http://www.trinityp3.com/ The biggest marketing expenditure after media is often production. Television, print, digital, interactive, radio, cinema, outdoor, brochureware and the like can contribute to more than 70% of the fees paid to content creating agencies. But often the quality, the cost and the time it takes is directly impacted by how the production process is managed. Often the mistake marketers can make is to think this is completely in the hands of the agency, design company or supplier. But in fact, the cost impact of poor production management affects the marketer more than anyone and therefore there are a number of key steps marketers can take to reduce this impact on their budget. This is not about marketers taking over production management, but it is more supplier and project management to make sure that their agencies and suppliers can deliver the best possible outcome in quality, time and cost.

1. A blueprint for reducing your
advertising production costs
(Or ten ways to ensure you are not paying too much)
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2. • After media, the next biggest advertising expense marketers and
advertisers are responsible for is advertising production:
– Television, digital, internet, social media, cinema, newspapers, magazines,
outdoor, radio, direct mail and more.
• The problem for most advertisers is that this area of expenditure is
often shrouded in terminology that is confusing, technical and
potentially misleading.
• Let’s look at “A blueprint for reducing your advertising production
costs” or 10 ways to ensure you are not paying too much.
marketing management consultants

3. The top 4 reasons people pay too much
for advertising production:
1. Poor planning
2. Lack of understanding
3. No time
4. Complex approvals
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4. 1. I need you to design a house, or an
extension or perhaps a bungalow - okay?
Detail all considerations up front - leave nothing out - include your requirements
and your objectives and put it in writing so there is no confusion and a point of
reference throughout the process.
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5. 2. Great, can you build it by Monday?
Plan the production schedule up front - ensure the agency leaves enough time for
creative development, approvals, production and final approvals - otherwise you
end up paying for it. It can always be done faster, but it costs.
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6. 3. Wow, that’s more than I have to
spend, can we get a another quote?
Always insist on 3 competitive quotes to ensure competitive pricing, but be assured
that true competitive pricing is almost impossible to achieve as the process is rarely
a properly executed tender - instead, ask the agency to provide a range of
estimates from budget through to full costs so you have a range from which to
choose.
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7. 4. It’s more than we thought, can you
explain what these cost are?
Insist the agency provides you with a complete and detailed breakdown of not only
their costs, but their suppliers costs and ask them to explain each cost to you so
you are completely clear why you are incurring these costs. Often there are
substantial contingencies built into estimates to cover unforseen costs and these
become profit if they are not required.
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8. 5. $10,000 for marble bench tops!
Maybe Laminex would be okay?
The agency will almost always offer you the top quality execution, but do you
always need the best if the campaign is only short term. You wouldn’t print a flyer
on an A1 stock? Think about the task to be undertaken, the media budget and the
campaign duration in your assessment of costs.
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9. 6. What if we went out and sourced
these items ourselves?
Where possible, ensure the agency passes external supplier costs on to you at net,
without mark ups or commissions. Often agencies receive volume discounts,
rebates or commissions from suppliers. The alternative is to pay third party
suppliers direct, but having the agencies pass costs on at net protects you from
managing a range of suppliers and ensures the agency has no incentive to
recommend the more expensive solution.
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10. 7. That’s great, but can we
put the toilet here instead?
It is important to make approvals at the appropriate time and avoid making major
changes later in the production process as this will cause significant costs. Have
the agency identify key approval dates early in the process. Ensure these align to
your timetable and availability of key stakeholders. Hold the agency and yourself
accountable to these deadlines.
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11. 8. We’ll get planning approval once
the job is finished, okay?
Make sure everyone in the approval process is kept in the loop during all stages of
the production. More money is wasted by senior people making changes late in the
process. This does not mean they must attend every meeting, but it does mean
they should have access to reporting processes that keep them up to date with the
production developments.
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12. 9. What do you mean extras,
I didn’t approve any extras?
Have all extras quoted and approved before the changes can be made. This keeps
track of the extras which can be the most expensive part of any production. At the
end of the production, have a complete reconciliation of all costs and approve only
those costs that have been approved. No written approval - no payment.
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13. 10. If in doubt, contact TrinityP3
There is no excuse for wasting money on production. It takes away valuable
resources from other equally important part of the campaign mix. Outstanding
production value can make a communication campaign, but wasted production
costs can kill it just as quick.
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14. The top 4 ways to reduce your
advertising production:
1. Plan ahead
2. Ask questions
3. Manage the process
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15. Questions?
TrinityP3 Pty Ltd
Sydney
+612 8399 0922
Melbourne
+613 9682 6800
Hong Kong
+852 3478 3982
Singapore
+65 6631 2861
people@trinityp3.com
www.trinityp3.com
marketing management consultants