Introduction
In a world of constantly diversifying marketing strategies, animation videos and live shoot videos both possess significant potential for promoting brands and communicating the brand message to their ideal consumers. However, when comparing the amount of return on investment (ROI), certain differences are noticed.
As a CMO, every marketing decision you make is tied to ROI, and when it comes to video content, animated videos often deliver more value than live shoots. Whether you’re focused on conversions, scalability, or brand consistency, animation tends to outperform in both effectiveness and cost.
In this blog, we’ll explain why animation is often the smarter choice for CMOs, comparing it with live-action in terms of cost, production time, and long-term impact across different use cases.
The Cost of Production for Animated Videos and Live Shoot Videos
The amount of production cost is one of the critical elements influencing the ROI. One of the leading drawbacks of shooting live videos is that they tend to require a lot of investment before shooting, which can be detrimental to the marketing budget of a company that needs to create multiple videos partnering with an animated video production company. Consider the following breakdown:
Production Costs of Live Action Videos/ Live Shoots:
- Actors and Talent: Professional actors typically cost between ₹30,000 to ₹2,00,000 per day, depending on their experience and role in the video.
- Location and Set Design: Renting a location for a shoot can range from ₹50,000 to ₹5,00,000 per day, depending on the venue and complexity, plus additional costs for set design, props, and crew.
- Crew and Equipment: A typical crew (director, cameramen, sound technicians, etc.) can cost anywhere from ₹1,00,000 to ₹5,00,000 per day, not including equipment rentals.
- Post-production: Editing and post-production (color grading, sound mixing, visual effects) often add another ₹1,50,000 to ₹5,00,000 to the total cost.
Considering all these elements, a high-quality live-action video could easily cost you anywhere between ₹7,00,000 to ₹25,00,000 or more for a single production, depending on its complexity.
Animated Video Production Costs:
In turn, there are multiple affordable types of animated videos, including explainer videos or short, simple character animations. A typical animated video production involves:
- Storyboarding and Scriptwriting: Typically, this phase can be completed at a fixed rate of around ₹75,000 to ₹2,00,000.
- Animation: Depending on the complexity (2D or 3D animation), the cost for animation can range from ₹2,00,000 to ₹12,00,000.
- Voiceover and Sound Design: High-quality voice-overs, sound effects, and background music will add around ₹50,000 to ₹1,50,000.
The total cost for an animated video ranges from ₹3,00,000 to ₹15,00,000, with much of the cost variability based on animation style and video length.
Time Requirements for Animated Videos and Live Shoot Videos
As for time, live-action videos are complex since they entail talent coordination, location scouting, Equipment preparation, shooting, and editing time. Production time starts from pre-production and can take 6 to 12 weeks or even more, depending on its specifics.
As for animated videos, the process is typically less complicated. Once the script and storyboard are confirmed with the client, animation studios take 4-8 weeks to complete the video because this form of animation isn’t reliant on variables like weather, talent acquisition, among others.
ROI Breakdown: Animated Videos vs. Live Action Videos
Increased Engagement
Various studies indicate that any given animated video receives better engagement as compared to any live-action video. Explainer animations have been shown to increase engagement by an average of 80% higher than regular animated videos. Making the concepts more understandable while incorporating fun and great graphics ensures viewers spend more time on the content making the chances of conversion better.
For instance, a SaaS firm using an animated explainer video would reach up to 40 % conversions from individuals who viewed the video whereas firms using live action explainer video would experience between 10-15 % increase in conversions. This goes to show that animated videos grab the attention more than any other method, thus making more of an impact and increasing profits.
Conversion Rate
Animated videos are one of the most effective means of communication since they serve to drive conversions. According to a research conducted by Video Brewery and Vidyard, viewers are 97% more likely to buy after watching an animated explainer video. This figure shows how concise visualizations can help render abstract concepts easily understandable and foster action.
Conversely, conversion rates for live-action videos usually rise by approximately 20-30 percent. As entertaining as they are, these formats can sometimes fail to simplify complex concepts and maintain audience interest in today’s digital landscape.
Brand Recognition
Animated videos are also a good way to boost brand awareness. As a tool, animations can be incredible for their style and the choice of the color range, and the inclusion of the personal characters and illustrations. Of course, this creative freedom is easier in animation, whereas with live-action shows and series actors and the set designs restrict the brand’s possibilities.
According to research done by Wyzowl, 91% of marketers said that video aids in brand recognition. Animated videos, however, are typically more effective because they feel fresh, creative, and can incorporate visualization into the content, making it better for brand association. Animated videos are much more effective at creating an enduring impression due to the incorporation of visual elements specific to the business.
Comparison of ROI Metrics
| Metric | Animation Videos | Live Shoot Videos |
| Cost of Production | ₹3,00,000 to ₹15,00,000 | ₹7,00,000 to ₹25,00,000 |
| Average Conversion Rate | 4% (Average) | 2% (Average) |
| Average View Count | Higher, as per recent trends | Lower than animated videos |
| Click-Through Rate (CTR) | Higher than live-action videos | Lower than animation |
| Customer Retention Rate | Higher due to higher engagement and clearer messaging | Moderate |
| Total Revenue (Assumed 50k views) | $200,000 (assuming a 4% conversion rate, $100 per sale) | $200,000 (assuming a 2% conversion rate, $100 per sale) |
| ROI Percentage | 3900% (calculated on $5,000 production cost, $200,000 revenue) | 300% (calculated on $50,000 production cost, $200,000 revenue) |
Industry-Specific Benefits of Animated Videos
Different industries can reap specific benefits from animated videos:
- Tech and Software Companies: Animated explainer videos are perhaps the most effective when it comes to the illustration of how software functions. Animation is much more effective in explaining the process than using a large amount of text and complex terms, like in most cases when presenting technical information. This leads to increase in user adoption rates and better customer satisfaction levels.
- Healthcare and Pharmaceuticals: Through animated videos, the healthcare and pharmaceutical companies can be in a position to illustrate some procedures or some medical ideas into understandable models for medical practitioners and other ordinary people. Whether one wants to describe a new treatment or wants patients to know about a certain disease, animation is very helpful.
- Corporate Training: Animated videos are considered to be very useful for corporate training. The fact that it is self-administered means that employees can go through the training material at their own convenience and at their own speed, and they can always go back to the material when they want and revise. Animation packages enhance engagement, thus promoting better understanding of lessons taught in class.
- E-commerce: For online businesses, animated videos can demonstrate how a product can be used, help a buyer through the checkout process, or inform customers of the return policies in amusing ways. This creates confidence in customers and makes them willing to buy the product.
Why Animation Wins the ROI Race
When considering the ROI of animated videos versus live-action videos, several key advantages make animation the superior choice:
- Lower Initial Investment: Animated videos are generally more affordable to produce than live-action videos.
- Higher Engagement and Conversion: Animated videos see higher engagement rates, with research indicating 97% of viewers are more likely to buy after watching an animated explainer video.
- Long-Term Flexibility: Animation allows for easy updates, making it more adaptable and cost-effective for businesses with evolving products.
- Industry-Specific Benefits: Animation excels in industries such as technology, healthcare, and e-commerce, where explaining complex ideas is essential.
FAQs
1. Which is better, animated or live-action?
As far as goals are concerned, for marketing or branding purposes, animation is more effective. It’s more flexible, easier to update, and grabs attention fast, especially online.
2. What’s more expensive, live-action or animation?
Live-action usually costs more. Overall, you are spending money on cameras, crews, actors, location, and editing. Animation gets rid of all that, and offers you a budget-friendly production cost.
3. What takes longer, live-action or animated?
Doing live-action takes much time due to the planning, shooting schedules, and retakes. Animation is far easier in this aspect, you can adjust some aspects of your animation video without hiring a whole team again.
4. What are the benefits of using animation over real life?
Animation is best because it allows you to have full creativity while working on projects. You can promote anything, products, ideas or data in a fun and clear way Also, there is no concern of place and searching for the right talent.
Conclusion
Animated videos have a higher potential in terms of ROI compared to live-action videos. Not only are they cheaper to create, but they are also more effective than live-action videos in terms of engagement, conversion rates, and brand awareness. If a business has a finite budget for advertising or marketing and would like to get more than its money’s worth, then animation is the ideal shot to take.
By day I create engaging content along with infusing high-volume, low-competition keywords strategically so that it gets loved by you and Google Crawler. Off the clock? I scroll for fresh ideas. (Don’t judge, gotta fuel the creativity!)
