Be Careful! Your Competition Is In The Same Room!

There are 3 advertising agencies that handle the bulk of Broadway business. 

3.

In the 2005-2006, Broadway season, there were 39 new productions on Broadway.  There were also 32 continuing productions from the previous season.

71 shows.  Handled by 3 agencies.

Divided equally (which they are not), means that each agency handled an average of 23.67 shows.  In reality, 2 of those agencies handled the majority of the shows.

To demonstrate a huge practical problem associated with these numbers, let’s look at the four nominees for Best Musical in 2007:  CurtainsGrey Gardens, Mary Poppins and Spring Awakening.

All FOUR of these musicals were represented by the same advertising agency.

That means that Tony campaigns, sales figures, etc. were all discussed, strategized and planned in the same house. 

So when you’re doing your next show, you should understand that your meetings will probably be held in the same conference room as your direct competition.

Can you imagine if Microsoft and Apple were handled by the same advertising agency?  And shared a conference room?  Or Coke and Pepsi?  Or even small hometown grocery stores?   

It’s not even smart business to consider these facts before making your choice of your agency, it’s just common sense.  I’m not insinuating that anything unethical is happening at any of these agencies, but with millions and millions of dollars on the line, why would you take the chance of all that information under one roof?  Even the most ethical and honest employee would have to be subconsciously influenced with the knowledge of what one show’s competitors are doing, wouldn’t you think?

In other industries, companies refuse to allow their advertising agencies to rep competitors.  Duh. 

I know what people will say: “Ken, the reason there is so much overlapping is because there isn’t enough consistent work to go around to keep these agencies running.”

I disagree.  23.67 shows is a lot of commission.  And besides, I’ve seen the sizes of each of their offices. And conversely, I’ve seen the sizes of all of the Producers’ offices in this city.  The agencies don’t need to take on this much work.

But this isn’t their fault.  They are just growing their business.  We’re the ones ignoring the reality and allowing these practices to continue.   

The other argument is that there aren’t enough qualified advertising agencies in business.  This may be true. 

Anyone out there want to hang a shingle?

Or better, maybe producers should start doing advertising in-house. 

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Comments
  • Ken, there’s an ad agency that could be maverick enough to break this hold. They’re a bunch of agency hotshots who started a new firm where they take a stake in the product/comp etc in lieu of the traditional fee heavy structure. If the show flops you pay them less. If it does well, they’ve essentially helped you capitalize it.
    http://www.anomalynyc.com/
    (Yes, I am posting this in hopes you’ll come see my show)

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Ken Davenport
Ken Davenport

Tony Award-Winning Broadway Producer

I'm on a mission to help 5000 shows get produced by 2025.

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