Things are a little tough in the advertising world at the moment. Brexit has sent some of the usual advertisers running for the hills and the rise of in-house production companies has further reduced the bread and butter work independent production companies have picked up. Add to that the continued downward pressure on budgets (down from to an average of £191k in 2016 from £201K in 2015 for a 30-second ad), and there you have it.
The market in 2016 was stop/start, which made it crucial for production companies to ensure good production and implement a solid financial strategy to ensure that markups and the bottom line are protected during production.
The tough environment has prompted advertising production companies to look to expand and branch out into other areas, Companies are looking to engage directly with the client, produce ‘Content’ or create longer form to boost the bank balance.
There is no doubt that these companies all possess the capacity required to tap into the buoyant world of TV production. There is an array of directorial talent already on the roster so the challenge lies in pulling it all together and crossing into the TV world. Producing and selling this kind of work successfully to traditional broadcasters and the ‘on demand’ giants offers the opportunity of a continual income and the retention of valuable IP. Over time this will translate into increased value for the business would and potentially offer a route to an exit when the time is right.
Given the evolution of production companies in this sector, it is crucial to find the right partner to help you on this next chapter. Advertising is something we know well, our media team has accumulated over 15 years experience working in commercial production companies. When aligned with our technical knowledge within the Media industry, this blend of experience means we are uniquely placed to advise and support in any of the sectors you want to expand into.