WPP have launched the Creative Capital Index at an event in Sydney this morning. The new Index, designed by BAV®, demonstrates that brands that invest in Creative Capital can provide more than 2x the average shareholder return.
The unique Creative Capital Index combines influence and creativity scores and demonstrates how brands with high Creative Capital outperform others regarding financial performance, stock market returns and consumer advocacy.
By analysing the perceptions of influence and creativity across thousands of brands in culture, among millions of people around the planet, WPP and BAV can benchmark the relative level of influence and creativity that a brand enjoys and ultimately see how brands perform when compared with the marketplace as a whole.
The Index has shown that brands with high levels of Creative Capital in Australia deliver double the financial return of the average brand measured by BAV over five years. Additionally, brands with higher creative capital provide 1.2x the amount of consumer advocacy and 1.4x the ‘brand love’. It was also shown that brands with high creative capital are rewarded with substantially greater financial returns than the average Australian brand.
“The WPP Creative Capital Index provides our teams with data-driven instruments and tools they can harness to make more informed insights about their client’s brand, delivering superior strategic output. In doing so, we enable our clients’ brands via their creativity investments to outperform the Australian marketplace on financial metrics,” Katie Rigg-Smith, WPP chief strategy officer for Australia and New Zealand, said.
The new data offers an understanding of a brand from the perspective of its customers and proves that creative capital is what achieves results in terms of financial performance, stock market return and customer advocacy.
“The WPP Creative Capital Index proves creativity is the top driver of income growth, outpacing brand fundamentals including trust, innovation, purpose and status. Creative brands drive incrementally greater consumer interest, positive attitudes, and proactive and engaging consumer behaviour. The WPP Creative Capital Index ensures marketers across the globe now have the proof they need to invest in their brands – and even more so during periods of economic uncertainty,” Michael Sussman, PhD, chief product officer of BAV, said. “The more influential our creativity, the more effectively we build brand equity and consumer advocacy”.
