edition 42 october 25, 2005
common mistakes
Through our P3TV production benchmarking service, we provide advertisers with an industry view of their TV production costs. Consistently we find three common ways advertisers drive up the cost of their television productions.In this P3 e-news, Clive Duncan of P3TV discusses the three common mistakes made by advertisers and how to avoid them. P3 ? helping people achieve commercial purpose through creative process Share this with a friend or colleague by clicking on the link below or add them to the ?p3 news? mailing list, by emailing their details to news@p3.com.au

the mistakes advertisers make in their TV productions In the five years we have been assessing and auditing television productions there have emerged three common ways advertisers drive up the cost of their television productions. Unfortunately, in almost every case, the advertisers concerned were unaware of the impact their processes and behaviours were having. 1. Outcome expectations

Imagine you are building a house. Would you give the architect a budget to work with? Would you outline your expectations in style and function? Or would you just let him go creatively crazy and hang the expense? Implications If you brief your agency give them a budget and tell them you want them to stick to it. Tell them all of the objectives you want the commercial to achieve. Tell them all of the ways you are going to use it, where, for how long, and on what media. Case study A client gave the agency a $300K budget and a brief to ‘lift creativity’. The agency interpreted that as ‘lift the budget’. Following three months of creative development, concept testing and international approvals, the agency presented a big idea with a cost of over $600K. 2. Making changes Imagine walking into a house you are having built and telling the builder you want to move a wall here or add a room there. In the building industry these are known as ‘extras’ and are a rich source of profit for the builder. Implications The same applies for the television production industry. Once the production commences, (ie after the final pre-production meeting) every change costs you money. If you make changes and it doesn’t cost you money, then you know the agency and/or production company has built plenty of contingency into the cost. Case study A client briefed their agency to develop a television campaign and nearing the completion of post-production announced the packaging had changed significantly. The cost of including the new packaging added 20% to the total production cost. 3. Approval Processes Imagine turning to the builder once the house was finished and saying, “Well. I guess it’s time to get council, electrical, plumbing and planning approval”. Especially when you know most of them will want changes and one may reject the overall plan altogether. In extreme cases, clients have been known to race back to the agency to make changes as they go through each level of final approval. Each set of changes costs money. Worse still, the agency gets to know this is your preferred process, so they hide a cost contingency in to cover it. Either way, you pay big.

Case study

A client negotiated very competitive rates with their agency for their television production. However, in an audit of the tv production costs it was found that the company was paying up to 100% of the original production cost in changes. The agency knew the client’s approval processes were impractical and enjoyed the profits last minute changes brought with every production. Solution P3TV has a number of ways to help advertisers achieve maximum value for their television production budget including Production Training for Advertisers, Benchmark Production Assessments and Production Audits and Bid Authentication. For more information contact clive@p3.com.au or go to the website www.p3tv.com.au
NEW – P3 Advertising Performance Manual available

“Knowledge is power” and the new 68 page P3 Advertising Performance Manual is full of information on the expanded services offers by P3 to help advertisers achieve maximum value from their advertising budget.
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benchmark your tv costs online
P3TV provides an online service that allows advertisers to see how their agency tv production estimates compare to current industry benchmarks – instantly. Find out how you can get ultimate transparency and accountability into your television production costs, go to www.p3tv.com.au or contact Clive Duncan at clive@p3.com.au