Note (September 2026): This article previously said that, according to Google, more than 75% of web content would be video by the end of 2012, and quoted outdated explainer-video prices. Those statements have been corrected below using Sandvine’s traffic data and Wyzowl’s current pricing survey.
Animated explainer video or live action? Choose an animated explainer video when you need to explain software, a service or an abstract idea, and live-action video when customers need to see a physical product, real people or your premises. In Wyzowl’s Q4 2022 pricing survey, the median quote for a 60-second animated explainer was $5,400, while live-action costs depend mostly on cast, crew and locations.
Key Takeaways
- Animation suits software, digital products and complex or invisible processes; live action suits physical products, people-led services and trust-building testimonials.
- Wyzowl’s survey of production companies (Q4 2022) found 60-second animated explainer quotes from $600 to $250,000, with a median of $5,400.
- Live action is the more common format: in Wyzowl’s 2026 survey, 51% of video marketers said they mostly create live-action video, against 23% for animation.
- Many businesses use both: live action for demos and testimonials, animation for explaining how a product works.
Video marketing is now a standard strategy for most businesses: in Wyzowl’s Video Marketing Statistics 2026 survey (266 respondents, surveyed in late 2025), 91% of businesses said they use video as a marketing tool. Whether you run an established business or a new start-up, the power of video marketing can’t be underestimated.
Older marketing articles often claimed, citing Google, that more than 75% of the content on the web would be video, but no Google source for that figure has been found. The measurable fact concerns traffic rather than pages: Sandvine’s Global Internet Phenomena Report (January 2023) found that video made up 65% of all internet traffic in 2022. A business that skips video can therefore be less visible where its customers spend their time.
Once you have decided to use video marketing, the next question is where to start: which type of video should you produce to promote your business?
Well, you can market your business using animated explainer, doodle or live-action videos, etc. Live action and animation are the two most common formats. In Wyzowl’s 2026 survey, 51% of video marketers said they mostly created live-action video, 23% mostly animated video and 19% mostly screen-recorded video.
Many business owners are unsure which of the two formats to choose first.
The sections below compare animated explainer and live-action video on cost, production time, strengths and weaknesses, so you can decide which works best for a new business.
How much do animated explainer and live-action videos cost?
Once you decide to use video marketing, the first question is usually cost. The cost of an animated explainer video and a live-action video differs a great deal. Here is how the two compare.
Animated explainer video
For creating an animated explainer video, first, consider writing a good script. The perfect script is the foundation of an engaging animated explainer video.
You can write the script on your own or can hire professional scriptwriters for writing an excellent script.
Now, if you have a limited budget, then try to write the script on your own. Once your script is ready, you can start creating your explainer video.
Making an animated explainer video yourself is challenging for beginners, but do-it-yourself animation tools make it possible. Many of them offer free plans or monthly subscriptions; their prices change often, so check each vendor’s current pricing before you commit.
From the recent reports on explainer video pricing, the clearest benchmark is a survey by the video studio Wyzowl. In Q4 2022 it asked 242 production companies to quote for a 60-second animated explainer; 116 gave a price. Quotes ranged from $600 to $250,000, the median was $5,400 and the mean was $10,983 ($8,457 with the highest and lowest 5% of quotes removed).
The cost might vary depending on the quality of the video.
Very cheap animated explainer videos are usually built from stock templates and generic characters, so they look less distinctive than custom work.
Live-action video
The process of making a live-action video also starts with the script. But, in the live-action footage, you require people that are confident and can speak effectively in front of the camera.
A live-action video also needs a camera, lighting, sound, a location and a cast. Planning a shoot involves logistics that animation does not, such as booking people and places for the same day.
The cost of a live-action video depends on the cast, crew, equipment, locations and editing. A professionally crewed shoot with actors and several locations can cost more than an animation, while a simple in-house shoot of a founder or a product demo can cost very little.
If the studio is not available, you can use your home or your office place for recording a live-action video.
Animated Explainer Video Pros
Brings imagination into reality
With an animated explainer video, you can bring any imagination into reality.
If you want aliens chasing your product, animation can show it without special effects. Scenes, characters and settings are limited only by the script and the budget.
You can use various online tools to create logo animations in just minutes. With an animated explainer video, you can explain complicated concepts in a better way.
Easier to update
Because every element of an animated video is created digitally, you can change a character’s color, a scene or the voiceover later without reshooting anything.
Before hiring a studio, check how many revision rounds its quote includes, since extra changes may cost more.
Animated Explainer Video Cons
High production time
It might take from a few days to weeks for creating a perfect animated explainer video. The time needed for creating such video will depend on the type of video you want, audience and budget.
High budget
If your budget is low, then, you have to make the video yourself or have to hire a freelancer for cheap that delivers quality work. If you have money to invest, then, you can contact a professional company for making your animated explainer video.
Live-action video Pros
Builds trust
The main benefit of live-action video is trust. Seeing real people, whether your team or your customers, makes a brand feel tangible.
The human touch present in the live-action video is absent in any other type of video. Whenever someone purchases your product, customers invest their money as well as trust.
You can convey your message very effectively to your audience with the help of real humans.
That is why testimonial videos, which feature real customers, are usually filmed in live action.
Shows the actual working of your product
Suppose you are selling a physical product, then your customers are more interested in seeing its actual working.
A list of features on screen is less convincing than watching the product work.
A live-action video shows real people using the product, which demonstrates it more convincingly.
Simple shoots can be faster
A simple live-action video, such as a founder speaking to camera or a product demo, can often be finished faster than a custom animation, because there are no characters or scenes to design.
Larger shoots with actors and several locations take longer to plan, so this advantage applies mainly to small productions.
You can sell using story-telling
Storytelling is a long-standing marketing technique, and people remember stories more easily than lists of features. A live-action video can tell a customer’s story in their own words.
Live-action video Cons
Revisions are expensive
If a live-action video needs to be remade, be prepared to spend time and money on the cast, crew and location again.
Revising live footage is difficult: the original location or cast may no longer be available for a reshoot.
Small changes can be made in the edit, but anything new usually has to be filmed again.
Limited to what can be filmed
If you want to introduce superheroes flying in the sky in your video then, live-action video is not for you. A live-action script has to stay within what can realistically be filmed, unless you pay for visual effects.
Thus, we have compared both animated explainer video and live-action video.
If you are a new business selling a physical product such as a refrigerator or a TV, live-action video is usually the stronger choice.
A well-made shoot can cost more, and no format guarantees sales, so measure how each video performs.
Animated video, on the other hand, suits software tools, apps and other digital products. Many business owners also ask whether they can use both types.
Yes. If the budget allows, try both formats and compare the results.
After comparing views, leads and sales, you can put more of your budget into the format that performs better.
Final Words
Choose a live-action video or an animated explainer video based on what you sell, your budget and what your customers need to see.
In the end, it all depends on your creativity and marketing strategies. If you can plan and execute your strategy well, then any one of the above can do wonders for your business.
Animated Explainer vs Live-Action Video: Side-by-Side Comparison
The table below summarizes the differences described above. Costs vary widely by provider and region, so treat it as a guide rather than a price list.
| Factor | Animated explainer video | Live-action video |
|---|---|---|
| Best for | Software, apps, digital services, abstract or invisible processes | Physical products, people-led services, testimonials, locations |
| Main cost drivers | Script, illustration style, animation detail, voiceover, length | Cast, crew, equipment, locations, editing |
| Benchmark cost | Median quote $5,400 for 60 seconds (Wyzowl survey, Q4 2022) | No comparable benchmark; ranges from almost nothing (in-house) to large crewed shoots |
| Updating later | Relatively easy: scenes and voiceover can be changed digitally | Difficult: new content usually means a reshoot |
| Creative limits | Limited mainly by script and budget | Limited to what can be filmed, unless visual effects are added |
| Trust signal | Clear and consistent, but less personal | Strong: real faces, real customers, real product |
Which Video Type Should a New Business Choose?
A new business can decide between animation and live action by answering four questions.
- Can customers see what you sell? If it is a physical product or a place, live action shows it directly. If it is software or a process that cannot be filmed, animation explains it better.
- Is trust the main barrier? For services where buyers want to know who they will deal with, such as clinics, consultants or trades, real people on camera help.
- Will the message change soon? Start-ups that change pricing, features or branding often may find animation cheaper to update.
- What can you produce well? A clear phone-shot demo is better than a poor animation, and a simple animation is better than a badly lit, badly recorded shoot.
For a first video, many businesses start with a short explainer on the homepage and add live-action demos or customer testimonials later. The benefits of using explainer videos are covered in more detail in a separate guide.
What the Latest Video Marketing Data Shows
According to Wyzowl’s Video Marketing Statistics 2026 report, based on a survey of 266 marketers and consumers in late 2025:
- 96% of people said they had watched an explainer video to learn more about a product or service.
- 63% said a short video was how they would most like to learn about a product or service, far ahead of text articles (12%).
- 71% of marketers believed videos between 30 seconds and 2 minutes are the most effective length.
- 83% of video marketers said video had directly increased sales, and 82% said video marketing had given them a good return on investment.
- 63% of video marketers said they had used AI video tools to create or edit marketing videos, up from 51% the year before.
These figures come from a survey by a video production company, so they describe what respondents reported rather than independent measurements. They still show that explainer videos and short formats are what audiences expect.
Common Mistakes to Avoid
- Making the video too long. Keep the core message short; most marketers in Wyzowl’s survey favored 30 seconds to 2 minutes.
- Choosing the format before the message. Write the script first, then decide whether it needs real people or illustration.
- Skipping revision terms. Ask a studio how many rounds of changes are included before you sign.
- Uploading once and forgetting it. Compress and host the video properly, as explained in this guide to optimizing videos for the web, and share it on the channels your customers use.
If you plan to make videos in-house, see how a free online video editor can boost your brand presence and these steps to create onboarding animation videos for free. Video also works best as part of a wider plan; compare the best types of marketing for a small business.
Frequently Asked Questions
Is animation or live action better for a start-up?
Animation is usually better for a start-up selling software or a service that is hard to film, while live action is usually better for a physical product or a people-led service. Many start-ups begin with one short explainer video and add live-action demos or testimonials later.
How much does a 60-second animated explainer video cost?
A 60-second animated explainer video had a median quote of $5,400 in Wyzowl’s survey of production companies, carried out in Q4 2022. Quotes ranged from $600 to $250,000, and Wyzowl notes that prices may have changed since the survey.
Is live-action video cheaper than animation?
Live-action video can be cheaper or more expensive than animation. A simple in-house shoot costs little, but a professional shoot with actors, crew and several locations can cost more than a custom animation.
Which video format do marketers use most?
Live action is the format marketers use most. In Wyzowl’s 2026 survey, 51% of video marketers said they mostly create live-action video, compared with 23% for animation and 19% for screen recordings.
Can a business use both animated and live-action videos?
Yes. A common approach is to use animation to explain how a product works and live action for demos, team introductions and customer testimonials, then compare the results of each.
