What Is an Animation Company?

Animation companies are teams of professionals with the knowledge and experience to create content that can reach and captivate your company's target audience. 

They bring your stories to life, presenting specific products to customers or communicating your company's services, all while ensuring top-notch quality. 

Animation production companies aim for authentic campaigns with a unique and sentimental spark to drive your brand and effectively communicate your message. 

In-house teams of highly skilled and confident animation producers work with many different styles, and some of them are as follows: 

  • Vector 
  • Hand-drawn 
  • 2D Animation 
  • 3D Animation 
  • Stop-motion 
  • Mixed media 
  • And more
video animation: hand drawing on tablet screen
Animations simplify a complex product or an in-detail company story

What Does an Animation Production Company Do?

Animations are created to simplify a complex product or an in-detail company story. It is an effective tool for streamlining information and presenting it in an engaging way to the viewers. 

The global 3D animation market value is forecasted to grow to more than 27 billion dollars by 2026. In such a versatile and competing market, there is a wide range of services provided by video animation production teams. 

Some of the activities that these companies can cover are as follows: 

  • Product videos: If you need a sales video, the team will show how your company's product solves problems. These videos can help you debut something new, increase sales and encourage engagement. 
  • Explainer videos: If you company has a specific products such as software, you might need to invest in an explainer video. It will bring the using of the software much closer to your target audience.
  • Brand videos: When you need content that tells your company's story, animation companies can create core values-focused company animation videos you can anchor to your website or share with your email newsletter subscribers. 
  • Social media videos: If you need unconventional content to get the attention of social media users, animation videos will make the followers stop and watch your company's message. This type of content aims to get hashtags, tweets, likes, and shares and convert leads into customers. 

Animation production companies constantly push the limits of innovative storytelling and commit to top-quality content. 

The industries they are covering are as follows, but not limited to: 

  • Medical and life sciences campaigns 
  • B2B technology 
  • Non-profit and causes 
  • STEM and eLearning 
  • And more

These companies can be local, with up to 50 people working on projects, but some grew into global animation studios with a history of exceptional staff and awarded films. Some of them are: 

  • Pixar Animation Studios (California, USA, est. 1986) 
  • Walt Disney Animation Studios Location: (California, USA, est. 1923) 
  • Dreamworks Animation SKG Location: (California, USA, est. 1994) 
  • Sony Pictures Animation Location: (California, USA, est. 2002) 
  • Blue Sky Studios Location: (Connecticut, USA, est. 1987) 
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How Much Does Video Animation Production Cost?

Animation companies define their pricing structure based on the following: 

  • The complexity of the project 
  • Length of the video 
  • Number of characters 
  • Advanced features 
  • Style of animation 
  • And more 

The costs can range anywhere from $2,500 to $30,000 per project; for example, a 30-second high-quality animated explainer video costs between $2,000 and $4,500.  

The average cost to make a 60-second 2D animation in the USA can run between $6,000 and $300,000 per project. On the other hand, 3D animation is pricier, and it could cost from $10,000 to $200,000 per minute.  

Regarding hourly rates, the pricing structure goes from $15 per hour to $120 per hour

Why Should You Hire Animation Production Companies?

Reason #1: Sending Clear and Concise Message 

Animated marketing videos are an effective way to get information across entertainingly and concisely. They can utilize several elements at the same time, such as: 

  • Voiceover 
  • Custom visual aids 
  • Visual metaphors simultaneously 

An animated video can show complicated scenarios as there are no constraints to film the scenes in a real-life environment 

Reason #2: Reflecting Your Company's Brand 

Another benefit to animation is that your company can incorporate the brand's personality in a way that isn't achievable with other types of marketing. You can personalize animation by using some of the following brand's elements: 

  • Color scheme 
  • Aesthetic style 
  • Logo 
  • And more 

This type of emotive marketing is ideal for creating and maintaining a supportive and loyal customer base. 

Reason #3: Investing Fewer Resources

When it comes to animation, sometimes only one animator can design and create the content you have envisioned. Another thing to consider is that most of the production studios offer a round of post-production edits for free, such as minor edits that can make a huge difference.  

Reason #4: Growing Return on Investment (ROI) 

Investing in top-quality animated content that can attract new target audiences and convert leads to sales is vital. According to the Wyzowl report, most consumers (94%) watch the explainer videos to understand the product better, and 84% decide to purchase after watching the video.  

One of the examples is the DropBox explainer video, done in a whiteboard style, that drove a 10% conversion that led to 10 million additional customers, with an ROI of $48M in revenue.

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How To Choose the Right Animation Company for Your Business?

It is not an easy route to find the matching team that does high-quality video animation production, so follow the next steps to get the section of your dream: 

Step #1: Decide on Your Goals

When looking for an appropriate agency, first put on paper the goals and aims of your team and your company's plans. It is a base point for the further development of business strategies and makes the outsourcing process a lot easier. 

Step #2: Research the Market

Before conducting interviews and calls with your potential hire, consider that you should know the broader market of animation production companies. This will allow you to see the complete picture of possible services and packages you might think of. Some of the companies also propose the following: 

Step #3: Ask Them to Show Their Portfolio 

Most companies already have their portfolio published on their website, but ask them about projects from your company's niche. 

There might be a couple of other projects that the potential hire covered in the last couple of months or years, which might be of interest to you. Even a failed one would prove their knowledge if the company learned a lesson. 

Step #4: Check the Reviews and Testimonials 

Read all of the reviews and client testimonials. Feel free to contact previous clients and ask them about their correspondence with the video animation production team. They can certainly tell you information to clear up any fog about the timelines, tasks, deadlines, and more. 

Step #5: Define the Payment Structure 

Before signing any papers, discuss your project budget and planned pricing structure. 

Ask the company about the following elements before you make a deal about your business partnership: 

  • Price of Additional Edits 
  • Hourly Rate of the Animators 
  • Invoicing and Payroll Process 
  • And More 

15 Questions to Ask Video Animation Companies Before You Hire One 

  1. How long have you been working in the video animation industry? 
  2. How many years of experience does your youngest teammate have? 
  3. Do you have experience with our company's niche or projects similar to ours? 
  4. What type of animation videos do you have expert knowledge in? 
  5. Have you ever worked on multiple projects at the same time? 
  6. How many of our feedback and edits are applied to the animation process? 
  7. Do we get several free edits within the chosen package?  
  8. Do you work only with your in-house team or outsource your professionals? 
  9. What creative solutions would you propose to us? 
  10. How many hours will it take to produce the described content? 
  11. How do you manage the tasks and project deadlines? 
  12. Have you ever had a failed campaign? 
  13. How many meetings will we have weekly, bi-weekly, or monthly? 
  14. Do you provide additional services, e.g., social media marketing, media buying, etc.? 
  15. Can you give us an estimated cost of the project? 

Takeaways On Animation Companies 

Video animation companies help brands reach their target audiences by producing high-quality, engaging animated content. 

The prices go from $15 per hour to $120 per hour. So, to pick the best agency for your business needs, remember to: 

  • Check their previous work 
  • Look at their reviews 
  • Consider their communication pipeline 
  • Ask for their rates and budget  

Best of luck!


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