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Article Details
Title Key Guidelines
Date 4 February 2005
Category Production auditing

Key Guidelines

In November 1996, the Industry Joint Working Party including representatives from the Advertising Film and Videotape Producers Association, Institute of Practitioners in Advertising and the Incorporated Society of British Advertisers) produced some revised guidelines for Producing Advertising Commercials.

These procedures provide a useful start point for Cost Effective Production, although CST suggest some additional processes can also be incorporated.

Our recommended key guidelines are highlighted below -

1). Planning a Campaign



At the outset of the process, the Advertiser should set a budget to cover all aspects of the advertising campaign and brief the Agency on marketing objectives.


An outline split of the advertising budget into media and TV production costs should be agreed by The Advertiser and the Agency at this early stage.


An Agency Producer should be assigned to the project at the same time as the creative team is appointed and be involved throughout the process.


The Agency Producer performs a crucial role in co-ordinating all of the key elements relating to the shoot - including cost control - thereby playing a pivotal role.


When proposed scripts and storyboards are presented to the Advertiser by the Agency, an all-inclusive "Ballpark" cost should be provided at the same time. This should include Artiste Costs (especially if a personality is to be recommended), Music Costs etc.
2). Selecting a Director and Production Company


Advertising Agencies normally have very firm views on the type of Director that they want to shoot a particular script and this is clearly an integral part of their role. However, an insistence on selecting just one option does not normally assist in the effective cost control process. CST believe that there is normally a case for some competitive bidding from comparable Directors.


If this is the case, then the Agency Producer should ensure that all Production Companies bidding should bid on equal terms and should present the details of the bids and the Agency recommendation to the Advertiser.


Before the preferred Director and Production Company is appointed, the details of the estimate should be reviewed, challenged (if necessary) and clarified before the appointment is confirmed.


Any overspends incurred during the Production process should be approved by the Advertiser and CST before being committed.
3). Agency Costs


The Advertising Agency usually takes responsibility for items of the estimate which concern Artistes, Music, Post Production, Administration Costs and Insurance (including Weather Cover).


These costs also require some detailed auditing as there are very often some considerable savings to be achieved by way of "deals". CST provide assistance in the negotiation of competitive artiste and music fees etc as wells as alternative quotes for Insurance requirements.


If a personality or well-known piece of music is to be used, we recommend that the advertiser uses CST to ensure that the contract terms are drafted to meet all likely needs and is competitively priced.
NB - Costs undertaken by the Agency should be reconciled and charged at their actual cost upon completion of the Production.

4). Client Approvals


Advertisers should do everything to avoid cost penalties which means that they should avoid the "layering" of approvals i.e. different decisions at different levels, changing the script during Production, changing timetables etc. Alterations cost money - lots of alterations cost lots of money!


After the estimate has been formally approved, the Production Company should be formally appointed and the budget confirmed subject to any script changes.


At the time of this confirmation, the Production Company will issue an invoice for the first 50% of the estimate and this should be paid within 7 days.


The second 50% should be issued when the finished film is approved - although 10% can be withheld in the case of any disputes.
5). After the Shoot


After the shoot is completed, the Advertiser should use CST to undertake a reconciliation of costs incurred by the Agency involving a check on back up invoices when appropriate.