There was plenty of doom and gloom at for those in the business of commissioning and making TV programmes: sweeping job cuts, pay freezes, slashed commissioning budgets and the stifling of creativity through over-management.
But for those working in advertising and media, the event contained a number of bright spots for the future. Take the linchpin speech of the festival, , given by BBC director general Mark Thompson.
While BBC employees shuddered at the prospect of yet more job losses across the organisation, Mindshare’s head of programming Simon Willis, who also spoke at the festival, says Thompson’s words are good news for advertisers. "The MacTaggart lecture was brilliant. I saw real opportunities for us in what Thompson said."
Thompson talked about the worrying decline in the money spent by broadcasters on original British programming and the detrimental effect this will have on editorial standards if new money is not secured somehow.
He explained: "[The drop in programme budgets] is happening because the broadcasters who have traditionally been the biggest investors in original British TV beyond the BBC are fishing in a stagnant or declining pool of advertising.
"Without new creative strategies and business models, or unless other players or solutions appear, the total amount of money for new talent and new ideas is likely to reduce further."
Thompson predicted it may be 2014 before ad revenue returns to 2004 levels and, even then, he speculated the budget for new commissions will still be far lower in real terms than a decade ago.
As he reminded, between 2004 and today the money spent on original British programming has slumped by £300m, down from £2.9bn to £2.6bn.
This, says Willis, is a huge opportunity for advertisers to finally make ad-funded programming (AFP) a workable solution for all parties involved, something the industry has so far struggled to achieve.
He says: "It was fascinating what Thompson said about the £300m shortfall for programme-making in the industry. I’m thinking there are a lot of brands out there that have got money and can help close the gap, providing the [AFP] idea is right.
"A huge percentage of the shortfall in broadcasters’ budgets could be made up by brands, which would be a very positive development for all of us. The only way is up for what we’re trying to achieve."
The relaxation of the product placement rules will also put AFP in a stronger position. Certainly, festival speakers and delegates seemed to agree the TV industry must start embracing more flexible funding arrangements and, increasingly, brands are being recognised as the best solution.
Changing attitudes
TV executives used to be extremely snobby about working with advertisers, fearing they would want a programme about the joys of baked beans or the absorption power of nappies.
But this view is changing as programme-makers realise their ivory-tower attitude does sophisticated modern marketers a huge disservice.
Nevertheless, Willis concedes there is still a long way to go before AFP becomes a satisfactory solution for both the media and the broadcasting communities.
Indeed, it was clear from the various sessions at the festival touching on the subject - particularly the session entitled "Branded entertainment: goldmine or minefield?" - that the two industries are not yet on the same wavelength.
Willis believes the TV industry must understand that AFP is not simply "free money" and that it is about meeting a "brand need". He explains: "It’s tough to retro-fit ideas into what a brand is trying to say.
"AFP works best when you start with a blank sheet of paper and you have an advertiser, media agency and creative sitting down right at the beginning of the process, talking about a big idea. And we are starting to do that with some producers and broadcasters."
He estimates that only about half the broadcast industry currently "gets" this approach and are interested in coming up with ideas for advertisers.
Fellow speaker Mark Wood, founder of Krempelwood, which helps production companies source funding from advertisers, agrees production companies must work harder to see AFP projects from a brand’s perspective.
He says: "Brands are bombarded with ideas. If a producer says to me that Coke and Pepsi will be queuing up to get involved with his TV idea, I tell him or her I guarantee they won’t be. I tell production companies they need to understand what a brand is trying to do, and that they need to conduct more evidence-based research into how effective AFP can be."
However, Wood believes brands are also partly to blame for the fact that AFP has still failed to reach its potential. He says that brands need to share more information with producers so they can come up with more "relevant, useful and entertaining" programme ideas that meet their objectives.
"Both sides need to work together more to explore what works in the new world of product placement. AFP provides the opportunity for brands to engage with viewers at a deeper and measurable level, and it creates an opening for the broadcasting industry to create significant revenue streams," he says.
But, so far, good AFP examples are sorely lacking. Festival-goers even talked about a significant lack of imagination when it comes to considering AFP briefs. As Willis testifies, he gets the impression from some producers that AFP is "something they turn to when they haven’t got anything else to do".
Nevertheless, both media agencies and production companies agree it will only take one big hit to change perceptions. The broadcast industry is increasingly built on one or two hit shows that can make or break bank balances.
All AFP needs is to produce an X Factor or a Big Brother. Then everyone - producers and advertisers alike - will want a piece of the action.
How to make AFP work: six tips
- Don’t see AFP as one long ad or a simple sponsorship.
- Provide briefs as early as possible so you receive ideas that can sit at the heart of your campaign.
- Set clear, measurable targets at the start of the process.
- Think about how the idea can work across all your communications such as PR, trade, online, social media, international and promotions.
- Recognise that independent producers are some of the most talented and successful creative brains in the UK, so their ideas and expertise are more likely to generate the best broadcast slots.
- Seek specialist advice to avoid regulatory surprises.
Source: Krempelwood