Everyone knows an eye-catching design or inventive approach makes a company look good. Beyond the attention-getting factor, does creativity in design or execution add to the bottom line? Creativity can seem like an elusive quality to track, but several studies have been done to try and find the answer.
Turns out, the answer is yes.
- For a 2016 study, McKinsey & Company developed an index called the Award Creativity Score (ACS) based on the Cannes Lions Awards given for advertising and marketing excellence. The scale weighed awards won, how many categories were represented, and consistency of the companies performance over time. The study showed companies taking a more creative approach had above average revenue growths than those who didn’t.
- 67% had above-average organic revenue growth
- 70% had above-average total return to shareholders
- 74% had above-average net enterprise value
CREATIVITY AND COMPETITIVE ADVANTAGE
- Research by Forrester Consulting in 2014 found more innovative companies were more likely to have notable revenue growth and enjoyed greater market share than those that were less innovative.
- Companies fostering creativity achieve more exceptional revenue growth than companies that don’t. Fifty-eight percent of companies that said their firms foster creativity had 2013 revenues exceeding their 2012 revenues by 10% or more. In contrast, only 20% of less creative companies performed similarly.
- Companies who identify as creative hold greater market share and competitive leadership. Companies in the study that encourage creativity enjoy better market shares and positions and outnumber their less creative counterparts by a factor of 1.5 to 1.
CREATIVITY = EFFECTIVENESS
- The Institute of Practitioners in Advertising (IPA), a trade organization representing agencies, examined 213 case studies of advertising over the last eight years, including campaigns by marketers such as Cadbury, Volkswagen, Budweiser and Honda.
The study looked at market-share growth, sales, profits returns on investment, likability and emotional appeal. Analyzing those, the study claims campaigns awarded for creativity are 11 times more effective than campaigns that don’t win creative awards.
“Creatively awarded campaigns are a more reliable investment- they achieve greater effectiveness levels,” said Peter Field, IPA study author.
Many business leaders are intimidated by creativity, thinking it’s something you either have or you don’t. But researchers have found that creativity can be learned. Using programs designed to teach creative thinking and problem solving, major companies found teaching creativity led to increased profits.
- The Wall Street Journal reported a two-year in-house creativity course at General Electric resulted in a 60% increase in patentable concepts.
- Participants in Pittsburgh Plate Glass creativity training showed a 300% increase in viable ideas compared with those who elected not to take the course.
- At Sylvania, several thousand employees took a 40-hour course in creative problem-solving. ROI: $20 for every $1 spent.
- Hewlett-Packard invested over $2 billion in R&D in 1999 and generated more than 1,300 patent applications. Net revenue: $42.37 billion.
WORKING WITH A BRILLIANT TEAM
Creativity can increase the bottom line. Working with a one-stop shop like Vivid Impact allows your team to experience strategy, creative, technology and production all under one roof. The goal: finding the most creative and innovative solutions tailored to meet the needs of each client project and campaign. Learn more about our creative processes here. Work with Vivid Impact today, and be brilliant!