How do agencies make and use animated videos for their clients?

Interested in learning about animation for agencies? Maybe your agency wants to start offering animated video production services for your clients? Or maybe you’ve been offering them already but want to learn about other ways your agency can provide animation services faster, for less or at a higher level of production quality? If you have a question about animation for agencies that isn’t answered in this article, you can use our contact form to ask your question or click the image below to with a member of our production team:

How are agencies making and using animation and live action video content?

Video Igniter Animation contacted 99 agencies in Seattle to learn:

• Why do agencies recommend using video content?
• How are agencies making videos and animated video content for their clients?
• What types of video content are agencies making for their clients?
• What prevents agencies from making more live action & animated video content?
• And how much do agencies charge to make videos for their clients?

Our findings are summarized in the video and images below:  

 

The top 5 reasons agencies recommend using video as a medium are: 1). Video is great at conveying emotion. 2). Short attention spans means that people are more likely to watch a video over reading a page. 3). Video has a strong engagement rate. 4). Video is great for storytelling. 5). Video is the medium shared most often online. Honorable mention: Agencies also mentioned video is great for improved search rankings, brand awareness and concisely explaining complicated things.   
So how are agencies making videos for their clients? – 69% of agencies use a combination of in-house talent and partnerships with multiple studios to help them produce videos. – 19% of agencies outsource all of their video production. – Only 11% of agencies do all of their video production in-house.

 

Ready to start production? Check out this guide if you’re thinking of hiring an animation studio.

Why are agencies using animation and live video content for their clients?

Most of the videos are used for: – Advertising – Internal Communications – Educational Sales Material – Landing Page Videos – Education  
What kinds of videos are agencies making on behalf of their clients? – 11% of agencies primarily produce animations & motion graphics. – 17% mostly produce smartphone and user generated content video campaigns. – 22% mostly produce live action videos. – 50% of agencies are producing an even mix of animations and live action videos.

Why don’t agencies make more live video and animation content?

Many of the agencies we spoke with expressed interest in utilizing video more often. Here’s what they say is holding back their ability to do more:

– Production costs are too high or clients can’t budget for it.

– Production costs are unpredictable.

– It’s faster and cheaper to make short videos for social media.

– The video production workflow is too slow and a major hassle.

Project deadlines are usually very short and the feedback/review/approval process is too long. – Clients are still shifting their understanding of the ROI from TV to online video.

With that in mind, what are most agencies paying to produce live action and animated video? Most are paying between $5,000 and $125,000 to produce live action videos… … and between $5,000 and $35,000 for animated and motion graphics videos.

Deep Dive:  What is an animation agency?

Thanks for watching this short video research report. Video Igniter offers computer animation for agencies and businesses through a web app designed to simplify your production and lower your production costs. When you want to speed up production timelines and lower your cost to producing custom animations, create an account at VideoIgniter.com and upload your creative spec to get started.

Overcoming Common Challenges in Agency Animation Workflows

While many agencies understand the value of animated video content, they often struggle to scale production efficiently. Below are some advanced strategies and process optimizations that agencies can adopt to overcome common bottlenecks:

1. Establish a Modular Animation Asset Library

One of the biggest inefficiencies in animation is recreating core elements (e.g. character rigs, icons, transitions, lower thirds) for every project. Agencies can build modular, reusable animation libraries:

• Pre‑rig characters in styles consistent with your brand aesthetic.
• Build a library of motion presets (e.g. fade, slide, pop) tied to your style guide.
• Save reusable templates for text intros, lower thirds, and transitions.
• Maintain a versioning system for updates and tweaks.

When new client projects come in, your team can assemble the video quickly by combining prebuilt modules, then only customizing where the narrative demands. This method reduces iteration time and helps most projects land under aggressive deadlines.

2. Formalize a Feedback & Approval System

The biggest drag on animation projects is usually client feedback loops. A structured feedback system can save days or weeks:

• Use timestamped feedback tools (Frame.io, Wipster, LookAt) so clients comment directly on frames.
• Limit rounds of revisions (e.g. “two rounds max”) and clarify what counts as a “revision.”
• Use version control naming like v1_a, v1_b so you avoid confusion about which file is current.
• Require clients to provide consolidated feedback in one document per round, instead of piecemeal emails.

By putting in place clear gates (concept → rough animatic → first pass → final pass), you reduce back‑and‑forth and keep the production pipeline flowing.

3. Leverage Hybrid Production Methods

Not all agency videos need 100% custom animation. Blending animation with live footage or stock assets can yield high impact with less cost and risk:

• Use animated overlays on top of client video footage.
• Incorporate motion graphics into talking head or live B‑roll footage.
• Use animated text or kinetic typography for explainer segments.
• Blend real product shots with animated infographics to simplify complexity.

Hybrid methods allow you to use your core animation competencies while saving time on parts that don’t need full custom treatment.

4. Introduce Tiered Service Packages for Clients

Often, agency clients balk at high perceived cost. Offering tiered service levels helps them pick what fits their budget:

• Basic Animation Package: simple 2D animations or motion graphics with minimal custom illustrations.
• Standard Animation Package: custom character work, transitions, more scenes, some sound design.
• Premium Animation Package: full custom character animation, visual effects, 3D elements, complex scenes, premium sound and voiceover.

This structure allows you to meet clients at different budget points, upsell where appropriate, and manage internal expectations about scope and cost.

5. Streamline Voiceover & Sound Design Integration

Sound is often under‑estimated in animation. But a strong voiceover, music, and effects can radically elevate the final piece—and if mismanaged, drag timelines. Best practices:

• Establish a roster of vetted voice talent (male, female, multiple accents) and maintain relationships.
• Use serialized contracts to speed turnaround (e.g. blanket VO agreements for multiple videos).
• Preselect music libraries or custom composers and store approved tracks in your asset library.
• Fit sound design early into your timeline (don’t leave it as the final step).
• Use multitrack audio workflows so voice, music, SFX can be independently remixed if needed.

6. Monitor & Report Impact with Analytics

To help clients see ROI—and justify future animation spend—agencies should embed analytics and tracking:

• Use UTM and campaign tracking for animated video landing pages.
• Track engagement metrics (play rate, dropoff) in platforms like Wistia, Vimeo, YouTube.
• Run A/B tests (animated vs live, different intros) to see what works best.
• Include heatmap tools to track scroll / viewer behavior around video.
• Provide clients periodic reports showing lift in conversions, time on page, or engagement.

When clients see real, attributable results, they are more likely to approve future animated budgets.

Emerging Trends in Animation That Agencies Should Embrace

To stay competitive and deliver cutting-edge work, agencies should consider adopting or experimenting with the following trends:

Real-Time Animation & Game Engine Tools

Modern tools like Unreal Engine, Unity, or WebGL pipelines allow for near real-time rendering, lowering time between revisions. Agencies experimenting with these can offer interactive video experiences or responsive animations tied to user input.

Generative AI & Motion Style Transfer

AI tools are evolving fast. Some agencies are using machine learning to generate in-between frames, stylize animations (e.g. turning live footage into “toon” style), or automatically animate character speech. While not yet perfect for full production, these tools can accelerate certain tasks, reduce manual labor, or serve as ideation support.

Interactive Animated Videos

Rather than passive viewing, modern audiences expect interactivity. Consider building videos with clickable hotspots, branching narrative paths, or even mini-games embedded in the video experience. These can be particularly powerful for training, onboarding, e-commerce product demos, or immersive storytelling.

3D & Isometric Motion Graphics

2D remains dominant, but 3D elements—especially isometric design—are trending in explainer and corporate video. These give a sense of depth while remaining stylistically clean and modern. Incorporating subtle 3D motion graphics layered with 2D elements can give your animations a premium feel.

AR / VR Animation Integration

As augmented reality and virtual reality platforms mature, agencies can push into creating animated assets for AR filters, embedding animations in 3D scenes, or preparing work that translates to immersive environments. Forward-looking agencies are already starting to package assets with AR/VR in mind.

How to Scale an Internal Animation Offering Without Blowing Budget

If your agency is serious about offering in-house animation but wants to avoid ballooning costs or project debt, consider these scaling strategies:

• Train core staff in hybrid skill sets (animator + motion designer + illustration) so resources can flex.
• Hire freelancers or micro‑studios on retainer rather than large full-time teams.
• Adopt cloud rendering services (e.g. RenderMan Cloud, AWS Thinkbox) to scale rendering without owning clusters.
• Use version control + asset backup systems (e.g. Perforce, Git LFS) to prevent workflow time loss.
• Hold “animation sprints” where per week, small teams commit to delivering a batch of short animations (e.g. for social) to build efficiency.
• Benchmark ROI per animated minute (cost vs client return) to know what types of animation you should do more or less of.

Final Thoughts: Elevating Agency Value with Animation

Animation gives agencies powerful leverage: the ability to explain complex ideas, invoke emotion, and tell stories visually. But it’s not enough to just do it — you must do it fast, high quality, and with predictable costs. By applying modular asset libraries, robust feedback systems, hybrid workflows, and future-forward technologies, agencies can scale animation services in a way that delights clients and delivers measurable ROI.

If your team would like help launching or scaling an agency animation offering—whether designing your first modular library, vetting AI tools, or establishing a feedback pipeline—Video Igniter’s production team is here to consult and collaborate.

Hire Video Igniter to Create An Animation For Your Agency

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We can make any kind of 2D or 3D animated video you can imagine.

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Animation Success Stories & Testimonials

“Video Igniter came to us with a number of creative and engaging ideas and were able to create an exciting, impactful video in a short period of time. And the best part was that it cost much less than other options of similar quality. The video they made is a great marketing tool for us.”

Alex Raymond – Founder, Kapta Systems

“I run a video production company and outsource animation. The team at Video Igniter did a great job in taking the concept I very crudely drew out and made it into a beautiful animation. The review process was easy and their turnaround time was very quick. I’d def recommend them if you’re looking for an animation project.”

Pat Henderson – Founder, Path8 Productions

“My whole family and everyone on Facebook thinks you are amazing. My whole office is freaking out.”

Patricia Shields – Real Estate Agent

“Video Igniter offered us the critical combination of creative value, clear communication, and patience with stakeholder feedback. We ended up with truly high-quality design assets for our video series largely due to the extra level of commitment — and the right balance of efficiencies with flexibility in the process when called for.”

Larry Schlessinger – Sr. Creative Program Manager, Amazon Web Services

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