Written by on May 7, 2012. Posted in Incentive News

AICP and ANA clash over commercial location filming incentives

The Association of National Advertisers (ANA) in the US has clashed with the Association of Independent Commercial Producers (AICP) over the issue of filming incentives in states like New York. In a white paper, the ANA has stated that rebate payments should be the sole property of advertisers.

Advising marketers on filming incentives, the ANA states: “Commercial production is funded by the advertisers. It is the advertiser who funds the production and gives final approval on the shoot location, not the production company.

Importantly, contracts with agencies and production companies should be written to reflect the fact that any production incentive associated with the work covered by that contract is the sole property of the advertiser.

Association of National Advertisers

“Importantly, contracts with agencies and production companies should be written to reflect the fact that any production incentive associated with the work covered by that contract is the sole property of the advertiser.”

In a response to his ANA counterpart Robert Liodice, Matt Miller, Chief Executive Officer and President of the AICP, acknowledges the marketers fund the work: “However, they have contracted the production company to take full responsibility for these expenses and use the allocated budget to achieve the predetermined creative objectives.

While it goes without saying (although your paper rests on this fact many times) that the advertiser is funding the production, that funding in no way defines who the intended recipient of the tax credit should be.

Matt Miller, AICP

“...So, while it goes without saying (although your paper rests on this fact many times) that the advertiser is funding the production, that funding in no way defines who the intended recipient of the tax credit should be.”

The war of words appears to be ongoing with no easy resolution in sight. Some 400 companies - carrying with them 10,000 brands - are members of the ANA. The AICP’s membership comprises production companies that are responsible for 85% of commercials screened nationally in the US.