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Industry Debate on State Commercial Production Incentives

May 3, 2012

By Bill Duggan, Group EVP, ANA

The ANA last week issued the white paper “The Found Money of State Commercial Production Incentives.” Many states now offer production incentives for advertisers willing to shoot their commercials in their state.

These incentives are offered by the states to create jobs and attract investment. Savings, which can range from 15 percent to 30 percent of the production costs, can be achieved without sacrificing quality. The ANA's position is that the state production incentives belong exclusively to the advertiser, not the production company or the agency.

The Association of Independent Commercial Producers, the trade association representing the production community, raised this issue with its members back in November. Last week, the AICP responded with a critique of the ANA’s position. In turn, the ANA issued a response to that critique.

It is important for ANA members to be aware ofthe benefits of state commercial production incentives, as well as our position that production incentive rebates belong exclusively to the advertiser.

 

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