Animated explainer videos have become a practical tool for businesses that need to communicate clearly and quickly.

For small and midsized business leaders, they offer a way to explain ideas in an accessible and engaging manner, leading to a stronger brand identity and improved conversions.

Why Invest In An Animated Explainer Video?

These are some of the most common business reasons companies choose to invest in animated explainers:

Simplify Complexity

Many SMBs operate in industries where it can be challenging to communicate how specific products or processes work. Text alone may not be sufficient to explain how a piece of software works, for example.

Animation allows you to visualize abstract concepts or break processes into smaller, digestible steps. Instead of asking your audience to read long narrations, an animated explainer can give them a clear overview in a few minutes.

Boost Engagement and Retention

People can find it easier to remember visual information than text-heavy explanations. Animation keeps viewers engaged by guiding their attention, which can lead to better recall of your message even after the video ends. This retention can translate into tangible results, like higher conversion rates and sales.

Strengthen Brand Personality

Animation offers creative flexibility that traditional live-action footage sometimes can’t, especially for companies without access to on-camera talent or production crews. Through visual design, illustration, narration or music, animated explainer videos help establish and strengthen your brand voice and differentiate your company from your competitors. When done well, animation can feel highly polished and intentional.

Increase Conversion Rates

Explainer videos often get the most use in places where audiences are likely to make decisions, like landing pages or onboarding sequences. When viewers clearly understand what you do and why it matters, they are more likely to take the next step. The video improves understanding and can quell any reservations, which reduces friction in the buying or signup process.

What To Look For In An Explainer Video Company

Choosing the right explainer video provider depends on your goals and expectations. Here are some key factors to evaluate.

• Portfolio and style: Start by reviewing a company’s past work. How clear and well-presented is the messaging? What industries have they served, and can they adapt their style to different sectors or business types? If you have particular stylistic needs, look for a body of work that matches them. A strong portfolio can also demonstrate range, unless it is serving a highly niche group.
• Production process: An explainer video involves multiple steps, from strategy to scripting, storyboarding and execution. Ask potential partners about their process, including script development, revisions and feedback. A defined and transparent process leads to smoother collaboration and clearer expectations.
• Collaborative approach: Collaboration matters in any production, especially in video explainers for businesses. You want a provider that asks thoughtful questions and listens to your needs. Ask about your prospects’ process to know how they will incorporate your ideas and to clarify your expectations. 
• Expertise and industry recognition: Experience matters, especially for complex or important messaging. Companies with industry recognition or long-term client relationships often have deeper and more practical insight into what works for a specific project. This experience helps save time and revisions throughout your partnership.

Which Companies Make Animated Explainer Videos? Six Top Options

Here is a curated list of companies known for producing animated explainer videos, each with its own strengths. The team wanted to curate a list that can help you find the best production partner for your needs.

1. Best Overall: Early Light Media

Early Light Media (ELM) stands out as a top contender, being a full-service creative video agency known for producing high-quality animated explainer videos that help businesses clearly and confidently present complex ideas. 

One of ELM’s biggest strengths in its animated explainer work is its process. Its team is highly collaborative, focusing on thoughtful creative development and masterful use of the medium. As a result, businesses shine with their messaging across various platforms, including their company websites and social media.

Key Features

• Full-service animated explainer video production
• Proven experience with complex and technical messaging
• Industry recognition, including 51 Emmys and 10 Addy awards

2. Best for Fixed Budgets: Wyzowl

Wyzowl is one of the most widely recognized explainer video companies, particularly among businesses looking for a structured and predictable production process. The company has produced numerous explainer videos across industries, giving it a strong understanding of its clientele.

Wyzowl’s approach emphasizes clarity and consistency. It pioneered fixed pricing for its explainer videos, making it a practical option for companies that want transparency around project scope and expectations.

Key Features

• Clearly structured production process
• Defined pricing for budget predictability
• Limited client slots for creative focus

3. Best for Custom Creative: Yum Yum Videos

Yum Yum Videos is known for its visually distinctive animated explainer videos, with a strong emphasis on custom illustrations and animation styles. If you want something engaging and visually striking, this team’s approach may be for you.

The company uses a custom approach for each client, ensuring a clear understanding of their needs. It can be a good match for businesses that value artistic differentiation and storytelling over standardized formats.

Key Features

• Custom illustration and animation styles
• Focus on engagement and storytelling
• Experience across multiple industries

4. Best for Mixed Media: Demo Duck

Demo Duck specializes in explainer videos that blend various types of animation and other formats, including live-action footage and motion graphics. This mixed-media approach is beneficial for companies that want to show real products or settings alongside animated elements.

The company’s style has a unique impact, making each shot layered, textured and highly engaging. It expertly balances usefulness and visual flourish, making for an effective and unforgettable message.

Key Features

• Unique mixed-media visual approach
• Strong fit for product-focused explainers
• Flexible animation formats

5. Best for Tech/SaaS: Broadcast2World

Broadcast2World focuses primarily on producing animated explainer videos for technology-focused businesses. Its experience in these sectors allows it to fluently translate technical concepts into accessible audiovisual narratives.

The company supports a range of video types, including marketing videos and educational materials for employees. Its services are highly accessible, providing free consultations that allow potential clients to assess its offerings effectively.

Key Features

• Extensive experience with technology and SaaS businesses
• Ability to explain complex technical concepts
• Experience with global clients

6. Best for Global Cultural Reach: Breadnbeyond

Breadnbeyond works with clients across multiple regions and industries, making it a strong option for businesses targeting international audiences. Its animated explainer videos are produced with cross-cultural communication in mind, ensuring clarity and consistency across various markets.

The company offers a wide range of animation styles and adapts its concepts to client needs, including projects that require sensitivity to language and cultural context.

Key Features

• Experience serving international and multicultural audiences
• Flexible animation styles
• Scalable production capabilities

Animated Explainer Video Companies At A Glance

Making Your Final Decision

Choosing the right animated explainer video partner requires careful consideration, evaluating key factors like alignment and clarity. Regardless of your message or preferred audiovisual style, the right collaboration can turn complex ideas into compelling pieces of content.