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Advertisers Association tries to clamp down on production costs, AANA boss: ‘the days of the million-dollar TV ad are coming to an end’

AANA CEO Scott McClellan: a critical look at production

The Australian Association of National Advertisers wants to clamp down on advertising production costs.

The advertisers industry body has called a meeting for advertisers on 25 July ‘to share ideas and benchmark against global best practices for managing production in the new media environment’.

According to AANA CEO Scott McClellan, discussions about production costs began back in November and were featured on a Christmas wish-list by members.

He said: “The days of the million dollar production as the accepted norm in our industry appear to be coming to an end. Advertisers are increasingly turning to innovative, lower cost production and distribution techniques to reach their target audience.”

The news comes the day after Tourism Australia released an ad campaign that cost $4m to produce.

McClellan said it was unfair to put the Tourism Australia ad in the category of expensively produced commercials, because it is an ad “mainly produced for an external audience.”

“TA ads fall in a separate category – they are special,” he said. “They are operating in a different market to national advertisers.”

He added in a statement: “As advertiser budgets come under renewed pressure in a tough trading environment, AANA members are saying it’s time to take a critical look at the commercial production process, clarify cost structures and define the cost implications of new production technology.”

Topics of discussion at the event will include the role of the marketer in the production process, talent costs in ‘new media’ platforms, best practice for working with agencies, the production process for social media and digital and ‘adapting global creative for localised needs’.

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