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Done deal: Canadian Advertisers And Performers Renew NCA
September 13th, 2017

Ron Lund, President and CEO, Association of Canadian Advertisers

handshakeDigital continues to disrupt our industry and was once again at the centre of our negotiations with ACTRA, the performers’ union.

The launch of a new low budget digital Pilot Project (ACTRAonline Opportunity Pilot Project) headlines the new deal, effective until June 30, 2020. In addition, marketers will no longer pay a “move over” fee to put a TV ad online and will face no limits on the number of times they use ads in digital.

Overall, I believe that we, together with our industry partner ICA, have successfully negotiated a significantly improved national commercial agreement that reflects today’s market conditions. This deal allows for competitive union performers when producing digital content and the versioning that marketers require to address a fragmented media landscape.

Ron Lund speaking at Corus

Ron Lund speaking at Corus

The ACTRAonline Opportunity Pilot Project (AAOP) is designed to help marketers and our MarCom agencies compete with non-union agencies for lower budget digital work, in turn creating more work opportunities for ACTRA’s members. This is being accomplished via a reduced rate for performance for projects with budgets of $75,000 or less, as well as the unlimited online versions for the advertiser.

Move over fees have been dropped, a key change as marketers seek to increase the ROI on ads by airing them across multiple media. Now, when a television commercial is used on digital media, marketers will pay only the additional “digital use” fees. This ends the practice of paying additional “move over” fees. Going forward, talent will be paid once for the session and then for use in the chosen media.

When a digital media commercial is used on television, we will now pay the television use fees only. When a digital media commercial is used in other media, only the use fees for other media will be paid. If a television commercial runs concurrently in other media, no additional fees are paid.

We also achieved unlimited versions for digital, while agreeing to an expected rate increase for 1 year of digital use. This is a significant benefit in today’s fragmented environment. To help marketers who don’t need unlimited versions, we’ve negotiated a 45-day rate and six-month digital rate, as well as the previously mentioned pilot project.

We also negotiated more versions for TV, an improved deal for group background performers, with extremely affordable rates for the use of 30 or more actors and had stock footage taken out of the agreement altogether.

We also agreed to three increases of 2% over the course of the deal. However, digital media use rates, and the AAOP are frozen over the three years of the agreement.

I’d like to offer a big thank you to our agency partners and their producers for their support and hours of hard work throughout the negotiations.

ACA members can attend our webinar Sept. 13 to hear more details and have questions answered about how the agreement can help you and your agencies.

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