Commercial production continues to carry economic clout, representing a $5 billion industry. Meanwhile more commercial producers are involved in nontraditional advertising projects outside of the traditional TV spot arena. And digital production techniques are growing in their deployment towards the creation of original content.
These were just some of the prime findings gleaned from the Association of Independent Commercial Producers (AICP) seventh annual Survey of the Commercial Production Industry. Conducted by independent firm Goodwin Simon Strategic Research, the study measures industry trends and activity in commercial production.
“The data collected offers a detailed picture of how and where the billions of dollars in commercial production activity were spent in 2008,” said Matt Miller, president/CEO of the AICP, which released survey results this week. “Clearly, these numbers will be quite different when we field 2009 data, but they give a good snapshot of the trends and challenges shaping our business.”
In terms of economic impact, AICP members spent about $2.51 billion in direct production expenditures in ’08–with roughly $2.16 billion of that total spent in the U.S. and $352 million on foreign soil. This includes $2.42 billion spent on live-action production, with $94 million on in-house digital production. When factoring in postproduction, talent payment and other indirect expenditures, commercial production represents a $5 billion industry.
This year’s member survey explored developing trends in both the production of advertising using digital production techniques and for developing content for nontraditional marketing communications vehicles by AICP members. “Our industry continues to evolve, with a continuing trend in our industry toward utilizing digital techniques to create original content,” said Miller. “The survey shows that two-thirds of our member companies produced marketing communications outside of the traditional commercial in the past year. Our members are on the leading edge of creating new forms of advertising and marketing in the moving image, and are now devoting about one in six shoot days to projects such as web films, product integration pieces, and mobile content. While this trend has remained constant since 2005, we expect this figure to grow, as evidenced by this data and the surge of interest in the AICP Next Awards.”
Among other highlights of the study were:
o Commercial producers are deeply involved in creating nontraditional advertising. Nearly seven in ten (66%) members produced “nontraditional advertising projects outside of the traditional television commercial” in 2008. Once again, the survey found that the most common format for such projects was an Internet or broadband viral, followed by original content (branded entertainment). Visual effects and animation accounted for the largest shares (26% each) of the digital-production techniques AICP members used in 2008, followed by graphic design (21%).
o Commercial producers anticipate swift growth in projects for new and emerging media channels. At present, producers estimate that about 24% of their billings comes from nontraditional projects. But they project that by 2013, on average 40% of their billings will be from such projects.
o A continuing trend toward domestic filming activity in 2008. Eighty-eight percent of all reported shoot days took place domestically, with 12% abroad. This represents a decrease from the 23% of shoot days that were abroad in 2005, and the lowest ratio for shoot days overseas since this survey’s inception in 2002.
o Southern California remains the most popular location for commercial shoots. Just below half (48%) of all shoot days took place in Southern California (45% occurring in L.A. County alone), with New York a distant second with 15% of all shoot days. Looking at domestic shoot days only, 54% took place in Southern California in 2008, compared to 17% in New York; shoot location patterns that have moved little over the survey’s history.
o Latin America ranks first among international locations for second straight year. In 2008, Central/South America remained the most frequent non-U.S. location for shoots, with five percent of all shoot days (and 37% of all foreign shoot days–up from 26% in 2006), leading Canada again which had previously been the most popular international destination for shoot days before 2007. This growth has come mostly at the expense of Europe and the U.K., as well as Canada (Vancouver in large part) which has seen a decline from 24% of foreign shooting in 2002 to 14% in 2008.
o Significant filming activity occurs outside of traditional production centers. In 2008, about 20% of all shoot days, and 26% of domestic shoot days, took place away from the major production centers of New York, Illinois, and Southern California.
“This study annually provides an eye-opening look at trends in commercial production,” said Miller. “To succeed in a competitive environment, access to information which paints a true picture of where and how business is happening is paramount. This survey provides that resource, and we hope it will be a valuable tool for our members in making business decisions as business models shift, and at the same time educate policymakers and others about the economic importance of commercial production.”
Apple and Google Face UK Investigation Into Mobile Browser Dominance
Apple and Google aren't giving consumers a genuine choice of mobile web browsers, a British watchdog said Friday in a report that recommends they face an investigation under new U.K. digital rules taking effect next year.
The Competition and Markets Authority took aim at Apple, saying the iPhone maker's tactics hold back innovation by stopping rivals from giving users new features like faster webpage loading. Apple does this by restricting progressive web apps, which don't need to be downloaded from an app store and aren't subject to app store commissions, the report said.
"This technology is not able to fully take off on iOS devices," the watchdog said in a provisional report on its investigation into mobile browsers that it opened after an initial study concluded that Apple and Google effectively have a chokehold on "mobile ecosystems."
The CMA's report also found that Apple and Google manipulate the choices given to mobile phone users to make their own browsers "the clearest or easiest option."
And it said that the a revenue-sharing deal between the two U.S. Big Tech companies "significantly reduces their financial incentives" to compete in mobile browsers on Apple's iOS operating system for iPhones.
Both companies said they will "engage constructively" with the CMA.
Apple said it disagreed with the findings and said it was concerned that the recommendations would undermine user privacy and security.
Google said the openness of its Android mobile operating system "has helped to expand choice, reduce prices and democratize access to smartphones and apps" and that it's "committed to open platforms that empower consumers."
It's the latest move by regulators on both sides of the Atlantic to crack down on the... Read More