WPP launches the Creative Capital Index to measure the value of creativity
The new Index from WPP, designed by BAV®, demonstrates that brands that invest in Creative Capital can provide more than 2x the average shareholder return.
- The ASX200 saw 16% growth over five years compared to a 163% return on the top Creative Capital brands in Australia
- The value of a $10,000 AUD investment after five years in the top Creative Capital brands in Australia is 2.3x the ASX200
- Brands with higher Creative Capital drive 1.4x consumer usage compared to all other brands.
WPP today launches the WPP Creative Capital Index, a unique index enabling brands to assess the value of creativity to deliver tangible growth.
Announced at WPP House @ SXSW Sydney and designed by WPP’s BAV®, the 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.
The Index shows 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.
In addition, brands with higher Creative Capital provide:
- 1.2x consumer advocacy
- 1.4x brand love
- 1.1x pricing power
Katie Rigg-Smith, WPP’s Chief Strategy Officer for Australia and New Zealand, said: “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.”
Michael Sussman, PhD, Chief Product Officer of BAV, said: “The WPP Creative Capital Index proves that 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.”
While levels of Creative Capital can vary depending on the sector, creative disruption can happen with brands in any category. Sectors like household products and food typically have lower creativity scores than others like computer/electronics and autos. This allows brands to reinvent what creativity means in the categories where it is underleveraged.
The algorithms and methodology for the proprietary metrics driving the Creative Capital Index are based on survey research of a globally representative sample of consumers who rate brands in their local market on key image, equity and advocacy metrics from reputation to innovation to popularity.
Based on these ratings, BAV has ranked and compared brands across culture on a common set of brand KPIs. WPP’s Creative Capital Index aggregates a brand’s ratings on metrics that reflect a brand’s creativity and how it drives its influence in culture.
BAV is the largest, most comprehensive brand analytics platform in the world. Part of the WPP family since 2000, it has grown to contain 16 billion+ data points covering 52 countries and some 63,000 brands, both big and small.
The WPP Creative Capital Index information is available at www.wpp.com/creativecapital
Nicholas Short, WPP
+61 404 307 812
WPP is the creative transformation company. We use the power of creativity to build better futures for our people, planet, clients and communities. For more information, visit www.wpp.com.