- Thursday, Jun. 22, 2017
- CANNES, France
The World Producers Organization held its 12th Annual Summit in Cannes under the organization of the AICP, APA and CFP-E. During their get-together, more than 100 production company owners and executives from 33 countries discussed pressing issues facing the global production industry. As a group, there was absolute resolve that in order to deliver the highest quality product to marketers in the most efficient fashion, bidding procedures must be fully transparent.
Major factors for transparency include marketer expectations such as disclosure for budget range, and complete knowledge of other bidding entities.
The concern that advertising agency-owned production entities could be involved as competitors continues to be of paramount concern to the industry, and is part of an ongoing investigation by the Department of Justice in the United States.
Several countries have issued industry-wide statements regarding anti-competitive bidding practices and the reluctance to engage in business under these conditions.
The open market--where production companies compete for work based on expertise and price--is the guarantor of value for advertisers. Anything that distorts that competitive balance, such as agency-owned entities engaged in multi-bidding for work, where they have access to insider information regarding independent production companies’ bids, is contrary to the interests of advertisers--as well as being unfair to the production companies also bidding.