Since the 2008 financial crisis, banks across the US have been fined around $243 billion. Across highly regulated industries, the cost of compliance is often seen purely through a financial lens — and for good reason, of course, given these high figures.
But while companies may scramble to avoid these financial costs while remaining compliant, many overlook the hidden costs — namely, the burdens placed on their creative teams. These hidden costs, which often manifest in reduced creativity, inefficiency, and missed opportunities, can hinder long-term growth.
In this article, we’ll explore the impacts of outdated compliance methods on creative teams, and how this may be costing you more than you realize.
Before deep-diving into the hidden costs of compliance, what about the top-level financial costs that are at play? A survey conducted by the Risk Management Association found that 50% of respondent banks spent between 6% and 10% of their revenue on compliance costs.
How about the cost of non-compliance in financial services, healthcare, and other highly regulated industries? An additional report conducted by Globalscape found that the cost of non-compliance within highly regulated sectors comes at a hefty price tag. Of course, compliance with regulations such as General Data Protection Regulation (GDPR), Payment Card Industry Data Security Standard (PCI DSS), and Health Insurance Portability and Accountability Act (HIPAA) can be costly in and of themselves.
Though, in this report their findings detail that the “average cost for organizations experiencing non-compliance problems is $14.82 million” - a figure that’s actually 2.71 times higher than what companies pay in order to stay compliant.
What’s more, a study by Forrester Consulting reveals the increased cost of compliance across the financial sector in terms of financial crime compliance, with an increase of costs across 98% of financial institutions in 2023.
Evidently, the financial cost of remaining compliant is significant, highlighting the importance of having efficient compliance processes in place.
But what about the non-financial costs - the hidden costs?
Is your team being left behind? Discover how Bannerflow can help combat the hidden costs of compliance and get your team back on the right track.
For many creative leads and marketing teams, the compliance process can feel like navigating a maze. With every campaign comes a myriad of legal requirements, from updating financial disclosures to ensuring regulatory adherence across different markets.
Instead of focusing on ideation and design, creative teams can end up spending hours liaising with legal departments, reworking content to fit ever-evolving compliance demands. This daily grind can chip away at the very core of creative work: producing content that resonates with your audience. The real cost here isn’t just time; it’s a depletion of the creative energy and passion that drives successful campaigns.
The strict oversight required in advertising for financial services can severely limit creative potential. With every new regulation comes the need for potential content rewrites, delayed launches, and missed chances to innovate. Creative freedom is stifled as manual compliance efforts take precedence over experimentation. In industries where differentiation is key, this stifling environment can be a serious roadblock to growth.
Beyond the creative toll, manual compliance processes can bring about significant operational inefficiencies. Lengthy compliance approvals, particularly for global brands, can slow campaign rollout and increase costs. Every minute spent waiting on legal approval or manually updating disclosures is time not spent optimizing campaigns or improving performance.
That same Globalscape report found that productivity losses as a result of compliance failure accounted for $3.7 million on average.
These delays can in turn result in missed opportunities. For instance, a competitor with automated compliance might launch their campaign a week ahead of you, capitalizing on real-time market shifts while your team is bogged down with manual updates.
So what’s the true cost of falling behind? In a competitive industry like finance, it could mean losing clients or market share to a faster-moving rival.
The cost of compliance isn’t just about fines and penalties; it’s about the inefficiencies that erode your marketing budget and diminish ROI.
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Over time, the constant pressure of managing compliance manually can lead to what some call “compliance fatigue.” Teams become overwhelmed by the never-ending cycle of updating, reviewing, and adjusting content to meet legal standards. This fatigue can even result in decreased productivity and lower morale.
When creative teams are constantly firefighting compliance issues, they lose the ability to focus on proactive work, such as creative brainstorming, A/B testing, and campaign optimization. Instead of driving new ideas and strategies, they become stuck in a cycle of reactive work, which not only limits their effectiveness but also may reduce job satisfaction.
So how do we combat this? How can we keep creative teams creative while ensuring compliance nonetheless?
While these hidden costs can weigh heavily on your creative team, automation offers a powerful solution to alleviate these burdens. By automating routine compliance tasks, you can free up your team’s time and energy for what really matters — creativity and strategy.
With Bannerflow’s automation tools, compliance no longer needs to be a bottleneck. Real-time updates, dynamic content feeds, and automated legal checks ensure that your ads are always compliant, without the need for constant manual intervention. This means faster approvals, fewer errors, and campaigns that can be launched and adjusted across multiple regions and channels with ease.
The result? More time for your team to focus on creating impactful, innovative ads while staying compliant, efficient, and ahead of the competition.
Find out more about how automating compliance in advertising can help streamline your team’s workflows.
The cost of compliance goes beyond the financial penalties of non-compliance. The real danger lies in how outdated, manual processes affect your team’s creativity, productivity, and morale. Over time, these hidden costs can compound, leading to inefficiencies, lost opportunities, and a lack of innovation that can erode your competitive edge.
To succeed, creative teams need to reclaim their time and energy. Recognizing and addressing the hidden costs of compliance can unlock creative potential, allowing your teams to focus on what they do best: creating compelling, compliant ads that drive results.
Is your creative team stuck in the past? Book a demo and explore how Bannerflow can help you cut the hidden costs of compliant advertising and unleash your team’s full potential.