Commercial Filming is Down - Bad Sign for Economy?

Commercial film production in California has been a bright spot for some time. Until lately it has been fairly robust. Now it is down about 8% over last year. Is that because companies are filming their commercials somewhere else, or have they given up on trying to seduce the public to buy and are simply not advertising?

Fortunately ad agencies and the media won't notice it if their bottom line is negatively affected by the loss of revenue from corporate advertising, because it will be more than made up with political ads for the next two years. (Heaven help us.) But what does it mean if corporations are not making new commercials? They have plenty of money, but they're not hiring, they're not expanding, and now they're not advertising?

Sharon

At Least the Cows are Going Back to Work

Remember that whole imbroglio about shooting California milk commercials in New Zealand? The California State Senate and Assembly have passed a bill to prohibit commercials about California products, paid for with our tax dollars, to be shot outside of California. Now the Governator has to sign it, and I'm sure he will, or we'll be baaack!

Now we have truly happy cows because they have jobs and can put grass on the table.

Sharon

Can Commercials Light Our Fire?

Commercial production was up very nicely last week compared to last year. I'm wondering what kind of messages they are crafting to get the American public to buy again. The message has to change because we are changing, and we may never be the same again. People that went through the Great Depression came out different, with an emphasis on different values and a new awareness of how difficult it is to accumulate wealth and how easy it is to lose it.

Companies aren't hiring because we aren't buying. And we're not buying because we're scared. The buyers and the sellers are both paralyzed because of uncertainty. So how will they appeal to us, what will be the pitch, the punch line that will open up our wallets? Have you noticed the car commercials (filmed in California) that emphasize the concept of passing your car down to your children? Wait and see, the commercials are going to appeal to a more sensible side of our nature, simply because we have had to grown up in a hurry.

Sharon

At Least the Dutch Like to Film in California

Although the statistics for the last year are not available, if the trend continues less than half of the commercials shot in this country will be shot in California. There are no tax incentives available for the producers of commercials, but listen to how a dutch commercial maker feels about California.

First, the fact that the dollar is on the weak side works in our favor, making shooting here relatively cheaper. The other factors working for us are the diversity of locations, the wealth of experienced crews and the abundance of sunny days.

"LA has the very best professionals and the best crews in the world. You can always go someplace cheaper, but I don't think it's always better - when you shoot in LA, everything goes really smooth."

That's a potent statement. I think it's valid. How do we get that message across to a broader spectrum of commercial producers everywhere? This dutch producer who is quoted above is coming back again this year for another client. I need to get someone from the City Council to meet and greet him.

Sharon

Have a Big Mac

I have a soft spot in my hear for McDonald's. Not because I indulge in a Big Mac very often, it just isn't on my diet plan. I do see them making an effort to provide healthier food, and at least give the consumer a fair warning about what they're consuming. I applaud them for that. But, the soft spot comes from the fact that they provide a lot of free food for the Susan G. Komen Race for the Cure in Los Angeles every year.

Now the frosting on the burger, McDonald's films their commercials here too.

Commercial filming is looking for tax incentives like everyone else. It's not a little business. According to Matt Miller the President of the Commercial Producers Association, commercial production employs an estimated 10,000 people in the LA area and supports about 220 companies; California is losing out to states that offer tax incentives and rebates that reduce the costs to producers.

Everybody wants a tax incentive, maybe we should simply lower taxes across the board. All of you in favor say aye.

Sharon

Thursday is for Commercials

My husband, Bob, swears that the ratio of commercials to TV programming has finally reached the point where we are watching more ads than programs. I use the commercial breaks to do the dishes, cook dinner, do the laundry, paint the front porch; it's amazing how much work you can get done on a commercial break. So, I don't mind the number /length of commercials. In fact, since so many are filmed in California, I'm actually happy to see them proliferate.

During the last quarter, on-location commercial filming grew a whopping 35% over the same time frame in 2009. I don't know how much of that is due to Meg Whitman's political ad avalanche, but now that I think about it, I remember reading that she hired all sorts of pr/advertising support from outside California. Do you think that's true? What's that about Ms Meg?

I've mentioned some of the companies that film commercials here in past blogs. You can add to that list, Chevron, Ford, AT&T, Nike, Adidas, and Miller Lite. But, it goes beyond whether or not a commercial was filmed in California. We really need to support that whole made in the USA campaign. You probably know that our trade deficit is growing again. But do you know that we pay less for Chinese imports than the Chinese people pay at home? Are they trying to create such a dependency on their products that we give up all of our production facilities here and then they'll jack the price up for us too? China is an old, old country; they have a long planning horizon. Are they setting us up? Probably.

Back to the commercials filmed in California. Have you seen the new Ford Mustang?

Sharon

Welcome Home Happy Cows

Remember when I told you back on April 24th that all those California cows had lost their jobs because the 'happy cow' commercials were going to be filmed in New Zealand? Well, bless State Assemblyman Ted W. Lieu from Torrance who introduced a bill that basically says that if a commercial is promoting a California product and California tax dollars are being used to make the commercial, it had better darn well be shot in California. Amen. Step right into the Hero's Hall of Filmed in California Fame, Mr Lieu.
Maybe the funniest part of this story is that the Milk Advisory Board, who made the decision to shoot in New Zealand, claim that they were still going to use California cows in the commercials. Right. Tell me another cow story.

Now drink your milk and go to bed.

Sharon

Commercials

Here's another area where we can vote with our pocketbooks. There are a lot of commercials filmed all over California, creating jobs right here at home.

So wouldn't it be great if a product actually made in the USA and even better, a product that is a huge industry here in California filmed their commercials here? That would seem to be a no brainer, right? You know those happy cow commercials, where the cows talk to each other and the bulls make suggestive remarks to the lady cows? I have it from a good source that their last commercials were made in New Zeeland? Huh? Why? Are California cows no longer so happy? Even they are out of a job now. Oh well, as least we can take some comfort in the fact that California is the largest dairy state in this country. We produce almost 20% of the total consumed in this country (also 20% of the methane).

But what about Chevy Trucks. They filmed a commercial here last month. Go buy a truck? Well, maybe not, but if you are in the market for a truck, no one makes better trucks than Ford and Chevy (at least my trucker friends say so). How about a Movado watch? They filmed a commercial in Encino. Actually, I have a Movado watch, and I like it very much.

Stay tuned, tomorrow I will give you 2 new shows to watch on TV.

Sharon