You need an explainer video. The question is: should you hire a professional explainer video agency or roll up your sleeves and do it yourself? It's a decision that could impact your brand perception, conversion rates, and ultimately, your bottom line. While DIY video tools promise simplicity and cost savings, professional agencies offer expertise, strategic storytelling, and production quality that's hard to replicate in-house. In this comprehensive guide, we'll break down the real costs, benefits, and limitations of both approaches so you can make the smartest choice for your business.

What Is an Explainer Video Agency?

An explainer video production company is a specialized creative partner that transforms complex ideas into compelling, easy-to-understand visual narratives. These agencies handle the entire video creation process—from concept development and scriptwriting to animation, voiceover, and final delivery.

Unlike generalist video production houses, explainer video agencies focus specifically on creating short-form content (typically 60-90 seconds) designed to educate audiences, simplify messaging, and drive conversions. They combine strategic marketing expertise with creative production capabilities, ensuring every frame serves a business objective.

What Professional Explainer Video Services Include

When you hire an explainer video agency, you're not just paying for animation software—you're investing in:

• Strategic Discovery & Consultation: Understanding your business goals, target audience, and unique value proposition
• Professional Scriptwriting: Crafting narratives that resonate emotionally while communicating key messages
• Custom Storyboarding: Visual planning that maps out every scene before production begins
• High-Quality Animation: Whether 2D, 3D, whiteboard, or motion graphics—executed by skilled animators
• Professional Voiceover Talent: Voice actors who bring scripts to life with the right tone and energy
• Sound Design & Music: Audio that enhances emotional impact and brand recognition
• Revisions & Refinements: Multiple rounds of feedback to ensure the final product exceeds expectations
• Strategic Distribution Guidance: Advice on where and how to deploy your video for maximum impact

The DIY Explainer Video Approach: Tools and Reality

The DIY route has become increasingly accessible thanks to platforms like Vyond, Powtoon, Animaker, and Canva's video features. These tools democratize video creation, offering templates, drag-and-drop interfaces, and libraries of pre-made assets.

Popular DIY Video Tools

• Vyond: Character-based animation with customizable templates ($49-$159/month)
• Powtoon: Presentation-style animated videos ($20-$125/month)
• Animaker: Budget-friendly with extensive asset libraries ($10-$70/month)
• Canva Video: Simple editing with design integration (Free-$12.99/month)
• Doodly: Whiteboard animation software ($39-$69/month)

The Hidden Costs of DIY

While subscription fees seem reasonable, the true cost of DIY explainer videos extends far beyond monthly payments:

Time Investment: Creating a professional-quality 90-second explainer video in-house typically requires 40-80 hours when you factor in learning curves, scripting, storyboarding, animation, revisions, and rendering. For a marketing manager earning $75,000 annually, that's $1,440-$2,880 in opportunity cost.

Learning Curve: Mastering animation software, understanding pacing, learning storytelling principles, and developing motion design skills takes months—sometimes years—of practice.

Quality Limitations: Templates look like templates. Viewers can immediately recognize DIY videos, which may undermine brand credibility, especially in B2B contexts where trust is paramount.

Lack of Strategic Expertise: DIY tools don't include the strategic consultation that helps ensure your video actually achieves business objectives rather than just looking "pretty."

Explainer Video Agency vs DIY: The Detailed Comparison

1. Quality & Professionalism

Professional Explainer Video Agency: Agencies deliver broadcast-quality animation with custom illustrations, fluid motion, professional voiceover, and sound design that matches your brand perfectly. Every element is crafted specifically for your business, ensuring visual consistency across all marketing channels.

DIY Approach: Even with the best templates, DIY videos often have a "homemade" quality. Stock animations, limited customization, and amateur execution can make your brand appear less credible. According to a 2024 Wyzowl survey, 89% of consumers say video quality influences their trust in a brand.

Winner: Professional agency by a significant margin for businesses where brand perception matters.

2. Cost Analysis

Professional Explainer Video Agency Cost: Quality explainer videos from reputable agencies typically range from $3,000-$15,000, with premium agencies charging $20,000+. The best explainer video agency for your budget depends on complexity, length, animation style, and timeline.

Cost breakdown:

• Basic 2D animation: $3,000-$7,000
• Custom illustrated 2D: $7,000-$12,000
• Advanced motion graphics: $10,000-$20,000
• 3D animation: $15,000-$50,000+

DIY Approach: Software subscriptions: $120-$1,900 annually, plus internal labor costs (40-80 hours at your team's hourly rate).

Winner: DIY is cheaper upfront, but professional agencies often deliver better ROI through higher conversion rates and longer content lifespan.

3. Time to Completion

Professional Agency: Typical timeline is 4-8 weeks from kickoff to final delivery, with most agencies managing the entire process. Your involvement is limited to strategic input and feedback rounds.

DIY: First-time creators often underestimate timelines. A single video can take 6-12 weeks when juggling other responsibilities, learning software, and iterating through mistakes.

Winner: Agency is faster to market while consuming minimal internal resources.

4. Strategic Value

Professional Agency: Top animated explainer video services include strategic consultation—audience analysis, message hierarchy, call-to-action optimization, and distribution strategy. This ensures videos drive measurable business results, not just views.

DIY: You're responsible for strategy, which is challenging without experience in video marketing psychology, conversion optimization, or storytelling frameworks.

Winner: Agency provides strategic expertise most businesses lack in-house.

5. Scalability & Consistency

Professional Agency: Once you establish a relationship with an agency, they maintain your brand guidelines, animation style, and messaging consistency across multiple videos. Scaling video production becomes seamless.

DIY: Creating multiple videos multiplies the time and effort required. Maintaining consistency across videos is difficult, especially if different team members are involved.

Winner: Agency scales more efficiently for businesses planning ongoing video content.

6. Customization & Uniqueness

Professional Agency: Complete customization based on your brand identity, audience preferences, and business objectives. Every element is original and ownable.

DIY: Limited to template variations and stock assets. Your video may look similar to dozens of others using the same platform.

Winner: Agency delivers truly unique content that differentiates your brand.

When DIY Explainer Videos Make Sense

Despite the advantages of professional agencies, DIY isn't always the wrong choice. Consider the DIY route when:

1. You're Testing Concepts: Creating low-stakes internal videos to test messaging before investing in professional production.

2. Budget Is Severely Constrained: Early-stage startups or nonprofits with genuinely limited resources (under $2,000) may need to start with DIY.

3. You Need Rapid, Frequent Updates: Product demo videos that require weekly updates to reflect software changes might justify in-house production.

4. Internal Communications: Training videos, internal announcements, or HR communications where production value matters less than speed and accessibility.

5. You Have Existing Creative Talent: If you already employ animators, video editors, or motion designers, leveraging that talent internally makes sense.

6. Very Simple Content: Basic screen recordings with voiceover narration don't require agency-level production.

When You Should Hire an Explainer Video Agency

Professional explainer video agencies become essential when:

1. Your Video Represents Your Brand Externally: Homepage videos, sales presentations, trade show content, or social media campaigns require professional quality that reflects well on your business.

2. You're Targeting B2B Decision-Makers: Enterprise buyers expect sophisticated, credible content. According to Google, 70% of B2B buyers watch videos throughout their purchasing journey.

3. Conversion Rates Matter: Landing page videos can increase conversions by 80%, but only if they're professionally produced and strategically optimized.

4. You Lack Internal Expertise: If nobody on your team has video production experience, the learning curve will cost more than hiring experts.

5. You Value Your Time: Executive and marketing teams generate more value focusing on strategy and business development than learning animation software.

6. You Need Results, Not Just a Video: Agencies bring strategic thinking that ensures your video actually achieves business objectives—whether that's lead generation, sales enablement, or customer education.

7. You're Launching Something Important: Product launches, fundraising campaigns, or rebrand initiatives demand professional quality that protects your reputation.

The Hybrid Approach: Best of Both Worlds?

Some businesses successfully combine both approaches:

• Agency for Hero Content: Invest in professional production for high-impact videos (homepage, product overview, fundraising pitch)
• DIY for Supporting Content: Create supplementary videos in-house (feature updates, quick tips, internal training)
• Agency for Strategy + Template: Hire an agency to create a custom template system, then execute variations internally
• DIY for Testing: Validate concepts with rough DIY versions, then invest in professional remakes of winners

This hybrid model maximizes budget efficiency while maintaining quality where it matters most.

How to Choose the Best Explainer Video Agency

If you've decided professional production is right for your business, here's how to select the right partner:

Evaluation Criteria

Portfolio Quality: Review their previous work across industries. Do their videos demonstrate strategic thinking or just pretty animation?

Industry Experience: Have they worked with businesses in your sector? Do they understand your audience?

Process Transparency: How do they approach discovery, scripting, and revisions? Clear processes indicate professionalism.

Strategic Capabilities: Do they ask about business goals, target personas, and conversion metrics—or just creative preferences?

Communication Style: Will you work with account managers or directly with creatives? How responsive are they?

Pricing Clarity: Are costs transparent and detailed, or vague and subject to scope creep?

Timeline Realism: Do they promise realistic delivery dates or overpromise to win business?

Client Testimonials: What do previous clients say about collaboration, responsiveness, and results?

Red Flags to Avoid

• Agencies that don't ask strategic questions about your business goals
• "Cookie-cutter" approaches that apply the same formula to every client
• Promises of unusually fast turnaround (quality takes time)
• Extremely low pricing that suggests offshore labor or template-based production
• Poor communication during the sales process (it won't improve later)
• No revision policy or unclear feedback process

Measuring Explainer Video ROI

Whether you choose DIY or agency, tracking performance is essential:

Key Metrics to Monitor:

• View-through rate: What percentage of viewers watch to the end?
• Conversion lift: How do pages with video perform vs. pages without?
• Engagement time: Are visitors spending more time on pages with video?
• Lead quality: Are video-influenced leads converting at higher rates?
• Social sharing: Is your video generating organic amplification?
• Sales cycle impact: Are deals closing faster when prospects watch your video?

According to Forrester Research, one minute of video equals 1.8 million words in terms of message retention. Professional videos typically outperform DIY videos across all these metrics, often justifying their higher initial investment.

The Future of Explainer Videos: What's Changing

The explainer video landscape is evolving rapidly:

AI-Assisted Production: While AI tools are improving, they still lack the strategic insight and creative nuance that agencies provide. AI works best when augmenting human expertise, not replacing it.

Interactive Video: Clickable elements, branching narratives, and personalized video experiences are becoming more common, requiring sophisticated production capabilities.

Shorter Attention Spans: Video lengths are shrinking—45-60 seconds is becoming the new standard for maximum engagement.

Platform Optimization: Creating versions optimized for different platforms (LinkedIn, Instagram, YouTube, websites) is increasingly important, favoring agencies with multi-format capabilities.

Authentic Storytelling: Audiences increasingly value authenticity over polish, but "authentic" doesn't mean "amateur"—it means genuine stories told well.

Frequently Asked Questions

How much does an explainer video agency cost?

Professional explainer video agencies typically charge $3,000-$15,000 for a 60-90 second video, depending on animation complexity, style, and timeline. Basic 2D animation starts around $3,000-$5,000, while custom illustrated or motion graphics videos range from $7,000-$12,000. Premium 3D animation or highly complex projects can exceed $20,000. The investment usually delivers better ROI than DIY alternatives through higher conversion rates and longer content lifespan.

Can I create an explainer video myself?

Yes, DIY explainer videos are possible using platforms like Vyond, Powtoon, or Animaker. However, they typically require 40-80 hours of work for first-time creators and often lack the professional quality that builds trust with audiences. DIY makes sense for internal communications, budget constraints under $2,000, or testing concepts before investing in professional production. For external-facing content where brand perception matters, professional agencies deliver significantly better results.

What's the typical timeline for explainer video production?

Professional agencies typically deliver explainer videos in 4-8 weeks, including discovery, scripting, storyboarding, animation, voiceover, and revisions. DIY videos often take 6-12 weeks for first-time creators when juggling other responsibilities. Rush production is possible but usually incurs premium charges and may compromise quality. The most efficient approach is starting with clear objectives and consolidated feedback to minimize revision cycles.

What animation style is best for explainer videos?

The best animation style depends on your audience, message complexity, and brand personality. 2D character animation works well for B2C and storytelling-driven content. Motion graphics suit B2B and data-heavy explanations. Whiteboard animation is effective for educational content. 3D animation creates premium feel but costs more. A professional explainer video agency can recommend the optimal style based on your goals, budget, and competitive landscape.

How do I measure if my explainer video is working?

Track view-through rate (percentage watching to completion), conversion lift (performance of pages with vs. without video), engagement time, lead quality, and sales cycle impact. Professional videos should achieve 60%+ view-through rates and 20-80% conversion increases on landing pages. Use analytics tools like Google Analytics, Wistia, or Vidyard to measure performance. Compare cost-per-lead and customer acquisition costs before and after deploying your video to calculate true ROI.

Should a startup hire an explainer video agency or DIY?

Startups should consider their funding stage, target market, and internal capabilities. Pre-seed startups with under $50,000 in the bank might start with DIY for testing. Seed-stage companies raising capital or approaching enterprise customers should invest in professional production—a poor-quality video can undermine fundraising efforts or sales credibility. The cost of one failed enterprise deal often exceeds the investment in a professional explainer video that could have prevented it.

What makes an explainer video convert viewers into customers?

High-converting explainer videos combine strategic messaging (clear value proposition, addressing specific pain points), emotional storytelling (relatable characters or scenarios), professional production quality (building trust), strong visual hierarchy (guiding attention to key points), and compelling calls-to-action (clear next steps). Professional agencies apply conversion psychology, A/B testing insights, and strategic frameworks that DIY creators typically lack, resulting in videos that don't just inform—they persuade.

Conclusion: Making the Right Choice for Your Business

The explainer video agency vs DIY decision ultimately comes down to your priorities: quality vs. budget, strategy vs. speed, and long-term ROI vs. short-term savings. For businesses where brand perception matters, target audiences include decision-makers, or conversion rates directly impact revenue, professional explainer video agencies deliver value that far exceeds their cost.

DIY approaches work for internal communications, concept testing, or situations with genuine budget constraints under $2,000. But for external-facing content that represents your brand, drives sales, or supports important initiatives, professional production isn't an expense—it's an investment in your business's credibility and growth.

The most successful companies don't view video as a one-time project but as a strategic capability. Whether you start with an agency for hero content and build internal capabilities over time, or commit fully to professional production, the key is creating videos that actually achieve business objectives rather than just checking boxes.

Ready to create an explainer video that converts? Contact The Aux Co to discuss how our embedded creative partnership approach delivers strategic video content that drives measurable business results—not just pretty animations.