commercials

Timothy Turner is executive producer at Circle Productions in Toronto.

No event has singlehandedly influenced the marketplace for the commercial production community in the past year. Rather, a host of factors such as the economic downturn, changing ad agency/client/production company relationships, changes in technology and evolving trends in advertising have each contributed to the challenges facing the production community in Canada.

The past year has been difficult for advertising agencies and commercial production companies alike. The brutal economic downturn in North America and elsewhere has similarly been experienced in the advertising and production communities. As part of the chain reaction to clients’ shrinking profits, there has been a corresponding reduction in agency production budgets and, ultimately, commercial production. However, while fierce competition for work continues, it is over a dwindling pool of potential projects and at often significantly reduced markups.

While economic recovery appears rather unlikely in the short term, the advertising and production communities must learn to adapt to the economic realities of the ’90s.

The agency/client relationship has significantly changed in response to changes in the marketplace. There have been rapid and sometimes unpredictable changes in television viewing patterns due to the numbers of available channels, changing demographics and the increase in new forms of communication and entertainment.

For example, the mtv generation is influenced by a variety of mediums and in a fashion that often clashes with the traditional marketing strategies. In effect, television advertising approaches are no longer reaching their target markets. The result is that clients are seeking new venues for their advertising dollars and applying tremendous pressure on their advertising agencies to produce effective and efficient results.

Whether we like it or not, the practice of agencies shopping elsewhere for directors still exists, and this fact remains a frustrating problem for the Canadian production community.

Some people argue that it is, in effect, contributing to the destruction of the local commercial production community. However, upon a broader examination of the problem, it appears to be more of a symptom of the economic times than a plot to damage the industry.

In many cases, it is a response by the ad agencies and creative teams who are desperate to hold onto an account or client, or are simply just trying to keep their jobs. It is not surprising that they seek out the best possible director or production company given the nature of the project and the budget, regardless of where they are based. Such talent knows no boundaries.

In many of these circumstances, the commercial production community has tried to second guess the agencies. We have developed ties to dozens of production companies and directors in the u.s. and abroad in order to ensure some access to the work that is bypassing the local community.

In the short run, we have been able to participate in these productions, but at a cost to ourselves. Our share of profits on these jobs is often significantly reduced due to profit-sharing arrangements plus the loss of director’s fees (usually in u.s. funds). In essence, we have developed short-term relationships, often at the expense of developing indigenous talent.

There are, however, many situations where the creative need not have gone south or to an import. Ultimately, we have no real option but to retaliate by producing better work. In essence, developing a reputation for superior work is the best way to protect ourselves from the drain of import directors and runaway production.

CPAT

The development of the Commercial Production Association of Toronto has been a very useful tool in promoting our local industry. As an organization whose aim is to promote and improve the production business in Canada, it is a welcome trend and a healthy example of the maturing of the production business.

cpat reflects the need of the commercial production community to elevate itself to the level of a profession. We need to recognize and acknowledge that we have common goals.

We are always going to be competitors, doing battle on a day-to-day basis. But lessons learned by our successes and failures, shared collectively, will raise the overall standard of our work as an entire profession. The commercial production community, the ad agencies and the clients will all benefit from our achievements.

In recent years, the advertising agency business has changed greatly. Clients are demanding better creative solutions to their marketing problems, both at greater speed and at reduced prices. There are numerous recent examples where long-standing clients have pulled their large accounts from well-established agencies because they perceive these agencies to be too large and cumbersome, unable to quickly respond to the abrupt changes in the marketplace with ‘strategic’ creative attacks.

This imposes tremendous pressure on agency creative teams. It has, to some degree, resulted in a return to simpler creative approaches to advertising problems. Simple, effective communication is becoming paramount. A trend toward ‘good ideas’ that can be effectively communicated and efficiently produced is emerging. For example, recent campaigns for Canada Trust and Unitel have been very successful in both television and print for the primary reason that they are well conceived, carefully targeted and efficiently produced. In the recent past, similar successes have been achieved by campaigns for Leon’s and Ford.

In addition, agencies and creative teams are seeking the genuine input of directors as team members in the problem-solving process. They, too, have a stake in the ultimate success of the execution that may eventually impact on the continued viability of the agency/client relationship.

The future

The future of the commercial production business need not be bleak, but it will be different. The changes that are affecting the agency/client relationships and the rapid changes in the overall television and communications industry will, undoubtedly, continue to have a serious impact on the business.

The production community must continue to remain as a viable Canadian industry through sound management and superior production. New production opportunities must be sought within and beyond Canada’s borders.

Lessons learned through mutual co-operation and communication within the production community will greatly assist in tackling the changes in the marketplace. Collectively, we can put a positive spin on the challenges that face our profession.