The news: Most businesses avoid creative risks, with only 13% considering themselves risk-friendly in marketing approaches, according to Lions Advisory's "State of Creativity 2025" report.

• The survey defines “creative risk-taking” as “bold, unconventional ideas that challenge norms and engage audiences in unexpected ways.”
• 29% of brands openly admit to being highly risk-averse with creative decisions, per the report.
• The report identifies an "insight famine" and "cultural lag" as primary barriers to confident creative risk-taking.
• Despite clear evidence linking bold creativity to business results, marketers continue retreating to safer territory.

Economic pressures driving short-term thinking: Ongoing inflation and tariff threats have fundamentally changed budget allocation, forcing CMOs to make difficult tradeoffs.

• Marketing dollars are shifting away from brand-building toward search and retail media that offer immediate, measurable returns.
• Digital spend is now being adjusted month-to-month based on economic signals, prioritizing platforms that connect with consumers closer to purchase.
• While this approach delivers short-term wins, it comes at the expense of brand equity that drives sustainable growth.

The cost of playing it safe: Avoiding creative risks can carry a massive financial penalty that many executives overlook.

• Risk-taking brands generate four times higher profit margins and are 33% more likely to achieve long-term revenue growth, per WARC and Deloitte data cited in the report.
• UK brands running "dull" advertising need to spend an additional £13 billion (about £10 million per campaign) to match the performance of emotionally engaging, creative approaches.
• In the US, this figure balloons to a staggering $189 billion in wasted media spend.

Technology vs. creativity: While AI and data analytics help brands optimize spending and personalize content, they aren't solving the core problem.

• Marketers have more data than ever but struggle to convert it into breakthrough insights.
• Despite sophisticated targeting capabilities, many brands fail to connect authentically with rapidly evolving audience values.
• Performance metrics mask the true cost of creative mediocrity in an increasingly crowded marketplace.

Our take: The current economic climate has created a dangerous disconnect between what works long-term (bold creativity) and what marketers actually do (safe performance plays).

When economic conditions stabilize, brands that maintained creative investment will emerge stronger. Those that didn't will face a double challenge: Rebuilding diminished brand equity while competing against rivals who never stopped investing in breakthrough ideas. Smart brands are finding ways to be bold even within tighter budgets, calculating intelligent creative risks based on solid consumer insights rather than simply playing it safe.