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Home: Video University Forums: Marketing & Business:
New Guy: "What about commericals?"

X-David_Corse
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Mar 11, 2001, 3:29 AM

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New Guy: "What about commericals?"	Can't Post

I am currently researching the possibilities of turning a longtime fascination (video/film/photography) into a business. I am rather green, and the answer to my question may be obvious to you all. But...
What about producing commercials for local businesses for broadcast on local cable systems? With todays DV and Betacam technology, the quality is there. Is there a political (eg union) reason that I am not aware of?
Please advise.

X-Paul_Bolden
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Mar 11, 2001, 5:18 AM

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Re: New Guy: "What about commericals?"	Can't Post

The bigger problem may be the lack of sophistication of the small business owner. Because it seemed potentially lucrative we did 2 market tests in the Cleveland area. Both were a cross section of small businesses in up-scale areas of the city. The offer was to shoot and produce a :30 spot for only $500. We would also function as the ad agency and place their time buy with the cable company, for this we would receive a 15% rate cut from cable company (additional profit for us). Commercial time on cable is incredibly cheap with some :30 spots usually r.o.s. (run of station) as low as $5. The prospect was shown this in the direct mail piece along with how television would draw more customers to their business like a magnet and more cheaply than a display ad in the newspaper. The combined response of both tests netted 1 tire kicker. We were able to draw these general conclusions based on the test results.
A)If a business generates less than $1,000,000 in annual revenue they:
1) May have insufficient cash flow to produce and sustain even the smallest ad campaign.
2) Lack the understanding of the importance of marketing.
3) Have a limited view of their business' potential.
4) Have an inability to step outside the box of convention.
There are certainly exceptions. The question is...how much time and money are you willing to invest to find those exceptions? From a business standpoint we have to go where the money is. We love to test "niche" markets but if they turn up dead, we're out of there.
Finally suggestion. Give it a test. If it works in your town GREAT! But watch out for those who will eat up your time but not have the funds nor the intention of following through.
Just my 2 cents.
Paul

X-Doug_Graham
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Mar 12, 2001, 12:13 PM

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Re: New Guy: "What about commericals?" [In reply to]	Can't Post

The other problem is the competition from the cable stations themselves. My local cable company will shoot a basic commercial for $200, a price I can't compete with. Of course, this includes minimal editing and titles, and zero thought given to marketing and producing the best commercial message for the client. The problem is that most low budget clients are ONLY interested in the bottom line, not in the quality of the finished product. Then they wonder why their TV ads don't get results.
Regards,
Doug Graham