Digital Production USA Market Intelligence

Are you looking for answers on Digital Production USA category?

Are you looking for answers on Digital Production USA category?

  • What are the key trends in Digital Production USA category?
  • Am I paying the right price?
  • Am I working with the right supplier?
  • What are the major challenges and risks in Digital Production USA industry?
  • How is Digital Production USA industry performing?

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Report Coverage

  • Category Overview and Spend Benchmarking: Digital Marketing
  • Production Value Chain and Cost Distribution
  • Insights on Engagement of Production Houses
  • Price Drivers: Production Industry in US
  • Snapshot of Cost-Saving Opportunities
  • Pricing Model

Market Size

Market Size US

$135 Bn

Table of contents

  1. Category Definition
  1. Market Overview
  1. Sourcing Best Practices
  1. Supplier Management
  1. Contract Terms: Supplier Analysis: Global Production Companies

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Regional Market Overview on Digital Production 

 Videos production to distribution and promotion, the US digital video marketing industry is expected to reach $135 billion in 2018–2019.

trend-digital-asset-management-usa

Key Insights

  •  In the US, majority of the marketers use video, photography, and social media as the communication platform to reach target audience
  •  Retail & fashion are the highest spenders in photography & video space, due to high level of promotions, need for coverage of seasonal collections, advertisement through endorsement done by celebrities and models, regular campaigns in stores, social media, and other channels

Supplier Market Landscape

  • Fragmented Nature of Production Industry: The digital production industry in the US is characterized by high level of fragmentation and differentiation. The intensity of rivalry is high in the industry, due to presence of large number of production firms, ranging from independent consultants to major global production houses. Consequently, corporate buyers have purchasing power in procuring production services, like video, photography, social media ads
  • Majority of the digital production houses and service providers offers end-to-end services, like pre-production, post-production, distribution, governance, training, etc.

Emerging Market Trends  

Cinemagraphs

  • Cinemagraph creation is a emerging video production trend, which is a fusion of photography with films that represent a visual story in a creative way
  • This method allows marketers to communicate about the brand with their target audience. Cinemagraphs are widely being used as a part of digital marketing campaigns

 Virtual reality

  • Virtual Reality (VR) is an effective way to reach potential customers and wider geographies. Compared to regular video and content, 360° video/VR engages viewers better. This can be measured by the number of video completions, clicks, and overall engagement rate

Final cut pro

  • Initially, the editors in video production houses had to use sophisticated, expensive, time-consuming editing software to edit the video commercials, which increased the lead time of delivery of commercial to the client
  • Final Cut Pro is a simple editing software, that is easy to operate and could be installed on most devices, like mac book pro, mobiles. An editor can work fast on the location and develop the final video

Integrated video campaigns

  • Live streaming videos on platforms, like Facebook, Instagram, have become very popular in 2018. Live videos can be streamed across multiple platforms, which maximizes the audience engagement
  • Production companies are enabling their personnel through training in the required technology

Shoppable video

  • A video content, which allows users to swipe up ward on the mobile screen, which redirects to e-commerce website, where customer can purchase the advertised product
  • Platforms, like Instagram and snapchat, support shoppable video content

Digital Production Houses: Client Engagement Model

How does it works? 

  • Client engages directly with a production house for end-to-end service. The concept or the type of campaign is provided by the in-house creative team of the client. The production house develops the content in the form of videos, contests, apps, etc., depending on the campaign. Once the concept is produced, it is used as branded content in the digital channels. In cases where the client needs content that needs high quality brand specific details, then the production house would also engage a digital agency for the content creation

What are the benefits to the client?

  • The sourcing strategy is less complex and the client can leverage maximum cost benefit
  • The production houses have modern technology, latest equipment, and software to develop innovative branded content apps, which help clients to develop unique digital campaigns that capture the attention of consumers

What are the challenges the client may face?

  • Production houses have expertise in app development, so the quality of the content created may not be in par with the content developed by a digital agency

Role of Digital Production Consultant

Production consultant acts as a bridge among marketer, creative agency, and production house to ensure effective planning, coordination, and execution of production activities from the conceptualization to the final stage, streamlines the sourcing process.

Why does a marketer need to engage a production consultant?

  • Clients engage production consultant across production cycle and sourcing cycle to improve lead time and minimize the wastage of talent and equipment
  • Production consultant plays a vital role in contract negotiation, highlight cost-saving opportunities and planning production activities for brands at a global/regional level to bundle activities within adequate timeframe
  • Production consultants have experience in working interacting with vendors, casting agencies, videographers, etc., and coordinate the various activities based on budgets and timelines to ensure effective communication and better output
  • Example: Unilever engages with Madison Advertising Management for effective production planning

Production consultant – global vs. local engagement

  • Client could engage a production consultant for global or local requirements
  • If a marketer has global operation, it is ideal to engage a production consultant on a global contract for different brand, so that they can create a category plan for the global production requirements, identify low cost sourcing hubs to shooting, engaging best-in-class graphic designs, etc.
  • Planning the requirements at a global level and executing based on regional requirements, helps to create a consolidated blue print, which will ensure better budgeting by the consultants

Production consultant – in-house vs. outsourcing

  • Outsource to consulting firms: Clients with high production budgets and requirements in the global markets prefer to engage production consultant agencies. This helps effective coordination between the global and regional team to increase cost-saving opportunities. Examples of firms: Madison Advertising Management, APR, MRA Services, Triad Consulting, The advertising production consultant, etc.
  • Engaging an in-house production consultant: If a buyer has low volume of production requirements, it is cost effective to engage an in-house consultant, who will work with the marketer's team and help to create and execute an effective category production plan

Key Success Factors for Digital Decoupling

  • Process: Documented workflow process, project management systems, external agencies, status reports
  • Service Level Agreements: Turnaround time, quality, customer satisfaction parameters, reporting
  • Governance Model: Internal ownership and structure
  • Success Criteria: Define the key objectives, time to market, cost, quality
  • Operating Model: Centralized global operating model, select a global agency, which can scale campaigns across markets, channels
  • Onboarding Plan: Digital channel, brand considerations, milestones, results

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