Why Animated Video Production is a Cost-Effective Alternative to Live-Action Videos

Videos aren’t just a nice-to-have for your brand; they’re essential. But when you’re choosing between live-action and animated videos, budget often takes over the decision-making. If you’ve ever looked into live-action production, you know how quickly the budget can spiral out of control—actors, crew, locations, equipment, post-production, and more. On the other hand, animated videos offer a budget-friendly alternative without compromising on quality or impact.  

So, how do animated videos help you save money? Let’s break it down.  

Cost Breakdown: Live-Action vs. Animation 

When it comes to video production, costs can add up quickly—especially for live-action projects that require multiple shoot days. Here’s a closer look at how live-action and animated videos compare in terms of budget: 

Live-Action Video Expenses: 

Here are some typical expenses for a mid-range production: 

Pre-production: Scriptwriting, storyboarding, casting (₹55,000 – ₹2,50,000) 

Production: Crew, equipment, location, props, actors, makeup, costume, (₹4,50,000 – ₹15,00,000) 

Post-production: Editing, colour correction, sound design (₹40,000 – ₹2,50,000) 

Total Estimated Cost for a 45-Second Live-Action Video: ₹5,45,000 – ₹20,00,000 

Animated Video Expenses: 

Motion Graphics Video Pre-production: Scriptwriting, layout design, and concept development (₹10,000 – ₹30,000) 

Production: Layout creation, background design, and illustrations (₹1,00,000-3,00,000) 

Post-production: Voiceover, sound design, and final rendering (₹35,000 – ₹50,000) 

Total Estimated Cost for One 45-Second Motion Graphics Video: ₹1,45,000 – ₹3,80,000 

(These are very generic figures – the specifics will depend on the project)         

2D Animation Pre-production: Scriptwriting, storyboarding, and design (₹15,000 – ₹20,000) 

Production: Layouts, background design, motion graphics (approx. 40% of content), character design, illustrations, and animation (₹1,50,000) 

Post-production: Voiceover, sound design, and final 2D rendering (₹40,000 – ₹50,000) 

Total Estimated Cost for One 45-Second 2D Animated Video: ₹2,05,000 – ₹2,20,000  

3D Animation Pre-production: Scriptwriting, storyboarding, and design (₹30,000 – ₹40,000) 

Production: Modeling, texturing, lighting, set designing, motion graphics (approx. 40% of content), camera movement, and animation (₹2,00,000) 

Post-production: Voiceover, sound design, and final 3D rendering (₹50,000 – ₹60,000) 

Total Estimated Cost for One 45-Second 3D Animated Video: ₹2,80,000 – ₹3,00,000 Clearly, animated videos offer a significant cost advantage. But it’s not just about cost—it’s also about efficiency, flexibility, and creative freedom.  

Why Animated Videos Can be Simpler to Produce 

1. No Location, Equipment, or Crew Costs 

 Shooting a live-action video means dealing with location rentals, camera setups, lighting, sound equipment, and a production crew. Even a simple one-day shoot can cost lakhs. With animation, you eliminate these expenses. Your “set” is digital, and you don’t need to pay for travel, permits, or last-minute location changes. 

We made this animated video for Deckmount to showcase the features of its oxygen concentrator. A live-action shoot would require actors, location setups, and on-site filming. In animation, we bring the concept to life —no shoots, no logistics, just pure creativity. 

2. Unlimited Creative Freedom at No Extra Cost 

In live-action videos, the more ambitious your idea, the more expensive and complicated it gets. Want a talking animal or a scene set in space? That means CGI, special effects, and a hefty production budget. But with animation, you can bring any concept to life—no limits, no extra costs. 

Take Duolingo’s animated ads, for example. Their quirky, expressive owl mascot interacts with users in fun and exaggerated ways that would be nearly impossible (or extremely costly) to replicate with live-action. Animation gives brands the freedom to be creative without worrying about production constraints. 

3. Easy Revisions, No Costly Reshoots 

Live-action shoots don’t always go as planned. A scene might need retakes due to bad lighting, background noise, or an actor’s mistake. Reshoots mean extra costs. With animation, revisions are simpler and cheaper—adjustments can be made without scheduling another shoot. Keep in mind rendering time though – every single adjustment means the whole section/scene needs to be re-rendered, so make sure you’ve accounted for that. 

4. Scalable & Reusable Content 

 Animated elements can be repurposed into multiple formats. A single animated video can be adapted for Instagram reels, YouTube shorts, website banners, and even presentations, saving costs on future content creation. 

Example: McDonald repurposes its animated videos into social media snippets, making the most of its content investment.  

How to Maximize Cost Efficiency in Animated Video Production

1. Choose the Right Animation Style for Your Budget

Not all animations are created equal—different styles serve different purposes and come with varying price tags.

Here’s a closer look at the main types of animation and how they fit into different budgets:  

Motion Graphics (₹1,45,000 – ₹1,55,000 for one 45-second motion graphics video) 

Best for: Corporate videos, product explainers, data visualization. Motion graphics use simple shapes, icons, and text animations to make information easy to understand. They’re commonly used in product videos, business presentations, app tutorials, and financial reports. This style is budget-friendly since it doesn’t require character animation or complex storytelling. 

Check out this motion graphics video with clean, compelling visuals that explain Blockdaemon’s blockchain platform in a simple, engaging way.  

2D Animation (₹2,05,000 – ₹2,20,000 for one 45-second 2D animation video) Best for: Brand storytelling, marketing campaigns, and educational videos. 

2D animation brings stories to life with characters, dynamic visuals, and engaging narratives. It’s a popular choice for commercials, social media ads, and training videos. It offers a great balance between cost and creativity—more engaging than motion graphics but still affordable compared to 3D animation. 

Take a look at this animated video we created for Virbee Agile, showcasing how its app works.  3D Animation (₹2,80,000 – ₹3,00,000 for one 45-second 3D animation video) Best for: Product visualization, high-end commercials, and real estate walkthroughs.  3D animation adds depth and realism, making it perfect for showcasing products in detail or creating immersive brand experiences. However, it requires advanced software and skilled animators, making it the most expensive option. 

Check out this 3D animated product video we created for Luminous to showcase its inverter, AmpBox, with stunning detail and clarity.

2. Work with a Professional Production Company  

A reliable video production company will streamline the process, preventing costly revisions and ensuring high-quality output. Look for a video production company experienced in brand storytelling, scriptwriting, and animation.

3. Use Templates for Budget-Friendly Animation 

Not every video needs custom animation. Tools like Vyond and After Effects templates help create professional videos without huge budgets. For brands looking for quick-turnaround content, template-based animation can be a great cost-saving option.  

Animated videos aren’t just a cheaper alternative to live-action—they’re flexible, engaging, and cost-efficient in the long run. No matter the size of your business—startup, mid-sized, or enterprise - investing in an animated video production company can help you tell powerful stories without burning a hole in your pocket.  

Thinking of creating an animated video for your brand? Let’s make it happen! Contact us today for a consultation.