Explainer Videos: Why Every Business Needs One

Explainer videos have transformed the way businesses connect with their audiences, explain complex ideas, and drive conversions. In today’s fast-paced, digital-first world, you only have a few seconds to grab someone’s attention—and even fewer to make your message stick. That’s where explainer videos come in.

Whether you’re a startup trying to gain traction or an established enterprise looking to boost customer understanding, explainer videos are one of the smartest tools you can invest in. In this guide, we’ll dive deep into why explainer videos are a game-changer for your business and how to create one that delivers real ROI.

What Are Explainer Videos?

Explainer videos are short, engaging videos designed to explain your product, service, or concept clearly and effectively. They typically last between 60–90 seconds and use a combination of visuals, voiceovers, and music to communicate a message.

These videos simplify complex topics and answer the all-important question: What’s in it for the customer? Whether animated, live-action, or whiteboard style, explainer videos help potential customers understand what you offer—and why it matters.

1. Explainer Videos Simplify Complex Concepts

Many businesses offer products or services that are innovative but difficult to explain in words alone. Explainer videos help break down complicated ideas into digestible, easy-to-understand stories.

Visual Learning Increases Understanding

Studies show that people retain 95% of a message when they watch it in a video, compared to just 10% when reading it in text. If your product is technical or abstract, explainer videos can be the key to faster customer comprehension.

2. They Boost Engagement on Websites and Landing Pages

Visitors make split-second decisions about whether to stay or leave your website. An explainer video placed on your homepage or landing page can increase time on site and reduce bounce rates significantly.

Metrics That Matter

Wyzowl reports that websites with explainer videos enjoy up to 88% more time spent by users. The more time visitors spend on your site, the more likely they are to convert.

3. Increase Conversion Rates by Explaining the Value

What makes people take action? Clarity. Explainer videos give prospects a clear, compelling reason to choose your business by explaining the benefits, not just the features.

Proof in the Numbers

According to EyeView Digital, having an explainer video on your landing page can increase conversions by up to 80%. When customers understand what you’re offering, they’re more likely to buy.

4. Explainer Videos Build Trust and Credibility

Videos offer a more human and transparent way to connect with potential customers. You can show real people, behind-the-scenes footage, or testimonials—all of which build credibility.

Be Real, Be Relatable

By introducing your team or narrating your company story, explainer videos make your brand feel approachable and trustworthy—two critical elements in today’s market.

5. Ideal for Social Media and Sharing

Short, punchy, and visually engaging—explainer videos are tailor-made for social media. Platforms like Instagram, Facebook, LinkedIn, and TikTok thrive on video content.Social Media Gold

Videos are shared 1,200% more than links and text combined. An explainer video that entertains and educates has a high chance of going viral or at least gaining significant traction.

6. Help Customers Make Quicker Decisions

In today’s on-demand world, customers want answers now. Explainer videos deliver the most important information in under two minutes—helping your audience make fast, informed decisions.

Reducing Friction in the Sales Funnel

By removing confusion or hesitation, explainer videos guide viewers through the buyer journey smoothly and swiftly.

7. Excellent for Email Campaigns

Email marketing remains one of the most powerful marketing channels. Including an explainer video in your emails can drastically increase open and click-through rates.

Stand Out in the Inbox

Just using the word “video” in an email subject line can boost open rates by 19% and click-through rates by 65%, according to Campaign Monitor.

8. Improves SEO and Google Rankings

Google loves video content. Embedding an explainer video on your site improves page quality and can positively impact your SEO.

Rank Higher, Convert Faster

Websites with video are 53 times more likely to rank on the first page of Google. Combine that with a solid content strategy, and you have a winning formula for visibility.

9. High ROI with Long-Term Benefits

Explainer videos aren’t just effective—they’re cost-efficient over time. Once created, they can be used across your website, ads, emails, presentations, and more.

Evergreen Content Asset

Unlike limited-time campaigns, a well-crafted explainer video keeps generating results for years, offering unbeatable ROI.

How to Create an Effective Explainer Video

Now that you understand why explainer videos are essential, let’s go over how to create one that truly works.

Step 1 – Know Your Audience

Understand your target customer’s pain points, desires, and language. This insight will shape your messaging and tone.

Step 2 – Craft a Simple, Clear Script

Keep it short (60–90 seconds). Focus on one big idea: the problem, your solution, and why it’s better.

Step 3 – Choose the Right Style

Options include animation, whiteboard, live-action, motion graphics, and 3D. Pick a style that aligns with your brand and message.

Step 4 – Add High-Quality Voiceover and Sound

Voiceover quality matters. Choose a clear, relatable voice and use background music to enhance the mood.

Step 5 – End with a Strong Call-to-Action

Tell your audience exactly what to do next: “Sign up,” “Get started,” or “Schedule a demo.”

Conclusion – Explainer Videos Are a Smart Investment

In 2025 and beyond, explainer videos aren’t just nice to have—they’re a necessity. As attention spans shorten and competition grows fiercer, businesses must adapt how they communicate their value.

With the ability to clarify, engage, and convert all in under two minutes, explainer videos provide an unbeatable advantage in the digital marketplace. So whether you’re launching a new product or trying to breathe life into a tired marketing strategy, it’s time to consider this versatile tool as a pillar of your success.

FAQs About Explainer Videos

What industries benefit most from explainer videos?

Explainer videos are effective in virtually every industry—tech, healthcare, finance, education, retail, and more. The key is customizing the story and style to fit your audience.

How long should an explainer video be?

The ideal length is 60 to 90 seconds, though some topics may require a bit more time. Keep it concise and focused on one main message.

Are explainer videos expensive to produce?

Costs vary depending on the style and length. You can create simple animated videos affordably, while high-end production may cost more. However, the ROI justifies the investment.

Should I host explainer videos on YouTube or my website?

Both! Host it on YouTube for discoverability and SEO, but also embed it on your homepage or product pages for direct conversions.

Can explainer videos be used in B2B marketing?

Absolutely. B2B companies often deal with complex products or services, making explainer videos a perfect tool to educate decision-makers quickly and clearly.