Evaluating Production Budgets with Agency Production Groups

For many years we have been working with ad agency or holding company production companies. Our usual mode of working is to review their initial estimates, then carefully discuss and negotiate the value of their proposed offering. 

Many of the smaller agencies offer a terrific value, often consisting of hands on, scrappy production approaches. Some, less so. Many larger agency groups seem to offer more specialized personnel, but overall not necessarily a greater value for the cost.

We recommend a normal triple bid scenario and not necessarily working within the agency’s preferred production approach, unless the value can be demonstrated. On several recent projects, our clients saved about 40% of production costs following this advice.

We have long seen agency / holding company production groups trying to control of who is involved in the production workflows and when, including production consultants. The goal seems to be to limit the production consultant’s scope, their impact on the production process and costs.

Overall, our advice to marketers is if you are working with an agency or holding company production group, trust but periodically verify the value you are receiving. The easiest way to do that is to ask a production consultant to take a look. There is a list of production consultants on the ANA’s Production Management Committee’s website or give us a call. We are happy to offer a quick evaluation.