COMMERCIALS 30
it and see it as an opportunity rather than a threat. Many are trying to offer a package deal to agencies and clients rather than remain as TV commercial specialists. “With agencies wanting both tvc and the digital element – being able to come to us to do the whole lot and work across both parts with us is an advantage,” says Stink. “As technologies merge and the ‘mystery’ of the internet and new media disappears, I see us offering integrated solutions to our clients,” says Th1ng. “Thinking through projects early and producing TV, internet, new media and print work all in one package with consistency and cost savings.”
DIFFERENT STROKES Commercials production companies are no longer all the same shape – along with making commercials destined for the web, many are making longer form branded content more akin to a TV show than a 30-second ad. Others like Nexus and Blink have made moves into the art world with their directors creating, or helping to create, installation pieces. Others like Passion are working with fashion brands, providing visuals for launch shows that broadcast across the world. Others have dived into the world of apps or are making TV shows. For others, the world of feature films has become more attractive.
NEW HORIZONS As well as looking beyond the traditional TV ad, there is also a sense that commercials production companies are looking to the physical horizon too. While diversity in the type of work you do can help insulate a company against downturns in particular market sectors, diversity in the regions you serve helps too. While the UK is seen as rather a saturated, and possibly stagnating, advertising market other parts of the world economy are growing, so, for commercials producers, getting, or increasing their presence and recognition in other territories is key. “Collaboration with more overseas companies and clients,” is the driver for Crossroads and also for Rattling Stick who want to expand “our global partnerships and develop our directors’ reputations internationally.” So producers battered by the vagaries of the ad
market are making moves to insulate themselves against future fluctuations. And there is a sense in the sector now, that after so many consecutive years when advertising in particular, and the economy in general, have been in a downturn, those production companies that are still alive to tell the tale are probably the resilient ones. The last few years have been a masterclass in Darwinian selection throughout the sector and only the fittest, and the most adaptable, have survived. Which is probably a good thing as there are
plenty of signs that another recession is just around the corner.
C08
www.televisual.com | November 2011 COMMISSIONS TOP 10
1. SPACE CITY
2.MUSTARD 3. ANOTHER FILM CO 4. PARTIZAN 5. HSI 6. BLINK 7. STINK 8. 2AM 9. TH1NG 10. NEXUS
Coors JCVD
CHALLENGES AND CONCERNS A snapshot of the feedback from producers about the issues facing them in the year ahead
ANOTHER RECESSION Unsurprisingly, a major concern for commercials producers, along with everyone else, is “the financial collapse of the world,” as Passion bleakly puts it. Quite apart from the local difficulties of the commercials production world “‘It’s the Economy stupid’” that is a worry for the year ahead, says Not to Scale.
RISK AVERSION “The threat of continued troubled waters with regard to the world’s financial markets has caused clients and agencies to continue a cautious and frugal outlook,” says 15 Badgers in a typical complaint. Uncertainty about what lies ahead in the economy has meant clients and agencies are less willing to take a creative risk. “The really exciting creative scripts are few and far between,” says Another Film Company, which means producers are having to spend more time and effort “chasing the limited good work that exists and having to be more resourceful than ever,” says Gorgeous. But risk averse clients and agencies also mean more involved pitching processes. “Pitching standards are exceptionally high, seemingly clients would like to see finished commercials before they decide to make them,” says Picasso. That risk aversion also means decisions are taken down to the wire. “Decreasing lead times and ever more involved pitch processes put a huge strain on production,” says Knucklehead.
FALLING BUDGETS The challenge, for production companies that live and die on their creative reputation, is to “keep creating innovative work and pushing the boundaries,” says Stink while budgets become more constrained. Falling budgets don’t allow producers to lower their standards
so the trick is now “balancing delivering outstanding creative work with budgets that are challenged,” says Independent. The challenge is “retaining the quality of our output in an environment dedicated to reducing schedules and budgets,” echoes Studio AKA. But in a tight market, a further concern is that competition between production companies could lead to undercutting. “Competing against companies who drop their mark-up to ridiculous levels,” as Smuggler puts it, is a further concern.
BEYOND THE TV SPOT The challenge for all commercials production companies in a market where brands are more and more keen to promote themselves in ways beyond the traditional TV ad is to become much more than commercials production companies. “We want to stay focused on how brands engage with their consumers,” says Blink. And “the trend is less through traditional TV advertising as an interruptive media and more through brand participation and direct engagement. Branded content will probably dominate in the future.” For Rattling Stick, it’s about “remaining relevant and current to agencies as they continue to develop their ‘new media’ offerings. Managing our profit margins and growth as we move into other forms of ‘communication’, which historically have significantly lower budgets.” Diversification is the key, and all commercials production companies, to one extent or another, are trying to move into other areas. Mustard, for example, is looking to “webisode commercial campaigns for clients direct for their websites. Client film sponsorship and ad-funded longform opportunities.” With others trying out installations, virals, branded content, features, shorts, work for fashion shows and apps.
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