Cost-effectiveness of opening overseas offices

MQT on 2007-01-30
Session date: 
January 30, 2007
Question By: 
Damian Hockney
One London Party
Asked Of: 
The Mayor


In answer to my question 4/2007 your office(rs) stated that each £1 spent must produce £4 of promotional or advertising value. Please can you provide the calculations that justify the expenditure on your overseas offices.


Answer for Cost-effectiveness of opening overseas offices

Answer for Cost-effectiveness of opening overseas offices

Answered By: 
The Mayor

Our international representatives work to fulfill a number of objectives on behalf of a number of London organisations. In Shanghai an office is maintained with 2 staff - a representative and an administrative assistant. The cost is £128,000. The cost of the Beijing Office is £175,043; total cost of the China office is £303,043. There is also a 47,000 budget held centrally by the LDA to support initiatives from either China office. As stated in the previous reply, the combined promotion of China in London and London in China in 2006, in which the Beijing and Shanghai offices played a central role, yielded almost £8million in publicity value. This far exceeds the minimum return on investment of 4 to 1 set by the GLA group across all its promotional and advertising work. Since my visit the Shanghai office has yielded £900,000 in publicity value for London in regard to London Fashion Week, the London Design Festival, and the Shanghai Film Festival with this again considerably exceeding the 4 to 1 criteria set by the GLA group in promotional and marketing work.