The results contrast the previous year’s report when the average cost to produce a national spot declined 3% for 30-second spots and one% for commercials regardless of length.
In actual dollars, the 8% increase represents $26,000 -- the difference between the national thirty average cost of $358,000 reported in 2001 and $332,000 revealed in 2000. For national commercials of all lengths, the 5% production cost increase equals a $16,000 difference from the previous year -- from $306,000 in 2000 to $322,000 in 2001.
The survey showed that the average total production company net costs went up 4%, from $228,000 in 2000 to $236,000 in 2001. In contrast, overall costs fell 3% from 1999 to 2000.
Directors’ fees per 30-second commercial increased 10% to $23,000 in 2001 compared to 2000, when they fell 5%. The practice of studio shoots decreased to 15%, while combination shoots increased 24% compared to last year’s study.
The survey found the average cost to edit and finish an original thirty increased 7%, from $42,000 in 2000 to $45,000 in 2001.
Creative/labor fees increased by 9%, and music costs remained the same, averaging $34,000 per job. Video finishing increased 5% while sound recording and mixing increased 4%.
Seven categories witnessed the greatest increases, with one rising more than 50%: Furniture/Appliances/AV Products. The others were Consumer Services/Retail/Stores (41%); Other Products (31%); Retail and Fast Food Restaurants (29%); Travel/Vacation Destination (26%); Drugs/Toiletries (21%); and Autos/Trucks/Motorcycles (19%).
Twenty agencies and branch offices, including all of the top 10 U.S. advertising agencies, and 15 of the top 20, participated in the AAAA Television Production Cost Survey.