engaging Visuals: Whether animated or live-action, visuals must be captivating and simplify complex ideas. They should reinforce the narration and maintain viewer interest.
- Professional Voiceover: The voice of your video sets the tone. A clear, confident, and engaging voiceover makes a huge difference. It should match your brand’s personality and guide the viewer smoothly.
- Strong Call-to-Action (CTA): What do you want viewers to do after watching? A clear, compelling CTA like “Sign Up Now,” “Learn More,” or “Contact Us” is essential to guide your audience to the next step.
- Ideal Length: The sweet spot for a business explainer video is typically 60-90 seconds. This allows enough time to convey your core message without losing viewer attention. For social media ads, even shorter (30-45 seconds) can be more effective.
Popular Explainer Video Styles and When to Use Them
The visual style of your explainer video is a critical choice, as it impacts everything from cost to tone to overall effectiveness. Here’s a breakdown of popular styles and their best use cases:
| Style | Cost (Relative) | Complexity (Relative) | Best Use Cases |
|---|---|---|---|
| 2D Animation | Medium | Medium | Great for explaining abstract concepts, software, or services. Versatile and cost-effective. |
| 3D Animation | High | High | Perfect for product demos, technical explanations, or when you need that “wow” factor. |
| Whiteboard Animation | Low-Medium | Low-Medium | Ideal for educational content, step-by-step processes, or building trust with a personal touch. |
| Live-Action | Medium-High | High | Best for testimonials, brand storytelling, or when human connection is paramount. |
| Motion Graphics | Medium | Medium | Excellent for data visualization, tech products, or modern, sleek brand presentations. |
| Screencast | Low | Low | Perfect for software tutorials, app demos, or product walkthroughs. |
Motion graphics are perfect for presenting data or technical concepts in a visually engaging way. They’re sleek, modern, and use dynamic transitions to captivate your audience.
2D and 3D animation offer unlimited creative freedom to explain complex or abstract ideas that are difficult to film.
Whiteboard animation videos have a unique, personal feel. Watching an illustration come to life is compelling and builds credibility, making them ideal for explaining processes.
Live-action brings authenticity and human connection, which is powerful for testimonials and brand stories where you want to showcase real people and emotions.
Screencast videos are the go-to for software demonstrations or app tutorials, as they show users exactly what to expect.
Want to see these styles in action? Check out this motion graphics example and this live-action example to see how different approaches create different feelings.
Newer techniques like AI product videos are also emerging, offering faster production times and personalized content at scale.
Common Mistakes to Avoid
I’ve reviewed hundreds of explainer videos over the years, and I see the same mistakes over and over. Here’s what kills an otherwise good video:
- Making it too long. If your video stretches past two minutes, you’re losing viewers by the second. Respect your audience’s time. Cut ruthlessly. Every sentence should earn its place.
- Burying the message. If viewers can’t figure out what you do within the first 20 seconds, they’re gone. Don’t save your key message for the end. Lead with clarity.
- Skimping on audio quality. Poor audio is unforgivable. Viewers will tolerate less-than-perfect visuals, but bad sound—crackling, echo, background noise—makes your brand look unprofessional. Invest in quality recording.
- Weak or missing CTA. Your video isn’t just entertainment—it’s a business tool. If you don’t tell viewers what to do next, they’ll do nothing. Make your call-to-action impossible to miss.
- Using too much jargon. You might live and breathe your industry terminology, but your audience doesn’t. Speak in plain language. If your grandmother wouldn’t understand it, simplify it.
- Forgetting who you’re talking to. Every word, visual, and music choice should be made with your specific audience in mind. A video for CFOs should feel different than one for college students. Know your audience and speak their language.
Need inspiration for getting it right? Explore these creative video marketing ideas to see how top brands avoid these pitfalls and create videos that actually convert.
