Thursday, February 05, 2015

A New Economic Model For Commercial Production

As noted in yesterday’s post, time spent is becoming increasingly more popular as an accountable metric among advertisers.

To that end, it seems as if viewer time spent will also start serving as an accountable metric for commercial production.

Currently, production dollars are a fixed cost.  The one variable is the media buy.  The larger the media buy, the easier it is to justify a larger production budget.

But once the production budget is set, it is fixed.  Regardless of how well the commercial actually holds someone’s attention.

In the future, production will become a variable cost dependent on view duration.

Why?

Because advertisers will know.

They will know, that on average, viewers watched only five seconds out of the thirty seconds they paid for to be produced.

As this post has said before, failure should not be lucrative.  And, success should be handsomely rewarded.

By knowing how long a spot has held the viewer’s attention, advertisers will be able to do exactly that.

In the past, advertisers accepted the fact that they would be paying huge amounts of money for production because there was no way of truly knowing whether the commercial held someone’s attention or not.

Now there is.

And to pay full fare for failure is not something most advertisers will want to do.

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