What Makes a Good Product Video? A Practical Guide for Founders and Marketers

Ever seen a video that doesn’t really try to sell you something, but instead just walks you through what the product does and how it works? Chances are, you weren’t watching a typical ad, you were watching a product video. We talk about real life application of product video in our “How Brands Use Product Videos” blog

In simple terms, a product video is a short, engaging piece of content that highlights a product’s key features, benefits, and how it works. Funny enough, the main goal isn’t always to drive sales. Most of the time, product videos are created to educate existing users and help them get more value from what they already have. That said, a good product video often ends up helping with sales anyway, especially when it builds trust and clarity.

Because the focus is on understanding rather than persuasion, product videos tend to skip the hype and marketing fluff you’d see in a traditional ad. Instead, they dive into real use cases, product benefits, and practical insights that help viewers truly grasp what the product is about. It’s less about pushing a campaign and more about raising product literacy.

There are a few common types of product videos you’ll see across industries:

• Explainer Video – Breaks down what the product is and why it matters.
• Demo Video – Walks through how it works, step by step.
• Promo Video – Fast, flashy, and designed for launches or announcements.
• How-To/Tutorial – Helps current users get the most out of the product.
• Testimonial Video – Real users sharing real results and experiences.

These formats can be produced in a variety of styles, from live-action shoots to 2D and 3D animation. The format really depends on your brand’s vibe and how complex the product is to show. With product videos playing a growing role in both content and marketing strategies, for physical and digital products alike, it’s worth understanding how they can influence buying decisions and drive long-term engagement.

Let’s dive into that next.

Why Product Videos Work?

Before we dive deeper, let’s talk about why more and more companies are investing in high-quality product videos. One key reason we found while researching this topic is simple: product videos help build trust and engagement, which often leads to long-term support for the product.

Wait, trust? What do you mean by that?

Well, like we mentioned earlier, product videos aren’t focused on pushing a sale. They’re designed to educate, to actually help people understand how a product works and why it matters. And because they’re not trying so hard to sell, they tend to come across as more honest, transparent, and helpful. That’s why audiences see them as more genuine compared to traditional promotional content.

And here’s the thing. 85% of consumers say they’re more likely to buy after watching a product video, and in some cases, product videos can boost conversions by up to 80%. So while the main goal might be to educate, the impact often shows up in sales too.

But why exactly is that?

• They show, not just tell: Product videos visually demonstrate how something works. This helps reduce uncertainty and gives people the confidence to make a decision, especially for digital tools or physical products you can’t test out beforehand.

• They trigger mental imagery: A study from Frontiers in Psychology found that usage videos help viewers imagine themselves using the product. That sense of familiarity makes people more likely to take action.

• They match how people actually consume content: Most people would rather watch than read when researching a product. Mobile users stream over 500 million hours of video every day. No surprise that over 85% of consumers say video makes them more likely to buy.

• They scale across channels: One good product video can do a lot of heavy lifting. You can repurpose it for your website, email campaigns, landing pages, social ads, or onboarding flows. It’s not just a sales tool. It’s a long-term growth asset.

Where should we put product video for it to work?

Alright, so here’s the thing. Unlike promo or ad videos that have a clear home (like paid placements on social media), product videos are a bit more flexible. But that flexibility can be a double-edged sword, where you place your product video plays a huge role in how well it performs.

Here are a few spots that tend to work best:

• On Product Pages (right near the CTA or hero section): This is where decisions are made. Having your video near the product title, price, or “Add to Cart” button helps clear up doubts and can seriously boost conversions.

Quick tip: Let it autoplay muted if possible, or use a strong thumbnail with a play button so it grabs attention without being annoying.

• Inside Email Campaigns: Whether it’s a welcome email, a promo, or a win-back flow — dropping in a video thumbnail can make a big difference.

Fun fact: Adding a video to your email can increase click-through rates by up to 300%.

• Right in Your App or Platform (for SaaS tools): If your product lives online, putting videos inside the platform itself can help users get value faster. It’s perfect for onboarding, feature walkthroughs, or answering common questions without needing a support ticket.

• On Social Media: People scroll fast, but product videos are natural scroll-stoppers. Platforms like Instagram Reels, TikTok, YouTube Shorts, and LinkedIn are all great places to share quick demos, new features, or customer success stories.

Pro move: Keep it short, punchy, and focused on one key point.

How to make sure Your Budgeting Works

Like we mentioned in our “Do Product Videos Increase Sales?” blog, creating a product video isn’t just content, it’s an investment. So if your company’s thinking about making one, you’ve got to be clear on what you’re aiming for and what you actually need. And yeah, budgeting matters too. You’ll want to know upfront how much you’re spending, what you’re getting out of it, and when that ROI is gonna kick in.

So here are some of our tips and suggestion on keeping your budget tight:

• Start with Animation or Motion Graphics: No actors, no shoot days, no locations = lower production costs. You can create slick, high-converting videos using screen recordings, UI mockups, or vector-based animations. Like the example above.
• Repurpose One Video in Multiple Places: One asset, multiple outcomes. Cut your main video into shorter formats.
• Design for Modularity: Break your video into clear sections (intro, features, CTA). This lets you swap in new sections later without redoing the whole thing — great for A/B testing or updating features.
• Batch Produce Multiple Variants: Plan ahead. Instead of making one video, create a 60-sec master, a 30-sec social cut, a 15-sec retargeting version, and a vertical version — all in one go. Batching reduces back-and-forth and keeps costs down.
• Work with a Creative Subscription (Like DaaS)Instead of paying per video, consider monthly creative subscriptions. You can visit our subscription page if you want to know more about our subscriptionYou get:
  • Fast turnarounds
  • Consistent output
  • Predictable costs

Conclusion

So if you’re wondering, “Do product videos actually work?” The answer is yes. Just not in the same way an ad video does. With ads, you might see an instant spike in clicks or sales. But product videos do something else. They help your brand build trust, get people engaged, and make your product easier to understand. That’s where the real value comes in. And if someone ends up buying after watching? Even better.

Now look, it’s still an investment. If you don’t set clear goals or know what you actually need, it might feel like it’s not working. But when you do it right, it can seriously pay off.

Thinking about making one? Make sure it has a purpose, tells the right story, and lives in the right place. And if you want help bringing it to life, we’ve got you.

Book a call or check out our Product Video Services to see how we can help you do it right.