Measuring the Impact of Innovation in the Production Space
In recent years, industries have been transformed by opening new marketplaces in businesses such as hospitality and transportation. AirBnB and Uber, respectively, accessed previously untapped inventories that were created and made accessible through sophisticated yet user-friendly applications.
This share economy model has since been applied to various industries, including pets with DogVacay, money lending with LendingClub, and even WiFi accessibility with Fon. This explosion in the sharing market begs the question: What are the new benchmarks for the open marketplace?
A Lag in Innovation for Sourcing Production
While other industries have seen a transition toward the open marketplace, one decidedly has not. Sure, the demand for producing content has changed drastically, but the way marketers produce content remains resolute. The legacy model for sourcing production is an outdated and non-automated system of phone calls, emails, and PDFs that provides zero basis for historical tracking and real-time reporting of production processes.
The need for implementing and measuring the impact of innovations in the production space is imperative as marketer proliferation of content continues to outpace outdated production models.
StudioNow Is Changing the Landscape
PostAds Group is excited to see the industry innovations coming from StudioNow. AirBnB and Uber were upstarts, created to disrupt the market and change the way consumers buy. StudioNow evolved into an open marketplace. They already had a solid foundation in place upon which to innovate.
While the platform provides product on-demand, much like the previously mentioned market disruptors, it stands out in one major way. The company started ten years ago on the marketer side, providing small in-house Audio/Visual departments with the ability to source video production and vastly improve resourcing and scale to their organizations. Marketer-direct work originally consisted primarily of corporate communications.
In response to growing demand, StudioNow has expanded to include all manner of production across every type of consumer-facing execution. As part of a curated marketplace and creative network, marketers and agencies can access avails and match-up projects with the right talent at their fingertips.
The need for effective technology to do the same set of tasks changes the game, and with it a change in how things can be priced and managed using the inventory that exists in the new global economy.
For example, in London there are over 350 A-list directors who have worked at major ad agencies and produced a wealth of highly regarded work. But they’re not all working simultaneously and often are available between projects. They may even have set up their own companies on the side. These are the kind of production "inventory" opportunities that can be accessed with open marketplace technology tools.
Open Market Content Provides Multiple Solutions
Marketers now demand greater transparency into the production bidding function: a need so acute that the US Department of Justice is investigating the business practices of all the major ad agency holding companies in how they source and award production suppliers on behalf of their clients.
Our partners at StudioNow see every day how brands are developing their production budgets, and work with them to manage this seismic shift in the video creation process. They have also found that by using technology as a part of the process, not only is transparency gained, but also a solid foundation is created for video content success and cost savings over time.
“Our point of view on the DOJ investigation is twofold: First, in our experience ad agencies have exhibited transparency in making clients aware of any in-house production capabilities they’ve included in their bidding processes,” says Mark Dunn, our CFO here at PostAds Group. “That said, the off-radar system of phone calls and emails for procuring services invites legitimate questions on best practices; thus, an automated system such as StudioNow removes all doubt on issues of transparency. The system provides an online record of the entire process.”
We’re moving closer to an open market economy for content, and the solutions we develop to bring our industry up to date also serve to satisfy DOJ concerns.
Transparency + Cost Savings = Trust
PostAds Group has conducted audits for clients using apples-to-apples comparisons of legacy production methods vs. curated marketplace models. The results have been dramatic, with an average of 60% savings per production.
The effect of introducing marketers and agencies to an expanded inventory of vetted, high-quality production talent in order to execute wide varieties of work logically helps create new pricing for the industry. Consider the differences in time and hassle of sourcing production crews in over ten markets using the phone calls and emails method vs. the StudioNow software-curated marketplace model.
As a consultancy, a large part of PostAds Group’s job is providing ‘post-mortem’ analysis to help marketers understand where they’re spending their money with production and post-production partners.
These services are typically procured across multiple agencies and client-side departments, and the paper chase involved in trying to gather basic information is not to be believed. It’s an enormous source of frustration for our clients who demand real-time production data and reporting. Software platforms like The StudioNow Platform has automated the entire process and liberates the critical information marketers need to analyze their business.
Benchmarks Are Still Being Created
The open market model for content is just beginning to take root. As brands discover new approaches for production plus the ability to save time and money, their habits will change. The legacy model will fade away and StudioNow will be hailed as disruptors, just as their forebears are now.
We’re just at the forefront of understanding the impact of open markets on production costs over the next few years. Until then, continuing to measure the impact this type of innovation will be critical to the production space - and it’s not hard to imagine the change will be favorable to marketers and ad agencies.
About PostAds Group & StudioNow
PostAds Group, the global content production consultancy for brands and movie studios, and StudioNow, the production software platform and curated marketplace, jointly offer marketer-direct production strategy and executional services for global marketers. Visit us at www.postadsgroup.com and www.corp.studionow.com