If you’ve ever visited a company’s website and felt instantly drawn in by a short, clear video explaining what they do, you already know the magic of explainer videos. These aren’t just flashy visuals; they are powerful communication tools that help businesses introduce themselves, clarify what they offer, and connect with audiences in a matter of seconds.
At their core, company explainer videos are short videos—typically under two minutes—that break down a company’s purpose, services, or products in a simple and engaging way. They’re designed to do one thing: make sure your potential customer understands your value without having to scroll or read through paragraphs of text.
Many companies use them on their homepages, landing pages, or social media profiles. Whether animated or live-action, narrated or purely visual, these videos often follow a simple storytelling format: identify a problem, offer a solution (your company), and explain how it works.
Here’s why they work:
- They simplify complex ideas and make them easier to understand
- They increase engagement and reduce bounce rates on websites
- They can dramatically improve conversion rates by building trust fast
- They help clarify your brand message and give it personality
- They’re easily shareable, making them great for marketing campaigns
When someone clicks on your site, you’ve got a short window to win them over. Explainer videos do just that—quickly, clearly, and memorably. They’re not just good to have anymore. For many brands, they’ve become essential.
Key Benefits of Using Explainer Videos for Your Business
So why are more and more companies investing in explainer videos? Let’s look at some of the most impactful advantages they bring to the table. These aren’t just trends—they’re rooted in real results companies are seeing every day.
- Improved Website Engagement
People are far more likely to stay on a website that offers a short video than one filled only with text. When viewers spend more time on your site, your search engine ranking often improves too. - Higher Conversion Rates
When visitors understand exactly what you offer and how it benefits them, they’re more likely to take the next step—whether that’s signing up, buying, or contacting your team. Explainer videos guide them to that decision faster. - Brand Clarity
These videos offer a chance to show off your brand voice, personality, and values. A well-crafted explainer video does more than explain—it introduces your brand in a friendly, human way. - Increased Trust
People trust what they understand. Videos allow for eye contact, tone of voice, storytelling, and other human elements that create a sense of reliability. Trust is a huge factor in purchasing decisions. - Better ROI for Marketing Campaigns
Whether it’s through email, social media, or ads, video consistently outperforms other types of content when it comes to engagement and click-through rates.
Here’s a breakdown of what explainer videos can help improve:
| Area of Impact | Benefit Brought by Explainer Videos |
| Website Retention | Keeps visitors on your page longer |
| Conversion Rates | Encourages action by clearly stating benefits |
| Brand Messaging | Clarifies what your business does in under 2 minutes |
| SEO Performance | Increases dwell time and may improve rankings |
| Social Media Performance | Increases shares, likes, and comments |
| Customer Support Reduction | Answers common questions visually and efficiently |
You don’t need to be a tech giant or media company to use explainer videos. Startups, service providers, nonprofits—everyone benefits from being clearer, faster, and more engaging in how they communicate their value.
What to Include in a Great Explainer Video
Not all explainer videos are created equal. Some fall flat because they’re too long, too confusing, or lack a clear call to action. So, what should you include to make sure yours really works?
- A Hook in the First Few Seconds
Capture attention quickly. Use a question, a relatable problem, or an eye-catching visual to draw the viewer in right away. - A Clear Problem-Solution Structure
Most great videos start by stating a problem the viewer faces, then introduce your company as the solution. This format is familiar and effective. - Simple, Conversational Language
Keep your script human and easy to follow. Avoid industry jargon unless it’s necessary—and even then, explain it clearly. - Strong Visuals or Animation
Whether you’re using live footage, animation, or text graphics, make sure the visuals support the message, not distract from it. - Professional Voiceover or Music
A calm, confident voice or pleasant background music can go a long way in setting the tone. You want viewers to feel at ease. - A Call to Action (CTA)
Don’t leave your viewer wondering what to do next. Invite them to sign up, visit a page, schedule a call, or whatever the next step is. - Keep It Short
Aim for 60–90 seconds. That might not sound like much, but with the right script and visuals, it’s more than enough to explain your company.
Here’s a simple checklist to guide your explainer video planning:
- Introduce the problem clearly
- Position your product/service as the solution
- Explain how it works or what makes it unique
- Reinforce benefits over features
- Add branding elements subtly but clearly
- Close with a strong call to action
By keeping the structure simple and the content focused, your video won’t just explain—it’ll convert.
Tips for Creating an Effective Explainer Video (Even on a Budget)
You don’t need a Hollywood-sized budget to create a compelling explainer video. With a little planning, even small businesses can create something polished and persuasive. Here are practical tips to guide the process:
- Start with a Strong Script
The script is the foundation of everything. Focus on clarity, flow, and emotional connection. Keep sentences short and the tone conversational. - Know Your Audience
Are you speaking to first-time visitors, investors, or existing customers? Tailor the tone and message based on who’s watching. - Storyboard Before You Produce
Sketch out or list how each scene will look. This helps avoid confusion later and keeps the visuals aligned with the script. - Use Affordable Animation Tools
Platforms like Powtoon, Animaker, and Vyond offer easy-to-use interfaces for building animated explainer videos without needing a designer. - Consider Hiring Freelancers
If you’re not confident in your design or voiceover skills, you can find budget-friendly freelancers online who specialize in explainer video creation. - Keep Branding Subtle but Present
Use your colors, logo, and tone of voice, but don’t turn it into a commercial. Make it informative first. - Test Before Launching
Share a draft with colleagues or loyal customers and ask what they understood, what they liked, and what confused them. Tweak accordingly. - Optimize for Mobile Viewing
Most videos are watched on phones, so keep text large, visuals clear, and pacing fast enough to hold attention.
Creating an explainer video might feel like a big project, but with the right tools and a clear message, it can be surprisingly manageable. And once it’s done, it works 24/7 to explain your business for you.
Frequently Asked Questions About Company Explainer Videos
What is the ideal length for a company explainer video?
Most experts recommend keeping it between 60 and 90 seconds. Long enough to explain the key points, short enough to keep attention.
Should I choose animation or live-action for my explainer video?
It depends on your brand and budget. Animation is often easier to produce and works well for tech and service businesses. Live-action can build trust and feel more personal.
Can I make an explainer video without hiring a professional?
Yes. There are many tools that allow you to create high-quality videos without professional help, including templates, voiceover AI, and animation software.
How much does a company explainer video typically cost?
Costs can range from under $100 for a DIY version to several thousand dollars for a professionally produced one. There are quality options available at nearly every price point.
Where should I place my explainer video?
Your homepage is a great spot, especially near the top. You can also include it on landing pages, in emails, and on social media platforms.
Do explainer videos really help with SEO?
Yes. Videos can increase time spent on your website and reduce bounce rates—both factors that influence search rankings.
Can explainer videos be used in presentations or pitches?
Absolutely. A short, well-made explainer video can set the tone and simplify your pitch in meetings or investor presentations.
What makes an explainer video effective?
Clarity, emotional connection, and a clear message. A good explainer doesn’t just inform—it makes the viewer feel something and take action.
Conclusion: Wrapping It All Up
Company explainer videos aren’t just a trend—they’re a powerful tool for communication and conversion. They offer a way to simplify your message, connect emotionally, and build trust quickly. In a world where attention spans are short, explainer videos help your company stand out.
Whether you’re a new startup trying to get noticed, or an established brand aiming to sharpen your message, a clear, well-crafted explainer video can be the difference between someone bouncing off your site and someone becoming a customer.
Take time to script carefully, focus on what your viewer truly needs to know, and deliver it in a visual way that reflects your brand’s personality. Once it’s out there, your explainer video will work around the clock, guiding, educating, and converting—without you having to lift a finger.
If you haven’t made one yet, now’s the time. And if you already have one, consider if it’s still telling your story the way it should. The right video can make your business feel more human, more trustworthy, and more memorable.
Looking to get started? Start by identifying the core problem your audience faces—and how you uniquely solve it. That’s the heart of any great explainer video.