Investing in creativity: a necessity for business transformation

 Here she shares how creative transformation is necessary for business growth and resilience in a world facing ongoing digital disruption and the ongoing effects of COVID-19.

When we think of business transformation today, we may not immediately associate it with creativity. While the marketing and advertising world has pivoted towards marketing technology and ad tech adoption to gain traction, we’re seeing increasing evidence of the intrinsic link between creativity and business success.

In a Forrester study examining the return on investment (ROI) of creativity compared to marketing technology and ad tech adoption, they found that a $19 billion shift from technology to creativity over six years would provide an increase in ROI of up to 18%—a potential return of $66 billion.1 Although the study was conducted in the U.S., we expect to see similar results in other parts of the world.

 Improves long-term brand health, supports sales spikes, changes consumer behavior or brand perception, and can even support long-term pricing power and elasticity.

 A couple of years ago, McKinsey approached Cannes instagram database Lions to investigate the link between creativity and business results. Together, we developed the Awards Creativity Score (ACS) Index as a way to understand how award-winning companies perform in different markets. Put simply, the team was able to brand a company based on its creativity. When McKinsey analysed the financial results of companies whose ACS scores were in the top quartile, it found that these companies blog and web integration outperformed their peers in organic revenue growth and shareholder returns. This showed us that investing in high-quality creativity can have a direct impact on the bottom line.

On marketing effectiveness co-authored with independent cyprus business directory marketing expert Peter Field and founding partner of James Hurman, we found clear evidence that high-quality creative work can lead to long-term sales growth and brand development.

But another element has begun to emerge. Accelerated by recent events, creative business transformation is changing the way companies organize themselves and engage with their customers.