AICP Releases Results of Comprehensive Industry Survey
September 24, 2015
AICP Releases results of Comprehensive Industry Survey, Highlights
Positive Trends in Production Activity
The Association of Independent Commercial Producers (AICP) today announced the release of its thirteenth Annual Survey of the Commercial Production Industry. The study, conducted by Bovitz, a Los Angeles based market research consultancy, measures industry trends and activity in the $6 billion-plus production industry.
“The data collected and analyzed by Bovitz provides both our members, and the industry at-large valuable insights into trends in the commercial production business,” said Matt Miller, AICP President and CEO. “These findings provide an in-depth analysis of where the billions of dollars in commercial production activity are expended, along with key business issues our members face as they manage and grow their companies.”
The survey quantifies the economic impact of commercial production, including identifying geographic trends in production activity by AICP member companies, both domestically and internationally, as well as industry responses to a number of key factors that impact the financial health of the industry.
Among this year’s survey highlights is an illustration of how the economic recovery has greatly improved production levels by AICP members. “The results of the study show that our industry is thriving in a competitive advertising environment,” continued Miller. “Direct production expenditures are up 14% over the prior year. As the economy continues to improve, and media channels proliferate – more filmed content is needed – and AICP member companies continue to see the positive opportunities in the economy of a growing industry.”
Among the highlights of the study:
Expenditures rose 14% in 2014: Continuing a 3 year surge, expenditures exceeded $4 billion for the first time in the survey’s history. Specifically, production expenditures saw an average increase of 20% per company, and companies that are engaged in projects combining both live action and digital production saw large increases in their average project expenditures from 2013. Both domestic and foreign expenditures increased in 2014. Regionally, the industry invested 51% of all production expenditures in California, exceeding $2 billion in direct expenditures for the first time. New York/New England comprised 16% of all expenditures with all other domestic regions at 23% for 2014.
76% of live action shoot days took place on location: Three out of every 4 shoot days were on location in 2014, continuing a 4 year trend. In line with expenditures, 49% of all shoot days in 2014 took place in Southern California. New York received 11% of all shoot days. Illinois continues to experience steady growth in recent years with 7% of all shoot days, a regional high mark. Other domestic regions received 19%. Overall, foreign shoot days are up slightly, accounting for 15% of all shoot days.
Significant Filming Activity Continues Outside of Traditional Production Centers: In 2014, about 21% of all shoot days took place away from the major production centers of New York, Illinois, and Southern California. The Southwest (Louisiana, Texas & New Mexico) with 5% and Southeast (Florida, Georgia, North & South Carolina) with 7% have shown the most growth in activity in recent years, mostly due to incentives offered to commercial production in those states.
Europe and the U.K. Ranks #1 Among International Locations; Vancouver a bright spot for Canada: Shoot days in Europe and the UK increased significantly to lead activity overseas with 31% of foreign shoot days. Film activity in South American remains steady as the second most filmed foreign location at 21%. Filming in Canada continued its decline, at 20% of foreign shoot days, as the U.S. dollar performed well internationally and several provinces failed to renew their incentive programs. A bright spot for Canada is Vancouver which experienced a 5 percentage point increase to 16% of foreign shoots in 2014.
“As the mix of media distribution continues to widen, member companies have increased their average expenditures by 173% in the areas of interactive media and projects combining both live action and in-house digital production techniques,” continued Miller. “Given the rapid evolution and changes across the media landscape, the AICP membership continues to evolve their businesses to produce both live action and digital content to reflect the demands of brands, ad agencies and the consumer.”
To view a .pdf file of The 2014 AICP Member Survey results, please click here.
Founded in 1972, the AICP (www.aicp.com)represents, exclusively, the interests of United States companies that specialize in producing commercials in various media –film, video, computer –for advertisers and agencies. The association, with national offices in New York and Los Angeles as well as eight regional offices, serves as a strong collective voice for this $6-plus billion industry, disseminating information; representing the production industry within the advertising community, in business circles, in labor negotiations and before governmental officials; developing industry standards and tools; providing professional development; and marketing American production.
The study was prepared by Bovitz, a leading research consultancy with offices in Los Angeles and New York with unique insight into creating positive design experiences, products, and strategies by humanizing business decision-making. We treat every business question as a design challenge, unleashing diverse teams of researchers, strategists, and designers to work in collaboration with our clients. The result is brand transformation, business growth, and improved lives. We call it Design-Driven Research & Strategy®, and it helps create brands that consumers love. The survey was conducted online in March and April of 2015 and provided complete confidentiality for respondents. Comprehensive analysis of survey respondents determined that the study accurately reflects the distribution of AICP members by revenue and geography. All analysis and projections are based on information provided by AICP members as well as prior years’ reports.