Monday, November 05, 2012

Creative Development Deemed As Nonproductive Spending

There are more than a few advertisers who categorize marketing spending as being either productive or nonproductive.

To these advertisers, productive marketing spending is media.  Nonproductive marketing spending is everything but media – agency fees, creative development, strategy.

Today, advertisers keep asking agencies to cut their nonproductive spending.  Preferably, they would like nonworking outlays to be 10% to 15% of marketing budgets. 

In other words, 85% of the marketing budget goes to running what only 15% of the marketing budget was spent on producing.

Is it ridiculous to separate the affect creative has on the effectiveness of the media buy?  Absolutely.   But that doesn’t mean it isn’t done.

Hal Riney once addressed this issue in a way that only Hal could.  Here’s what he said.

“If we can, through the expenditure of an extra hundred thousand dollars or so on production, increase the impact and involvement and memorability of say, a $5 million budget by, say, even 10 percent, we’ve added a half million dollars in value, for a hundred thousand dollars in cost.”

Put that in your nonproductive pipe and smoke it.

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