The ANA (Association of National Advertisers) has released “State Commercial Production Incentives – ANA’s Principles for Fair Use,” a set of guidelines to help marketers navigate the complex area of state commercial production incentives.
Many states offer financial incentives to shoot commercials in their states, a practice that originated more than ten years ago. An increasing number of states are now competing which has captured the attention of production companies and marketers. In 2012 the ANA published the white paper “The Found Money of State Commercial Production Incentives” (www.ana.net/productionincentives) to provide an overview of these incentives, outline the process for participating, and make advertisers aware that there is competition to acquire this incentive money.
The ANA’s current release, “State Commercial Production Incentives – Principles for Fair Use”, is an addendum developed by the ANA’s Production Management Committee that provides additional guidance to marketers. Highlights of these new principles are:
Fairness, good judgment and transparency are key practices that should be followed by all parties (i.e., marketers, production companies, and agencies) when considering state commercial production incentives jobs
Additional lead time is sometimes required for jobs where production incentives will be pursued
A state commercial production incentive job must be filed via a single application, complete with all possible qualifying components included
Depending on the type of expenditure, qualification for the incentive, and the state in which the commercial was filmed, an advertiser, production company, agency or third-party entity can file/administer the process and application
When the marketer is filing, the production company should be incentivized to follow state guidelines and maximize the qualified spend and rebate
Contracts should address state commercial production incentives
Marketers should be aware that, in many cases, it can take between 18 and 24 months to receive rebate checks
Bill Duggan, ANA Group Executive Vice President, commented: “State commercial production incentives are a terrific resource to help advertisers optimize production spend. But advertisers must be well-informed on the issues surrounding their use – the states that offer them, the expenses that qualify, and the dynamics with production companies of state commercial production incentives.”
Valerie Light, Broadcast Production Manager at Verizon Communications and co-chair of the ANA Production Management Committee added, “The awareness, knowledge and use of state commercial production incentives are all increasing. The ANA Production Management Committee has developed this set of principles to help marketers understand and manage the complexities of state commercial production incentives.”
Download full PDF of this white paper here.
About the ANA
The ANA (Association of National Advertisers) provides leadership that advances marketing excellence and shapes the future of the industry. Founded in 1910, ANA's membership includes more than 575 companies with 10,000 brands that collectively spend over $250 billion in marketing and advertising. The ANA pursues “collaborative mastery” that advances the interests of marketers and promotes and protects the well-being of the marketing community. For more information, visit www.ana.net, follow us on Twitter, or join us on Facebook.
