How Explainer Videos Drive Growth: Tools, Companies, Research, Types, Industries, and Measurement

In today’s digital world, where attention spans barely last a few seconds, explainer videos have emerged as one of the most powerful tools for brands to communicate ideas clearly and persuasively. They combine visuals, storytelling, and psychology to simplify complex messages and convert viewers into customers.

From SaaS startups trying to explain their software to DTC brands looking to build trust, explainer videos have become essential in every industry. In this in-depth guide, we’ll explore everything you need to know from the science behind why explainer videos work, to examples of top companies, research studies, best tools, and actionable steps to create your own.

1. Why Explainer Videos Work - The Science Behind Simplicity

Explainer videos work because they align with how the human brain prefers to process information. Psychologists call it cognitive fluency  our natural inclination toward simplicity. People retain nearly 95% of a message when it’s delivered via video, compared to only 10% through text, according to Forbes.

When potential customers encounter a new product, they’re often asking three questions subconsciously: “What is this?”, “Why does it matter?”, and “How does it work?” A good explainer video answers all three quickly usually within 90 seconds using visuals, emotion, and a clear structure.

Emotion plays a vital role too. Wyzowl’s 2025 report found that 91% of users watch explainer videos to learn about a product, and 88% say the video convinced them to make a purchase. Motion, voice, and music help audiences emotionally connect with your brand, increasing trust and recall.
Behavioral research from HubSpot also confirms that landing pages with videos can boost conversions by up to 80%, showing how video directly influences buyer decisions.

2. Top Explainer Video Companies to Know

There are thousands of production studios worldwide, but only a few excel at combining creativity, storytelling, and measurable impact. Here are some of the most trusted and proven explainer video companies globally with MotionGility leading the way.

MotionGility stands out as a leading explainer video agency specializing in SaaS, FinTech, Healthcare, and DTC brands. Unlike traditional video studios, MotionGility focuses on strategic storytelling creating videos that don’t just look good but deliver real business outcomes. Their process involves deep research, customer psychology, and vibe-driven visuals tailored to each brand’s tone. Clients often report a 20–50% increase in conversion rates and engagement after integrating MotionGility’s explainer videos into their marketing funnel.

Other notable players include Wyzowl, one of the pioneers in the explainer video industry, known for its long-standing global client base and detailed reports. Vidico from Australia is recognized for SaaS and tech-oriented storytelling that simplifies complex tools into crisp narratives. Yum Yum Videos, Explainify, and Rip Media Group cater to startups and enterprises alike, focusing on different visual styles. Studios like Demo Duck, Sandwich Video, and Epipheo have also made a mark with their storytelling-driven explainer videos for brands like Google, Dropbox, and Slack.

However, what differentiates MotionGility is its focus on strategic clarity, measurable ROI, and emotional design essential ingredients for businesses that aim to build trust and boost conversions.

3. Types of Explainer Videos and How to Use Them

Not all explainer videos are created equal. The format you choose depends on your goal, audience, and product type. Let’s explore the most impactful kinds of explainer videos and how they fit different needs.

2D Character Animation is one of the most widely used formats, featuring animated characters to represent customers or brand mascots. It’s perfect for SaaS and storytelling-based campaigns where emotion and relatability matter.

Motion Graphics Explainers use icons, infographics, and dynamic typography to explain data-heavy or complex topics often used by FinTech and enterprise brands.

Whiteboard Animation videos are great for educational and healthcare sectors. They mimic a drawing hand sketching on a whiteboard, keeping the viewer’s attention through curiosity.

3D Animation adds realism and visual depth ideal for hardware demos or physical products, where showcasing the product’s features in 360° is crucial.

Live-Action Explainers use real people, settings, or founders to tell the brand story. It’s a favorite for DTC and lifestyle brands because it humanizes the message.

Screencast Explainers show real product interfaces often used by SaaS brands to walk users through app features or onboarding processes.

Hybrid Explainers mix live action with animation commonly seen in B2B or startup videos where visuals complement interviews or testimonials.

Stop-Motion Videos add a creative and handmade feel, popular among artisanal or premium brands like Etsy.

User-Generated Explainers (UGC) merge customer-shot clips with brand storytelling, giving authenticity that modern buyers love.

Finally, Interactive Explainers allow viewers to click or make choices within the video often used for onboarding or gamified learning experiences

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4. Industries Where Explainer Videos Create the Most Impact

Explainer videos deliver exceptional ROI across most industries, but they’re particularly transformative in markets where products are complex or trust is essential.

In SaaS, explainer videos simplify technical products and showcase value quickly. Dropbox famously used a short explainer video to grow from zero to millions of users.

In FinTech, videos help demystify complex financial terms while building trust something PayPal, Wise, and Stripe have mastered.

The Healthcare and EdTech industries benefit immensely from visual education platforms like Healthline and Coursera use explainers to increase understanding and engagement.

For E-commerce and DTC brands, explainers drive conversions by showing real-world product use and building emotional connection Nike and Glossier are prime examples.

In Real Estate and PropTech, 3D and motion explainers simplify property visualization, while Manufacturing brands like Dyson use product demos to explain innovation.

Even sectors like Automotive, Nonprofits, and HR use explainers Tesla’s videos double as marketing and education, Charity: Water uses them to tell powerful stories, and enterprises like LinkedIn Learning rely on explainers for training modules.

5. Tools to Measure Explainer Video Success

Creating a great video is only half the story. Measuring its performance is what helps you optimize for results. Here are some of the most reliable tools to track your explainer video’s impact.

Wistia is one of the most powerful platforms for video analytics, offering insights like watch time, engagement rate, and CTA clicks. Vidyard integrates seamlessly with sales and marketing teams, allowing personalization and tracking in outreach. Google Analytics 4 lets you measure video events like play, pause, and completion to understand user behavior.

For deeper behavioral insights, tools like Hotjar show how viewers interact with your website after watching the video. Mixpanel and HubSpot connect video data with customer journeys to reveal how video influences product adoption. For testing and optimization, Optimizely or VWO can A/B test landing pages with and without video. And if you want to analyze data visually, Looker, Tableau, or Whatagraph help create comprehensive dashboards showing ROI across multiple channels.

6. Research-Backed Proof: Why Explainer Videos Deliver Results

If you’re still wondering whether explainer videos actually work, research offers undeniable proof. The Wyzowl 2025 Report revealed that 91% of consumers have watched an explainer video to learn about a product, and 88% were convinced to purchase afterward. HubSpot reported that landing pages with videos experience up to 80% higher conversions, while PowerReviews found that 70% of consumers trust brands more after watching authentic or user-generated videos.

A Wistia engagement study discovered that short videos under 90 seconds retain up to 85% of viewers highlighting the power of brevity and pacing. Forbes reported that 59% of executives prefer video over text when learning about products, proving how explainer videos are equally effective in B2B contexts.

Reports from Cisco predict that by 2025, 82% of all global internet traffic will be video. Research from Animoto and Clutch also found that brands using explainers see ROI increases ranging from 200% to 400%. And MotionGility’s internal client data shows engagement improvements of 20–50% after implementing customized storytelling-driven explainer videos.

7. How to Create a High-Impact Explainer Video

Creating a successful explainer video requires a balance of storytelling, design, and strategy. The first step is defining your goal whether it’s to educate, convert, or retain customers.

Next comes scripting, which forms the foundation. A simple yet powerful structure is “Problem → Solution → Benefit → CTA.” Start by addressing the customer’s pain point, introduce your solution, highlight tangible benefits, and end with a clear call-to-action.

Once your script is ready, move to storyboarding the visual blueprint. Here, consistency in color, typography, and style is crucial because it strengthens brand identity.

During production, choose between animation, live-action, or hybrid approaches based on your brand type. Post-production is equally important adding subtitles, background music, and fine-tuning pacing keeps viewers engaged.

Finally, distribute your video strategically host it on your website, upload to YouTube, share it via email, and repurpose short versions for ads or social media. Use analytics tools to track engagement, view duration, and conversion metrics, then iterate for even better results.

8. The MotionGility Advantage

When it comes to creating explainer videos that not only look professional but also perform, MotionGility stands as a benchmark. The company focuses on the intersection of storytelling, psychology, and strategy, ensuring every frame serves a business purpose.

MotionGility’s approach is data-driven their creative process blends brand research, emotion design, and business goals to craft videos that feel personalized yet powerful. Whether you’re a SaaS startup explaining your platform or a DTC brand building awareness, MotionGility ensures that your explainer aligns perfectly with your target audience’s expectations.

Their proven track record includes boosting client engagement by up to 2x and improving conversions by as much as 50%. With an end-to-end workflow from scripting and illustration to animation and performance tracking MotionGility remains a trusted partner for businesses aiming for both clarity and conversion.

Conclusion

Explainer videos are no longer a luxury; they’re a necessity for modern digital communication. They bridge the gap between what a brand offers and what the audience understands turning complex ideas into captivating stories that inspire action.

For SaaS founders, marketers, and brand leaders, the takeaway is simple: invest in explainer videos not just for awareness but for long-term engagement and retention. Collaborate with strategic partners like MotionGility, choose the right type of video for your goals, and measure everything because what gets measured improves.

When executed strategically, explainer videos can become your most powerful marketing asset one that informs, engages, and converts.

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References

• MotionGility – Explainer Video Company
• HubSpot State of Video Marketing
• Forbes Video ROI Analysis
• Clutch Top Explainer Video Agencies