Marketing Strategy - CPUTEK PVT LIMITED

Animated Videos vs. Live Shoots: The ROI Numbers Every CMO Needs to See

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.

Suchismita Sinha

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!)

cputek.in

Posted on 16/06/2025 by Suchismita Sinha

How Creative Agencies Use Explainer Videos to Drive 80% More Engagement

Introduction

Have you ever stopped scrolling just to watch a short, fun video that explains something quickly? That’s the power of explainer videos. People today don’t have time to read long articles or complicated descriptions. They want information fast, simple, and engaging—and videos do that perfectly.

This is why creative agencies love using explainer videos. These short videos help businesses grab attention, explain their message clearly, and keep people interested. In fact, studies show that video content gets 1200% more shares than text and images combined! Plus, people remember 95% of a message when they watch it in a video, compared to just 10% when reading.

So, how do explainer videos help businesses get 80% more engagement? And why are creative agencies making them a must-have in marketing? Let’s break it down.

1. Why Video is the King of Digital Marketing

If you’ve noticed more videos on social media, websites, and ads, there’s a good reason for that—video works!

Here’s why businesses are using it more than ever:

People love watching videos. It’s easier than reading and more fun.
Videos keep people engaged. They hold attention way longer than text or pictures.
They boost website performance. Pages with videos keep visitors on for 88% longer (HubSpot).
Videos improve marketing results. Emails with videos get 200-300% more clicks!

Think about it—if you had to choose between reading a long product description or watching a 60-second video that explains it in a fun way, which would you pick? Exactly. That’s why businesses are switching to video content, and creative agencies are helping them do it right.

2. Why Creative Agencies Use Explainer Videos

For creative agencies, explainer videos are a game-changer. They help brands tell their story in a way that is simple, engaging, and effective.

Here’s what makes them so powerful:

They simplify complicated ideas. If a product or service is hard to explain, an explainer video makes it easy to understand in seconds.
They grab attention quickly. People scroll fast—videos make them stop and watch.
They keep viewers interested. On average, people watch explainer videos 2.6x longer than regular content.
They build trust. Studies show that 73% of people are more likely to buy after watching a short explainer video.

Creative agencies know that people don’t like being sold to—but they love being informed in an engaging way. That’s why these videos work. Instead of feeling like an ad, they feel like useful, entertaining content.

Want to see how explainer videos can boost engagement by 80%? Let’s find out!

3. How Explainer Videos Drive 80% More Engagement

One of the biggest reasons creative agencies use explainer videos is their ability to keep people engaged. In today’s fast-moving digital world, grabbing and holding attention is harder than ever. People scroll past text and static images quickly, but a well-made video can make them stop and watch.

Here’s how explainer videos help businesses boost engagement:

More Views on Social Media – Social media posts with videos get 48% more views than those with just images or text. This is why brands that work with a creative agency see higher interaction rates on platforms like Instagram, LinkedIn, and TikTok.
Longer Time on Websites – Websites that include video content see an 88% increase in the time people spend on the page (HubSpot). The longer visitors stay, the higher the chance they will explore and take action.
Higher Click-Through Rates in Emails – Emails that include videos have 200-300% higher click-through rates, meaning more people engage with the content.
Better Search Engine Rankings – Websites with video are 53 times more likely to appear on Google’s first page. More visibility means more engagement.

A creative agency knows how to design explainer videos that grab attention within the first few seconds, keeping viewers interested and increasing the chances of them liking, sharing, or interacting with the content.

4. How Explainer Videos Improve Conversions and Sales

Engagement is important, but what makes explainer videos even more valuable is their impact on conversions and sales. Getting people to watch a video is great, but getting them to take action—whether it’s signing up, making a purchase, or contacting a business—is the ultimate goal.

Here’s how explainer videos help businesses turn viewers into customers:

Higher Conversion Rates – Landing pages with videos have an 86% higher conversion rate, meaning more people take action after watching.
Better Product Understanding – 80% of consumers say they are more likely to buy a product after watching an explainer video that clearly explains its benefits.
Stronger Brand Trust – People feel more confident buying from a business that uses video to educate them rather than just sell to them.
Mobile-Friendly Content – With 75% of video views happening on mobile devices, explainer videos make it easier for businesses to reach customers wherever they are.

A well-crafted explainer video created by a creative agency can help businesses simplify their message, connect with their audience, and increase sales—all in just 60-90 seconds.

5. How a Creative Agency Creates Highly Effective Explainer Videos

Not all explainer videos are created equal. A poorly made video can lose attention just as quickly as it gains it. That’s why businesses turn to a creative agency to produce high-quality explainer videos that actually work. A great video isn’t just about animation—it’s about telling a clear, engaging story that connects with the audience and drives action.

Here’s what a creative agency focuses on when crafting an effective explainer video:

1. Clear and Compelling Storytelling

People won’t engage with a video if they don’t understand the message. A creative agency ensures that the story is simple, structured, and engaging. Whether it’s explaining a product, a service, or a brand message, the video needs to answer three key questions:

What is the problem? (Identify the customer’s pain point.)
How does the product or service solve it? (Introduce the solution.)
What should the viewer do next? (Include a strong call to action.)

2. High-Quality Visuals and Animation

A good explainer video is visually appealing. A creative agency uses animations, illustrations, and motion graphics that keep the audience interested while reinforcing the message. Strong visuals make the video more engaging, more shareable, and easier to remember.

3. Engaging Voiceovers and Sound Design

The tone of voice in a video can make or break its effectiveness. A creative agency selects the right voiceover artist to match the brand’s personality—whether it’s friendly, professional, or playful. Background music and sound effects also enhance the viewer’s experience and keep them engaged.

4. Optimized Video Length and Format

Attention spans are short. The best explainer videos are 60 to 90 seconds long—long enough to deliver the message but short enough to keep viewers watching until the end. A creative agency also formats the video for different platforms (social media, websites, ads) to maximize reach and engagement.

5. Data-Driven Approach and A/B Testing

A creative agency doesn’t just create a video and hope for the best—it tracks performance. By analyzing engagement rates, watch times, and conversion data, agencies can fine-tune videos to make them even more effective. A/B testing different versions helps determine what works best for the target audience.

Why Businesses Trust a Creative Agency for Explainer Videos

Explainer videos are an investment, and businesses want to see real results. That’s why they partner with a creative agency—to get high-quality content that increases engagement, builds trust, and drives conversions. When done right, an explainer video can transform how a brand connects with its audience, making marketing efforts more impactful and successful.

6. Case Studies: How Creative Agencies Use Explainer Videos for Real Results

Many businesses have seen massive success by using explainer videos, especially when working with a creative agency that knows how to craft the right message. Here are a few real-world examples of how explainer videos have driven engagement and sales:

Case Study 1: Dropbox – SaaS Company Boosts Sign-Ups by 10 Million Users

Before Dropbox became a household name, they struggled to explain their cloud storage service to potential users. Instead of relying on long-winded text explanations, they partnered with a creative agency to develop a simple, 90-second explainer video using hand-drawn animations and a clear, engaging narrative. These results –
-10 million new users within a few months.
-A boost in conversions by 10%, translating to millions in additional revenue.
This case highlights how a well-crafted explainer video can turn a complex SaaS product into an easy-to-understand solution, driving massive user engagement.

Case Study 2: Dollar Shave Club – E-commerce Brand Increases Sales by 40%

Dollar Shave Club disrupted the razor industry with a viral explainer video that introduced their subscription service in a fun, engaging way. Created with the help of a creative agency, the video used humor, bold messaging, and a relatable tone to grab attention. The impacts are
-Over 12,000 orders within 48 hours of launch.
-A 40% increase in conversions within the first few months.
This proves that a high-quality, engaging explainer video can differentiate an e-commerce brand and drive massive sales.

Case Study 3: HubSpot – B2B Company Grows Social Media Engagement by 150%

HubSpot, a leader in inbound marketing, struggled to educate businesses about their complex software suite. To solve this, they partnered with a creative agency to develop a series of short, animated explainer videos breaking down their tools in a clear and engaging way. The outcomes are –
-150% increase in social media engagement on LinkedIn.
-Doubled inbound inquiries from businesses interested in their services.
By using bite-sized explainer videos, HubSpot made their content more digestible, resulting in increased brand awareness and customer interest.

These real-world examples show that when businesses use explainer videos strategically, they don’t just grab attention—they drive real engagement, conversions, and revenue growth.

Conclusion: Why Every Business Needs a Creative Agency for Explainer Videos

Explainer videos aren’t just a trend—they’re a proven marketing tool that boosts engagement, improves conversions, and makes brand messaging more effective. Whether it’s for social media, websites, or ads, businesses that use video see higher interaction, better retention, and increased sales.

But not all videos deliver results. That’s why working with a creative agency is key. A professional agency ensures the video is well-crafted, visually appealing, and optimized for success. From storytelling to production to data-driven improvements, they create explainer videos that actually work.

If you’re looking to increase engagement by 80% or more, now is the time to invest in an explainer video. Partner with a creative agency and watch your marketing efforts take off.

FAQs

1. What makes explainer videos so effective for engagement?

Explainer videos work because they present information in a quick, engaging, and easy-to-understand format. Studies show that people retain 95% of a message when they watch it in a video compared to just 10% when reading text. Plus, videos encourage more social shares, longer website visits, and higher conversion rates, making them a top choice for marketing.

2. How does a creative agency ensure an explainer video is high quality?

A creative agency follows a structured process to create an effective explainer video. This includes:

Clear storytelling to keep the message simple and engaging.
High-quality visuals and animations to capture attention.
Professional voiceovers and sound design to enhance the experience.
Optimized video length (usually 60-90 seconds) to maintain audience interest.
A/B testing and analytics to track performance and make improvements.

3. What industries benefit the most from explainer videos?

Explainer videos work well for almost every industry, but they are especially effective for:

Tech & SaaS – To simplify complex software or digital products.
E-commerce & Retail – To showcase products and boost sales.
Healthcare & Finance – To explain services in an easy-to-digest way.
Education & Training – To create engaging learning content.
B2B Services – To increase conversions by clearly communicating value.

4. How do explainer videos impact sales and conversions?

Businesses using explainer videos see a 34% increase in conversion rates on average. Videos on landing pages boost conversions by 86%, and 80% of customers say they’re more likely to buy after watching a product video. By simplifying complex information and making a strong impact in just seconds, explainer videos turn viewers into customers.