California remains dominant as production expands beyond the coasts
BURBANK, Calif. — September 15, 2026 — XR (Extreme Reach), the leader in advertising operations and commercial talent payments for 80% of ad productions, today released key insights into Where Ads Are Made, tracking how commercial production has shifted geographically from 2019 through the first half of 2026. The data shows an industry expanding beyond traditional coastal hubs as brands and agencies respond to tighter budgets, shrinking timelines, and rising competition for production incentives.
Despite commercial production falling more than 20% nationwide since 2019, California still commands roughly 42% of the market, thanks to world-class production infrastructure, experienced crews, and access to celebrity talent.
“California and Los Angeles have held steady even as production declined nationwide,” said Frank DeVito, President and COO, XR Pay. “The talent, both in front of and behind the camera, is here, and they’ve maintained a presence without commercial-specific incentives. That gives the region a strong foundation for growth if new incentives are taken seriously and become available to brands and agencies.”
In parallel, New York has fallen to 14.2%, down more than 10 points since 2019. XR found that states like Texas, Florida and Georgia are seeing growth, driven by economic incentives, competitive labor rates, new production infrastructure, and experienced local crews.
“Production has always chased the best combination of cost, talent, and infrastructure,” said DeVito. “Our data shows how quickly that combination is shifting away from traditional hubs, and how much opportunity that’s creating in markets that weren’t on the radar just a few years ago.”
Key findings:
The coasts are losing share. New York’s share dropped to 14.2% through H1 2026. Illinois’ share has eroded from 7.2% in 2019 to roughly 5% today, with volume down more than 50%. However, California still commands the largest amount of ad volume, with 4 out of 10 commercials involving on-camera production taking place in the Golden State.
Regional markets are gaining. Texas grew production volume 29% from 2019 to 2025 and holds the third-largest share nationally at 6.7%. Florida reached 6.1% share in FY 2025 and has held close to that level through H1 2026. Georgia’s share rose from 2.3% in FY 2025 to 3.0% through H1 2026, the largest jump of any market.
Production is specializing by market. New Jersey’s voiceover work grew 386% from 2019 to 2025, and Missouri’s on-camera production is up roughly 178% since 2019.
Celebrity payments are booming. Despite lower production volume, more brands and agencies are turning to famous faces to anchor their campaigns, with celebrity and talent payments in advertising growing nearly 70% in the last five years.
These trends describe an industry in transition. Production is decentralizing geographically, even as California retains its central role. Celebrity talent is playing a bigger role in campaigns. The economics of production itself are shifting toward efficiency, with teams squeezing more usable content out of every dollar.
XR compiled the report using its own proprietary talent, celebrity, and production payroll data spanning advertising productions across every major U.S. market and advertising category. Find the full report HERE.
About XR Extreme Reach
XR helps brands manage every aspect of their advertising creative, from production and payments to rights and delivery, so every ad lands exactly how and where it should. The XR platform powers millions of creative assets for the world’s leading brands, simplifying how marketers version, deliver, pay for and measure their campaigns while saving time and money. Headquartered in New York, XR also has offices in Europe, Asia and Australia. Learn more at www.xr.global.
