Top Industries Using Explainer Videos in 2025

Introduction 

In today’s fast-paced digital world, businesses are increasingly turning to explainer videos as a powerful tool to communicate their messages effectively. These videos, often short, can significantly improve customer engagement, increase conversions, and simplify complex concepts. As 2025 approaches, the use of explainer videos is set to expand across a wide array of industries, revolutionizing how brands interact with their customers and how products or services are presented. 

So, which industries should leverage explainer videos in 2025? Let’s explore the growing significance of explainer videos and how they’re reshaping various sectors. 

What Are Explainer Videos? 

Explainer videos are brief, typically under two minutes, and are designed to explain a product, service, or concept simply and engagingly. These videos combine visuals, voiceovers, text, and sometimes animations, to break down complex ideas into easy-to-understand content. The primary goal of an explainer video is to communicate a message clearly and quickly, making it an essential tool for businesses that need to convey information effectively and capture the attention of their target audience. 

Explainer videos come in various formats, including: 

1. Animated Explainer Videos: These use animations or motion graphics to visualize a concept or process, often with voiceovers to explain details. 

2. Live-Action Explainer Videos: These feature real people and real-world settings to present a product, often including testimonials or real-world applications of the product or service. 

3. Screencast Videos: These focus on software or tech products by recording the screen and narrating the steps involved in using the product. 

4. Whiteboard Explainer Videos: These videos use hand-drawn animations or illustrations that appear to be drawn on a whiteboard, simplifying the process and making it more engaging for viewers. 

No matter the format, explainer videos are an excellent way to explain, demonstrate, and promote your business offerings in a concise, clear, and entertaining way. 

Industries That Should Leverage Explainer Videos in 2025 

1. SaaS (Software as a Service) Industry 

The SaaS industry is one of the biggest beneficiaries of explainer videos, particularly in 2025, when businesses are looking to enhance customer education and reduce churn. SaaS products, especially complex platforms, can often be difficult to explain in a few words. Explainer videos simplify this by providing an easy-to-understand visual representation of how the software works. 

For instance, SaaS explainer videos often highlight the core features of the software, show how it solves a specific pain point, and demonstrate how users can easily integrate it into their daily workflow. Whether it’s accounting software, project management tools, or marketing automation platforms, explainer videos can make the difference between a potential lead signing up or bouncing away due to confusion. 

2. Healthcare 

Explainer videos are invaluable in the healthcare industry, where communicating complex medical information is critical. With an ever-growing range of services, treatments, and health conditions, healthcare explainer videos can simplify and educate patients. Hospitals and clinics use explainer videos to introduce new procedures, explain the steps involved in treatments, or clarify medical insurance options. 

Take, for example, a video explaining a new medical procedure. By combining clear visuals with simple language, explainer videos can help patients understand the procedure, alleviating any anxiety or confusion they may have. 

3. E-commerce and Retail 

In the e-commerce industry, explainer videos can significantly boost conversion rates. Retailers can use these videos to showcase product features, demonstrate how products work, or explain how their online store works. Demo videos that show a product in action can help customers visualize the item in real-life scenarios, making them more likely to make a purchase. 

For instance, explainer videos for fashion stores can show how a particular outfit looks in motion, while a tech retailer might produce videos to demonstrate the unique features of a gadget. 

4. Real Estate 

In the real estate industry, explainer videos are a perfect way to offer virtual property tours, demonstrate the buying process, or explain the benefits of a particular location. A real estate explainer video can feature a walkthrough of properties, discuss the benefits of living in a particular neighbourhood, or highlight special features of homes on sale. 

For instance, a real estate agency could create brand videos to showcase various properties available for sale or use demo videos to walk potential buyers through an online property-viewing system. 

5. Education and E-Learning 

The education and e-learning sectors are another area where explainer videos are incredibly useful. Schools, universities, and online learning platforms can use videos to explain course offerings, simplify complex concepts, or provide instructional content. Whether it’s a tutorial on how to use an online learning platform or a breakdown of a tough mathematical concept, explainer videos can enhance student engagement. 

In the e-learning sector, explainer videos also serve as an efficient tool for onboarding new students or explaining subscription services. This helps potential learners understand what they’re signing up for and how the courses will benefit them. 

6. Finance and Insurance 

In industries like finance and insurance, where the target audience often feels overwhelmed or confused by complicated terminology, explainer videos are a powerful tool. These videos can clarify complex financial products like investment strategies, retirement plans, or insurance policies, providing straightforward explanations and real-world examples. 

For instance, an insurance provider might create an explainer video to break down how different types of insurance policies work, showing how they can protect families in case of emergency. 

7. Technology and IT 

The technology and IT industries often deal with highly technical products and services, and explainer videos can bridge the knowledge gap between technical jargon and user understanding. Tech companies can use explainer videos to showcase new software, explain how new technologies work, or illustrate how their products solve common technical problems. 

A demo video for a new app or gadget can walk users through the installation process or highlight key functionalities. These videos are particularly valuable for simplifying the learning curve for non-technical users and providing ongoing support for more advanced users. 

8. Nonprofits and Charities 

Nonprofits and charities can benefit greatly from explainer videos by raising awareness, sharing their mission, and engaging potential donors. A well-crafted explainer video can help explain the organization’s cause, the problems it addresses, and how individuals can contribute or get involved. 

For instance, a charity might use a case study video to showcase the positive impact of a specific project, helping potential donors see where their contributions are going and the difference they are making. 

The Benefits of Explainer Videos 

1. Improved Engagement 

One of the most significant advantages of explainer videos is the ability to capture the audience’s attention quickly. With short attention spans and an overwhelming amount of content online, videos are an effective way to stand out. Videos allow businesses to convey their messages more dynamically through a combination of visuals, sound, and text, making them more engaging and memorable than traditional content. 

2. Increased Conversion Rates 

Businesses that include explainer videos on their landing pages or marketing campaigns tend to see higher conversion rates. According to studies, explainer videos can increase conversions by up to 80%, as viewers are more likely to act after watching a compelling, informative video. Whether it’s subscribing to a newsletter, signing up for a service, or making a purchase, explainer videos push viewers to take the next step. 

3. Enhanced Brand Awareness 

Explainer videos provide an opportunity for businesses to introduce themselves and build their brand in a short amount of time. A brand video can encapsulate the mission, values, and unique selling propositions of a business, while also keeping the audience entertained and informed. This builds recognition and trust with potential customers. 

4. Better Retention 

The human brain processes visuals much faster than text. By pairing visuals with key messaging, explainer videos help improve information retention. People are far more likely to remember what they’ve seen in a video, as opposed to reading through a lengthy text document. 

5. Cost-Effective Marketing 

While creating an explainer video requires an investment upfront, the long-term value makes it a highly cost-effective marketing strategy. Explainer videos can be repurposed across multiple channels: your website, social media, email campaigns, and even ads. Their longevity and versatility help businesses maximize the return on their investment. 

Who Needs Explainer Videos? 

The short answer: anyone who needs to explain something clearly and effectively to their audience. 

Startups, e-commerce businesses, SaaS companies, and nonprofits are some of the industries that benefit greatly from explainer videos. Essentially, any business looking to educate, engage, or convert customers can benefit from incorporating explainer videos into their marketing strategy. 

Examples: 

• Startups: A new company might use a brand video to introduce its products and mission to its audience. 

• E-commerce platforms: Online stores often use demo videos to show how their products work, building trust and increasing the likelihood of a sale. 

• SaaS providers: Explainer videos can walk potential customers through the core features of a service, improving user understanding and reducing sign-up friction. 

Are Explainer Videos Profitable? 

Yes, explainer videos are highly profitable. By improving engagement, simplifying your message, and increasing conversion rates, explainer videos offer significant returns on investment. Moreover, because they can be used across multiple platforms and repurposed in various ways, businesses can achieve high ROI without needing to create new content repeatedly. 

According to HubSpot, businesses that use explainer videos see up to 64% more leads and conversions compared to those that don’t. Additionally, explainer videos on landing pages can increase conversion rates by up to 80%. 

Who Makes the Best Explainer Videos? 

The best explainer videos come from agencies or companies that specialize in creating content tailored to the brand’s voice, audience, and goals. A professional explainer video agency brings expertise in storytelling, animation, voiceovers, and strategy to ensure the video achieves the desired outcome. 

Wenimate is one such agency, known for producing high-quality brand videos, demo videos, and case study videos that help businesses articulate their message and connect with their audience. 

What Is a SaaS Explainer Video? 

A SaaS explainer video is specifically designed to explain the features and benefits of a software-as-a-service product. Given that SaaS products are typically complex, explainer videos help potential customers quickly understand how the software works, why it’s beneficial, and how they can get started. 

A typical SaaS explainer video addresses key pain points, demonstrates the product’s capabilities, and shows the value it brings to users. By making the explanation easy to follow, these videos can significantly enhance customer acquisition efforts.