Marketing

Licensing of Popular Music in Advertising

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There are two distinct sets of copyrights in music: the rights to the musical composition (the written lyrics and the accompanying music), and the rights to the sound recording of the musical composition. The sound recording is usually owned by a single record company and compositions often have complex ownership groups. Any reproduction of a musical composition or a sound recording requires the consent of the owner of that particular copyright.

Common Music Licensing Terms

Synchronization License: Rights to synchronize the musical composition in timed relation with audio-visual images such as a commercial. Music publishers issue these licenses either as the copyright owner or their agent.

Master Recording: Rights to use a specific recording called a Master. Covers the owner of the Sound Recording (typically the record label, or whoever paid for the recording such as the producer or the artist).

Most Favored Nations: A promise by the licensee to treat a licensor equal to any other licensor on a particular project. This would mean that the Sync and Master licensor would receive the same fee.

Linear Use: Using a song “as is” without any manipulation (i.e. moving around verses, cutting the horn section, etc.) may need special permission for non-linear use.

Exclusivity: The rights granted to the licensee will almost always be in the form of a non-exclusive license; the advertiser will pay more for an exclusive time period or industry.

There are many factors that can contribute to the fees you pay for licensed music. Consider these 10 important questions that will contribute to what you pay:

  1. Do you want to use the composition AND the master recording? Or, do you want to use only the composition and do a re-record?
  2. Do you want to re-record the composition with a parody lyric?
  3. For television, how many spots are you producing and what are the timings of each spot? (include versions, edits, lifts, tags)
  4. What is the media buy? (network, cable, spot syndication)
  5. Are you doing any radio spots? If so, how many?  Lifts, versions, edits?
  6. What other kinds of uses will there be? Do you need rights for non-broadcast/industrial use, sales meetings, trade shows, internet, in-store, POP, use of song title/lyrics in print or use of talent name/image in print, phone systems, in-cinema, in-flight, in-stadium/jumbotron, theme parks? Now is the time to include as much as you think you’ll need.
  7. Term – How long will the campaign run and what is the first air date?
  8. Territory – What cities, states, and countries will the campaign be airing?
  9. Exclusivity – Do you need exclusivity and if so, for what product category?
  10. Option – Do you need an option to renew the use for an additional consecutive term?

In order to procure the most competitive music licensing fees, MRA recommends the use of a third party vendor who specializes in negotiating popular music. Why? These companies have professional relationships with all major publisher and record label licensing departments and have the expertise to secure the best rates for advertisers.

Wondering how to get in touch with a music licensing specialist? Submit a request, and we’ll be glad to introduce you to the best resources in the industry — based on your specific needs.

 

 

Anita SilvermanLicensing of Popular Music in Advertising
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4 Pros And Cons Of Shooting Off-Shore

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Selecting the “best” location for your production is an important decision that should be made with care. Several factors come in to play:

  • LA and NY are relatively high-priced but have a high concentration of directors, photographers and talent available
  • There are a multitude of cities around the world that can offer lower costs
  • Many advertisers travel U.S. based directors and talent to lower cost locations

MRA has created a quick reference guide categorizing popular international locations into high, medium high, medium low and low-cost ranges — click here to download your copy.

While there can be significant cost savings with an off-shore shoot, here are 4 important pros and cons to consider:

Pros:

  • Lower production costs
  • Broader selection of directors geographies, etc.
  • Ability to tap non-union talent and negotiate talent buyouts
  • Reduced overtime (film crews tend to work longer standard days before incurring overtime)

Cons:

  • Increased travel expenses
  • Possibility of paying for travel time (directors, producers and agency supervision may charge for travel time outside the U.S.; in some instances these can be negotiated)
  • Longer lead time to organize and plan the shoot
  • Smaller foreign talent pool if an American “accent” is required

Other Considerations:

  • If the product is not sold in the country of the shoot, customs could delay product delivery
  • When shooting outdoors, be cognizant of the background (i.e., are cars driving on the correct side of the street? Are there signs close-by in a foreign language?)
  • Many countries have very specific regulations specific to producing content – ask an expert to ensure you’re aware of all local laws that may impact your shoot
  • Consideration should be given to safety and fluctuating currencies

MRA has more than 37 years of experience in consulting with clients on making the best decisions when it comes to production locations, and we’d be happy to help you as well. Contact us today to learn more.

Written in collaboration with Angela Saferite.

 

Anita Silverman4 Pros And Cons Of Shooting Off-Shore
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Save Big Money By Asking the Right Questions

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Cyber Monday Case Study

According to CNBC, Cyber Monday 2017 is expected to produce more than $6 Billion in sales, and RetailMeNot reports that 95% of employed consumers plan to surf for deals while at work. Having the right strategy to capture the attention of consumers on Cyber Monday is critical for advertisers; yet, you may be paying a premium to reach your target consumers this year.

I recently had the pleasure of interviewing Angela Saferite of Saferite Consulting, and in this 10-minute conversation, she highlights a recent consulting engagement where she helped her client optimize their Cyber Monday digital campaign — and generate $175,000 in savings by asking one key question.

Anita SilvermanSave Big Money By Asking the Right Questions
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How Does Integrated Marketing Communications Intersect With Production?

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What is Integrated Marketing Communications?

The definition of Integrated Marketing Communications (IMC), according to the American Marketing Association is the “Planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time.” This includes but is not limited to:

  • Advertising
  • Social media
  • Sales promotions
  • Public relations
  • Direct marketing
  • Point of purchase
  • Sponsorships

The game changed with regard to IMC when the internet came in to play in two big ways. First, instead of marketing campaigns being a “push” strategy, it became more “pull” with consumers searching information and becoming “push and pull” interactive. Second, with traditional media the same information is received by all consumers, and with internet media content can be tailored for specific groups or individuals.

IMC not only focuses on consistent messaging for the customer but also provides an efficient and cost effective way for advertisers to communicate. The idea is to harness the power of each channel to have a more effective impact than working each channel individually. The message remains consistent, but the delivery method varies across the platforms.

This ties nicely into advertising production strategic planning. A well defined content production strategy with optimized work flows is a powerful tool to work an IMC process and manage a budget efficiently.

Additional Types of Integration to Consider

  • Horizontal – across the marketing mix and business functions – production, finance, distribution and communications working together
  • Data – sharing relevant marketing data across different departments within a company and with agencies
  • Vertical – ensuring marketing and communications support the higher level business and company objectives and mission
  • Internal – keeping all staff informed and educated regarding brand and company identities, standards, partners, etc.
  • External – coordinating with all external partners (advertising, PR, media, and digital agencies) to work together in a cohesive manner with messaging and campaigns

IMC: Where do you stack up?

One of the biggest pitfalls of integrating marketing communications (especially for large advertisers) is to be able to effectively and efficiently work across multiple departments that are each producing their own marketing communications. According to Smart Insights, only 6% of companies report that their marketing integration processes are fully optimized while 32% report that integration is a key area of focus for their organization. Regardless where you fall on the spectrum, there are several ways to drive efficiency with IMC including reducing agency fees, streamlining work flows, and leveraging consistent assets across all channels.

Have questions on how to build a production strategy to fit within IMC? Contact us to learn more.

 

Written in collaboration with Angela Saferite.

Anita SilvermanHow Does Integrated Marketing Communications Intersect With Production?
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3 Budgeting Pitfalls to Avoid

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This month, we’ve spent time discussing budget planning, successful budget management, and how to find more money within your budget. Now, let’s take a moment to review some key tips to help you avoid common budgeting pitfalls.

 Annual Budgets

Common Pitfall: Instead of starting with project or campaign level budgeting, pull out and think big picture. Are there certain ground rules or strategies to align all the teams on before jumping in to the detail build?

Helpful Tip: When reviewing the annual budget, do a detail review for any spending not tied to a specific plan or campaign, often this can identify spend that can be trimmed without impacting brand objectives and KPI’s.

Production Budgets

Common Pitfall: Instead of asking your agency what the production budget should be, consider using models to build your own budgets and set guidelines. The budgets and models can be further refined as the detail planning and creative idea is finalized.

Helpful Tip: When building out models for production budgets, it may be helpful to have a ranges of standard costs for components. For example, animation costs will vary widely depending on the complexity of what is required. A :30 spot with heavy CGI will have a very different budget than one with very little. Music costs will vary depending on whether you’re using stock, original, or licensed music. No two :30 spots are exactly the same, and buying production is not like buying widgets. Setting an appropriate budget is a critical first step to managing costs.

Need a production budgeting tool for your organization or benchmarks for different components of production? Contact us — we’ve had the pleasure of helping hundreds of brands with budgeting, and we’d be glad to help you, too.

Ongoing Management

Common Pitfall: Failure to obtain written approval for scope changes, overages, or changes in direction during the project can lead to agency disputes and financial management issues down the road. Standardizing and formalizing this process relieve this pressure on projects, teams and relationships.

Helpful Tip: Use a standard form for routing and documenting change requests and approvals. Also consider using a management report to show project budget, revisions, and final spend. Having a dedicated resource (internal or external) who actively manages the budget during all stages may seem like an additional step, resource or cost, but this pays for itself quickly (usually multiple times over).

Need a fresh perspective on a budget issue/opportunity? Click here to submit questions to our team, and one of our experts will get back to you right away.

Written in collaboration with Angela Saferite.

 

Anita Silverman3 Budgeting Pitfalls to Avoid
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Successful Budget Management

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Budgeting can be like going to the dentist — not high on your list of favorite activities. However, if you go often and do the recommended preventative maintenance, you are much less likely to end up in a painful and costly situation!

The key to successful budget management is “early and often.” Below, we’ve identified three steps to take in building the annual budget, setting project budgets, and managing budgets on an ongoing basis:

Annual Budgets

  1. Select methods that fit your company culture such as zero based budgeting, standard costing models, top-down target driven, inflation factors, prior year base, stop/start/continue, etc.
  2. Lay the groundwork up front so everyone in marketing consistently applies the budget methodology. Set the standards for level of detail required, standard costing and modeling, and ratios requirements (working versus non-working, media versus production, fee versus creative, etc.)
  3. Train the team and review the budgets during the process versus after the budget is submitted. Giving a list of review tips, frequent errors, and issues to avoid can be very helpful for your marketing team.

Project Budgets

  1. Consider a model approach with standard cost ranges for various components of production.
  2. Define the components and potential costs up front with agreement from all stakeholders.
  3. Explain variations to the standard costs and obtain senior management approval to operate outside the standard, as needed.

Ongoing Budget Management

  1. Recruit a champion to manage project budgets and implement process enhancements.
  2. Analyze, understand, and agree upon detailed budgets prior to the start of any project.
  3. Wrap-up and reconciliation are just as important as the planning phase and can help your team learn from issues and collect remaining funds for re-investment.

In summary, here are 5 additional things to keep in mind:

  1. Clarify expectations with the team up front before budgets are prepared and submitted.
  2. Have a formal review process for variances to standard costing models used in budgeting.
  3. Have a formal approval process for changes to project scope.
  4. Assign responsibility for ongoing budget management.
  5. Be the team that gets more money due to your track record for effectively and efficiently managing your budget!

Being involved early and often are the keys to success in budget management. Check out our upcoming post for tips and key watch-outs for implementing improved budget processes in your company.

Written in collaboration with Angela Saferite.

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Budget Planning: Fall Into More Money

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With today’s consumers digesting content at a rate like never before, organizations are struggling to keep up. Marketers are challenged to create more content, more often — yet have stagnant (or decreasing) budgets. So, how do you overcome the challenge of doing more with less? During this “budgeting season” we wanted to share a few ways you can approach “finding” more money in your budget. Check out three real-life examples:

Refine Your Content Production Strategy

This can help drive creative synergies, increase speed to market, and lead to significant cost efficiencies — especially for advertisers looking to globalize advertising development and production. So, where do you begin?

  • Tap an internal or external production expert to analyze current processes, creative outputs, staffing, technology tools, content needs, and spending across brands and geographies to identify opportunities, barriers, and challenges.
  • Develop an annual planning protocol — and stick to it
  • Determine the optimal production approach(es) based on your content needs for the next year
  • Analyze historical benchmarks and develop a methodology for tracking success

MRA was tapped to lead this process for a global advertiser. The results? 44% savings in production costs versus historical benchmarks for comparable scopes. Click here to request the full case study.

Establish Targeted Production Investment Levels

Whether you’re investing broadcast and digital video, creating target investment levels based on deliverable type and complexity can have a significant and positive impact for your organization.

Start by building standard cost ranges (based on historical benchmarks) for the various components of production. A few examples of these “components” include:

  • Video style (presenter, single storyline, testimonial, vignette, etc.)
  • Testing (boardomatic, 2D animatic, 3D cinematic, etc.)
  • Number of locations
  • Number of shoot days
  • Music (licensed, stock, custom, etc.)

 Once all components have been considered, develop categorizations based complexity and deliverable type to be used as “building blocks” for budgeting.

Next, create a budgeting tool which factors in additional elements which may increase/decrease the investment level. A few examples of these additional elements include:

  • Heavy CGI or special effects
  • Multiple casts
  • Shooting in a low-cost location
  • Repurposing existing assets

By right-sizing your budgets based on historical benchmarks, deliverable type, and complexity you have the opportunity to drive efficiencies all year long. In fact, one of our clients tapped us for help and captured $1.5M in efficiencies within the first year alone!

Create a Strategy for Scaling Social Media

These days, marketers are struggling with the need to produce more and more content for social channels — with flat budgets. Many organizations are finding themselves with unsustainable year-over-year expenditures in social media and are looking for new approaches to be able to scale their program. If you find yourself in this situation, here’s something to consider:

  • Leverage an internal or external expert to evaluate optimal content for driving the best interaction across channels
    • Look at social media posts over the last 12 months and analyze interaction rates
    • Identify trends in interaction rates by content types and posting cadence

MRA was recently tapped by a global advertiser who needed help in scaling their social media program. By partnering with our client’s marketing team and agency, MRA was able to analyze engagement trends and identify multiple opportunities to stretch budgets and drive efficiency. The results? Our client stretched their social content production budget by more than 35%. Click here to request the full case study.

In Summary

As you can see, falling into more money comes in all shapes and sizes. Understand the strategies currently accepted by your company and what strategies might improve your approach based on the culture and tolerance for change.

Check out our upcoming article as we’ll provide steps on enhancing your 2018 budgeting processes.

Written in collaboration with Angela Saferite.

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Budget Planning: ‘Tis the Season

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It’s Fall and most everyone is working on budgets. And over the last 37 years, we’ve NEVER heard a marketing professional say, “I have enough to execute all the plans and build my brands. No thank you, I don’t need any more budget money.” Seriously, through all the years, with all the brands, in all the circumstances — never have those words been spoken.

So, as an Operations Team member, Procurement Specialist, Accounting or Finance professional, Strategic Planner, or Budget Analyst, here’s what you need to do to be successful: FIND MORE MONEY!

The business environment of today is a picture of:

  • Doing more with less
  • Holding budgets flat in spite of inflation
  • Negotiating incremental deliverables out of existing contracts
  • Introducing new brands without incremental budget
  • Squeezing payment terms, hourly rates, and fees
  • Working with an approved budget only to later receive cuts to that amount
  • Reducing total spend but providing the same or better business outcomes
  • Reaching consumers in a complex, always-on communication stream
  • Complexities with technology and the digital space

So, the task of finding more money in this environment can seem daunting, but there are ways of analyzing existing budgets, building plans for the next year, utilizing tools, and managing processes that can make this a reality. It is reasonable to find money and identify savings that can make you look like a hero, and that money can be dropped to the bottom line or even re-invested in incremental marketing programs to drive improved revenue!

Success in budgeting and smart ongoing budget management looks like this:

  • You become the “go to” person for the executives
  • Marketing and brand teams respect you and seek advice
  • Teams come to you early when there’s a problem
  • Teams are honest with you when there’s money remaining in projects or available to solve problems or drop to the bottom line
  • You become known for solving problems and helping the marketing team and your company deliver financial goals
  • Senior management begins coming to you saying, “If we have incremental money to spend, what can we do to drive incremental sales and revenue?”

So over the next few weeks, let’s roll up those sleeves, sharpen the pencil, and get after this budget in a new way with results that drive new thinking and help you find money!

Join us next week as we explore some actual case studies and tools that deliver this type of success in budget season and throughout the year with ongoing budget management.

Written in collaboration with Angela Saferite.

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Production Transparency: 4 Steps to Getting Started

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With the recent release of the ANA Production Transparency, now is the perfect time to review and refresh your practices.

Step One

Identify someone or a team who is responsible for managing production. This can be accomplished in three ways:

  1. Tap into in-house resources with deep production knowledge (these team members may reside in marketing operations, procurement or finance)
  2. Train and develop internal team members to manage the production process and expenses
  3. Hire production experts to supplement your internal team

Assigning this responsibility is a critical first step to success!

Step Two

Implement solid policies, procedures and guidelines governing production spend. These usually start with your company policies and procedures that need to be adhered to. However, this alone is not enough; more specific production guidelines require clarification and communication. Production guidelines are best when in writing, updated often, and both employees and agency personnel receive training. (The training is best delivered by the individuals responsible for the management of production costs.)

Step Three

Avoid surprises and issues with your agencies up front in the process by conducting a thorough pre-bid meeting, including leveraging an objective party to ensure 100% alignment among agency personnel and brand teams on all elements of the production, including (but not limited to):

  • Recommended bidders
  • Shoot location options
  • Types and number of assets to be included in production
  • Talent requirements, residuals, and buyout considerations
  • State incentives
  • Music
  • Special effects
  • Budget

Input and clarity around these topics early in the process facilitates transparency, effective management of budgets, and — yes, even results in savings.

Step Four

Have a smooth invoicing process which includes a detailed review of invoices before payment is made. This also is helpful in eliminating the painful process of recouping funds if there are discrepancies or disputes with the billing.

Experts that specialize in reviewing production invoices and back-up documentation, monitoring compliance, ensuring verification of all costs can provide a thorough analysis. (Up-to-date, best-practice guidelines are a key element to have in-place prior to implementing the invoice review process.)

Summary

Regardless if these 4 steps are supported by internal or external resources, there’s never been a better time to take a look in the mirror and identify areas for improvement. Find yourself wondering how you’re stacking up to other organizations, or need help identifying areas that you might be at risk? Call 513-354-3833 to schedule a free transparency assessment.

Join us next week as we provide tips and tricks for implementing change to production management practices in your operations.

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Defining The Actual Role of Broadcast Advertising

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What is advertising? In its simplest form, advertising is a message from a seller to a poten­tial purchaser – which the seller hopes will produce extra sales and, ultimately, an en­hancement of revenues. And some other descriptors?

  • Advertising is an investment by the adver­tiser, wherein he puts capital into a venture he hopes will not only be self-liquidating but will also produce a handsome return on his investment.
  • Advertising is a golden opportunity to outwit, out­spend, and out-maneuver the competition.
  • Advertising is the very best method of pro­moting, building, rebuilding, or maintaining a Brand.
  • Advertising, in many companies, is the fast­est, most direct route to the Executive Suite.
  • But, above all else, advertising is SELLING.  The sooner we all get that very basic principle clearly in mind, the better off we’ll be.

Veteran salesmen will tell you it’s essential, at some early stage in the selling process, to get your prospect nodding, saying “yes” in response to your selling argu­ments. This, of course, is preparation for the essential “yes” that answers the bid for action, your “closer.”

Advertising, being an indirect form of sell­ing, needs to get “yesses,” too.

For the next few minutes, put yourself on your pro­spective customer’s couch and consider the daunting challenges your ad­vertising must take on. Within seconds, your ad must secure a “yes” answer to six vital questions. You must get six “yesses” in a row in order to win this game. Here they are – in sequence:

ADVERTISING YES #1

Yes – I’ll watch this commercial or read this ad.  If you don’t get this one answered right and right away pack it in.  You’ve lost the game at the get-go. Your commercial or ad must nail the viewer immediately. This is known as “attract­ing attention.”

Consider, for a moment, the enormous competition your ad encounters. You’re fighting the reader’s or viewer’s current mental condition, the accumulated events of the day, the iPad in one hand and the iPhone in the other, whether the dog is scratching itself, what the kids are doing, etc., etc. Your commercial opening or ad visual had better be good.

ADVERTISING YES #2

Yes – I’m interested enough to stick around for a few seconds. This stage in the sale, not surprisingly, is known as “arousing interest.” And you’d best be sure that the interest sought is the prospect’s interest, which you have cleverly ascertained from research. Beware of using an execution technique as an interest arouser – all prospects want low-calorie food that tastes good, you know.

ADVERTISING YES #3

Yes – I want what you’re promising. This is where the principal benefit comes in. Clearly, you market your product or service to provide a certain desirable end benefit for the prospect. Ergo, waste no time getting to the benefit quickly and unerringly (remember that your “temporary” reader or viewer can still bag out on you at any second).

Many sagacious advertisers make sure the principal benefit gets appropriate attention by making it the sub­ject of the ad’s main illustra­tion or using it as an early and dramatic visuali­zation in television. The best advertisers do both.

ADVERTISING YES #4

Yes – I believe what you’re saying or prom­ising. I understand how your Brand is different from your com­petitors, how you can offer some­thing they don’t or can’t…and I want what you’re offering me. If you don’t get this right, your persuasion score suffers.

Brand differentiation thrives on reason-why which is, of course, what we’re talking about here.

ADVERTISING YES #5

Yes – I want what you’re selling. Your proposition meets me squarely in the area of my interest and pro­vides the benefits I seek in Brands like yours. You’ve also convinced me why I need to buy your Brand over any other.

I like what you’re telling and showing me, and I’m ready to buy.

ADVERTISING YES #6

Yes – I WILL buy what you’re selling. I’ll matriculate from becoming a consumer of your advertising to be­coming a consumer of your product. You’ve showed me the package, you’ve rammed home the Brand name, and you’ve urged me off of my couch and made me make a note reminding myself to pick up look for your Brand while shopping next.

Cost Control: A Blend of Art & Science

Okay, now that you’ve studied the answers your advertising must elicit from viewers, we have some questions for you. Look at your most recent advertis­ing, particularly your Creative Strategy. How hard are you selling? Have you traded in a potentially effective cam­paign for “a little top of mind awareness”? How long has it been since you spent a day in the field with your agency, talking to retailers? How long has it been since you ran a truly innovative us­age and attitude study?  What are the analyses of your last copy research tests showing you?

MRA has more than 50 major advertisers as clients, and our consultants deal with questions of this kind every day.  Want to learn some more? Give us a ring!

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