Getting the Most for Your Production Dollar

The American Association of Advertising Agencies (AAAA) released the results of its latest television production cost survey recently. A number of advertising agencies participated in this survey including 13 of the top 20 agencies in the country. Production costs of over 2,000 national and regional commercials were studied. Here are the highlights:

• Average cost to produce a national commercial was $222,000 (without agency compensation), up 13% from the previous year. Seventy percent of these commercials were 30 seconds in length.

• Average cost to produce a regional commercial was $130,000, an increase of approximately 8%.

• Contributing to the increased costs were director's fee per commercial (+13%), edit/completion costs (+10%), creative/labor fees (+11%), and music (+5%).

Even though production budgets for local advertisers in smaller markets are only a fraction of this, their commercial messages must still compete favorably with these “big-budget” creations. With the proper planning (developing multiple commercials at one time), sound visual techniques (keeping it simple/keeping it moving) and a little creativity, you can produce effective television advertising at a cost you can afford... Commercials that attract attention, present a positive image for your company and sell your products or services.

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