Today, I'd like to share with you that very true article written by Freddie Winckler, CEO of the Paris office of almost-150-year-old advertising agency JWT about how much a creative idea is worth. Do you know how much Nike's swoosh has been paid to its creator Carolyn Davidson? $35! Probably the time rate she spent to deliver it at that time. But how much is it worth now for the Nike brand? Unvaluable!!

So, how come one of the most brilliant and efficient ideas of the century in the branding industry has been so cheap to buy? Because unfortunately, it's too often true that we, creative professionals, don't know how to give value to our ideas and above all to our outstanding ideas. Don't Microsoft, Sony or Toyota know how much their products are worth? Of course they do. Creative professionals not knowing how much their ideas are worth is a non-sense considering our basic fundamental work we're paid for is to find ideas! So, how do we do usually? Most of the time, we bill the client at the price of the time the team has spent on the client project to be completed. The concept of "idea" doesn't even exist in our commercial quotes. Of course we could move to a win-win quote; but can we really measure the weight of the creative idea in the client's global profit? Sure they are methods and theories but how widespread are they really in the creative agencies and their clients?  

So, how much is an outstanding creative idea worth? And how much should a client pay for it? Here's food fothought by Freddie Winckler:



"How much for that Mick Jagger guy?

The joy of this crisis is that you now get some interesting questions, every other day. So here is the story of today. One simple question: how much does an idea cost?

Helping me back at the agency are a few people creating ideas, I’ll call them Mick Jagger, Clint Eastwood, Helmut Newton and their trainees. Fun group you’d say, and yes we do have enjoyable days, but god we make money for our clients.

Going back to the question for a second, the procurement experts smile avidly:
-’Let me help you’ they kindly offer.

- ‘How much time does it take to get an idea?’

-what kind of idea I reply?

-’a normal one, you know ‘ they answer.

-Goodness a normal idea, I’m not quite sure what that is, I normally look for a not normal idea…

-You’re not beeing helpul they say angered. Let’ s say it takes Mick 10 days to get an idea and that he needs 3 days of Clint to help and since we’re in a good mood, we’ll say another 5 days of Helmut. So 18 days in total. Is that doable they ask?

-Could be true, could also be half that time or double that time, but let’s say that this could be a good average,

-them reassured they have found interesting ground:’ now let’s be honest. You know that Mick is not very efficient. Comes in late, Helmut we know is sending emails to his facebook girlfriends. So if you managed them better, I’m sure we could save 10 or even 20 %.’

-Me: well you’re not totally wrong but you know creativity… It’s not always predictable.

-Them:’ good we agree, so 18 days less 2 that’s 16 rounded to 15 at 4000 dollars a day we’ll make it 60,000 for that idea.’

Two things that are ridiculous in this bizarre but true to life story.
No one has thought of what the idea will really deliver. How much will it bring in tomorrow and 10 years from now? Think about the rolling stones. It would be impossible to judge how much time they spent writing their songs, and to be honest nobody cares. How efficient were they, were the parties necessary? Does not matter.
We’re left with albums that have and will continue to make a lot of money while we all enjoy them.

So my first point is that ideas cannot be judged in time, but in how much they build. How much would Nike be worth without the just do it campaign, without the swoosh?

But the second absurdity is that in applying what seeem to be sensible rules: get Mick in early, shut down Helmut’s facebook, get them to work faster… We are likelly to get good ideas a couple of times but find that very quickly as we continue to press they become duller and duller. That’s because ideas are born from the collusion of associations. From throwing away 100 average ones before you get a great one.
So very soon we’re having Clint Eastwood feature in Star Academy, and Mick Jagger direct a tv series in dvcam for a senior tv channel-that lazy bastard only wanted to sing and dance before.

The reality is that the only thing that matter are good ideas, that people should be paid for the value they bring long term -only the good ones will survive- and that while lazyness complacency, and comfort have no space in an agency the hard edged efficiency rules bring mediocracy.

Have a look at the next commercial break on tv, watch the banners on your screen, and listen to the commercials that play in your car in the morning. And think. Why do we see less creativity? Could it be that it’s not actually what people are paying for?

Freddie Winckler"


So now, what do you think a creative idea should be worth?


Source: http://blog.aacc.fr