Orange County’s Web design and post production companies have a lot of challenges and opportunities ahead.
They’re not only battling each other for work, but also competing against companies from Los Angeles, the region’s hub of graphics and media production houses.
There’s also technology to consider.
Installing the latest Web design and production software and devices can be costly, especially when they’re trying to keep prices low for budget-conscious clients.
But the multimedia sector is growing, with greater demand for Web services in particular.
The Business Journal asked local executives how they are juggling the demands of budget-conscious clients, going after new business and working new technology into their services.
Below are their edited responses.
Has there been a shift since last year over client demands on budgets and other issues?
GARY SZENDERSKI
Vice president of account services
Truth and Advertising
Santa Ana
Clients are budget conscious and demanding under any circumstances,this year is no different.
Although we have seen an improvement in budgets, we still face rising media prices and the goal remains to make each dollar work harder. The reason for the increase in budgets, at least for our clients, is that they are attempting to keep up with competitive spending or even get ahead.
In the categories where our clients compete, opportunities arise and they have to be quick to respond and have the money to implement their response.
MIKE SMITH
Executive producer and creative director
Beard Boy Productions
Santa Ana
Southern California multimedia clients became more budget conscious than ever starting in the downturn of the early to mid-1990s. That lasted, in our experience, until 2004. After the presidential election, we did see a loosening of the purse strings with our clients, and an overall increase in both the quantity,and budget level,of the TV, radio and video production projects we received.
MICHAEL BERESFORD
President
NetScope Inc.
Irvine
Our clients continue to remain very conscious of budgets, production schedules and deliverables.
Many of our clients are a bit less demanding with unrealistic production schedules. I think people are becoming more educated when it comes to multimedia and graphics creation,asking better questions, understanding the process much better and therefore being much less demanding.
CHUCK BANKOFF
Director of Web services
Kreative Web Works Inc.
San Clemente
Clients remain demanding. However, their budgets are now more consistent with their demands.
Midsize businesses in particular seem to be more conscience of the correlation between their budget and the scale of their end product. Although all clients want and deserve value, there will always be some clients that will inherently choose price over value,sometimes out of necessity, and sometimes because they don’t fully understand the various processes that go into their project.
CHRISTOPHER WILLOUGHBY
Partner, editor
Space Division
Santa Ana
Clients continue to be both budget conscious and demanding. As opportunities in the workplace shift and our clients’ clients put more pressure on agencies, we do our best to respond.
Deadlines are one of the biggest issues. Expectations of what can be done and when.
SCOTT A. SHUFORD
President
FrontGate Inc.
Laguna Hills
Clients now want to make the most out of their budgets. It’s the sign of a more mature marketplace.
The only time that it isn’t necessarily true is in an early growth market for a new business when gaining market share early is more important than making sure you are squeezing the most out of your budget.
If the business model works, you can always raise more capital.
What changes have you made to keep clients happy and win more business?
Szenderski of Truth and Advertising
The major change we’ve made is in the area of strategic planning. We’ve helped our clients put more emphasis on positioning and branding versus tactics and promotions, which helps us stay efficient.
We remain focused on the results. They succeed and continue to be our best endorsement for new business.
Smith of Beard Boy
In order to win business and stay competitive, we need to keep overhead low, cut prudent deals with our vendors and, quite simply, deliver a better value for the client’s dollar.
This has always been our business model, so our strategy for winning business hasn’t changed. It’s helped us win more business from large clients, such as WellPoint, and smaller clients, such as Norms Restaurants, a local restaurant chain.
Beresford of NetScope
We continue to hire more and more qualified production managers who help to oversee every aspect of a project and also manage a client’s expectations. Communication is the key and you can never communicate enough.
Keeping the client involved in every aspect of the project helps to ensure there are no surprises, which no one likes.
Bankoff of Kreative Web Works
First we determine what the client’s priorities are. If we find that the client values price over time, we will design the project so they can take on some of the burden themselves.
We have developed technology where the end-user can add their own content to their Web site and make changes whenever they want. For our clients who are looking for a complete solution, we will handle everything for them, including copywriting, photography, Web development and even marketing their Web sites on the major search engines.
The key is to understand the client’s budget, their needs and their expectations. Those three issues are typically interrelated, so it is our job to manage all three.
Companies want vibrant Web sites that are functional and drive traffic and dollars. What kinds of technology are clients asking for?
Szenderski of Truth and Advertising
Even smaller clients are now requesting dynamically driven, database Web sites with back-end admin tools so they can update the sites themselves.
This costs more initially for the client, but the benefits are that they can keep their sites up-to-the-minute current, and can implement changes quickly and sometimes cheaper.
Flash animation for rich media content is stronger than ever. There used to be more resistance to flash animation because of so many poorly done rotating logos and dreary long intros that really communicated very little.
But clients are learning the effectiveness of flash animation when used well. We’re seeing clients more receptive to ideas that rival television spots in terms of quality of content, delivered in efficient streaming content and animated banners.
Beresford of Netscope
We have seen an increase in utilization of Microsoft SharePoint. NetScope is known for the strategic planning, integration, customization, installation, training and support of systems such as this.
Bankoff of Kreative Web Works
There is an increase in the awareness of our clients that the Internet can be so much more than mere online brochures. Clients are always looking for two things: to be found on the major search engines and to build relationships with their visitors.
We now have the technology to completely manage local, regional and national campaigns for our clients. This allows us to collect demographic data about their Web site visitors and customize our communication with those visitors. The objective is to convert a one-time casual visitor to a lifetime customer.
Shuford of FrontGate
Clients now want an ongoing and compelling interactive relationship with their audience rather than an occasional contest or Web marketing effort. So they are asking to be equipped with easier and more aggressive content management tools.
They want their own database-driven direct e-mail systems allowing segmentation of their core audience. They are looking for more aggressive paid search engine placements and rankings. Video content is becoming more prevalent, particularly video integrated via Flash to achieve smaller file sizes and clients are moving away from having multiple files available for QuickTime, Windows Media and Real Video.
We’re also creating a higher volume of Web media ads and more size and file type variations of the ads.
Budgets are up for Web media and down for print media.
What are some of the biggest challenges in the industry?
Szenderski of Truth and Advertising
Clients continue to want more and expect to be paying less for it. They see the fast growth and short product cycles in the consumer electronics category forcing prices to drop faster and faster.
There’s an expectation that this same trend parallels the multimedia segment. And yes, some technologies and options have become easier to execute, but the concept and planning still takes as many hours as before.
There’s also been an emergence of low-priced consultants that offer cookie-cutter design and implementation solutions that may look like a value until they are really tested.
Basically, we are challenged with defending our value as strategic partners with our clients when they are being inundated with low-cost alternatives.
Smith of Beard Boy
Keeping up with new capabilities manifested by the latest technological advances in audio and video content creation.
Plus, you have to economically leverage this new technology with strategic thinking to deliver both a better value and more effective communication vehicle to clients. There’s competition in many forms,from other production companies to kids fresh out of college who can do wonders with a desktop editing system and digital camera for very little money.
Beresford at NetScope
There is so much going on I wish we could clone our developers to ramp up more quickly.
Bankoff of Kreative Web Works
Our biggest industry challenge is also our biggest asset. The technology is a moving target. The Internet is capable of so much more than it was just a few short years ago.
Keeping up with the technology and sorting through the hype to find what will provide an advantage to our clients is the challenge.
Willoughby of Space Division
Finding new places for lunch. And seasonal ups and downs. It makes us nervous.
Shuford of FrontGate
Web design is leaving the growth stage of the corporate life cycle and is moving toward a mature market with more competition driving prices down for standardized features.
How do OC’s post-production facilities stack up against those in Los Angeles?
Szenderski of Truth and Advertising
OC certainly does not take a backseat to L.A. in terms of quality, provided you know who to work with.
There is talent here at least equal to the best places in L.A. If all the broadcast money in OC were spent in OC, more quality post houses would be here. But then again, not all of the money will be spent here until the post houses are here in the first place. It’s a Catch-22.
And, of course, there’s simply more broadcast money at agencies in L.A. than here in OC.
Smith of Beard Boy
There are quality post-production resources in OC,just far fewer of them than in L.A. We do almost all of our work in OC, because the resources here are now on a par with what L.A. can offer.
But when we have a special need, like a large sound stage to shoot on or an elaborate visual effect or to accommodate an actor or client it’s nice to have L.A. nearby.
Beresford of NetScope
In real numbers, OC might still trail L.A. with post-production services and edit bays, but the rate of acceleration and increase is greater in OC.
This is in response to greater credibility for the county on a broad level, as well as it becoming somewhat of a hub for technology and even retail.
Bankoff of Kreative Web Works
I don’t feel that I directly compete with L.A. firms for our share of Internet services. However, I have seen video production shops move to OC because the owners are looking for a different personal lifestyle.
Willoughby of Space Division
OC will continue to take a back seat to L.A. until the client feels that they get the same artistic and technical quality regardless of the commute.
There are some very creative advertising shops in OC. I’m sure they don’t want to be perceived as second to L.A. and of course neither do we.
