Looking at Both Sides of the Coin

The state of the production business today can be increasingly seen as two-pronged, says AICP’s Matt Miller, as opportunities present themselves while more traditional work continues to ebb.

By Matt Miller

It’s always difficult to assess the state of the entire industry at any given point in time, especially since the business cycles that used to be annual seem to move on a daily basis these days.   

So with our industry’s annual stimulus for reflection of the last year—(the AICP Show) in the rearview mirror, and with Cannes taking place as this posting goes online, what is the state of the business this year as opposed to last?
 
It’s safe to say that 2009 was an extremely difficult year for all. 2010 seems to be more bifurcated. For those of you who aren’t native speakers of the English language, to be bifurcated means to be more or less split in two.

For example, some are still lamenting the impact of “the recession,” while others are saying they’re busier than ever.  If you don’t believe in the bifurcated aspects of this “new economy” here in the US, then just look at the stock market, look at the housing market, look at Wall Street bonuses, look at unemployment and—most importantly, look at your own business.  Some of you are winning, and some are not.   

One thing that seems to be universal, however, is that even the type of work you’ve traditionally done somehow feels different.  Business models continue to evolve, and with this comes a time of great opportunity for those re-tooling to carve out their relevance.  Obviously, the converse is true as well.  

As evidenced by the work included in this year’s AICP Show and Next Awards (and based on what will likely score well at Cannes), some great creative is still being done on many platforms despite the challenging nature of the times, and innovation is truly alive and well—even with some uncertainty.  

One thing, however, is certain: Digital production, as well as digital media, is maturing and increasing in its importance to everyone involved in marketing.  And while industry pundits continue to lament the end of the TV commercial, marketing in the motion image has never been more important or more vital as brands have more and more channels for which to create content, At the same time, TV continues to remain strong—just look at the sales of the US TV nets at their just concluded upfront markets.

One of the primary constants of the past year – and what dominates any conversation about the state of the industry – is new business models and where and how different entities fit into those models.  As more and more marketers need to fill a greater variety of media channels, they’re looking for more efficient ways to manage the process. This has led to the rise in procurement policies, and the inclusion of procurement professionals in a marketer’s overall management team.  

This in addition to the presence of cost consultants, who with this new layer are working harder than ever to prove their relevancy.  

In this quest for efficiency, many marketers have been pushing the bounds of what they expect or look for from all entities in the creative food chain.  I recently touched upon some of these issues in my blog, As I C Production, in a posting called “What The Flux?”  (To read in full, click here.)  

In it, I discuss how a production company may function as competitor or collaborator with an entity that previously has only been a client, the agency.  The same goes for an agency or an editorial company; in our industry’s old model, this type of multi-faceted relationship would rarely happen, as many feared competing with a client, or collaborating with them on an equal footing.  

That mindset needs to disappear for companies to be on the ‘right side’ of an increasingly bifurcated business.  Clients also need to understand what “efficiency” means in a creative process—and that means that procurement needs to add the word “value” to its vocabulary.

For companies that are confident in their ability to develop and execute ideas, they are valuable as suppliers and problem-solvers, regardless of who’s functioning as your client or whom you are collaborating with or competing against.  These are the companies that end up on the winning side of the bifurcated world.

This is a topic that AICP will be exploring in great detail as we continue to provide forums for thought leadership, such as our soon to be announced, full-scale dive into the industry at our first conference in 15 years – stay tuned for details on that.

Matt Miller is President and CEO of the Association of Independent Commercial Producers.

Published June 22, 2010