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Issue 101, 09/09/08 In this Issue
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Television commercials are now not just for television. They are turning up on the internet, mobile phones, outdoor and point of sale. Yet the traditional way talent fees were calculated means that this explosion in media channels has become an explosion in profit for the actor’s agent and management. In this edition of the TrinityP3 e-news we look at talent fees for television and the impact on costs. taming fees in the digital environment 
There was a time that you would shoot a television spot and the only talent questions were "one state or national?" and "how long will the campaign run?" Now there are multiple channel options such as FTA or Subscription? Cinema? Internet? POP? Outdoor? Mobile? And for each they want to know where and for how long and how many? Why? Because talent agents use this information and the identity of the client to work out how much they can charge. Agents get a percentage of the fee they negotiate, so there is a direct incentive to negotiate hard. Screen and not media channels should be the measure The fact is, digital convergence means that these old fashion distinctions such as free to air and subscription and internet and mobile are pointless. Smart-phones access the internet, and television is just another screen in the home along with the computer and the mobile phone. Instead of talking about channels and media they should change the focus to just one measure, the audience, because reaching the audience is where the value is created, not the way they are reached. The current multiple effect So why do the talent agents and the agencies still talk about media channels? This gives them a multiplier effect. If an actor wants $10K for a TVC nationally for one year, the addition of cinema could increase the cost to $15K and the internet $25K and so on. Each additional channel adds to the cost of the talent. Especially if the other channels are added as an afterthought. But what if the original fee was negotiated for all screens? The new media environment Reaching a mass audience, for many advertisers, is still through TV. But increasingly the media mix includes one or more of the other screens to expand the reach and increase frequency and engagement. The audience is increasingly less discerning if they see the spot on TV, the internet, their phone, at the supermarket checkout or the doctor’s waiting room. So instead of selling the actor by media channel, let's just fix a price for all screens. A new approach Afterall, there are only 21 million people in Australia. Approximately 5 million in NSW and less in New Zealand. If an actor charges $15K for a national TVC of 12 months, then excluding their performance fee of say one or two thousand, why should they not get $3K for their performance rights in NSW or NZ for the same period across all screens? Then we get back to the old measure of where is the spot showing and for how long and not across which media channels. It is simpler, easier to manage and, with the right negotiation strategy, cheaper. Tame the talent fee This is achievable in Australia now. With the right talent negotiation strategy, all screens can be negotiated now for less than the traditional method. If you use a multichannel media strategy for your advertising and want to find out how this can work for you, contact TrinityP3 in Sydney or Melbourne and talk to one of our production consultants or email people@trinityp3.com Or come to our TV Production industry workshops - see below for details - and upskill on all the latest production developments. 
Television Production Workshops for Advertisers Why: Get a better understanding of the tv commercial production process, make more informed GROUP DISCOUNTS AVAILABLE. Download a Booking Form here or contact Amanda for more information on 03 9682 6800. Arsalan Ali heads up Singapore office 
Arsalan Ali is our new Busines Director, Asia at TrinityP3 Singapore. Arsalan brings to TrinityP3 an in-depth understanding of advertising agencies; extensive experience with client service, account planning, project management and business development; and managerial and operational expertise. Arsalan's roles have included Director of Client Operations, Northeast for TMP / Monster Worldwide in New York and Managing Director for Miller Advertising Agency in California. Originally from Pakistan, Arsalan grew up in London,and acquired his Bachelor’s degree from Ohio, USA. He worked in New York for nine years, spent the next two years in California establishing & developing the West coast clientele for Miller Advertising, before moving to Singapore in 2007 as the COO for a local SME. You can contact Arsalan on arsalan@trinityp3.com, or 
Australian Marketing Institute Lunch Tuesday, 30 September 2008, 12.30 - 2 PM |
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