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Licensing in Advertising‍

January 10, 2024

TVC production costs money. There we said it. It’s the simple truth of the matter.

If you want to create content for the platform with the largest reach then you need to be prepared to pay. How much? That really depends on what you want your ad to do. There are any number of ways to bust your budget and it’s often the smallest details that can end up costing the most. Finding better ways to get the most from your funds is all about spending smart. This is a code we follow on every project and licensing is an area that we are always looking to optimise your investment. 

Maybe you want your ad to really connect with a young demographic and decide a celeb face will be the best way to boost sales. That’s going to cost. Or you have a great idea to catwalk your new fashion range with the best models in the region. There’s going to be a fee to arrange. Even if you just think of throwing in a track you love or a funny clip you saw on YouTube, that’s going to need to be paid for and cleared by the owner. Welcome to the murky world of licencing. 

There’s a licence for that

In advertising the main area of licencing will be for your talent. Don’t be put off by the name, ‘talent’ is a byword for those friendly faces you see on your TV screens everyday. There are many factors to consider when you’re scrolling through the endless headshots of actors you are considering casting for your ad. The people who you have in your ad will often have control over their image, voice and intellectual property. That means that you'll need the right amount in your budget to cut a deal and get them in your ad, whether they are an up and coming actor or a big name star.

No matter what type of advertising you are considering for your marketing needs, there will be a licencing issue to deal with. It’s commonly referred to as “usage” and it defines all your visual output. Say if you decide to put up a series of digital billboards around the city (otherwise known as ‘out of home’ marketing). You’ll need to clear the image rights for the amount you want to use it. The same applies to ‘point of sale’ displays at the bricks and mortar stores, all your digital media including social media platforms and TV repeats (TVR’s = the amount of times these images will be shown on the telly.)

If you’ve ever stood around with your family and friends and sang the happy birthday song in public then you’ll have broken a licencing law. The most popular song in the world was held by Warner/Chappel music until a recent ruling took their copyright claim away. They had been earning around $2 million dollars every year from their ownership. It shows how easy it is to rack up a copyright and licencing bill if you’re not careful.

This area of music usage is often overlooked when the budget is being put together. If you want to get a killer track for your ad then it’ll cost. It’s going to be even more when there’s a big name attached. To get a master track (the original song) you’ll need to dig deep into your funds to convince the owner to let you use their music. When you just ‘have to have’ a fav track but want to cut costs there’s always a composition usage option. This means you can get a re-recorded version for a snip of the original price. 

There really is a licence for anything and everything. From the fees often tagged onto imagery provided by photographers, the archive and stock footage needed to fill frames of your ad to famous movie references or quotes. It’s important to make sure it’s all above board and legal. Our ethos is to get you the best possible content for the most reasonable price. 

Know what you want, get what you need

The art of negotiation is often overlooked when it comes to licensing. People look at the price tag and are either scared off or pay it without even considering bartering on the price. When it comes to your advert, everything is negotiable. Whether you decide to go through an agency or to approach the talent or owner in person, there will always be some room to discuss price. We pride ourselves on being able to get the right talent and visual assets for our commercials with the minimum of fuss. 

If You Want To Reach An Agreement, Move From a Competitive Mindset to A Cooperative One.

Ludovic Tendron - Entrepreneur

More often than not, it’s through our working relationships at top agencies. This is our greatest source for actors and models, where we can choose from a pool of the best talent around. While there are usually set rates at most talent agencies, there is always wiggle room to discuss price. We’ve developed close relationships with agencies, allowing us to tap into a range of talent, such as celebrities, athletes, musicians, digital influencers, and anything in between. 

When experiencing the world of usage and licencing for the first time, it might be enough to send you in a totally different creative direction. It’s important to keep your options open, so you can find a way to make it all work without overspending. Our working relationships give us a strong bargaining position and keep us in contact with the best new talent and licencing agencies. And because we are constantly building an organic list of contacts, there will be plenty of options for you to choose from and at any budget. 

One area that can surprise a client is when their creative freelancers charge a usage fee for the creative content they create. This isn’t something we believe in for the work we do. The bill you get at the end of a project includes every service we’ve provided. By offering it license free, we hope that we’re building the right kind of relationship with you as a client. All you need to do is choose the creative you want and we’ll give you the advert you need.