An Online-Video Contest Crisis Begs for Better Model

by Nalts on August 20, 2009

I’ve written quite a bit about online-video contests as a win-win for producers and brands. Unless the agency insists on a giant microsite and excessive media buy, these give brands access to novel creative executions at a great price. And amateur producers can use it to promote their work, and make some bucks.

My support of Xlntads/Poptent is in hopes the startup can bridge the gap between brands (otherwise paying $200,000-$1,000,000 on TV spots in hopes they’ll land well) and the abundance of creative, talented directors who lacks the connections to become a candidate for a major shoot.

So I was rather surprised to see Jared, aka VideoContestKing (see blog) announce that he’s turning down more than $3,000 of prize money because it makes little economic sense for him. Jared, unlike me, has a television-quality production style and that comes with costs that can’t be offset with a year’s supply of Cheetos.

Last week,” said Jared, “I received and email from Right.Org informing me that I had placed 2nd and 7th with two of my video submissions to their contest. The total amount of prize money was $3,034.00. A tidy sum…but not enough for the job. I decided not to sell my creative property at the price point offered by Right.Org.

Here’s one of Jared’s entries, and you can certainly envision it on television:


Jared goes into great detail about his rationale and why it sets a bad precedent for someone making his income on producing television commercials and high-end content. It makes me wonder if Poptent.net can serve a higher niche (certainly that’s Poptent CEO Neil Perry’s vision). In the future, brands will (I strongly believe) engage lower-cost directors and develop a sleuth of TV-ready spots… then they’ll test them without the exhaustive research & revision process that currently goes results in cost-intensive commercial production (insight research, creative platform, message testing, concept testing, final execution). At the end of that process, sadly, we marketers and agencies never quite know if the ad fails or succeeds based on the insight, message approach, or creative execution. But what if you instead contracted with 6-12 producers, and tested numerous treatments online (not just asking “did the consumer like it and remember it?” but “did it increase your propensity to purchase?”

Risks are reduced, costs are minimized, risk is mitigated, and the final ad (whose director would get an additional premium for granting TV rights) would be more effective. Jared and I exchanged e-mails on this issue tonight, and he’s given me permission to share some of his thoughts. If you click “more” in this post, you can see some of the dialogue we’ve had. What do you think? Should Jared accept what he’s been awarded, or stand his ground with hopes of making a point?

KN: Jared- was your goal with Right.org to win the grand prize, or toss in the towel?
Jared: I think everyone who enters any contest is doing it because the grand prize caught their eye. Yes, they are aware they may lose, but it isn’t the runner-ups years supply of chicken wings that set’s the creative blazing a trail…. not usually anyways.
[Nalts has a different view- I know I rarely win, but usually get a "runner's up" prize, so I'm indifferent to the grand prize, but want to ensure the runner's up prize will justify my time].
KN: Do contests ever make you sign over rights when you submit, so you have no choice to decline?
Jared: Just because a brand has it’s contestants click a terms and conditions page claiming all content belongs to the brand, does not mean it will hold up in court. It is one of the reasons why they require all finalists to sign/notarize a content transfer affidavit and also submit model releases for all actors involved in the production. Let’s say, they broadcast my commercial without my permission because they think they are in the clear. Without a model/likeness release from all actors they will be successfully sued by any actor who seeks compensation for exploitation of their likeness without consent or remuneration. I am a SAG actor and subsequently am accurately informed to that extent.
KN: With your cost structure (ten times my own), do contests even make sense?
Jared: They can be. Winning a 25K TaxSlayer.com spot pays half a years bills. The smaller 5K-10K ones add up too. I won’t lie when I say I was disappointed in not winning this last one, since 27.5K is a good chunk of change.
KN: I’m happy with $5K runner’s up prizes. But that doesn’t appear to make sense for you, given your higher attention-to-detail, production standards, and time.
Jared: Since most commercials take me only 2 weeks to produce, I would be good with 5k per win. That is a fair spec. award amount (for me at this point in my career). I have peers who would not agree with me, but this is my price point. I am sure it will change over time. I was hired outright by Body Glove and paid 15K for my Directors fee. This figure was before production costs. So yes, I am familiar with getting paid higher amounts, still, I could live with 5K per commercial…. The 5K figure for a contest spec. spot works for me because there is no one guiding the creative except for myself. I do not have to jump through any hoops nor comply with required elements. In the model you speak of however, yes, 10K to 15K works for someone like myself (and there are more freelancers like myself than I think most people/brands realize) who would be willing to take some direction from the brand/agency and deliver a national quality spot for market research in hopes of a larger payday down the road should it get picked up by the brand.
KN: Any other thoughts?
Jared: I’m working to find a brand to take me up on my first 25K contest production offer.  www.jaredciconsells.com.

Thanks, Jared, for sharing your situation in hopes it will inform other higher-end producer/directors that are searching for additional ways to market and profit from their talent!

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