How to create this kind of video

It's basically a 'picture book'.. ie hand drawn and each frame is adjusted manually for it to create a video.
 
As Levi says but they'll have been made in something like Illustrator or Photoshop and then imported into After Effects or another animation software.

The illustrations would need to be made or split into lots of layers so the animation can be done and also lots of layers for different mouth shapes and eye states.

There are some rigged character designs out there both free and premium but the problem you'll have is getting stock in the same style and rigged in the way you want it.
When I design characters for animation I always have the animation in mind and design them accordingly.

The whole process is quite involved and not really for the beginner although I believe there are sites that have pre-rigged characters and scenes but I'd imagine they're very limited in what you can achieve with them.
 
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