As an animation studio with over a decade in the industry, we have handled our fair share of enterprise projects. Based on our experience, most enterprise video animations fall within a broad price range of $5000 to over $50,000, with the average price for a 60-second 2-dimensional (2D) animation of approximately $7000 to $15,000, while a more advanced 3-dimensional (3D) animation can easily exceed $30,000.
- What Are the Key Factors That Affect the Cost of Animation?
- Why does animation cost money? Understanding the labor behind it
- How Does Animation Style Impact the Overall Cost of Video Projects?
- What Is the Typical Budget for Enterprise Animation Projects?
- The One Insight That Changes How You Budget for Animation
- Frequently Asked About Enterprise Animation
As stated by the Global Marketing Animation Video Production Market Report, Market.us, 2024, this market has produced $681 million dollars in sales as of last year and is expected to increase at an annual compound rate of 17.3 percent through 2034. These numbers clearly show that enterprises are increasing their spending on animation and not leveling off.
However, the high price range does little to assist with creating budgets or evaluating quotes from vendors. The problem is that there is such variability in pricing across the industry and most vendors don’t provide information regarding what factors contribute to the variability in prices. This article provides a review of the five primary elements which influence the cost of animation so you can be better prepared and create a better quote prior to entering into any new production agreement.
Let’s dive into details, shall we?
What Are the Key Factors That Affect the Cost of Animation?
There are several major elements which influence the price of animation. These include complexity of animation; type of animation (animation style); and length of the animation. As with many other products or services available today, animation video cost is not always fixed. Instead it can vary due to combinations of both creative, technical and logistical considerations. Understanding each of these aspects before beginning your project can save you money in the long run.
Complexity is The Largest Factor Contributing to Cost
The greater the amount of detail in your animation, the longer it takes for your animation team to complete. If you choose to create a simple explainer using icons with two dimensional (2-D) characters, then your animation should move through the production process relatively quickly. On the other hand, if you have decided upon a highly detailed animation featuring custom designed characters; rich environmental backgrounds and/or detailed facial expressions, then it will require significantly more man-hours from all members of the design team including illustrators, animators and director(s).
In addition to requiring more time per member of the production team, complexity also increases the amount of time it takes to make revisions during production. Complex designs are generally more difficult to revise once they have been created, therefore designers begin building additional “buffer” time into their original estimate. When you receive your quote from your potential vendor, those buffers may appear as additional charges.
Animation Style and Its Role in Pricing
Style of animation is another major factor used by vendors when estimating costs. Below is an approximate breakdown of estimated costs based upon type/styles:
Motion Graphics: $3000-$10000 – Usually consists of fast moving animations and elements. Comes with clean design for utilizing data visualization. If you have a lot of data to present, this would be a good style to opt for.
Character Animation (2-D): $7000-$20000 – Requires illustration, rigging & frame-by-frame animation.
3D Animation: $15000-$50000 + – Modeling, Texturing, Lighting and Rendering add considerable time.
Collage/Mixed Media: $8000-$18000 – Distinctive but labor intensive depending on asset sourcing.
Whiteboard: $2000-$5000 – Typically the least expensive starting point. (This style is getting a little outdated these days and we are seeing less of this style being made)
When looking for a typical cost of a professional quality 60 second 2D explainer for an Enterprise Brand it would normally be around $7000-$15000. However, once you bring in Detailed Characters, Complex Transitions or 3D Elements into your project, the price will escalate rapidly.
Video Duration & Its Impact on the Budget
The longer your video is, the more money you’ll have to pay to produce it, but that doesn’t happen in a straight line. The first 60 seconds cost the most to produce per second. That’s because everything has to be created from scratch for those initial 60 seconds (character design, color palette, motion language, etc.) – every visual element. After those 60 seconds, every additional minute builds upon those visual elements, so a 2-minute video does not cost twice what a 1-minute video costs.
However, every additional minute of video will require additional work on your part (scripting, storyboarding, animation, voice-over). And when you’re producing an animated video for an enterprise client, it may be beneficial to ask if a shorter, snappier version of the same video could achieve the desired outcome. Often times, a 90-second animated explainer video will perform better in terms of viewer engagement and conversions than a 3-minute video.
Example: A 60-second 2-dimensional animated explainer produced by a mid-tier agency using flat characters and minimal background detail, would likely cost around $8,000. Creating the same content using 3-Dimensional animations with custom character designs, detailed product environment, and cinematic camera movements could range anywhere from $30,000-$45,000 or more – all delivering the exact same message, just differing greatly in scope of production.
How Each Production Stage Adds to Animation Cost
In order to create every single second of finished animation, there is a series of production processes involved. Each process within these production stages contributes to the overall price of producing the animation. If a business understands how their animation was made, they are able to compare quoted prices from agencies more effectively and avoid missing important details prior to finalizing contracts.
The typical standard steps in creating an animated production along with associated costs:
- Research and Briefing: This stage includes understanding who your target market is and ensuring that your animation aligns with your company branding. Most reputable agencies include research and briefing as part of their pricing.
- Script Writing: Writing a custom script for your animation can cost between $500-$2000 dollars. Using template scripts reduces this cost dramatically.
- Storyboard Creation: A storyboard outlines the sequence of events and visuals which occur throughout your animation. It is also an essential step in defining how the viewers will visually experience your animation. Storyboard creation typically costs between $1000-$3500 dollars.
- Style Frames & Concept Art: These are the visual representations of your character(s) and/or object(s), as well as the setting(s) used during your animation. The amount spent depends on the level of detail required for these illustrations. Typically costing between $500-$2000 dollars depending on the complexity of the visualizations.
- Voice-Over Recording: Professional voice-over recordings cost between $300-$1500 dollars. However, voice-over services rendered in multiple languages increase the cost based on the number of languages.
- Animation: Animation is the largest component of the total cost for producing an animated video. The cost of animation varies greatly depending on the style used (e.g., traditional hand-drawn vs. computer-generated imagery) and length of the video. Cost can range from $3,000 to $30,000+ dollars or even higher.
- Sound Design & Music Licensing: Adding sound effects to your animation increases the budget. Custom sound effects can range from $300-$1500 dollars. Using pre-existing music licenses can be less expensive than commissioning original music compositions. The added benefit of using licensed music is that it provides businesses with greater creative flexibility.
- Revisions: Agencies typically offer 2-3 revisions as part of their quote. Any revisions past this point incur hourly labor rates.
Keep in mind that some lower-priced agency quotes do not include revisions, rush fees or the final distribution of files in various formats. Be sure to inquire about what is included prior to making comparisons among competing vendors.
| Production Element | Template / Basic | Custom / Enterprise |
|---|---|---|
| Script | $0–$500 | $800–$2,000 |
| Storyboard | $500–$1,000 | $1,500–$3,500 |
| Animation (60 sec) | $2,000–$5,000 | $7,000–$20,000+ |
| Voiceover | $200–$500 | $500–$1,500 |
| Sound Design | $100–$300 | $400–$1,200 |
| Revisions | Limited / 1 round | 2-5 rounds included |
While template-based productions offer speed and lower cost than custom-made products they also limit your ability to develop unique branding. For companies who have invested so heavily in building an excellent brand image, making sure you build one that will last over the years makes a custom-made video worth the extra cost.
Why does animation cost money? Understanding the labor behind it
Because a finished 90 second animated video looks like something anyone could create, many underestimate how much work went into producing it. In fact, even though the end result may look easy to produce, a single minute of high-quality animated video typically takes around 100 to 200 hours of labor among a full team.
The Full Team Behind a Professional Animation
For a commercial animated video, you’ll need the following types of creative professionals involved in the process:
- Creative director – develops the visual style and the flow of the story
2. Scriptwriter – creates a storyline based on the company’s branding and the length (usually between 60 seconds and 90 seconds) of the video
3. Storyboard artist – interprets the script into images
4. Illustrator/character designer – designs each element visually
5. Animator – animates each visual element
6. Voiceover artist – provides voiceovers with the correct tone and pace
7. Sound designer – adds music, sound effects, etc., and polishes the audio portion of the video
8. Producer/ project manager – manages the timeline, reviews the work and client communication
In addition to paying for the time spent on a project by each individual on your team, you’re also going to pay for their experience and expertise. When you’ve got a 90 second video made with custom-designed characters, the number of hours required to complete the entire project is usually greater than 150 to 200 hours. Based upon average hourly rates for these individuals and when adding them together, the total labor hours add up quickly and account for most of what you see in terms of prices throughout this article.
Software, Licenses & Studio Costs
Commercial animation also has to be done with professional-grade equipment. Each studio uses licensed software such as Adobe Creative Suite, Cinema 4D, Autodesk Maya or Toon Boom Harmony for example. And all of these programs come with large upfront costs for license fees per year. This is part of the studio’s operating costs and therefore included in the price quote.
If someone quotes you $500 for a “custom” animation video then they aren’t using professional grade software and/or they don’t have the skills and talent of professional animators. High-quality animation costs money because it requires high-quality materials (talent), time and the proper tools – and there is no way to get away with low-cost shortcuts if you want good-looking results on screen.
How Does Animation Style Impact the Overall Cost of Video Projects?
Different animation styles require fundamentally different production pipelines, which is why pricing between styles can differ by 300–500%.
A Clear Cost Comparison Across Animation Styles
| Animation Style | Typical Cost (60 sec) | Production Time | Best For |
|---|---|---|---|
| Motion graphics | $3,000–$10,000 | 2–4 weeks | Data, SaaS, explainers |
| 2D character animation | $7,000–$20,000 | 4–8 weeks | Brand storytelling, campaigns |
| 3D product animation | $15,000–$50,000+ | 6–12 weeks | Product demos, manufacturing |
| Collage / mixed-media | $8,000–$18,000 | 4–6 weeks | Creative brand content |
| Whiteboard animation | $3,000–$8,000 | 2–4 weeks | Training, internal comms |
3D animation is costly due to the fact that creators must prepare all elements (characters, environment, etc.) in three dimensions prior to the beginning of a animation stage. The subsequent addition of lighting, texture, and rendering adds even further layers of complexity that 2D production does not need.
Motion graphics costs less than 3D. It utilizes shapes, typography and data visualization rather than custom-created 3D characters or environments. Motion graphics represent an excellent value proposition for many enterprise applications including SaaS onboarding, investor presentations, and product walk-throughs. When compared to character-driven animation, motion graphics production provide an equivalent level of quality at a lower cost. It is worth mentioning, dynamic types of motion graphics are considered complex and the cost will be a lot higher than a typical informative motion graphics piece.
The appropriate style of animation is merely the style that communicates the message best – not necessarily the most visually appealing option available in the portfolio.
What Is the Typical Budget for Enterprise Animation Projects?
Budget ranges for enterprise-produced animations depend greatly upon the size of the project, amount of complexity related to internal stakeholders and method(s) of dissemination. These are realistic benchmarks based upon type of project:
Internal Training/Onboarding Video (Motion Graphics) – 60-90 Seconds: $5000-$12000
Product Explainer Video (60 seconds) – 2D Character Driven: $8000-$18000
Brand Campaign Video (90 seconds) – 2D Character Driven: $15000-$30000
Detailed Product Demo Video (60 seconds) – 3D: $20000-$50000+ Full-Campaign Package
All budget estimates listed above reflect prices paid to a professional agency staffed by full-time specialists and do not reflect pricing charged by freelance animators or users of template-based platforms (consider these prices estimates only). The global marketing animation video production market is increasing at a rate of 17.3% per year. This increase is largely attributed to the measurable ROI being realized by companies through their investments in animation and therefore increases in budget are anticipated instead of decreases.
Pitfalls & Costs Associated with Enterprise Produced Animations
Prior to establishing a budget, enterprise buyers must also take into consideration potential issues and costs associated with producing animations:
Scope Creep – The inclusion of new scenes, voice over changes or design changes to characters during production typically adds an additional 10-25% to the original estimate. Once the initial animation process has begun, lock the brief.
Revision Limits – While most agencies permit a buyer two to three rounds of revisions beyond that point, hours are billed at an hourly rate. In order to avoid exceeding these limitations, internal feedback must be consolidated prior to each revision.
File Deliverables – Depending upon the provider of the animation service, there may be an additional charge for exporting final video files in various formats (e.g. MP4, MOV, etc.).
Compliance Review Process – Due to regulatory requirements, enterprise projects require review and approval from the company’s legal department. As a result, timelines are extended and changes to content which could potentially generate additional cost may occur.
Rush Fees – In situations where a shortened production timeline creates a requirement for expedited delivery, a 20-40% rush fee is applied to the total quoted price for delivery.
The single greatest factor that protects an animation budget is having a clear definition of what needs to be accomplished, an approved script and consolidated internal feedback prior to entering production.
The One Insight That Changes How You Budget for Animation
Enterprises that have defined objectives regarding messaging to a specific audience, an approved script and a realistic timeline produce better work at the same time as meeting deadlines and budgets for animation productions.
Purchasing animation is rarely ever going to be considered the largest cost component. Unclear scope and lack of clarity are generally the leading causes of increased cost. Companies that treat animation as a creative investment strategy utilizing the correct partner and the correct brief create content that generates returns. If your enterprise is purchasing an animation video for the first time, consider creating a 60-90 second 2D animation or motion graphics video to test message and format before moving forward to a full-fledged campaign.
Ready to get an accurate quote for your enterprise animation project?
Explore Kasra Design’s animated video production services and view our full range of animation services to see the quality we deliver. Contact us, and our team will scope your project and give you a clear, honest price.
Frequently Asked About Enterprise Animation
How much does a typical 2D animation video cost for an enterprise?
Enterprise level clients usually spend anywhere from $8,000 to $20,000 per 60-90 second 2-D animation video (with custom designed characters and professional voiceover) depending upon complexity of visuals, number of scenes and number of rounds of revisions.
What factors contribute to the high cost of 3D animation?
3D animation involves creating models, textures, lighting and renderings for each individual element within the scene such as; characters, objects and backgrounds. Each one of these steps require specific software licenses and skill sets from designers/animators. Additionally, 3-D animation is generally longer in duration compared to other types of animations i.e.; 2-D, Motion Graphics.
Can the cost of animation be reduced with template videos?
Pre-made templates can potentially lower the cost to approximately $1,500-$3,000 dollars. However, this may also cause your company to blend in with others who have purchased similar products. Template videos can be suitable options for internal use or non-branded content. But if you need to create a video specifically for marketing purposes or a critical brand asset; then it would likely be beneficial to produce a custom animation.
How can I get the best value for my animation budget?
To maximize value from your animation budget; provide your team with a well-defined creative direction prior to production (including approval on all scripts); consolidate stakeholder input early; and choose an appropriate animation style based on the message being conveyed (motion graphics vs. 3D). Limiting revision rounds (to only those that are part of the original agreement) is another way to ensure you receive maximum value from your animation investment.
Are there any hidden costs in animation production?
There are several items commonly associated with animation production that may not always be listed in an estimate (or quoted separately): Revision Rounds (beyond the agreed-upon amount), Multilingual Voice Over, Exporting Multiple File Formats, Licensed Music, Rush Fees for Compressed Timelines. It is always recommended that you request a comprehensive list of what is included in the estimate prior to accepting the quote.
How long does an enterprise animation project typically take?
A 60-second 2D explainer with a clear brief typically takes 4–8 weeks from kickoff to final delivery. 3D projects or campaign packages with multiple videos can run 8–16 weeks. Factoring in internal approval cycles, most enterprise teams should plan for 10–12 weeks from brief to launch.