KEY PERFORMANCE INDICATORS FOR THE CREATIVE INDUSTRY

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Published: Jun 10, 2024

  Lukas Vartiak

  Miriam Garbarova

Abstract

At present, the economy is developing technologically, and the creative economy makes use of new knowledge, technology and human creativity. The creative economy consists of the creative and cultural industries. Many authors deal with the issue of the creative economy and conclude that the creative industry has the potential to lead the economic sector or the economic level of regions. This paper addresses the issue of key performance indicators in the creative industries. It defines concepts such as creativity, the difference between creative and cultural industries and key performance indicators (KPIs). The research for this paper focused on the world's most awarded agencies for creativity, the world's most awarded brands for creativity and the world's most awarded countries for creativity. KPIs can be used to identify and compare the work of organisations in the creative and cultural industries. If the goals of the organisation are set and selected correctly, KPIs will provide measures of effectiveness in achieving them. The aim of this paper is to define key performance indicators for the creative industries. The method of collecting and processing information was used to collect information and then process the information related to the given topic. The method of analysis and synthesis was used to select a number of secondary data from internet sources and to trace the relationships between the chapters. The method of comparison was used to compare the information obtained. The methods of induction and deduction are used to evaluate and draw general conclusions. One of the main sources of data for the piece was the WARC Rankings 2023: Creative 100, which represents the most awarded campaigns and companies in the world. The KPIs were developed in six areas: financial, client, project, people, sales and website. Financial KPIs are the most important and reflect the performance of the creative agency as a whole. Customer KPIs show performance for the customer domain, track cost per customer and track the customer satisfaction index. Project KPIs focus on the moving parts of the project, regardless of the project management methodology. People KPIs include specific and quantifiable metrics to measure people performance, effectiveness and productivity. In sales, monthly sales growth, sales target attainment, cost as a percentage of sales and shopping basket abandonment rates are monitored. Performance monitoring should be important to all business units because it shows and reflects performance that is important to the achievement of goals or the survival of the business or institution.

How to Cite

Vartiak, L., & Garbarova, M. (2024). KEY PERFORMANCE INDICATORS FOR THE CREATIVE INDUSTRY. Baltic Journal of Economic Studies, 10(2), 14-23. https://doi.org/10.30525/2256-0742/2024-10-2-14-23
Article views: 844 | PDF Downloads: 534

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Keywords

creativity, creative industry, creative agencies, cultural industry, key performance indicators

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