Creative ads boost market share and revenue. The OAAA put on an outstanding July 25 webinar by James Hurman titled The Case For Creativity. Hurman is a media planner and consultant who’s written a book on the subject. In addition, here are three main takeaways from Hurman’s talk:
- There’s a link between ad creativity and effectiveness. Creative ads generate an 11 times better result than other ads even when you control for total ad spend and other factors. The landmark 2010 study by the UK’s Institute of Practitioners in Advertising found that creative ads resulted in a 2.34% increase in market share versus a 0.2% increase in market share for ads campaigns which weren’t creative.
- The link between creativity and effectiveness has increased over time because social media magnify the impact of a creative campaign via sharing. Pre-2002 creative campaigns were 3 times more effecting than non-creative campaigns. Post-2002 creative campaigns were 12 times more effective than non-creative campaigns.
- Creative companies outperform non-creative companies in the stock market. For the period from 1999 the S&P 500 grew 7%/year. The Cannes creative market of the year companies grew 26% per year during the same time period.