The ROI of Explainer Videos: Why Top Brands are Investing in Custom Animation, and Which Companies Deliver

Explainer videos have become a key part of how businesses communicate. These audiovisual pieces are excellent at simplifying ideas and engaging audiences, making them an essential marketing tool for capturing and interacting with modern attention spans. More importantly, they deliver measurable returns that justify their growing prominence in marketing budgets.

Understanding the ROI of Explainer Videos

In 2026, video-first marketing has become the default strategy across industries. Social platforms prioritize video content in their algorithms, search engines rank video-rich pages higher, and consumers overwhelmingly prefer watching explanations over reading them. More than 90% of businesses now use video as a marketing tool, and 96% of people have watched an explainer video to learn more about a product or service.

Explainer videos are a creative avenue for companies to communicate their vision and message. However, they also help drive real business results and create investment returns.

Increased Conversion Rates

Video explainers make information easier to understand. They hold people’s attention longer and quickly explain a product or service’s value. When your audience clearly understands what you offer, they are more likely to take action.

Research by SQ Magazine in 2025 found that sites with videos on their landing pages achieved 34% more conversions than those relying solely on static content. Additionally, more than 80% of people say watching a video has convinced them to buy a product or service, demonstrating video’s direct impact on purchasing decisions.

Sales Enablement and Growth

Explainer videos also support sales teams. Instead of having staff explain the same process over and over to each client, teams can use video to deliver clear and consistent messages.

Using videos in your approach helps streamline onboarding and shorten sales processes. It also improves how leads understand your product at various stages of the sales funnel, potentially accelerating and simplifying deal closure. Almost 90% of video marketers report that video has directly increased sales, while 86% say it has helped generate leads.

Reduced Cost-Per-Acquisition (CPA)

Video content often performs better across ads, websites, social media sites and other platforms. It can improve engagement, which allows you to reach more people with a single campaign and lower advertising costs over time.

When more people watch your videos and convert, your cost-per-acquisition goes down. An explainer video can continue to generate leads long after its production, making it a strong long-term asset. Companies using video marketing report a 49% faster revenue growth than those that don’t, according to research from Aberdeen Group, demonstrating the compounding effect of video investment over time.

What to Look for in a Video Production Partner

Different video companies have varying strengths and offerings. Finding the right partner depends on how well your provider meets your needs. Consider these key criteria when evaluating potential partners:

Strategic vs. Production Only Approach

Some providers specialize in and only handle execution, meaning they take a script and turn it into a finished video. This approach can work for simple projects, but it can lack a big-picture perspective.

A stronger partner helps define and plan your message from the start. They look at your audience and goals and help identify how the video fits into your overall strategy. This method can produce content that looks good and performs well.

Customization and Brand Alignment

Template-based videos are quick and effective to an extent, but they can also feel generic. Custom videos are designed specifically for your brand, making it more memorable.

A good video partner makes sure that the visuals, audio, tone and message match your identity, helping your video stand out and feel consistent with the rest of your marketing and public presence.

Portfolio and Industry Experience

Past work shows what a company can do. Looking at a portfolio helps you understand a provider’s style and whether they can handle projects like yours. Experience is especially important for complex products or topics. A team that has worked in similar industries will know how to explain related ideas clearly and effectively.

Full-Service Capabilities

Video production involves several steps, from pre-production to postproduction and delivery. Some companies only handle specific parts of the process, which means you may need to work with multiple vendors.

A full-service partner takes care of everything, including scriptwriting, storyboard, design, animation and editing. The full-service approach streamlines the process and ensures a more consistent tone and messaging.

Who Offers the Best Animation and Explainer Video Services? 3 Top Options

If you’re looking for an animation and explainer video company to work with, consider these top providers. To determine the best animation and explainer video companies, each provider met these criteria:

• Strategic approach
• Level of customization
• Client portfolio
• Communication quality
• Testimonials and reviews
• Ability to support full campaigns

1. Best Overall: LAI Video

LAI Video stands out for its campaign-first approach. While it can handle one-off projects, the team excels at developing comprehensive strategies for brands and their stories. It works closely with clients to understand their audience and create content that supports concrete business goals.

The team focuses on identifying the core message that resonates with your audience, then bringing it to life through animation and distribution. LAI Video is especially strong at turning complex ideas into clear narratives, helping brands define the story they want to tell and how to deliver it effectively.

Key Features

• Strategic storytelling approach
• Fully custom animation and messaging
• End-to-end campaign support

2. Best for Structure and Fast Turnaround: Wyzowl

Wyzowl is known for its structured workflow and reliable turnaround times. It is a strong option for companies that need clear and effective explainer videos delivered within predictable timelines while ensuring quality.

The company focuses on simplifying brand messaging so audiences can understand value right away. This approach makes it easier for businesses to communicate product benefits and support better sales or onboarding processes.

Key Features

• Predictable production timelines
• Clear and simple messaging approach
• Streamlined pricing and production process

3. Best for Premium Custom Animation: Yum Yum Videos

Yum Yum Videos focuses on high-end animation designed to stand out visually. Its work often includes eye-catching graphics and polished motion design, appealing to brands seeking a premium feel.

This provider is a good fit for companies that want to invest in strong visual storytelling. Its team has worked with several notable brands to craft videos that capture attention while still delivering a clear and engaging message.

Key Features

• High-quality custom animation
• Strong visual storytelling and design
• Creative direction for premium brands

Explainer Video Companies at a Glance

The following table offers an overview of each company and its key qualities.

Explainer Videos as a Growth Tool

Explainer videos make ideas clear and easy to understand, helping companies increase conversions and lower acquisition costs when used strategically. In a video-first marketing landscape, investing in professional explainer content is no longer optional for brands seeking to compete effectively. Finding the right partner for your needs can help you make the most out of this format, allowing you to effectively engage with your audience and strengthen your brand identity across platforms.