Will XLNTads Change the Advertising Game?

XLNTads (pronounced “Excellent Ads”) hopes to take advantage of a crowd of amateur content producers online to generate advertising spots for big sponsors. It only follows that the first contest is to produce advertising for XLNTads. Winners receive $5,000 and 10 runners-up can choose either a copy of Final Cut Studio or a $1,299 check.

The Philadelphia-based company announced a “Creative Advisory Board” last week that includes an all-star lineup of online video talent: Invisible Engine’s Sean Bury and Matt Wyatt, Mediamogirl’s Angela Calman, Mark Day, Jefferson Chaney, Zack Scott and Kevin “Nalts” Nalty (who briefly discussed the project with NewTeeVee’s Craig Rubens, as detailed in his post yesterday).

The company is basically a new kind of middleman between a client and filmmakers. But traditionally, no one starts filming a spot until their concept and budget have been approved. In the case of XLNTads’ own pitch contest, they’re asking for finished projects. The $20,000 grand prize for a winning ad plus whatever fees XLNTads might charge for running the contest is certainly a relative bargain for a company looking for a commercial.

But according to the terms of their contest, they own the rights to all entries. So while one lucky winning crew gets paid for their work, everyone else goes home quite literally empty handed, and there’s nothing to stop XLNTads from using the losing entries in campaigns as well.

That’s not a model that seems built to encourage accomplished talent. One change could be to simply solicit proposals from filmmakers instead of finished product, which would be more like the traditional transaction between an agency and a production company.

XLNTads has an opportunity to become a clearinghouse for CGA contests, but will have to rely on a constant churn of eager up-and-comers willing to shoot commercials on spec. Will the supply match the demand?