Animated Video Production Companies vs In-House (2025 Guide)

Marketing

12-04-2024

(Updated 12-09-2024)

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9 min

Animated Video Production Companies vs In-House (2025 Guide)

The Video Advantage: Trends & Strategies for Content Marketers 2024

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You’ve just created the perfect solution for your customer’s problems. The best (and most fun!) way to grab their attention and explain your business idea to them?

Perhaps through an animated video!

An animated video uses various visual and reading elements like text overlays, icons, 2D and 3D animations, stop motion, whiteboard animation, and motion graphics to break down complex topics in a digestible and easy-to-understand way. 

Companies use animated videos for a variety of goals, from educating their audience with how-to videos to generating sales via product demos. 

To save you time and energy, we’ve compiled a list of excellent animated video production companies for your business. And if you're looking to create animated videos in-house, we’ve got solutions for you, too.

Let’s dive right in.

What does an animated video production company do?

From initial concept to final delivery, an animated video production company does it all for you. It provides end-to-end video services. 

1. Strategy

This is the initial phase of working with an animated production company. You start by discussing your requirements, business goals, target audience, and main objective in creating an animated video for your business. 

This is where you discuss timelines, budget, deliverables, video style, and tone with your chosen animated video production company.

2. Development

Once you've hashed out the details, the animation crew rolls up their sleeves and starts working on your creative vision.

This includes creating a script according to your business objective and key message and storyboarding it. This is when you’ll see a visual outline of the script. 

3. Asset creation

The animation team starts bringing your creative vision to life, crafting characters and figuring out how they'll move. They're also busy creating eye-catching backgrounds and all those little visual details that'll make your video pop. 

The best part? They're doing all this with your brand's personality and goals front and center.

4. Animation production

It's time to stitch all the video pieces together.

This is where the animated video production company starts working on your video’s animations with their illustrators and 2D and 3D designers. 

This includes creating rough animations, getting the timing just right, smoothing movements, and working on special effects like transitions and motion graphics.

5. Audio

With the visuals looking sharp, it’s time to give your animation video its voice. 

From voice casting (handpicking voice actors who can nail your brand voice) and recording sessions to selecting the perfect background music that complements your message and brand vibe, this is where all the audio magic happens. 

6. Post-production

This is the time for color correction, timing adjustments, and adding the right visual elements to your videos. 

Once your video looks exactly as you envisioned, the animation video production company will export it in various formats and sizes and send you the final file. 

5 animated video production companies you should know

Are you looking for animated video production companies that translate your complex business ideas and solutions into fun, lively animated videos? 

Your search ends here. We’ve listed 5 of the most popular animated video production companies for you.

1. Demo Duck

Demo duck agency

More than a decade ago, Demo Duck was simply a small group of creatives creating innovative video content out of their kitchen. Today, they’re one of the most popular animated video production companies and have worked with big names like DropBox, GoFundMe, Google, Netflix, and Canon. 

Demo Duck specializes in live-action and animated videos, often combining the two to create super-engaging videos.

ProsCons
A highly organized team, attention to detail, and a collaborative attitude with clients.Costly.Its prices start from $15,000 per video and can go up to $60,000+ depending on the project scope.

2. Lemonlight

Lemonlight agency

Lemonlight is an on-demand video production company based in Los Angeles that excels at bringing your goal and vision to life. 

Since its start in 2014, it has produced over 25,000 videos and has worked with 4,000+ clients including industry giants like Toyota, Walmart, Rolex, Nestle, and Coca-Cola. 

From producing video ads, product videos, and tutorials to testimonial videos, event videos, and crowdfunding videos, Lemonlight seems to take on anything!

Their specialty? Expert storytelling with cutting-edge technology.

While their prices start from $3,500, they have seasonal sales and offer discounts, too. So keep a lookout for those if you’d like to save some dollars!

ProsCons
Open communication, effective and efficient workflows, and high-tier video production.Can get a little expensive if you want cutting-edge, highly technical animated videos for your business.

3. Yum Yum Videos

Yum Yum video agency

Looking to create explainer animated videos for your brand? Yum Yum Videos is your company!

Yum Yum Videos is an animated video production company that specializes in explainer videos. Remember, there is a lot of variety within the explainer video category, from product demos and whiteboard animation videos to training videos. 

And while it may not be the most expensive option on your list, it’s definitely not the cheapest as its average rates range between $6,000 and $15,000 per minute of video duration.

It also boasts a strong portfolio with major global players like RedBull, Roblox, Huawei, and Google. 

ProsCons
Excellent understanding of complex topics and converting them into easy-to-understand animated videos.Specializes in explainer video content, so you might need to consider another video production company if you’re on the lookout for a different style of animated video.

4. Thinkmojo

ThinkMojo agency

If you’re in the B2B tech industry, you will love Thinkmojo. 

A forward-thinking video production company started in 2012, Thinkmojo is a forerunner in the world of fun animated videos. It has a stellar portfolio and has worked with a plethora of Fortune 500 companies to create innovative brand videos. Some of their clients include SaaS Salesforce, Zendesk, Calendly, Slack, and Discord. 

They use a mix of animation, live action, and screencasting, among other video styles, to create on-point, quirky brand videos. 

Here’s a short trailer of them shooting a fun commercial.

ProsCons
Extensive experience in the tech niche.Can get particularly expensive for start-ups.

5. Vidico

vidico - animated video agency

From animation (2D, 3D, motion graphics) and live-action to short-form videos, Vidico does it all. 

This end-to-end video production agency has worked with several big tech names including Square, Spotify, Airtable, Uber, and Amazon. They cater to all kinds of businesses with custom video solutions - from startups to Fortune 500 companies.

It has a flexible pricing model where prices range from $3,999/month to $7,999/month. Or, you can just take their quiz to find out what they’ll charge you for your project.

ProsCons
Top notch animation expertise and a data-driven approach to video. Costly.

How much does an animation company cost?

An animation company can cost anywhere from $3,000 to $100,000. It may sound like a crazy range, but it’s true. 

There are several factors that determine what an animation company will charge you. 

  • Length of the video: Most animation companies quote prices per minute, like Yum Yum Video. Vidico, on the other hand, charges $3,999 for 4 15-second videos every month.
  • Video style: Depending on the type of video you want, whether it’s 2D, 3D, or whiteboard animation and motion graphics, the prices vary.
  • Turnaround time: A last-minute project might be priced a lot higher than one with a longer turnaround time.

And if you’re looking for additional services like voiceovers and casting, music added to your videos, you’ll likely have to pay extra.

For example, a 1 minute long 3D animated video might cost anywhere between $5,000 to $20,000. Similarly, complicated video animation projects with multiple deliverables can cost upwards of $25,000.

video-icon

If these numbers sound too high for your current budget, it’s best to take video production in-house.

Along with being a cheaper option with a more set and transparent cost for setting up an in-house animation team and getting all the equipment, it has several other benefits.

  • Faster turnarounds: Since marketing, sales, and video production teams are all working internally, they can collaborate with each other and get quicker approvals or feedback as opposed to with external vendors. 
  • More video production: You can turn one shoot into multiple videos, start new projects immediately, and establish in-house video styles and templates to produce more videos, faster.
  • Videos are more adapted to the brand: When marketing and video production teams work together, it’s easier to ensure that videos are more in sync with your brand vision and goals.

How to take animated video production in-house

Decided to cut back on the video production company costs and create videos using your own internal teams? 

Here are 3 main ways to take animated video production in-house.

Do-it-yourself

When you’re just starting off and don’t have a massive budget, start by producing simpler, shorter animated videos yourself or delegate them to your marketing department. 

You’ll need the following equipment:

  • desktop or laptop with at least 8GB of RAM and a modern multi-core processor, like an Intel Core i5 or AMD Ryzen 5.
  • graphics tablet like Wacom One or Huion for sketching and animating.
  • A simple microphone to record voiceovers. A low-cost Lavalier or a higher-quality podcast mic works just fine! 
  • An animation and video editing software.

Hire a video producer

Lack the expertise to create animated videos yourself? Hire a video producer.

An animated video producer wears multiple hats and acts as a project manager, creative director, and technical supervisor. From strategy to post-production, animated video producers can have their hands in just about anythingl. 

And while hiring one may sound expensive, the charges for video producers vary greatly. 

If you have a limited budget, use freelancing websites like Upwork and Fiverr to find animated video producers in your budget. 

Another way is to ask friends and colleagues for recommendations. Video producers often showcase their work on websites like Vimeo and Dribble, so make sure to look there as well. 

When hiring a video producer, look for the following things:

  • A strong portfolio in your niche
  • Client reviews, ratings, and testimonials
  • If their design sense is aligned with your vision and their ability to understand what you want
  • Pricing and turnaround time

Using an animated video creation platform

Long gone are the days of hand-drawn animations. While traditionally, the animation video production process was labor-intensive and time-consuming, often requiring thousands of individual drawings for a short animation, now it’s much simpler.

Video editing digital platforms like PlayPlay make it infinitely easier to create simple animated videos for your brand. 

Features like premade motion designs, customizable templates, dynamic elements, an intuitive interface for storyboarding, voiceover tools, and an asset library make it easy for brands to create high-tier animated videos at scale. 

And all of this without breaking the bank. 

How to create animated motion design videos with PlayPlay

There are 3 ways to create animated videos via PlayPlay:

  • From scratch
  • Using a template
  • Using PlayPlay’s AI video editor

Using a template

If you’d like to use a template, follow along.

Step 1: Open your PlayPlay profile and click on Templates. 

Create a video with PlayPlay

Step 2: Choose from the plethora of pre-made, professional-quality animated video templates available.  

Choose PlayPlay's Templates

Step 3: Time to start getting creative. 

Add your text, branding elements like your logo and brand colors, a CTA, and your website. You can add a voiceover you’ve recorded for your video, use our AI voice-over tool, or add some tone-setting music that goes with your animated video and its core message. 

Edit your video on PlayPlay

Basically, go crazy! 

PlayPlay’s simple, drag-and-drop interface makes it super easy to create animated videos in a few minutes.  

Step 4: All done! Now go watch a Preview of your video and once it feels perfect, Click ‘Generate to HD’. 

AI video editing assistant

No more staring at a blank screen, wondering where to start. No more spending hours manually editing every part of your animated video. 

Simply describe what you want, and PlayPlay's AI video editor does the heavy lifting.

It chooses the right animations, the right text, and the right soundtrack, and creates an amazing animated video in seconds, not hours or days. No more stressing about where to start or what elements to include.

Follow along with a step-by-step process. 

  • Step 1: Click on PlayPlay’s AI Video Assistant option. 

  • Step 2: Add your prompt. 

Try PlayPlay video assistant

Here’s where you need to get creative. 

For example, let’s create an animated video for Zendesk. PlayPlay’s AI video assistant will ask questions related to your prompt and help you create an engaging script and storyboard for your video based on your input.

Play around with the storyboard PlayPlay’s AI video assistant provides you with and click ‘NEXT’ when you’re ready.

Step 3: Once you’ve edited everything, click Preview and Generate your video in HD.

Super simple, super easy, and you’ve got a library of animated videos created within minutes.  Remember, you can always hop back into the editor to tweak things and add more!

In-house or with a video production company: which is best?

The choice between producing videos in-house or hiring a video production company depends on several factors: budget, frequency of video needs, complexity of projects, and available internal resources. 

Creating animated videos in-house,

  • Is often cheaper in the long run and an easier-to-manage expense.
  • Saves a lot of time - video turnaround times are within your control and by your own rules.
  • Helps you create videos regularly and more frequently.
  • Ensures your video's branding is on point. An in-house video team works closely with the marketing team to consistently represent your brand voice. 
  • Makes it easier to make last-minute changes to your animated videos. 

However, there are certain disadvantages to creating videos in-house too. 

You’ll need to train your in-house team to keep on top of the latest trends and technologies in the video world. Your in-house team may additionally lack the specialized skills required for more complex projects. 

Similarly, working with animated video production companies also has its advantages and disadvantages

When you’re working with an animated video production team, you have access to experts with highly specialized skills and knowledge like high-end VFX composition techniques, dynamic simulations, and advanced color grading. 

Video production companies often have connections with talent and resources that may be unavailable to you. They can also handle complex projects with ease.

However, they cost a lot of money and you need to work around their availability and workflow. 

So should you opt for in-house video production or go with a video production company?

The best strategy is to take the hybrid approach. Make simpler videos in-house and outsource complex projects to a competent video production company!

Ready to create animated videos for your business?

While animation video production companies offer high-end expertise for complex projects, taking your animated video production in-house with PlayPlay offers the perfect balance of quality, cost-effectiveness, and control. 

With PlayPlay, you’ll be able to create professional-looking animated videos quickly and scale your video content in-house without spending a fortune!

With PlayPlay's intuitive interface, motion design features, and customizable templates, you don't need to be a video editing expert to create engaging animated content. Whether you're creating product demos, social media content, or explainer videos, PlayPlay gives you the tools to bring your creative vision to life – all while keeping your video production agile and cost-efficient.

Start your video creation journey today and see how in-house animated video production with PlayPlay can transform your business's visual content strategy.

Jaymi Onorato

Jaymi Onorato

Demand Generation Manager, North America

Jaymi is a growth-focused B2B marketing leader driving demand generation for North America at PlayPlay. Jaymi advocates for inclusivity in tech and women in leadership.

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The Video Advantage: Trends & Strategies for Content Marketers 2024

Whether you’re a seasoned marketer or just starting out, staying ahead of the curve is crucial. This ebook is designed to help you take advantage of the biggest content and video trends this year.

Discover now

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