Investment Landscape January 2009
Investment Landscape Culture in the Economy Source: A&B on DCMS, (2009) “Creative Industries Economic Estimates” and Work Foundation (2007) “Staying Ahead”
Cultural Industries £7.7bn
Creative Industries and Activities £49.6bn
The Rest of the Economy £732.2bn
Investment & Funding
Investment Landscape Private Investment in Culture 800
2007/08: £686.7m + 12% change (above inflation)
600
£m
400
200
0 00-01 Investment & Funding
01-02
02-03
03-04
04-05
05-06
06-07
07-08
Investment Landscape Private Investment Source 400 350
2006/07 300 250 200
2007/08 150 Business Investment: -7% change Individual Giving: +25% change Trusts & Foundations: +7% change
100 50 0 Business Investment Investment & Funding
Individual Giving
Trusts & Foundations
Investment Landscape Concentration of Private Investment
Top 50 Organisations
53%
47% All Other Organisations
Investment & Funding
Investment Landscape Business Investment / GDP 50
40
Business Investment (% Change)
30
20
10
0
GDP (% Change)
91
92
93
94
-10
-20
-30 Investment & Funding
95
96
97
98
99
00
01
02
03
04
05
06
07
08
Investment Landscape Confidence in Business Investment 90 80 70
Negative Impact (%) 60
50 40 30
Positive or No Impact (%)
20 10 0 2009 Investment & Funding
2010
2011
2012
2013+
Investment Landscape Sponsorship is still Important... Businesses say: “We only engage in bespoke projects which will help to solve a specific business need, and the current economic outlook is unlikely to impact this strategy” “Sponsorship drives business... slashing marketing budgets in a downturn may not make long-term sense” “The best value partnerships and those most in line with our client base will remain... Sponsorship which is very much client driven will continue to get support”
Investment & Funding
Investment Landscape Tough times ahead BUT... • Cultural organisations and businesses need to maintain relationships with partners • There are opportunities to tap into resources beyond financial capital, such as human resources (time, skills, knowledge, expertise etc) • Culture will continue to offer creative and innovative ways for engagement and the recession will present new creative opportunities which can be exploited • It is of paramount importance that cultural organisations provide tangible return on investment and return on objectives
Investment & Funding
Investment Landscape Research for you • We will continue to advocate why businesses should investment in the arts • By researching cultural activism we will have information about how to mobilise a workforce (such as through giving schemes and knowledge exchange) • In order to demonstrate tangible returns on investment and evaluate the added value of partnership working, we are developing a framework/model which can be used by both partners • We will provide insight and consultancy services looking at areas such as culture & brand, usergenerated content and the characteristics of cultural consumption
Investment & Funding
Contact Us: Web www.aandb.org.uk Email research@aandb.org.uk