Explainer Videos vs. Interactive Demos: Which One is Right for You?

Xiao Tu1/22/2025Product Explainers

Introduction

When it comes to showcasing your business solutions or services, two powerful tools stand out: explainer videos and interactive demos. Both have unique strengths, and the right choice often depends on your goals, audience, and the platform you use.

As a marketer with experience using both interactive demos and explainer videos, I've tested and compared them extensively. Let me share my thoughts to help you decide what's best for your business.

What's an Interactive Demo?

An interactive demo allows users to actively explore your product or service in a guided, hands-on way. Think of it as a "dummy trial" experience where users click, navigate, and experiment within a simulated environment that mimics the real product. For example, Zapier offers a great interactive demo here: Zapier's Interactive Demo.

Pros of Interactive Demos

Hands-on experience: Users can explore at their own pace.
High engagement: The interactive nature draws users in.
Trackability: You can monitor user behavior and gather insights.
Personalization: Tailor the experience to specific user needs.
In-depth walkthroughs: Perfect for demonstrating product details.

High Engagement: A Double-Edged Sword

According to the State of the Interactive Product Demo 2024 guide by Navattic, the average engagement rate for interactive demos is between 43% and 60%, which is significantly high. However, I often question whether this engagement reflects genuine interest.

Engagement rate, calculated as the percentage of interactive demo page visitors who interact with the demo, can be misleading. For instance, what if users, like me, click through an interactive demo out of curiosity - similar to skimming a Netflix movie by fast-forwarding? Engagement rates alone may not capture the depth of user interest.

Measuring Real Engagement

To assess true engagement, consider metrics beyond the surface:

Conversion rates: Do users take meaningful actions after the demo? Conversion rate is a more accurate metric for engagement in my opinion.
Time spent vs. steps completed: If the average time spent on an interactive demo is low but the number of steps completed is high, users may be skimming.
Completion vs. conversion: High completion rates without conversions could indicate superficial engagement.

Limitations of Interactive Demos

Limited format: They're not suitable for social media platforms.
Potential boredom: Clicking through all points can feel tedious.
Complexity amplification: Interactive demos can make complex products seem even more complicated, risking user disengagement.

What’s an Explainer Video?

An explainer video walks the audience through a product, service, or concept, showcasing its benefits and features while reflecting your business's vision. These videos are short, engaging, and polished. For example, check out Notion's Explainer Video.

Types of Explainer Videos

Live-action: Real people demonstrate the product. (Some AI tools now create AI avatars to mimic live-action videos, but they may lack a genuine human touch.)
Screencast: Screen recordings enhanced with animations, with or without a speaker's presence.
Animated: Includes 2D, 3D, motion graphics, or whiteboard animations.
Hybrid: Combines animations and screencasting for a sophisticated approach.

Pros of Explainer Videos

Wide reach: Easily shareable across platforms like websites, email, and social media.
High demand: 88% of video marketers consider video essential (Wyzowl's Video Marketing Statistics 2024).
Efficiency: Communicates key points quickly and clearly.
Fun to watch: Animations and motion make them engaging and intuitive.
Simplifies complexity: Explainer videos can turn complex products into intuitive stories by focusing on benefits rather than technical details.

Limitations of Explainer Videos

Tracking challenges: Performance is harder to measure than interactive demos, though tools with features like embedded CTAs and comments/likes can help.
Time-consuming: Production remains the biggest barrier, with 33% of marketers citing lack of time as the main reason for not creating videos (Wyzowl’s Video Marketing Statistics 2024).
Expertise required: Creating polished videos often needs professional animators.

That’s exactly why we've built BrewVideo. Our AI-powered solution simplifies explainer video creation, allowing you to craft engaging explainer videos in minutes—no editing or design skills needed. Try it for free today.

When to Use Interactive Demos vs. Explainer Videos

The best choice depends on your audience, product, and hosting platform.

Audience Considerations

Are they end users? End users often need detailed product feature walkthroughs.
Where are they in the buying journey? Early-stage prospects may prefer high-level overviews, while later-stage prospects or existing customers often seek feature details.

Product Considerations

Is the product complex? Complex products can overwhelm early prospects in an interactive demo format.
Does the UI look appealing? A poorly designed UI may deter early-stage audiences if showcased in an interactive demo.

Platform Considerations

Interactive demos are limited in where they can be embedded.

Based on these criteria, below are the best use cases for each type.

Best Use Cases for Each Format

Interactive Demos

Product 'how-to' guides: Enable customers to self-learn at their own pace.
Feature releases: Ideal for explaining new features to internal teams or customers, focusing on how these features work.
Website interaction: Replace static imagery with short interactive demos for a more engaging user experience.
Free trial alternative: A great option for products that require complex setup processes, allowing prospects to explore features without the hassle of setting up a trial.