production is on the way up
there is industry talk of advertisers turning away from
FTA-TV, television production is busier than
ever. In the process, this is placing upward pressure
on the cost.
In this edition of P3 e-news, Clive Duncan of P3TV
looks at how the procurement process is high-jacked
when it comes to television production. This is not just a worry
for the client, it is also a worry for the
film production companies who waste huge amounts of
time and resources tendering for work they have almost no chance
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procurement and purchasing into tv production
the agency present "competitive" estimates for the
latest television production, are you presented with the three
quotes on one page, with the three costs all within
5% of each other. Is this familiar?
Does this mean that the competitive tendering process is alive and well,
or is it a construct to deliver the appearance of an open tender?
To answer this question, lets look at the underlying influences
on the procurement procedure.
agency producer represents the creatives
The agency television producer is responsible for managing the procurement
of the film company. But in almost every agency the agency producer
reports directly to the creative director, not the account
manager or the managing director or the finance director.
The ultimate measure of the agency producer's ability
is ensuring the creative department is happy by delivering the
creative outcome, and this usually mean the director, they
selection of directors
Why is a particular director / film company the preferred supplier?
In most cases the agency creative team have reviewed many directors'
reels and concluded that this director is the right
one for this job.
In some cases it is because the creative team or creative director want
to work with a particular hot director, or because
the agency's art director's sister is married to one of the film company's
In a few isolated cases it is because the film company rebates
5% (more or less) back to the agency. But without transparency,
one can really be sure what the real reason is.
fallacy of the single supplier
When questioning the agency on the reason for the preferred director
/ production company have you been told they are the only people
that can do the job? Says who? Typically it is the creative
team and the agency television producer simply pushing their preference.
This undermines the concept of competitive tendering
and is an insult to the local film production industry and
the depth of talent contained within that industry. In every case there
are a number of viable options, it is just the agency do not
want to explore any of these.
lack of a transaperent tender process
To appease the client some agencies will often provide three quotes
by including one or more "check quotes". These are
usually generated by agency-friendly film companies briefed to deliver
a quote at a cost designated by the agency. In return, the film company
is promised they will get the inside running on the next job.
The next quote, usually the agency's second choice film company
is based upon a ballpark target cost that is higher than the
cost supplied to the preferred production company. No wonder
many film companies despair at the inequities of the quote process.
In many cases it is only the agency's preferred supplier that
gets the full story including the actual target cost and the
key client requirements to pepper into the director's treatment.
the client who is actually paying for all this, you
would have to feel somewhat compromised by the whole process.
P3TV provides estimate assessments, we can also help
ensure your agency procurement process is delivering true competitive
find out how, contact firstname.lastname@example.org
or call Clive Duncan
or Darren Woolley on 03 9378 3223
or 02 9279 4997.
Chesterfield and the P3Media team
have been busy:
1. Setting benchmarks for
the annual media rate negotiations
2. Reviewing media agency performance
for PBR payments
3. Reviewing and assessing remuneration models
and contracts to ensure clients are achieving maximum value.
See our website www.p3media.com.au
for how we can help you achieve maximum media value or contact
to talk about your particular media needs.
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