How Can Explainer Videos Help In Business?

How Can Explainer Videos Help In Business?
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What’s An Explainer Video?

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As the name implies, an explainer video is a video that explains the message a business wants to convey to its audience. It’s a short video of what businesses want their customers to know about their features, products, or services. These explainer videos are usually animated and vibrant, so it’s good at keeping the viewers’ attention. For example, a website design and development firm can use a 2-minute video to explain what they provide to consumers.

But how can an explainer video help companies grow their business? Let’s take a look at one concrete example: DROPBOX.

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Dropbox 10 years ago

Dropbox is a popular online storage tool and all thanks to its explainer videos. During its early launch, Dropbox didn’t have the reach nor user base that they have now. In fact, they grew at a pace that was slow according to the industry standards.

The reason? What they offered on their site just didn’t make any sense to the majority of users who weren’t tech-savvy. And Dropbox needed more than just writing content to convince people to try their software out.

Here’s What They Did

When they launched their website, it was very simplistic. There was only one piece of content that was on their landing page and below it was the DOWNLOAD button. That content was their explainer video. The video that Dropbox uploaded on their website was the center of attention, and there was nothing else on the site. The main point of their design was to have users focus on the video and nothing else.

Here’s The Result

The Dropbox explainer video gave them an increased 10% in signups and a 10% increase in conversion too. It may not sound much, but when it’s 10% of $100 million, that’s about $10 million income generated from customers watching the explainer video. Since then, the video converted $4.80 per customer, generating $48 million in income every year. And to think they only spent 50,000 to get their explainer video up and running.

Creating Explainer Videos

There are companies that specialize in video productions, and they all have different styles and approaches to creating them. Event production agencies and professional videographers are equipped to create explainer videos. Depending on the company’s budget, a production agency is often the best choice for explainer videos.

How Are Explainer Videos Created?

When a company is talking to a production agency, the explainer video will be divided into several processes before it is merged as a whole.

  1. A storyboard is where the flow of the animation and script is discussed and laid out according to client needs. When the script is being developed, the storyboard is developed as well.
  2. The script is the message of the video or a simplified version of what the business wants to share to their audience. Without it, there’s no explainer video to be made.
  3. The animation is the finishing touch once the storyboard and script are finalized. In lieu of animation, an event production agency can use live-action sequences for the video.

How Can Explainer Videos Help Businesses?

Here are some interesting statistics to convince any business why an explainer video is a good investment:

  1. Video listings in Google search results get 40% more clicks than text listings.
  2. 60% of visitors watch videos, or locate videos within the site, before reading the texts.
  3. 46% of daily searches made on any search engine are for services and products.
  4. Visitors who watch a video on a site stay 2 minutes longer and are more likely to purchase something from the site after watching the video.
  5. 52% of viewers are more confident about purchasing online after watching product-related videos (including explainer videos)
  6. From a Forbes Survey, 60% responded they would rather watch videos before reading any text-related information.

Explainer videos can advertise the entire company in as little as 3-minutes, and it’s all a company needs to convert viewers into customers. Imagine an explainer video being Cliff’s Notes version of a 30-minute video presentation of what a company does. No one in the world has time to watch a 30-minute presentation. Would any customer turn down any opportunity to just read Cliff’s Note version as opposed to reading an entire book? Don’t think so.

This is why explainer videos are great at what they do. They are short, concise, and deliver information straight to the point. Everything they want to convey, it’s all on the video.


The key takeaway from an explainer video is this: explainer videos give companies a chance to show their unique personalities to their customers, and this allows them to be more relatable to their target audience. Apart from boosting sales and generating traffic, explainer videos are great for developing brand awareness and being able to explain products and services without the technical jargon.

Still not convinced? More and more people are creating videos for just about anything, from video games to causing awareness to review products. If there’s a sudden demand for videos all of a sudden, isn’t it time for a business to get on that bandwagon?

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Rilind Elezaj is an experienced Digital Marketing Specialist with a demonstrated history of working in the marketing and advertising industry. Rilind possesses a strong entrepreneurial mindset and has devoted his career to enhancing the sphere of digital marketing. In his methodological approach, Rilind integrates web development and other digital marketing solutions to create hybrid strategies that bring the best results.
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