Tompkins: Epilogue to an April Fool’s joke

By Roger Tompkins

Isn’t it ironic how fiction parodies fact? When I sat down and penned the idea for the Australasian Union of Commercials’ Production Companies, it was in cahoots with Lynchy for the CB blog.

It was written purely as a joke, tongue firmly in the cheek. I thought: here’s a funny way of highlighting some the issues facing the production industry. I thought it might act as a reminder to one and all of the growing rift between agencies and the tvc production industry.

Work for production companies has been slowly drying up for the pastfour years, and since the recession there has been a dramatic decline.We have also seen a marked decline in margins and fees, while allassociated costs have increased: advertising, crew, compliance, rent,insurance, fuel, etc. The work load has increased as production isbeing asked to do more and more work to get a project confirmed; thework that goes in to pitches is endless, not just from the time takenbut from the resources required, treatments that look as good as thefinished spot, multiple quotes every one with a million minusculevariations. And all this in a competitive environment, with sometimesfive, six or seven directors pitching for the one spot and – even moreexasperating – when the job is finally awarded, there’s more often acall from a frustrated agency producer that there’s a hiccup: ‘theclient’s rethinking their strategy’,  ‘its going to be delayed’ or asimple phone call saying the spot has been canned.

We are seeing older, well established production houses close theirdoors – great companies that have brought so much to our industry:Silverscreen, Aht, Independent, Sydney Film to name but a few – andwhile the demise or disappearance of these companies may be seen as agood thing by some (a change is as good as a rest), is it really achange for the best? Each of these great companies have provided agreat service to the agency world: not only did they act in the agencyand client’s best interest and produce highly successful campaigns overthe past few decades, but they also provided a nursery environment onwhich young directors could cut their teeth and for producers,production managers to serve their apprenticeships and to truly learntheir craft. This nursery environment was as healthy for the productionindustry as Axis/Award School has been in finding new creative talentfor the agency world.

However, the majority of production companies – like most agencies -are deeply set in their ways and consequently slow to change. Both havebeen cast from a mould set in the late fifties and they have been slowto adapt to a new world order (I Twitter, don’t you?). But whilst theagencies were pouring money into new ‘digital’ departments (yes that’swhere they make those loverly website banners ads for their clients),production companies have been left reeling as mark-ups drop fromtwenty five to fifteen percent and then in most cases just ten percent. While still reeling from the downturn, several years back WPPannounced the launch of its production company: Plush.

I advocated as much negative PR and press as I could around Plush’slaunch. Noooo, I cried. But the writing was on the wall. WPP is abiggun, and Canute I am not, so I very quickly moved my throne intoPlush’s Pyrmont offices. And for all the negatives about Plush beingthe ‘anti-Christ’ and caustic cries of ‘double-dipping’, WPP is apublicly listed company, its books open to public and client scrutiny.WPP is a progressive and forward thinking company: it looks at Plush asone of many ways to sustainable growth in the future.

Has it worked? Has Plush changed things? As the credit crunch continuesto bite, rest assured that number crunchers in other agencies arelooking at the WPP model. McCann’s and one or two others are trying it,while yet other agencies are opting for what is referred to as the’preferred supplier’ model, where a small group of production companiesget tied to an agency by getting guaranteed supply or volume of work,bidding against others in a tront system!

So what are we in the production industry going to do about the future?Do we in fact need to do anything? Do we carry on like a bunch ofshopkeepers, all working in the same small marketplace, all selling thesame thing, never talking to each other, just undercutting each otherto stave of the inevitable? Don’t forget this is a business; this iswhat we do to pay the mortgage. The yanks have a great productionassociation – AICP – and right now Matt Miller (the association’spresident) is taking a stand on behalf of its members against Omnicom’slatest terms of trade (you get paid when we get paid. WHAT!!). InAustralia we have SPAA… hello!!

In the early eighties, Jonty Barruad was producing for Geoff Dixon atSilverscreen. Jonty was starting to bid a lot of work for Geoff out ofthe US. The US agencies wanted the quotes on the AICP form. At thetime, as now, we all had our own bid forms and our own way of doingthings. Jonty contacted a bunch of us: ‘What about standardising theway we work?’ he asked,  ‘What about the leading tvc companies gettingtogether and sorting out some of the basics like the bid form, theterms and conditions for working with the agencies and crew?’  ‘Pissoff,’ we said, ‘I’m all right Jack,’ was the call. We were high on thehog back then, unlike now when there are serious issues facing us. Iknow now that it was an opportunity lost. We were young and bullishand, on refection, naive not to have acted back then. Jonty was onto it…

I guess the issue here is that television commercials are, and will befor a long time to come, the agencies’ and their clients’ highestprofile format. (It doesn’t matter what the IT guys spin, televisionwill be king till we all get ultra high speed fibre optic broadband,and this for most of us is a decade away. And then by crikey you’regoing to see some changes!!) The TVC production industry supplies avital production service to the agencies and right now those that workin this key industry are being asked to eat their young in order tosurvive…

I don’t know if this scribe is enough to set off a discussion, as weare known as an industry that responds well to any kind of forum ordebate, however my inclination is that we are but moments away fromneeding to have one.

Look, we don’t want to alienate the agencies, goddamit we love them,they are our lifeblood, but they are busting our balls. We know theproblem: the clients hammer the agencies, the agency then gets theproducers to hammer us (like they’ve always done, after all, we arerenowned for our resilience..) but that resilience, that ability tobounce back is becoming harder and harder: mark-up is down or gonecompletely on some jobs, fees are nailed right down or the job is donefor no fees. Some production companies are doing the work just for turnover. And this when most production company suppliers are rasingcosts. 

Here’s a quote from the Sweet Shop’s global president Steve Dicksteinin New York, as he comments on the Omnicom deal from last month’sCreativity Mag: “The only thing I can say is that I have alwaysconsidered it my job to provide smart solutions to our agencycustomers. Clever solutions are needed more now than ever before. And,in fact, the circumstances encourage innovation. Invention has alwaysbeen the best part of the production company process.”  

Now I’m sure Steve’s comment echoes the way many of us think but whenit comes to addressing the problems that face us. The ‘we’ll be right’sentiment can only take us so far. It’s going to get tougher; and therewill be issues that we will need stand up for…

Always the keen fisherman I’ve started a blog: autcpc.bloggspot.com. It’s a kinda holding tank for your thoughts, well those of you wanting to vent your spleens, if so inclined….

April Fool’s day indeed..