The Association of Independent Commercial Producers (AICP) has released its fourth annual Survey of the Commercial Production Industry. The study, conducted for the trade group by the Los Angeles-based research firm Goodwin Simon Victoria Research, measures industry trends and activity in the $5 billion-plus commercial production industry.
“The data collected by Goodwin Simon gives our members and the industry at large an unprecedented look at trends in the commercial production business,” said Matt Miller, AICP president/CEO. “These results give us a clear view of where the billions of dollars in commercial production activity are spent, and what major issues our members face as they grow their businesses.”
The survey quantified the economic impact of commercial production, identified the centers of commercial filming activity by AICP member companies, calculated production outside U.S. borders, and measured industry responses to a number of key issues factors that impact the financial health of the industry, including the timeliness of payments by agency clients to production companies.
Also, for the first time, this year’s member survey explored trends in the production of “non-traditional” advertising by AICP members. “The results of the study are startling. They show that nearly seventy percent of our member companies have produced non-traditional advertising projects outside of the traditional commercial [during the study year of 2005],” related Miller. “Given the rapidly changing media landscape, these findings have significant implications for the future of our industry and highlight the fact that our members are on the leading edge of creating new forms of advertising and marketing.”
Among the highlights of the study:
- 2005 Sees Slight Increase in Overseas Filming Activity: Seventy-seven percent of all reported shoot days took place domestically, with 23% abroad. This represents an increase from the 18% of shoot days that were abroad in 2004, but is similar to the proportions found in 2002 and 2003.
- Southern California Remains the Most Popular Location for Commercial Shoots; New York Suffers Further Erosion: Forty-two percent of all shoot days took place in Southern California about the same as in 2004 and a slightly higher figure than the 38% reported in 2002. New York is a distant second with 12% of all shoot days, compared to 15% in 2004. Looking at domestic shoot days only, 55% took place in Southern California in 2005, compared to 54% in 2004 and 46% in 2003. Twelve percent of domestic shoot days took place in New York in 2005 compared to 18% in 2004 and 21% in 2003.
- Latin America Continues to See Explosive Growth as a Filming Location: Canada remains the largest overseas production center, capturing 45% of all foreign shoot days. However, the largest growth since 2002 appears to be in Central and South American locations, which has seen a rise from 12% of foreign shoot days in 2002 to 28% in 2005. This growth has come mostly at the expense of Europe and the U.K. which has seen a decline from 24% of foreign shooting in 2002 to 12% in 2006.
- Significant Filming Activity Occurs Outside of Traditional Production Centers: About 20% of all shoot days, and 26% of domestic shoot days, took place away from the major production centers of New York, Florida, and Southern California.
- Commercial Producers Are Deeply Involved in Creating Non-Traditional Advertising: Nearly seven in ten (69%) members produced “non-traditional advertising project outside of the traditional television commercial” in 2005. By far the most common format for such projects was an internet or broadband viral, followed by original content (branded entertainment).
“This year’s study provided another eye-opening look at trends in commercial production industry,” concluded Miller. “In order to succeed in a competitive environment, access to information which gives a true picture of where and how business is happening is paramount. This survey provides that resource. We hope that this document will be a valuable tool for our members in making business planning decisions, and at the same time will educate policymakers and others about the economic benefits to be gained by attracting and retaining commercial production to their locations.”
(The study, prepared by Goodwin Simon Victoria Research, a survey firm with offices in Los Angeles, San Francisco, and Silver Spring MD, was conducted online in September and October of 2006, and provided complete confidentiality for respondents. Comprehensive analysis of survey respondents determined that the study accurately reflects the distribution of AICP members by revenue and geography.)
