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Chapter 1

Why Videos? The Need Vs Want

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.

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?

Chapter 1: Why Videos? The Need Vs Want

CHAPTER 1: Why videos? – The Need Vs Want Debate

The demand for video content has been higher than ever. People are hungry for videos and this appetite is growing by the hour. Maybe it’s the dwindling attention spans or the fact that information is now available at the snap of our fingers. Whatever the reason, videos are here to stay.

Videos put a face to your brand’s story, something that plain old text will never be able to achieve. No wonder videos have levergaged marketing strategies over the years and will continue to do so.

Lets see how videos can help your business grow.


According to Abraham Maslow’s motivation theory:

“Humans need to feel a sense of belonging and acceptance among social groups, regardless whether these groups are large or small”

Videos, in a way have proved this correct. Now, everywhere you look there’s a video. From cute cats to serious life changing experiences and everything in between. Videos have definitely arrived and if you’re not a part of this phenomena you might as well not be in the game at all.

Over the years content creation for the internet has evolved dramatically. Blazing fast internet speeds combined with well informed consumers have forced businesses to think out of the box.

And what better than some brilliant visuals to support your claims. If a picture is worth a thousand words, then expect at least a million from videos. Some facts to get you warmed up:

Visual content is processed 60,000 times faster than textual content.
90% of information that our brain digests is visual content.
A study conducted by the Social Science Research Network revealed that 65% of people are visual learners.
So video is the game changer now? Yes, in fact video is a whole new game in itself. Get it right and your ROI will soar through the roof.

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

Drop that line

Speaking of fishing analogies, ‘hooking’ your potential customers with a great explainer video is just the first part the process. And getting that first part right is the most crucial aspect of any marketing strategy.

An explainer video is just like its name suggests. It explains stuff, but so can a talented sales rep. So what’s the difference you ask? The sales rep will never be able to do the explaining in 90 seconds or less. A minute and a half is all it takes to get people excited about your product or service. Blame it on the goldfish. Plus your explainer video is always at work, no holidays for this hard working employee.

Time to drop the line and haul in the catch.

Consider this:

Our team at Crackitt created a 90 second explainer video for Rankwatch.

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