When Should a Business Use an Explainer Video?

Modern customers expect information to be quick, engaging, and easy to understand. If your product, service, or process requires more than a few sentences to explain, you’re already asking prospects to invest valuable time before they understand your value.

That is exactly where an explainer video becomes one of the most effective marketing tools available.

According to research from Wyzowl, people overwhelmingly prefer learning about products through video rather than reading long blocks of text. Video also helps businesses increase engagement, improve conversions, and reduce customer confusion.

Whether you’re launching a startup, selling software, introducing a new service, or simplifying a complex process, an explainer video can communicate your message in under two minutes while building trust with potential customers.

What Is an Explainer Video?

explaining
teaching

An explainer video is a short marketing video designed to educate viewers about:

  • A product
  • A service
  • A business
  • A process
  • A problem and its solution

Most effective explainer videos range from 60 to 120 seconds.

They combine storytelling, visuals, voiceover, motion graphics, and concise messaging to make complicated topics simple and memorable.

Unlike commercials that focus primarily on emotion and branding, explainer videos focus on clarity.

Common Types of Explainer Videos

TypeBest ForTypical Length
Animated ExplainerSaaS, technology, finance60 to 120 sec
Live Action ExplainerService businesses60 to 90 sec
Whiteboard AnimationEducation90 to 180 sec
Motion GraphicsB2B marketing60 to 120 sec
Product DemoSoftware and apps2 to 5 minutes

When Should a Business Use an Explainer Video?

Not every business needs one immediately.

However, there are situations where an explainer video can dramatically improve communication and conversions.

1. When Your Product Is Difficult to Explain

Some products require multiple paragraphs of explanation.

Examples include:

  • Software platforms
  • AI tools
  • Financial products
  • Medical technology
  • Manufacturing solutions

Instead of asking visitors to read several pages, an explainer video simplifies everything visually.

Research from Nielsen Norman Group consistently shows that users scan web pages rather than reading every word.

A short video helps bridge that gap.

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2. When Visitors Don’t Understand What You Do

A common problem many businesses face is:

“People visit our website but still don’t understand what we actually offer.”

This usually results in:

  • High bounce rates
  • Low engagement
  • Fewer inquiries
  • Lost sales

A homepage explainer video immediately answers:

  • Who are you?
  • What problem do you solve?
  • Who is it for?
  • Why choose you?
  • What should visitors do next?

3. When Launching a New Product

business 
laptop

Launching something completely new often means customers have never seen anything like it before.

An explainer video introduces:

  • The problem
  • The solution
  • Product features
  • Benefits
  • How it works

Companies launching innovative technology frequently use explainer videos because visual demonstrations reduce uncertainty.

4. When Selling Software (SaaS)

Software companies benefit enormously from explainer videos.

Instead of showing dozens of screenshots, a concise animation demonstrates:

  • Dashboard workflow
  • Automation
  • Time savings
  • User experience
  • Business results

Many successful SaaS companies place explainer videos directly above the fold on landing pages.

5. When Your Sales Team Repeats the Same Explanation

If your sales representatives answer identical questions every day, you have an opportunity.

Examples:

  • How does it work?
  • What’s included?
  • How long does implementation take?
  • What makes you different?

An explainer video provides consistent messaging before prospects even schedule a meeting.

This helps shorten the sales cycle.

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6. When Conversion Rates Are Low

Traffic alone doesn’t generate revenue.

If visitors leave without taking action, an explainer video may increase confidence.

Video helps by:

  • Building trust
  • Showing professionalism
  • Demonstrating value
  • Reducing uncertainty
  • Answering objections

7. When Customers Need Education Before Buying

financial planning
financial

Some purchases involve significant research.

Examples include:

  • Healthcare
  • Financial planning
  • Manufacturing
  • Enterprise software
  • Legal services

Educational explainer videos reduce friction by teaching prospects before they speak with sales.

8. When You Have Multiple Buyer Personas

Different audiences often require different messaging.

For example:

AudienceMessage Focus
ConsumersBenefits and convenience
ExecutivesROI
Technical BuyersFeatures
InvestorsMarket opportunity

Rather than producing one generic video, businesses often create several targeted explainers.

9. When You’re Running Paid Advertising

Paid traffic is expensive.

Whether you’re advertising on:

  • Google Ads
  • LinkedIn
  • Facebook
  • Instagram
  • YouTube

an explainer video can improve landing page performance by quickly delivering your message.

The faster visitors understand your value, the more likely they are to convert.

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10. When Your Customer Journey Is Complex

Businesses with lengthy buying processes often struggle because prospects become confused.

Examples:

  • Manufacturing
  • Medical equipment
  • Construction
  • Enterprise consulting

An explainer video maps the journey visually.

Customers understand:

  1. The problem
  2. The solution
  3. The process
  4. The outcome

Industries That Benefit Most from Explainer Videos

IndustryWhy Explainer Videos Work
SaaSSimplifies software
HealthcareExplains procedures
FinanceBuilds trust
Real EstateExplains services
ManufacturingDemonstrates processes
EducationImproves learning
EcommerceShows products
Legal ServicesSimplifies legal topics
LogisticsExplains operations
TechnologyMakes innovation understandable

Where Should You Use an Explainer Video?

One video can support multiple marketing channels.

PlatformPurpose
HomepageIntroduce business
Landing PagesIncrease conversions
Product PagesExplain features
Sales PresentationsSupport pitches
Email CampaignsIncrease engagement
LinkedInBuild authority
YouTubeOrganic search visibility
Trade ShowsAttract visitors
Investor MeetingsExplain business model
Customer SupportReduce repetitive questions

Signs Your Business Needs an Explainer Video

Business

Ask yourself these questions.

  • Customers frequently ask the same questions.
  • Your service is difficult to explain.
  • Sales calls are too long.
  • Website visitors leave quickly.
  • Bounce rates are high.
  • Product adoption is slow.
  • You have a new product launch.
  • Your competitors are using video effectively.

If you answered “yes” to several of these, an explainer video is likely a worthwhile investment.

What Makes an Effective Explainer Video?

Simply creating a video isn’t enough.

The best explainer videos include:

A Clear Problem

Start with a pain point your audience immediately recognizes.

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A Simple Solution

Introduce your business naturally.

Avoid excessive self-promotion.

Focus on solving customer problems.

Concise Messaging

message

Avoid technical jargon.

Write for clarity.

One idea per sentence.

Strong Visual Storytelling

Show instead of tell.

Motion graphics, illustrations, and demonstrations help viewers retain information.

Research from educational psychology consistently finds that combining visual and verbal information improves learning.

Professional Voiceover

voiceover
microphone

A confident voice improves credibility.

Poor audio quality can undermine an otherwise excellent production.

Clear Call to Action

Always tell viewers what to do next.

Examples:

  • Schedule a consultation
  • Request a demo
  • Start a free trial
  • Contact sales
  • Download a guide

Common Mistakes Businesses Make

MistakeBetter Alternative
Too much informationFocus on one core message
Too many featuresHighlight benefits
Long introductionsGet to the problem immediately
No CTATell viewers the next step
Generic messagingSpeak to a specific audience
Poor production qualityInvest in professional production

Explainer Video vs Commercial

Explainer VideoCommercial
EducatesCreates emotional appeal
Solves problemsBuilds brand awareness
Explains productsPromotes lifestyle
Ideal for websitesIdeal for TV and social ads
Focuses on clarityFocuses on memorability

How Long Should an Explainer Video Be?

GoalRecommended Length
Homepage60 to 90 sec
SaaS Demo90 to 120 sec
Product Overview1 to 2 minutes
Investor Pitch2 to 3 minutes
Training3 to 5 minutes

Longer isn’t always better.

Aim to communicate the essential message before viewers lose interest.

Measuring the Success of an Explainer Video

Track performance using metrics such as:

KPIWhy It Matters
View CountReach
Watch TimeEngagement
Completion RateContent quality
Click Through RateCTA effectiveness
Conversion RateRevenue impact
Bounce RateLanding page performance
Demo RequestsSales interest

Use tools like Google Analytics 4, YouTube Analytics, and your CRM to understand how video influences customer behavior.

How the Production Process Typically Works

A professional explainer video usually follows these stages:

  1. Discovery and strategy
  2. Audience research
  3. Scriptwriting
  4. Storyboarding
  5. Voiceover recording
  6. Design and illustration
  7. Animation or filming
  8. Music and sound design
  9. Review and revisions
  10. Final delivery

Planning thoroughly before production helps avoid costly revisions later.

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Frequently Asked Questions

Are explainer videos only for technology companies?

No. Businesses across healthcare, finance, education, manufacturing, retail, legal services, and professional services use explainer videos to simplify complex ideas and improve customer understanding.

How much should an explainer video cost?

Costs vary depending on animation style, production quality, scriptwriting, voice talent, and revisions. Businesses should evaluate production value alongside expected marketing ROI rather than focusing solely on the lowest price.

Should every business have an explainer video?

Not necessarily. Businesses with straightforward offerings may not need one. However, companies selling complex products, innovative services, or solutions that require education often see significant benefits.

Can an explainer video improve SEO?

Indirectly, yes. Engaging videos can increase time spent on a page, improve user engagement, and encourage backlinks and social shares. Hosting videos on platforms like YouTube can also expand your search visibility.

Should the video be animated or live action?

That depends on your goals. Animated videos work well for abstract concepts, software, and technical subjects. Live action videos are ideal for showcasing people, facilities, and real customer interactions.

Where should the video appear on my website?

For most businesses, placing an explainer video near the top of the homepage or on a key landing page provides the greatest impact. It can also be embedded on product pages, pricing pages, and resource hubs.

Making the Right Decision for Your Business

An explainer video is more than a marketing asset. It is a communication tool that helps businesses educate, build trust, and convert prospects more efficiently.

If your customers struggle to understand what you offer, your sales team repeats the same explanations, or your website isn’t converting as expected, an explainer video can provide clarity at every stage of the buyer’s journey.

The most effective explainer videos focus on solving customer problems, delivering a clear message, and guiding viewers toward a specific next step. When thoughtfully planned and professionally produced, they continue generating value long after publication by supporting sales, marketing, customer education, and brand awareness.

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