When you’re a new business, and you’re faced with all of the possible marketing tactics available, it can be tough to know where to begin. Even tougher is knowing how to spend your marketing and advertising budget in the best possible way to maximize returns. You might not feel like you have a lot of room for experimentation, at least not initially.

It’s best as a startup to look for the most targeted, effective and inexpensive marketing options available, and one of these is an explainer video.

The following are five reasons a new business needs an explainer video.

Boosts Conversions

Even if you’re driving all the traffic in the world, if you can’t get the conversions it’s a fruitless effort. Conversions are key but also elusive.

There’s where explainer videos can come into the equation. When you have an explainer video, it makes people significantly more likely to make a purchase.

It’s a User Manual

According to MarketingProfs, explainer videos are the modern version of a user manual. It’s tough to help people understand exactly what a new product or service really is, and an explainer video is a simplified and inexpensive way to do just that.

It’s really like being able to give your audience an in-person demonstration according to MarketingProfs, for the modern world.

Also, we hear a lot about selling benefits, not features. That’s exactly what you can do with an explainer video. You don’t have to present a laundry list of features and hope it resonates with your audience. Instead, you can present benefits to them in a succinct, fun way.

It’s Practical and Inexpensive

In the past startups and small businesses didn’t feel like video was a viable option for them, usually because they thought it was expensive or difficult to produce. It seemed like something that was out of the realm of possibility if your marketing budget wasn’t huge, but that’s not the case anymore.

Creating explainer videos and videos of all types is actually incredibly simple and inexpensive, and yet the quality of the finished product is highly sophisticated, so it’s a win-win for businesses.

You Can Integrate Creativity

If you’re trying to explain your product or service in a traditional way, such as with written content, it’s tough to make it stand out, but standing out is essential.

With an explainer video you can include your creative voice, music, and animations and even if your product has similarities to others on the market, your video may be enough to set you apart.

You can even add some humor or fun into it.

They Appeal to a Wide Audience

Finally, if you want to put your marketing budget to work in the most effective way possible you also need what you do invest in to reach as many people as possible. An explainer video is great for achieving this objective.

This kind of content is going to appeal to the widest audience in most cases, and they’re also really adaptable so you can change a few small details and use it for different audiences.