Investing in creative pays. It has to be executed and managed well, and there are a lot of moving parts. But when they all come together, it pays (in cash). Increasingly, creative decisions are influenced by CFOs attempting to manage financial metrics for CEOs and board members. Often, the C-suite folks look at capital and operating budgets for HR, Store Ops, Facility Maintenance and Creative Services the same way, using the same criteria to fund. However, Creative Services have a strong potential to return the investment, and fast. Good creative drives sales, and strong sales can cure almost everything.
In general, cutting costs as a short-term strategy to grow profits can make sense, as long as you focus on the “short-term” part of that statement. (Caveat: if your creative operation is poorly run and you have bloated budgets and wasteful habits, then by all means, cut your way to glory.) However, cutting costs in an area that’s responsible for brand health, driving sales and acquisition is just stupid! Did I say stupid? Oh, I meant to say short-sighted.
I’ve been on the receiving end of budget cuts like these my whole career. Photography and outside services are the first to get whacked. These are usually big numbers that get the attention of the financial guys. The conversation goes something like this: “HR cut their seminar budget by 50%, Store Planning is going to reduce their new shelving by 50%, so it’s fair that Creative Services cut their photography budget by 50%, right?” No, that is not right. Photography is the single most important advertising asset a brand has – IT HAS A MATERIAL RETURN! Second conversation: C-suite person says, “Okay, can you do the shoot for less? Use my summer house for a location and have the photographers do the styling. The talent can do their own hair, just cut the location and styling.” Reasonable compromise, right? Again, not right! That compromise will waste the effort; penny wise, pound foolish.
Successful execution depends on things that are not obvious. It takes a village to produce a photo. There are folks styling sets, choosing props, doing hair and make-up, adjusting light to make the set look real, and there’s a director leading the entire effort. Copywriting – another aspect of Creative Services – follows suit. When copy drives a selling point and makes the reader feel like it’s a suggestion from a trusted friend, it’s actually the writer’s skill, talent and experience that makes the reader feel that way.
The issue is that if you’re doing a good job producing creative that sells, it looks easy. And it looks easy to the CFO. After all, he/she probably enjoys shooting photographs, too. But the truth is, unless you’re on the front lines of creative execution, it’s difficult to understand how the money is spent and why it’s important. Literally everyone has experience taking photos with their phones and everyone writes memos, emails and holiday cards. Often the corporate mindset (the C-suite folks) don’t understand what makes great photography sell and what makes great copy so persuasive.
Recently, I worked on an account where the business owner invested in creative, specifically design and photography. The design team here at J.Schmid provided a new look for their catalog and the owner invested in a professional photo shoot that included building sets and employing a top-notch stylist and photographer. J.Schmid (technically me, shameless self-promotion here) provided the photo and creative direction. This was a financial leap for the owner, but they understood the value and potential return in elevating the brand and product presentation. The result? Sales for the holiday season increased 38%! Of course there were other tactics contributing to the increase, but the biggest change was enriching the brand and product presentation by improving the creative execution. This example clearly makes the case that investing in Creative Services is a wise choice.
Here’s some advice for creative managers under attack to reduce spending:
- Take the time to educate management and know when to push back.
- Prepare side-by-side examples of good and bad imagery. Point out the differences.
- Provide descriptions of the roles and activities involved in a photo shoot and why they matter.
- Align stated brand values with creative assets. Remind folks if they want to present the brand as top-quality, the only way is through top-quality creative.
- Do the math. Calculate the creative costs as a percent of sales, and it will likely feel like a good investment. After all, sales wouldn’t be possible without creative assets.
Lastly, make a passionate and well-articulated argument employing the items above. Your dedication and desire to do the right thing will often win the funding.
Want to chat more about Creative Services? I’d love to talk to you. Send me an email at neals@jschmid.com.
Tags: creative services, neal schuler, ROI