TV Commercial Production Costs Drop
It is the only the third time in the survey's 14-year history that production costs declined.
The average production cost of a 30 second commercial dropped from $343,000 to $332,000.
The survey says there were declines in directors' fees, combination shoots (studio/on location shoots), editing, creative/labor fees and music. Sound recording and mixing costs increased.
The survey also looked at commercial categories, with big drops in auto accessories, furniture, beer/wine and soft drinks/snacks.
It also looked at commercial types, with drops in interview/testimonial, monologue and animation spots.
Lesley Robson-Foster, a director/designer for Riot Manhattan, a TV production studio in New York, attributes the drops to general economic conditions. "Times are hard and jobs are scarce, so people brought the prices down because everyone wants to work," she says. "And we're always being told about smaller budgets from agencies."
But not everyone in the industry sees production costs declining. Glenn Przyborski, who owns Przyborski Productions, a mid-size television advertising production firm in Pittsburgh, says prices have risen significantly for postproduction. "Today's ads are much more complicated and they all have special effects, which drives up the cost of postproduction," he says.
He also says crew costs are higher now, with cost per worker per shoot day rising. Film prices have also risen.
One reason production prices have dropped is that agencies are using stock footage more frequently. "A few years ago it was an insult to use stock footage, but now they think nothing of it," Przyborski says.
"They haven't gone down, they may be flat," he says, indicating that the rising cost of postproduction is offset by drops in other areas. He agrees with Robson-Foster that limited agency budgets are a major reason for lower costs. "Agencies used to go to production companies and take bids, but now they say this is what we have to spend, are you interested."
Recent Online Media Daily Articles
-
Coca-Cola Loses Bid To Dismiss Text-Spam Case May 24, 5:41 p.m.
Consumers can proceed with a lawsuit against Coca-Cola for allegedly sending them unwanted SMS messages, a ... -
Disaster Ready: Google Maps Model Quickly Adjusts To Events May 24, 5:29 p.m.
The four-lane bridge in Washington state that partially collapsed Thursday into the Skagit River was removed ... -
Pandora Beats Rev Estimates, Adds Subscribers May 24, 5:01 p.m.
Online radio service Pandora on Thursday reported that revenue rose 55% in the first quarter to $126 ... -
Real-Time Web Turns Consumers Into Impulse Buyers May 24, 4:37 p.m.
Video, mobile, social, and better search capabilities continue to make it easy for consumers to buy ... -
Mugnier Shares M&C Saatchi's Mobile Approach May 24, 4:32 p.m.
M&C Saatchi Mobile was formed three years ago through the acquisition of mobile marketing agency Inside ... -
Yahoo Search Experiments With New Look May 23, 6:30 p.m.
Yahoo Search has been experimenting with colors, features and layouts, as the company tries to determine ... -
Path Seeks Dismissal Of Wireless-Spam Case May 23, 5:07 p.m.
Mobile social network Path is asking a federal judge to dismiss a lawsuit alleging that the ... -
Amazon Appstore Goes Global May 23, 4:59 p.m.
Amazon may have been late to the app store game, but that hasn’t stopped it from ... -
Data Is Springboard For Product Development May 23, 4:44 p.m.
iProspect named Ben Wood to global president Thursday; he's tasked with growing the company's network and ... -
Vice, Twitter Partner For Mobile Show May 23, 2:14 p.m.
Simultaneously expanding its video and social strategy, Vice on Thursday unveiled #dailyvice -- a daily show ...
Be the first to comment on "TV Commercial Production Costs Drop"
Leave a Comment