4As Production Costs Survey Shows Minimal Rise

4As Costs Survey Shows Minimal Rise in
Production, Larger Boost for Post
 

Costs for producing an average 30-second spot rose just one percent, says the 4A's.

Results of the annual production cost survey conducted by the 4A's Committee on Broadcast Production, which was first conducted in 1987, were released recently.  It found a minimal rise in the cost of production for what it dubbed a 'national TV spot of any length,' while costs for all aspects of post production rose 14 percent.
 
The survey also tracked production company costs, director's fees, editor's fees and talent costs.
 
The 2010 survey, which included detailed data on the production of 849 national TV commercials produced by 13 different US ad agencies, showed that the average cost of production went up one percent from the 2009 survey. This was excluding any agency commission or other form of agency markup. The average cost for all spots in the survey database of all lengths (average costs for thirty second spots are broken out and appear below) increased from $276,000 in 2009 to $278,000 in 2010.
 
The report's executive summary, which can be found here, provides details on production cost increases or decreases in a variety of product categories and production techniques.  The survey uses the thirty-second spot as its benchmark, to allow easy comparison between cost categories and trends.
 
In the 2010 survey, 485 of the 849 national commercials in the database or 57 percent were 30 seconds in length at an average cost of $324,000. This is only $1,000 more than 2009, a statistical differential of zero percent, the report states.
 
The practice of studio shoots remained the same as in 2009, according to the report. Sixty-six percent of the :30s in the survey were shot on location in 2010, the same as in 2009. Combination shooting (using both studio and location shots) was 19 percent, the same as in 2009.
 
The hours it took to shoot a studio commercial went down 4 percent from 2009, and the number of hours to shoot location commercials went up 6 percent in 2010. The average studio :30 took 10+ hours to shoot and the average location :30 took 10+ hours. The average combination shoot took 13 hours, 7 percent greater than 2009.
 
The survey showed that in 2010, 97 percent of the :30s reported were identified as firm-bid, while 3 percent were cost-plus, 2 percent less than 2009. Also, 47 percent of the :30s were single bid, while 53 percent were multiple bid. This represents a 1 percent decrease in single bids over 2009.
 
The average total production company net costs went up 11 percent from $194,000 in 2009, to $215,000 in 2010. The total director's fee per 30-second commercial was $20,000 in 2010, 5 percent more than 2009, and the production company's percent of markup averaged 21 percent, 2 percent less than in 2009.
 
The average cost to edit and complete an original :30 in 2010 was $57,000, the report states, 14 percent greater than 2009. Video finishing increased 26 percent in 2010 and sound recording mixing increased 6 percent. Creative/labor fees remained the same and the cost of an editor's mark-up increased 23 percent, to $3,200, the study noted.
 
Music costs increased in 2010, averaging $37,000 per job. Talent costs were 23 percent greater than 2009, costing $16,000 per spot. Commercials using on-camera principals averaged 4 on-camera principals and commercials using extras averaged 10 extras
 
A PDF version of the full report can be ordered on the 4As web site by clicking here. Cost is $40 for 4As members, $150 for non-members.

Published 27 Dec., 2011