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The value of creativity?

Darren Woolley Founder & Global CEO

June 2016

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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.

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The Australian Government is

investing $1.1 billion�in the “Ideas Boom”�

over 4 years

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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. �

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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

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$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

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Creative Industries employ more

than 600,000 people�in over 120,000

creative businesses.��

About 3.5% of the Australian workforce

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Advertising media revenue�

is predicted to hit just over $13.5 billion in Australia this year.�

�The total is closer to $18 billion

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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?��

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There are�557 advertising�

creative award shows globally*�

�According to Adspur

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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.

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What percentage�of the $18 billion

expenditure�pays for�

creative concepts and idea generation?

?

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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%

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A lot less.

>1%

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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%

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“A principle isn’t a principle until it cost

you money”.��

- Bill Bernbach, Co-Founder, DDB

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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

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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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