September 5, 2019

Companies are not investing in creativity — even when it translates into business value

Source:

Companies agree that creativity is the most important factor for sustained commercial success. In spite of that, companies are putting their money into other drivers and unsurprisingly feel the latter aren’t delivering the creativity they need to move forward.

By the numbers

  • Correlation between creativity and financial performance: Top companies in terms of creative score were 67% more likely to have better Organic Revenue Growth, 70% more likely to have better TRS (total return swap) and 74% more likely to have higher EBITDA. (Creativity’s Bottom Line, McKinsey)
  • Creativity as predictor of success: 85% of surveyed CMOs believe creativity and big ideas that build the brand and create emotional connections are the single most important factor for future success. Yet, only 54% of CMOs believe they’re actually delivering on that creativity. (Network CMO survey 2019, Dentsu Aegis)
  • Tech and data trumping creativity: According to Forrester, spending on Data and Analytics, Advertising Technology and Marketing Automation grew 33% between 2017-2019 —twice as fast as overall budgets and five times the rate of spending on creativity.
  • AI to feature heavily: Marketing leaders surveyed reported a 27% increase in incorporating AI and machine learning over 2018 levels. This will increase another 60% within three years, and will be even higher for bigger companies and those that conduct more of their sales via the internet. (The CMO Survey, Duke University Fuqua School of Business)
  • ROI on Creativity: Under one model, shifting tech investments back into creativity would create an 18% ROI over six years. (The Cost of Losing Creativity, Forrester)

Why priorities need to shift

There’s a lot more at stake down the line if companies don’t start re-investing in creativity—that is, allocating more spending towards projects, tools and people that generate fresh ideas, which in turn make them stand out, emotionally connect with their market and get ahead. For one, brands aren’t wowing people anymore: despite the recent emphasis on customer experiences, those have plateaued, especially when it comes to improving brand loyalty and stickiness.

Another issue is “digital sameness.” Whether it’s being able to conveniently book flights or pay in advance for services, functional experiences are now the same. Brand apps and websites both perform and look similar and all serve the exact same customer needs or use cases in the same way. In short, brands are losing their edges and corners, their “intangible” elements in our parlance.

Solutions

We should note that investing in creativity doesn’t mean putting more money into our accounts, nor does it just apply to large companies. It means valuing creativity as a concept and resource that produces a foundation for future results. This applies to whether you run a small company, run a team within one, or work for yourself.

  • Freedom and head space: At the company level, this could translate into putting time, effort and yes, money, into the infrastructure and culture that spawns new ideas while attracting and retaining talent. This includes supporting amenities and policies that give employees freedom, which result in that much needed head space to both come up with and execute new ideas. We might have the occasional grievance with their buggy updates, but word has it that  the people working for Adobe are living in line with the brand’s vision of promoting creativity through their company culture.
  • A better relationship with technology: Today, creatives and companies have access to a litany of powerful technologies. However, if we can take some learnings from companies splurging on expensive tech to solve all their problems, it’s that we need to consider how these new technologies actually help to support creativity and the brand vision. For instance, does that new app you want to subscribe to save time and energy in the long run, even after an extensive first set up? Is it effective as is out of the box, or can it be adapted to better suit your creative needs? Even more importantly: is there future value for you in the experience of learning to do something rather than leaving it up to tech?
  • Shifting the culture: Arguably, we stumble upon a fork in the road with regards to which side makes the first big moves: do companies realize that they need to keep feeding the Golden Goose and start allocating more money, or does the market (i.e. paying customers) start looking for things they want or haven’t seen yet? Either way, if we want to see changes, we can always be proactive by making our voices heard and taking a firmer stance in regulating the value we offer, thereby increasing it and our leverage.
Play Pause
Context—
Loading...