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Business Affairs Decoupling
Production Decoupling
LGdirect offers custom, scalable decoupling alternatives to traditional agency workflows.
Media was the first element to be decoupled from traditional agencies.
Today, all elements offer decoupling opportunities.
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case studies
Case Study #1 – Tons of Talent
The Company
A Fortune 500 food & beverage business with multiple agencies.
The Project
A large TV and content production package was needed by multiple brands requiring a variety of commercials with different lengths and elements for use on websites and digital. Testing confirmed that the brands’ consumers related to terms “Authentic” and “Real”. The creative developed would optimize real families and their neighbors in their real environments.
The Challenge
The agency was a signatory to the SAG AFTRA talent union contract. As a signatory, the agency would be required to pay union wages and fringes. The number of family members that would be needed didn’t sync up with the clients budget or expectations of the scope. Client and Agency agreed more on-camera people would be needed, which were not in the budget. They estimated the additional costs at $650,000.
The Solution
The client and creatives teamed with LGdirect as Production Agency of Record. The project was bid, contracted and paid for directly between LGdirect and the client. All business affairs and producing requirements were fulfilled by LGdirect.
The Results
During casting, the creatives discovered many more “Authentic” and “Real” families with extended families and neighbors than they had originally budgeted for and were able to hire many more than originally budgeted for. In the end, the hiring of the real non-actors vs. union actors saved the client over $800,000. on this very successful campaign.
As a bonus, the project was shot in New Orleans and LGdirect filed for the Tax Incentive and returned $224,000 cash back to client.
Case Study #2 – Tons of Deliverables
The Company
A Fortune 500 food & beverage business with multiple agencies.
The Project
The client wished to update their website with fresh stills for a campaign needing “101 uses” shown of their product in 101 different situations.
The Challenge
Agency told client that the cost to shoot all new “101” was not included in their $195,000 budget. There were some existing shots that could be re-purposed, some were a maybe. The out of state agency proposed a multi-tier proposition giving the client the ability to choose a price range they could afford. The first option was the most minimal the agency could recommend at 30 images over 8 days for $98,912. The larger option was 71 images over 15 days at $193,300.
The Solution
LGdirect had recently done a local creative vendor analysis in the client’s home city and identified an excellent local talent pool. LGd shared the results with the client and the agency and then directly requested a bid with two price tiers from the local vendor.
The Results
For the first option, the local vendor bid 40 images over 5 days for $54,035. and option two was 70 images over 9 days for $89,880. Almost half the cost the agency presented.
As a bonus, the client asked for an expanded bid from the local vendor and was able to get 12 days of 2 set production days, 5 days of 3 set production days, 101 recipe shots, 15 hero recipe shots and 16 additional shots for banners - all for the clients original budget of $195,000.
Case Study #3 – Budget Cut
The Company
A Fortune 500 food & beverage business with multiple agencies.
The Project
Multiple TV spots needed for a children’s drink product. All spots included a very large equity character costume and exterior water play. The schedule required shooting in February. The end frames of the spots were all table top product. The original budget on the project was $1.6 for production, not including approx. $600k in talent residuals.
The Challenge
During the pre-bid process, the SAG AFTRA signatory agency was informed that that client was required to cut the budget more than in half. The budget was now all in, including residuals at $800,000. yet the deliverables remained the same. The shoot required a warm climate. The agency and the client were located in the Upper Midwest. The costume was stored in Los Angeles and was delicate, difficult and expensive to transport. Going offshore to South Africa, could be a choice but costs and logistics to ship the costume were prohibitive.
The Solution
The client and creatives teamed with LGdirect as Production Company of Record. The project was bid, contracted and paid for directly between LGdirect and the client. All business affairs and producing requirements were fulfilled by LGdirect.
The Result
The project was produced in LA using non-union children which saved the client $600,000.
As a bonus, the tabletop portion was shot in Chicago and LGdirect was able to qualify expenses for the Illinois Tax Incentive, returning a cash rebate of $68,000. to the client.