It is true that you have to have enough money to produce the desired commercial well. But how much is enought?
We are often asked how much of the budget should be spent on production versus media. There is no simple answer but there are some clear guidelines.
The cost of production is the overhead cost. Without it, there is no advertising. Like building a store or restaurant, the overhead can be a leverage point to sales and revenue. The quality of the presentation – either physical or in ad form – is part of the persuasiveness of the message. A dingy shack is not where you expect to buy high end Jewellery or designer clothes.
The smaller the market where the commercial is to be used, the lower the production budget. However the percentage of the budget should go to production would be higher. There is not much economy of scale in local markets.
Commercials run longer in smaller markets as a way to amortize the cost of production over the media spending. I have lived in different sized countries and have noticed that the judgement used in deciding when to replace TV commercials relates to tge cost of airing.
For example, in the US the cost of airing a national network commercial on average is about the cost of producing one. (These are very rough averages). In Canada, a market with about one-tenth the population of the US, the cost of TV production could be used for about a week of network media. Commercials get a lot more frequency in Canada.
The first commercial shoot I attended in New York was for an everyday packaged good. The commercial was a simple slice of life that took place at a kids’ summer camp. The product, as a hero, was a reward for the kids at the camp. A large percent fo the budget was spent on the excellent production set of the camp cafeteria. However the final cut was mostly close ups of the kids eating the product. Not much was seen of the marvelous set. The client was not a happy camper having spent a lot on an invisible set and the relationship with the agency turned rocky.
The production budget should be spent wisely to get the maximum benefit for the dollars. There should be enough budget to fully deliver the ad concept.
A smart way to deliver the best ideas for the budget is for the creative team to know the production budget before developing the commercial idea.
We had a gas utility client who wanted to increase the incidence of gas fireplaces in their trading area. They had a very small budget, so small they weren’t sure we could afford a TV commercial.
Knowing this we started by looking for inexpensive to shoot ideas. We found a gas fireplace manufacturer’s showroom we could use. From that we came up with a commercial that was built on a locked off camera and mostly voices off-camera. The idea was that the fireplace was so warm and welcoming, guests may never want to leave. The commercial had an arguing couple wondering when the guest would leave. The humour (and added warmth) was that the guest was later revealed to be Santa Claus.
We saved money by using non-union but experienced talent. I even played the husband. There was only one on screen actor.
Budget is a defining limitation for creatives, like a strong copy strategy. It is one of the specifications before construction. Designing ideas to fit the budget and making sure the strategy is right should be part of the process.
In my example, we used non-union talent. They were voices off camera with considerable acting experience. The creative team and director had to be satisfied with the acting.
It is generally not a good idea to expect professional results from amateur actors or announcers. Their performances make the advertising message credible and persuasive. Without credibility; there is no persuasion. Think of this when your Aunt Gladys is telling you about the intricacies of the US Constitution. We discussed this in Overcome AD-versity.
How much should be spent on production? The easy answer is – “Make sure you have enough to do the job right.”