In today's fast-paced digital world, companies are constantly looking for effective ways to engage with their target audience and differentiate themselves from the competition. One of the most powerful tools in a business's marketing arsenal is an explainer video—a short, engaging video that helps explain a company's product or service in a simple and compelling way. Here’s why investing in an explainer video can be crucial for a company’s success and growth.
1. Increased Customer Understanding
Explainer videos are incredibly effective in simplifying complex products or services. In many cases, businesses offer services or products that may be difficult for potential customers to fully comprehend through text alone. A well-crafted explainer video can break down intricate concepts in an easily digestible format, ensuring that the audience clearly understands the value and benefits of the product or service.
According to Wyzowl's 2023 Video Marketing Statistics, 94% of marketers agree that explainer videos help increase customer understanding of a product or service. This improved understanding can lead to more informed purchasing decisions, reducing any confusion or hesitation that may otherwise prevent a customer from converting.
2. Boosts Conversion Rates
One of the most significant advantages of explainer videos is their ability to increase conversion rates. Research by HubSpot indicates that companies using explainer videos on their landing pages see 80% higher conversion rates on average. This is because videos help grab the viewer's attention, engage them emotionally, and provide information in an easily digestible format.
Explainer videos also help build trust with potential customers. By showcasing the product or service in action, businesses can demonstrate their expertise and reliability, which can be crucial in converting viewers into paying customers.
3. Improved SEO Performance
Incorporating explainer videos on a company's website or social media channels can improve search engine optimization (SEO). Google’s algorithms are designed to prioritize content that is engaging, and video content tends to rank higher than text-based content. Videos not only keep users on a page longer, which is a signal to search engines that the content is valuable, but they also increase the likelihood of the content being shared, further boosting SEO.
Forbes reports that websites with video are 53 times more likely to rank on the first page of Google. This means that a good explainer video can significantly improve a company’s visibility and make it easier for potential customers to find the business.
4. Higher Engagement and Retention
Explainer videos are a dynamic form of content that grabs attention more effectively than text or images. People are naturally drawn to videos because they are engaging, entertaining, and easier to consume. According to WordStream, 60% of consumers prefer watching a video to reading text, and 64% are more likely to buy a product online after watching a video about it.
The ability of explainer videos to maintain the viewer’s attention makes them a powerful tool for building brand awareness and loyalty. This level of engagement leads to higher retention rates, as consumers are more likely to remember a product or service after viewing a video rather than reading about it.
5. Easy to Share
Explainer videos are highly shareable, which increases their potential to reach a broader audience. Social media platforms, in particular, are well-suited for video content, as videos are more likely to be shared and go viral compared to static images or articles. This gives businesses the opportunity to exponentially increase their reach by leveraging the social networks of their existing customers.
According to Sprout Social, social media posts with videos have 48% more engagement than those without, making it a key tool for organic brand promotion and customer acquisition.
6. Cost-Effective Marketing Tool
When considering the cost of traditional advertising channels, explainer videos are a relatively cost-effective option. Creating a high-quality explainer video can be done within a reasonable budget, and the return on investment (ROI) can be significant. Once created, an explainer video can be used across multiple platforms—websites, social media, email marketing campaigns, and even as part of presentations—maximizing its value over time.
A 2019 survey by Wyzowl found that 83% of businesses that invested in explainer videos believed it gave them a good ROI, with the impact being particularly significant for smaller businesses that may have limited marketing budgets.
7. Builds Trust and Credibility
In an age where consumers are increasingly skeptical about online businesses, trust is essential. Explainer videos help humanize a brand and build trust by showcasing how a product or service works and how it can solve a problem for the customer. By providing clear, transparent, and professional content, companies can establish themselves as credible authorities in their field.
Moreover, videos with real people or customer testimonials can have an even greater effect on building trust. This human connection strengthens the emotional appeal and helps customers relate to the brand on a personal level.
Conclusion
Explainer videos are more than just a trend—they are a strategic asset for businesses looking to improve customer understanding, boost conversion rates, enhance SEO, and foster stronger engagement. The ability to simplify complex concepts, drive traffic, and build trust with potential customers makes explainer videos an essential tool in any company’s marketing strategy.
With the growing demand for video content, businesses that embrace this format are not only meeting the preferences of their audience but are also setting themselves up for long-term success. Whether you’re a startup or an established brand, an explainer video can be a game-changer that helps you connect with your customers and drive business growth.
This post was written by Jimmy Eriksson. Jimmy has almost 20 years experience of working with Motion Graphics and today he´s a freelancer, helping companies to create Explainer videos and Infographics videos for intern usage or marketing purpose.
References:
- Wyzowl, "Video Marketing Statistics 2023," https://www.wyzowl.com/video-marketing-statistics/
- HubSpot, "The Ultimate Guide to Video Marketing," https://blog.hubspot.com/marketing/video-marketing
- WordStream, "Video Marketing Statistics 2023," https://www.wordstream.com/blog/ws/video-marketing-statistics
- Forbes, "The Power of Video for SEO," https://www.forbes.com/sites/forbescommunicationscouncil/2021/05/25/the-power-of-video-for-seo/
- Sprout Social, "Social Media Video Marketing," https://sproutsocial.com/insights/video-marketing/
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