The Value of Creativity - Vivid Ideas Sydney

1. marketing management consultants The value of creativity? Darren Woolley Founder & Global CEO June 2016

2. marketing management consultants The value of creativity? Everybody is talking about innovation, creativity and imagination. But what is the value of innovation and creativity? Lets follow the money to ﬁnd out.

3. marketing management consultants The Australian Government is investing $1.1 billion in the “Ideas Boom” over 4 years

4. marketing management consultants The Idea Boom initiative is less than $300 million per year. The focus according to the website is technology focused, speciﬁcally internet and software. Are they encouraging innovation and creativity or looking for the next Facebook or Uber? There is more to the Creative Industries than technology.

5. marketing management consultants Australia’s creative industries contribute more than $45 billion to GDP.* About 2.1% of GDP •  Software Development / Interactive Content •  Writing, Publishing & Print Media •  Design & Visual Arts •  Film, Television and Radio •  Advertising & Marketing •  Architecture •  Music & Performing Arts

6. marketing management consultants $45 billion is signiﬁcantly more than the $300 million a year the Australian Government is investing. All of these Creative Industries contribute to GDP and all have the potential to increase exports. The Idea Boom was announced at the same time Government funding of the Arts was announced. •  Software Development / Interactive Content •  Writing, Publishing & Print Media •  Design & Visual Arts •  Film, Television and Radio •  Advertising & Marketing •  Architecture •  Music & Performing Arts

7. marketing management consultants Creative Industries employ more than 600,000 people in over 120,000 creative businesses. About 3.5% of the Australian workforce

8. marketing management consultants Advertising media revenue is predicted to hit just over $13.5 billion in Australia this year. The total is closer to $18 billion

9. marketing management consultants Advertising is one area where creativity is valued commercially. Or is it? Advertising agencies even have a special department titled “Creative”. But how much of the advertising budget is paid for the idea and how much for the implementation?

10. marketing management consultants There are 557 advertising creative award shows globally* According to Adspur

11. marketing management consultants Creativity is clearly important because they have so many awards to recognise it. In fact Award Shows are big business with the company behind the Cannes Lion Awards recently valued over $1 billion by IPO. But the most signiﬁcant creative award is not for advertising. Australia is #1 on the Global Creative Index.

12. marketing management consultants What percentage of the $18 billion expenditure pays for creative concepts and idea generation? ?

13. marketing management consultants If you think it is 5% then you would be wrong. It is less. Much less. The is a lot more money spent on the implementation of the idea and almost nothing on the actual idea. But without the right ideas the implementation is pointless. So how much is an idea worth? 5%

14. marketing management consultants A lot less. >1%

15. marketing management consultants While the number of award shows suggests creativity is important, the investment in ideas does not. Business will pay for the implementation but it is rare to pay the value of the idea. Perhaps this is why they say “Ideas are a dime a dozen” But if we are to have an Ideas Boom then we need to value Ideas. >1%

16. marketing management consultants “A principle isn’t a principle until it cost you money”. - Bill Bernbach, Co-Founder, DDB

17. marketing management consultants If the principle is getting paid what the idea is worth, then… Identify the commercial value of your idea Don’t give away your IP Negotiate opportunities for sharing in the ﬁnancial value created Stand by the principle even if it costs you money

18. marketing management consultants If the principle is paying for the value of the ideas, then… Be open to sharing in the ﬁnancial value created with the idea creator Be willing to support ideas with the best ﬁnacial potential Accept that ideas may fail Be willing to stand by the principle even if it costs you money

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