Will An Explainer Video Company Actually Help You Increase Your ROI?
Taha Khan | Marck 19, 2019
“Will I be able to generate high ROI by getting the services of an explainer video production company?
A question that comes to the minds of everyone dipping their toe into the vast sea of video marketing. Well for starters, a professional animated explainer video company will do much more than just increasing your revenue.
The company you choose to go with will create an animated video that will clearly and precisely explain how your product/service will help your customers; resulting in higher brand understanding and much much more.
So if you want to know how you can achieve all these benefits by leveraging explainer videos, and what a professional explainer video cost should be, keep on reading.
As a Brand, Why You Need to Create Animated Video?
Before we move on to deciding if an explainer video production company can help you increase your ROI, let’s talk about why would a business need to create animated video in the first place?
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Have a look at a few key points below:
Clear Product Objective
Many businesses can have a difficult time expressing what it is they do in a way that potential customers can easily understand.If you are using generic text to educate people about your brand and the product/service you offer, it can be tricky to send a message with just one interpretation as the text doesn’t depict the emotions behind the message. But…if you create an animated video, you can visualize your message and explain things through a voiceover. This will help your prospects get a better and exact understanding of what you are offering…and will be able to connect with your brand better.
Let’s agree, explainer videos, if made professionally, can be pretty fun to watch. The eye catchy graphics and relatable characters of the video make it much more engaging than just plain text and pictures…and because of the fact that explainer videos generate higher interest in the audience; 80% of the markets uses visual assets in their social media marketing efforts. (Source: Social Media Examiner).
Video Marketing is the Future
According to Cisco; more than 80% of all the internet traffic will be video by 2021. This means that if you create an animated video, you will have higher chances of getting more leads now and even higher in the future. People are more interested in obtaining data that they do not have to make an effort to consume; like with reading a page full of text.
So these are just a few reasons (tip of the iceberg) on why businesses should create animated videos for their marketing/branding. Keep reading to find out whether an explainer video production company can actually increase your ROI?
How Can An Animated Explainer Video Company Increase Your ROI?
There are plenty of ways an animated video can help you increase your ROI; some of the most common ones that are backed by statistical data are given below:
Provides a Boost in Sales
According to Social Media Today; 74% of people who watched an explainer video actually bought the product after it. This is HUGEEE news for businesses looking to boost their sales.
The fact that an explainer video combines characters, dedicated target insights, and narratives, result in customer interest and if the video is made convincing enough, people will more than likely go ahead and buy the product.
According to Unbounce; an explainer video on a business’s landing page can increase the conversion rate by 80%. This means you can get a significant ROI if you create animated video which is the primary reason why more and more businesses from around the world are investing in explainer videos today.
Reduced Bounced Rates
One of the main reasons for not having good sales in online businesses is a high bounce rate. If your customers are coming to your website and are quickly closing it, then people are “bouncing” from your website, that increases your bounce rate…and high bounce rate is heavily frowned upon by search engines which means your business website will not rank and you will not get much exposure.
According to MarketingSherpa, viewers spend 100% more time on the web pages that have a product video. So an engaging video made from the help of an animated explainer video company will spark the interest in the visitor, and they will stay on your website longer.
Animated explainer videos will lower your bounce rate…which will get you ranked higher in search engines, and that will obviously result in more sales.
Boost Your Visibility
Not only using an explainer video will help you get better ranking on search engines, but you will also get massive exposure on social media. According to SmallBizTrends; social videos get 1200% more shares than the images and text combined.
So if you create animated video that is engaging enough, it can skyrocket your social media following…and when more people start following your social media pages the more sales you would generate when you share with your followers.
This way, you will be taking your ROI to a whole new level with the social sharing of your brand’s explainer videos.
Develop Confidence With Your Prospects
When customers want to buy something from a new brand, they don’t just make the purchase without giving any thought to the fact that new means uncertainty! But, if they find a product video then watching it makes them more confident in taking the online purchase decision.
According to STMIK LIKMI; 52% of the customers agree that watching a product video makes them more confident when making an online purchase.
That means 52% of the new prospective customers are going to buy from your brand if your video is convincing enough…which would obviously increase your ROI.
Explainer Video Cost – Does it Really Matter?
YES, it does matter! Why do you opt for a $999 iPhone instead of a $100 android phone? Both can make the calls for you, then why? QUALITY, right? Well, same is with the explainer videos. A cheap $1,000 video will also work as an average explainer video should.
But do you think that a $1,000 explainer video by a random freelancer will be attention-grabbing, like a $10,000 video created by a team of experts after hours of tireless effort?
Would a $1,000 video be backed by a thought process, which a $10,000 explainer video has after the hours of brainstorming by the whole team?
Do you think that the visual quality and smooth transitioning of scenes will be perfect in an average $1,000 explainer video that every other barely surviving online business is using?
But if you get a professional explainer video production company to make one for you, then even if you have to pay $15,000, the quality, thought process, engaging visuals and branding will be of next level.
Case Study of DropBox
Before we talk about how DropBox achieved incredible results through explainer video, you should understand that it’s not about cheap or expensive explainer video cost; it’s about the quality.
And DropBox focused on high-quality content in their animated video irrespective of how expensive it was which obviously resulted in massive success. With that being said, let’s read the story of how Dropbox killed it, with their fully customized explainer video.
So it was a few years ago when Dropbox was using various advertising methods to get more revenue, but they didn’t see the results they were aiming for. This is because they were spending $233 to $388 on acquiring a single customer and the product was just for $99.
You can see why they were not getting good results. So after failing with Google Adwords’ advertising, they opted for an explainer video. And after marketing their animated explainer video, they achieved a 10% conversion rate that helped them generate a customer base of a whopping 100 million.
Their explainer video alone helped them generate an ROI of a staggering $8 million. Now, do you think that it was done with an explainer video cost of a merely $1,000 or $5,000?
The gist of the matter is that cheap is mostly the opposite of quality and if you seriously want to replicate the success DropBox got with their animated video, you should drop the idea of getting your video in a few hundred dollars. And instead, consider it an asset for your marketing efforts and don’t be reluctant in making a heavy investment in its production if necessary. “Investment” that is the keyword we should take away from this; Don’t look at your explainer video as a cost…Look at it as an investment.
PurpleFox Animated Video Production Can Help You Boost Your Numbers
So if you have made your mind set on getting help from a professional explainer video production company, then contact Purplefox Animation – an animated explainer video company.
We have a team of industry-leading experts and highly accredited professionals that will be devoted to helping you build a positive brand identity and give a boost to your revenue.
We don’t take any cookie cutter approach. We build all of our client videos from the ground up. All of our videos are custom made. Created from scratch from unique, in-house designed storyboards and animated using industry leading tools. Contact us today to get started.
Knowledge is Power! Keep Reading…9 Things Everybody Ought to Know About Animated Explainer Videos For Businesses
Let us know down below in the comment sction if you’ve got some questions you want to fire our way, we are here to help!