Why Every Business Needs an Animated Explainer Video in 2025: Benefits, Trends, and ROI

In the fast-moving digital landscape of 2025, brands are constantly seeking innovative ways to capture attention and communicate value. One of the most effective tools for doing just that is the animated explainer video. Whether introducing a new product, simplifying a complex service, or building brand trust, explainer videos are concise, engaging, and highly memorable.
In this article, we’ll explore why animated explainer videos remain essential for businesses in 2025, how different animation styles like 2D cel animation add depth and charm, what the top motion design studios are creating, and what you can expect in terms of pricing when working with leading animation studios Toronto and beyond.
What Is an Animated Explainer Video?
An animated explainer video is a short, informative video designed to explain a business concept, product, or service in a clear and engaging way. These videos typically last between 60 to 90 seconds and are crafted to simplify messages through visuals, voiceovers, and motion graphics.
The format has gained massive popularity across industries for its ability to boost user engagement, clarify brand messaging, and increase conversions.
The Evolution of Explainer Videos: Why They Work in 2025
In today’s content-heavy environment, attention spans are short. Studies show users retain 95% of a message when watched in video form, compared to just 10% when read in text. That's where animated explainers shine—they grab attention and explain value quickly.
The evolution of animation tools and storytelling techniques in recent years has made these videos more versatile than ever. Whether you want a minimalist motion graphic, a narrative-driven story, or a retro-inspired 2D cel animation, there's a style that can match your brand's identity and goals.
2D Cel Animation: A Classic Style That’s Back in Demand
One of the most charming and artistically expressive formats making a comeback is 2D cel animation. Originally done by hand on transparent sheets of celluloid, this animation style is now recreated digitally to evoke a nostalgic, handcrafted feel.
2D cel animation stands out for its warm aesthetic and human touch—qualities that make it perfect for storytelling-heavy explainer videos. Brands are turning to this technique to build emotional resonance, differentiate their identity, and add an artisanal vibe to their messaging.
Modern software allows top motion design studios to combine cel-style drawing with the speed of digital rendering, offering businesses a unique mix of tradition and innovation.
What Top Motion Design Studios Are Doing Differently
The top motion design studios in 2025 aren’t just animating—they’re storytelling at a high level. These studios combine brand strategy, visual design, and animation into a cohesive product that speaks directly to your target audience.
Studios like Buck, Giant Ant, and Oddfellows—along with rising Canadian stars like animation studios Toronto—are focusing on:
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Emotionally-driven scripts
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Stylized visuals and characters
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Seamless integration of brand identity
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Diverse animation techniques (including cel, 3D, and motion graphics)
The result? Animated explainer videos that aren’t just functional—they’re memorable, viral-worthy, and impactful.
Animation Studios Toronto: A Hub of Creative Excellence
Toronto has become one of the world’s top creative cities, especially when it comes to animation. Home to powerhouse studios like Guru Studio, Nelvana, and House of Cool, the city is a vibrant hub for animation talent and innovation.
Animation studios Toronto offer a unique blend of North American production quality with competitive pricing and government incentives. Whether you're a startup or a multinational brand, working with Toronto-based studios gives you access to:
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World-class animators and storytellers
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A variety of animation styles, including 2D cel animation
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Streamlined project management for on-time delivery
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Flexible pricing for businesses of all sizes
Many studios in the city are also at the forefront of sustainability and ethical production, adding an extra layer of appeal for conscious brands.
How Much Does Animation Cost in 2025?
One of the biggest questions businesses ask is: how much does animation cost? The answer depends on several factors, including the style, length, complexity, and studio reputation.
Average Price Ranges:
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Basic motion graphics explainer (60 seconds): $2,500 – $5,000
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Mid-range branded animation (60-90 seconds): $6,000 – $15,000
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Custom 2D cel animation or hybrid animation (60-90 seconds): $15,000 – $30,000+
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Premium studio work with scripting, sound design, and branding: $30,000 – $50,000+
If you’re working with animation studios Toronto, you may find more cost-effective options thanks to Canada’s competitive creative ecosystem.
It’s important to remember that with animation, you’re not just paying for a video—you’re investing in storytelling, marketing impact, and long-term brand equity.
ROI: The Value Behind the Investment
Animated explainer videos offer one of the highest ROIs in digital marketing. Here's why:
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Higher conversion rates: Landing pages with explainer videos convert up to 80% better.
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Improved SEO: Videos increase on-page time and reduce bounce rates, improving search rankings.
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Stronger brand recall: Viewers retain messages better when delivered through visuals and audio.
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Versatility: Use one video across websites, social media, email campaigns, and presentations.
Given these benefits, the cost of a high-quality animated explainer video is often recouped through increased engagement and conversions.
Final Thoughts
The animated explainer video is more than just a marketing trend—it’s a vital communication tool for modern brands. As the digital space becomes more crowded and attention spans shorter, businesses need to invest in visual storytelling that breaks through the noise.
Whether you opt for sleek motion graphics, vintage-inspired 2D cel animation, or a custom hybrid approach, working with top motion design studios—especially the highly creative animation studios in ontario—can elevate your brand narrative.
And while you might wonder how much does animation cost, the better question is: what’s the cost of being forgettable?
In 2025, the brands that win are the ones who tell their stories best. And that story starts with a powerful animated explainer video.
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