The Thinkbox Guide to Advertiser Funded Programming (AFP)

This Guide to AFP brings together opinion and insights from key stakeholders – TV companies, producers, brand owners and content specialists – to explore why brands get involved in content partnerships and how advertisers can get the best out it. We’ll also look at the various routes by which you can get involved; tackle the core issue of editorial independence, and look at some key dos and don’ts. Here are some fast links the article’s sections;

1. An introduction to AFP
2. What it is and what it isn't
3. Why should brands get involved
4. What can branded content give you?
5. Some branded content examples
6. How do you do it?
7. The legal bit: Ensuring editorial independence
8. How to get the best out of AFP
9. Summary
10. Who to talk to at the broadcasters

1. An introduction to AFP

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Advertiser Funded Programming (AFP), or Branded Content as it is now more often called, has been involved with Radio and Television since the 1930s, when original daytime dramas in the US were funded by washing powder manufacturers such as Proctor and Gamble and Colgate-Palmolive and the "Soap Opera" has remained with us ever since. The key to the successful strategy all those years ago was for the brands to give their customers the entertainment they wanted during the day. The brand would be associated and so appreciated. It was less about brand "values" and more about the brand as benefactor.

This simple and effective approach of putting viewers first when designing content should remain at the heart of any Branded Content initiative today. There are all sorts of clever ways to exploit the content but the content must be able to stand alone.

A wide range of blue chip brands have now been involved in the making of content; on television, in cinemas, at events, online and on mobiles: Unilever, Proctor and Gamble, the COI, Adidas and Vodafone, to name but a few.

People love television and are watching more of it than ever. Moreover, it is embedded in our culture and is much talked about and shared. All of which makes a close association with TV content an attractive and potentially very rewarding proposition for advertisers. AFP provides the opportunity for brands to participate in the phenomenon that a successful TV show can be; on air, off air and online.

2. AFP: what it is and what it isn't

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Understanding this is key to a positive outcome and time well spent.

AFP can be described as 'any means by which an advertiser can have a deeper relationship with programming product beyond traditional media activity'. By this definition there must be a funding relationship (full or part) with the programme or series. Put another way, it is 'beyond sponsorship' - where the advertiser’s money goes directly into production and leads to a degree of content ownership. It's programming that wouldn't exist without the advertiser partner.

It is not editorial about a brand.

Advertisers need to remember that they are buying into the editorial integrity of the programme and reaching consumers by association with the programme's values. This is not a restraint - it is the key to success. Gillette World of Sport was a great early example of an advertiser funded programme: it was a show that the target audience wanted - but it wasn’t about razors or shaving gel.

3. Why should brands get involved and how does AFP build on TV sponsorship?

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Branded Content is often looked at as "sponsorship +", and this is a pretty good thing to keep front of mind. The consumer/brand relationship operates in a similar way. AFP can do all the things sponsorship can do for a brand - enhance, reinforce or shift a brand image etc, and more.

A TV sponsorship campaign, done well, can yield real benefits for a brand if the right show is available, at the right time; if it can be secured; and if there is sufficient time to plan and co-ordinate the exploitation before it goes to air. However, this is not always possible.

Through AFP, advertisers can negate these provisos, maximise the potential of TV sponsorship on their own terms and garner a number of significant benefits from having a deeper relationship with programming and with broadcasters and producers.

4. So what can branded content give you that builds on the established benefits of TV sponsorship?

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• A competitive edge: great programmes that can be sponsored are in demand. Branded content can help you avoid a bidding war for a diminishing bowl of programming cherries. You can exclude your competitors by owning the commercial relationship from the start.
• Synchronicity: arrange TV content-led marketing at a time that suits your marketing cycle when there is no suitable TV content available "off the shelf".
• Maximum value: longer lead times mean more time to better plan and budget for an integrated campaign. More time too, to enable you to co-create the additional off-air and multi-platform content that consumers want.
• Deeper brand experience: a 30 or 60 minute brand experience; all of the content shapes consumers' attitude and image of brand (not just the branded credits).
• Additional exclusive content
• Franchise creation: AFP gives clients the opportunity to create a franchise from scratch that didn't exist before, e.g. Orange Playlist or Red Bull's Flugtag. It can also initiate the development of new programme or product categories.

There are many other potential marketing and commercial benefits, from title rights and credit integration, to product deals, promotional appearences and international barter. The wide adoption of broadband, the hosting of television properties on new platforms and the enthusiasm of viewers for more of the right content related to their favourite programmes is of considerable incremental benefit for those involved.

The recent introduction of product placement in the UK is also likely to provide brands with new opportunities to turbo-charge their content partnerships; both sponsorships and AFPs.

5. Some branded content examples

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Like great sponsorship campaigns, many branded content initiatives use entertainment as a gateway to further consumer interactions, both online and at events. Nike is a good example of this having funded a series of programmes with Sky, including Most Wanted (a nationwide search for the next generation of football talent led by Sir Alex Ferguson) and Wayne Rooney Street Striker with Coke Zero (a series of events and trials to find the UK’s best street footballer with Wayne Rooney as judge). Red Bull X Fighters also used the prominence of on-air thrills and spills to bring people together off air for an international 6 week competition of extreme motorcross series, showcased on UKTV.

You’ll find a range of AFP examples in our case studies section, but here’s a selection for you along with some quick links should you want to read more:

T-Mobile transmits its musical passion
T-Mobile wanted to bring people closer to the things they love. For many youth audiences music ranks very high on the list of the things they love.

British Gas gets kids to 'Green up Your Life'
To improve the public's perception of its 'green credentials, British Gas decided to create change through a schools and communities initiative called Generation Green.

Vodafone shows how to ‘Chase the Dream’
Vodafone wanted to make the most of its place at the front of the grid and highlight the intricacies of building a successful Formula 1 team.

Aquafresh for Kids
Aquafresh needed to engage mums and kids and the best way to do that was to create something they could share. A great piece of sing-a-long branded content provided the solution.

PCSOs call on TV support
Police Community Support wanted to improve the image of Police Community Support Officers and encourage people to apply

And finally a campaign example that used the power of a big on-air show to drive the success of a content partnership that appeared online.

Sainsbury’s Try Team were a hit with The X-Factor
Sainsbury’s connect themselves firmly to mainstream family life through an unprecedented content partnership with ITV, Fremantle, and The X-Factor. By seeding the content online through exclusive partnerships on ITV.com, as well as being the first grocer to use Sky’s green button, they dramatically improved their awareness in the multimedia environment.

6. How do you do it?

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There is more than one way to get an AFP to air. Here are a few routes:

• Route 1: clients supply a brief setting out the core values of its brand and the nature of the programme it is looking to fund, then works with a commissioning editor or sales house representative to attract the right production partner. Most broadcasters prefer this route, as the idea is more likely to be aligned to the channel requirements from the start.
• Route 2: the programme concept is put to a production company and the format is worked up with the client prior to being presented to a broadcaster. This is a good option for an advertiser who has identified an ideal production partner and wants multiple programme ideas.
• Route 3: a broadcaster is looking for a particular programme or genre to fit its programming schedule. This programme will need funding. They put a brand programming brief out to tender with producers. This is good for all parties, because it starts with a scheduling requirement, which comes with an increased chance of a commission.
• Route 4: programmes are delivered "ready made" to the broadcaster, who has to find an appropriate slot for it in its schedule. This arrangement is suitable for brand owners who already own entertainment properties and wish to barter them against commercial airtime.

Shows can be fully or partly paid for by the advertiser. In some cases co-productions rather than complete funds can encourage buy-in at the broadcaster level as it maintains their vested interest.

Broadcasters work differently. Clients and agencies must understand the different commissioning and commercial practices of each broadcaster in order to achieve the best results. The best way to approach this is to first get the programme idea and then discuss business terms.

For broadcasters, each branded content proposition will be assessed as to whether it will strengthen the relationship with the client. This relationship includes spots, sponsorship, web TV, online and AFP.

However, it’s not always about starting afresh, and successful AFPs don’t necessarily have to originate with a new idea. Sometimes they come into being once a programme is already underway.

For example ‘Frock Me’ was first aired in October 2008. It was commissioned by Channel 4 as a T4 flagship fashion series presented by Alexa Chung, Henry Holland and Radio 1’s stylist Gemma Cairney. In Spring 2009 the series was re-commisioned and a partner sought to fill the funding gap.  TK Maxx was the ideal partner as they wanted to up their credentials within the fickle world of fashion and a branded content relationship with ‘Frock Me’ gave them brilliant access and endorsement from the coolest of the cool. Publicity shots were used for in-store POS and the show generated exclusive interviews and one-off pieces in key magazines and other media. And, of course, they commissioned exclusive additional televisual content for the TK Maxx facebook app and for partner sites.

Sage and ITV worked together to bring back a pre-existing show – ‘The Krypton Factor’ - to inject personality into their brand and drive engagement with their business software. Because this was a content partnership, the advertiser could access additional material which appeared on their website, direct mail and software etc. The funding of the Krypton Factor supported Sage's own interactive website "trainyourbusinessbrain.com" which utilised the games featured on Krypton Factor to calculate a "business IQ".  Offline, Krypton Factor appeared in all Sage's other marketing communications and the campaign lived beyond the 10 week run of the programme.

7. The legal bit: ensuring editorial independence

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In reference to Advertiser Funded Programming, people often talk of a degree of "ownership". But what does this mean, and to what extent can a funder be involved in the TV programme?

On air, AFPs are subject to the same Ofcom broadcasting code rules as conventional sponsored programmes. Crucially, the funder must not influence programming content or scheduling in such a way as to affect the editorial independence or responsibility of the broadcaster and the commercial relationship must be transparent.

However, during the initiation phase, before deciding to invest their collective time and money in the programme idea, the broadcaster, producer and advertiser will have discussed and agreed the following:

• Programme format & script outline
• Cast outline including presenter
• Sponsorship credits

As to "ownership", the extent to which any additional approvals are awarded may depend on the extent to which the advertiser is funding the project: e.g. fully funding or a co-production and sharing rights with broadcaster or producer. These may include:

• Platforms and territories for distribution; i.e. mobile, online and geographic region
• Any third party licensing rights; e.g. logos, use of copyright by others
• Marketing and PR activity in support of the programme/ content

An advertiser can have more influence on the co-creation and deployment of off-air and multi-platform brand content assets.

This framework helps to define the stakeholder roles and protect the editorial independence and integrity of the production. In so doing, it creates a powerful platform for brand content marketing - programmes that viewers will want to watch, from people who know how to make them.

8. How to get the best out of Branded Content

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1. The most important thing of all is to know why you're doing it. Set yourself clear objectives from day one. However, brand content programming is about partnership and good relationships. Establishing and understanding the objectives, roles and contributions of the other stakeholders from the start is of equal importance.
2. Get help. This is an exciting but somewhat complex market, where a little help with navigation can go a long way. Ask the right questions at the beginning: e.g. who has the idea and who owns it? Who deals with commissioners, broadcasters? Who deals with the production company? Who does the deal and who is the contract with? Who owns and handles syndication and secondary rights? Who implements the off-air? Who owns the off-air? Consider how you will justify your Advertiser Funded Programming. How will the ROI be measured - hard measures, such as product sales, shareholder value, or soft measures, such as brand perceptions and awareness? How will the AFP fit into your broader communications?
3. The programme format must be strong and stand out against its competition. It must justify its own place in the schedule as well as fulfil the marketing expectations of the client. Making a hit TV programme is difficult. Getting a place in the schedule is the target for an industry of talented producers in a competitive market: 95% of their programme ideas won't get a commission. The best ones that fit, will.
4. It follows that there is stiffer competition for a peak slot on a terrestrial channel. Big numbers have their place. However, it's not all about reach. Advertisers can use the multi-channel world of today's television to create destination programming for tightly targeted groups. There are also opportunities for brands to co-create content and engage with viewers through entertainment away from the broadcast stream. We know that consumers will seek out content from brands, if the content and call-to-action is right.
5. Programme partnerships can yield real benefits for all parties. However the journey can be a long one from the first meeting to the post-broadcast party. Continual project management is required to deliver a satisfactory result. Time frames can be long and the time committed may be more than you think. Scheduling changes are prevalent within all broadcasters - slots cannot and will not be guaranteed. The trick is to deliver the best product possible, which will then be scheduled by the broadcaster as best as possible. Remember too, that broadcasters often schedule 4-6 months ahead of transmission, although there are examples of some very swiftly created and broadcast AFPs.
6. To get the most out of branded content, clients must work to deliver value off-air via their own marketing or commercial activity. The broadcast sponsorship element of an AFP in isolation will not provide an ROI; there must be other routes to delivering realisable value, either via international markets, off-air initiatives or multi-channel distribution. In most cases, branded content adds weight and cut-through to the client's total communication mix. High brand awareness, driven by other TV and non-TV activities creates a better platform for AFP.
7. With a lack of prime time branded content slots, clients should invest in marketing support to promote the programme itself. As the equal stakeholder model suggests, it's in all parties' interest to get share of viewership.
8. Don't be too literal about the link between brand and content: it's about shared values. Enjoy the journey!

9. Summary

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• Through brand content programming, advertisers have the opportunity to engage with consumers in the context of entertainment that reflects their brand values, and to turn that engagement into dialogue.
• A deep relationship with good TV programming creates a hub around which a plethora of promotional tools can spin, both on-air and off-air. These include online and mobile applications, events, merchandise, PR, trade hospitality, point of sale licensing and other media promotions. Non-broadcast platforms are an excellent means of amplifying the broadcast commission.

Who to talk to at the TV companies

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If you have a relationship with a particular genre commissioner, then that's a good place to start. However, if you don't and you would like to discuss a programming brief, then here are some people at the TV companies who will be happy to help.

• Channel4 - Rob Ramsey - RRamsey@Channel4.co.uk
• ITV - Katherine Marlow - katherine.marlow@itv.com
• Sky - David Shore - David.Shore@bskyb.com
• Turner Media Innovations - Adam Eagle - adam.eagle@turner.com
• UKTV - Sally Quick - sally.quick@uktv.co.uk