Remember those lengthy sales pitches? Powerpoint presentations that seemed to go on and on? In today’s time, all you need is a brilliant video to do the talking and your customers will be hooked.

Don’t believe us? Ask Drew Houston, the founder of Dropbox.

During their startup phase, Dropbox had invested on “paid search” to promote their product but the acquisition cost was too high.

Apparently, they were spending $233-$388 to acquire a new consumer for their $99 product. Drew decided to try an explainer video and, boom, the conversions skyrocketed.

Source

This 2 minute explainer video, produced in a whiteboard style, drove 10% conversion leading to an increment of 10 million customers. In terms of dollars, that’s a big ROI of approx $48,000,000. Go figure!

Marketing Strategy:

• Dropbox designed a minimalistic landing page that contained just two elements- the new explainer video and the “Download” button to install the product.
• Riding on the power of the explainer video, Dropbox also used referral campaign to attract and entice users with extra space.

The success story of Dropbox is just the tip of the iceberg. Several other companies, including Crazy Egg, RankWatch, Ripple (sold to LinkedIn), which have bagged additional sales and conversions riding on the power of explainer videos.

This guide will help you understand-

• Why the heck would you want to invest on an explainer video for your business? It shouldn’t be just an “everyone’s getting it, I will get one too”. In this guide, we will walk you through the benefits of an explainer video and setting up a plan of action for squeezing out the max ROI.
• Which video style should you choose- 2D/3D Animation, WhiteBoard, Live Action, Infographic or Typography? There are more options out there. We will brief you on these varied explainer video production styles and help you decide which one you should go with.
• What’s a fair market price? Or rather, how much should you spend on your explainer video?
• And finally, how to go about choosing an explainer video production studio?