Entity sees lack of compliance in competitions due to privileged information
The diversification of advertising agencies’ revenue sources now includes audiovisual content producers in their structures and this is causing concern among specialized suppliers of films focused on advertising.
These in-house companies, including Craft (WMcCann), Frame (Galeria.ag) and Prodigious (Publicis Group Brasil), cited by Marianna Souza, president of Apro (Association of Audiovisual Works Producers), are participating in competitions held by advertisers to command film sets for campaigns created by themselves. Marianna emphasizes that there is a lack of compliance in this process because, in her words, the agencies have privileged information in relation to traditional producers.
Internalized producers have a different CNPJ from that used by agencies. They are, therefore, independent companies and work with freelance directors to make commercial films. Marianna does not question the idea of in-house production, but says that there is a negative impact on companies specializing in production.
Apro carried out research with the 85 associated production companies, a number that increases to 120 when considering the Film Brazil project, which shows that 32% had an impact on their revenues; 46% complain about the effect on the sustainability of the business and another 46% say that the financial reduction varies between 10% and 30%.
The issue of compliance, according to Marianna, also involves treatments made by producers for competitions, often used in campaigns. No copyright payments, highlights the president of Apro, who gave this interview from Alamanha where she follows the Ciclope festival.
Apro is holding conversations with Abap (Brazilian Association of Advertising Agencies), directly with president Marcia Estcves, partner and CEO of LewLara\TBWA, to create a protocol of intentions to minimize the matter. ABA (Brazilian Association of Advertisers) was also contacted and asked Apro to conclude the debate with Abap to take a position, as Marianna explains.
The question is the way in which this is being realized. There is a lack of compliance and governance, which need to be observed by these players, the agencies. Producers compete with in-house companies, which can often use privileged information. This compromises the learning curve as they do not have subsidies for competitions. There are still more price offers that harm directors, emphasizes Marianna.
Apro is in negotiations with Cenp (Executive Council for Standard Norms) to integrate its staff. Producers have been struggling with revenue for some time. The 15% commission rule has been abolished and is not in the remuneration rules of the institution that manages the trade’s commercial relations.
The movement to internalize advertising film productions in agencies began in 2018 in the United States. But there were charges from the country’s antitrust authority and the FBI due to suspected fraud. The same thing happened in England. But local producers decided not to participate in competitions with the presence of in-houses. Marianna says that even though Apro does not intend to join Cade.
We will not use this expedient. We just want there to be transparency and equal conditions of competition, concludes Marianna, who is publishing a manifesto this Wednesday (8).
