What is Production Decoupling?
Production decoupling or centralised production occurs when a client communicates directly with a production house instead of allowing their agency to produce in-house or use their own supplier.Go to the article
Many marketers have different opinions on production decoupling – and it may not, in fact, be the right approach for every brand. Many argue that media and creative shouldn’t be decoupled or that decoupling makes sense only when it comes to digital. Realistically, companies should consider their overarching strategies and resources before deciding if it is right for them. If a brand’s campaigns require a lot of production work, they may want to consider decoupling. However, if a minimal amount of assets are required, the brand’s agency of record may be enough to handle all ideation, production and distribution services throughout the campaign.
”More and more companies are turning to decoupling and utilising a single, specialist production house to manage all of their campaign’s production services.”
Marketers may face some of the following challenges:
Because of the nature of production decoupling, agencies can, oftentimes, be defensive when sharing projects and want to manage campaigns themselves from start to finish. It is important to communicate the decoupling process in the initial stage, i.e. during the agency pitch. Marketers should clearly make a distinction between the creative ideation brief and the production one. The tier-one agency is responsible for the creative development and must collaborate with the tier-two provider to make sure the assets are consistent.
The mark-ups and hidden benefits
Marketers can ask their agency to disclose their suppliers’ mark-ups, rebates and other extras they receive for providing business opportunities. In fact, a “right of audit” would be the best-case scenario. Some believe that this approach is no longer applied in most countries. However, mark-ups are very much still in play in many markets, and markets have the right to question them openly.
Every agency should support their client and work toward successfully fulfilling their brand and campaign requirements. Realistically, at times, there can be a disconnect between agency talent and clients. However, the agency must fully realise that they are obliged to ideate the most efficient campaigns in their power, trying their best to stay within budget constraints.
Agencies must always provide the best value possible. However, sometimes, problems can arise, such as short delivery times, which must be handled. Agencies should compare vendor prices to get the greatest value; oftentimes, too many favours and acquaintances are used to deliver assets on time and within budget constraints.
Depending on the campaign requirements, agencies must consider the quality that they must provide. If it is a short-lived, ad-hoc offer, perhaps fewer resources are needed to get the job done.
Find out how your brand can benefit from letting your creative agency develop only core ideas and moving the creative production to a specialist production house.Download your free guide