Ticketing and Giving Trends Are Positives for Performing Arts

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Heading into 2020, AccuList’s performing arts marketing clients can take advantage of positive trends in both fundraising and ticketing sales according to recent studies.

Performing Arts Giving Holds Steady 

While the Giving USA 2019 report released in June showed declines for many charitable giving sectors from 2016 to 2018, arts fundraising stood out by remaining relatively flat. Adjusted for inflation, giving to arts, culture, and humanities increased 11.1% between 2016 and 2017, declined 2.1% between 2017 and 2018 (though a 0.3% increase in current dollars) and ended up with a cumulative increase of 8.7% between 2016 and 2018, thanks to 2017 donations that reached the highest inflation-adjusted amount for the sector on record. Underneath the numbers are three important lessons for our performing arts clients, as fundraising counsel Alexander Haas points out in a recent post. First, a focus on high net-worth individuals via upper-level membership programs, project-related major gifts, and targeted marketing campaigns is likely to pay off, as proven by 2018’s 2.6% increase in gifts of $1,000 or more, and the fact that, of the 90% of high-net worth households giving, a quarter focused on arts donations. Second, targeted campaigns and quality donor lists are essential as fewer individuals give and a greater percentage of philanthropic revenue comes through larger gifts. Finally, online giving can be a boon to performing arts; for example, the Blackbaud Institute’s 2018 Charitable Giving Report showed that online gifts represented 9.5% of overall giving to arts organizations in 2018, and the 5.8% growth in online giving to the arts outpaced other nonprofit sectors by four times. Making online giving a convenient option for donors and members is one way to offset the decline in smaller gifts.

Marketing Innovations Help Ticketing Upward Trend

An October Reportlinker market research report forecasts a 5% compound annual growth in ticket sales from sporting events, movies, concerts, and performing arts events in the 2020-2024 period. While sporting events and concerts popularity is a key driver of growth, the research also credits a number of innovative marketing strategies for pushing ticket revenue, such as flash sales, early-bird offers, access codes, public discounts and adoption of mobile applications to make tickets more readily available to consumers. The integration of analytics with online ticket platforms–to automate services, to enhance more efficient back-end operations, and to better track and monitor consumer preferences–is also seen by researchers as a positive for ticket sales growth. Meanwhile, the secondary ticket market, especially in sports, is projected to have an even higher 9% compound annual growth rate in the same period despite a rise in fraudulent activities and artist opposition. A positive on this front is the adoption of blockchain to keep track of buyers and sellers in the secondary ticket market, helping to prevent fraud by scalpers, bots and touts.

For more detail on performing arts giving trends see the Alexander Haas post.

 

Arts Fundraising Study: Invest to Reap More

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Any of AccuList’s performing arts marketing and museum and zoo marketing clients that fret over investing in fundraising efforts in 2019 should take a look at the recently released “DataArts Fundraising Report” from Southern Methodist University. Basically, the report concludes, arts and cultural organizations that make smart investments in fundraising reap more dollars, with individual donors a “vital source” of contributions.

Mixed ROI by Sector, Higher Individual Donor Dollars

Looking at fundraising by 2,421 organizations across 11 different arts and cultural sectors between 2014 and 2017, the study found good news for many marketers even though the overall ROI on every dollar spent on fundraising declined from $8.80 in 2014 to $8.56 in 2017. This reflected issues in select sectors. Seven sectors—including performing arts companies, orchestras and operas—actually saw an increase in return on fundraising over the period. The biggest ROI gain, adjusting for inflation, was a 28.8% bump for community-based organizations. But gaining sectors were offset by ROI declines for art museums, dance companies and theaters. Another encouraging sign was an increase in the average individual donor contribution over the four-year period. The report attributed some of the improved donor generosity to a shift toward investment in donor relationship building, with the average organization allocating 62.4% of fundraising expenses to staff in 2017, up from 54.4% in 2014, and thus allowing for more donor development.

Size and Location Make a Difference

For arts and cultural fundraising, size matters, but in an inverse fashion, the report found. Small- and medium-sized organizations increased the returns on their investments in fundraising over the four years, while larger organizations had steadily declining ROI. Individual donors are important for success, per the report, especially outside of the big metro areas where government support, foundations and corporate donors help foot expenses. But locations vary widely in terms of revenue successfully tapped. For example, New York organizations had the highest average number of corporate donors at 12 and also had the highest percentage of expenses covered by government support (9%). Compare that Big Apple haul to the lowest metro-area average of four corporate donors in Los Angeles and Chicago’s low of 2% expenses covered by government funds. On the other hand, Chicago reaped the most from foundations, with 7% of expenses picked up by foundation support, way ahead of New York organizations which, though they had more foundation grants than any other market, only saw those grants cover 3% of expenses.

For details, go to the SMU DataArts Fundraising Report.

Scarcity, Targeting, Value Woo Performing Arts Audiences

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Performing arts marketers face many challenges in competing for attention and share of wallet in a noisy multi-channel marketplace. AccuList USA recently found some good basic advice on winning audience response in a blog post by Dave Wakeman of the Wakeman Consulting Group. .

Create a Feeling of Demand and Scarcity

Wakeman noted that creating a sense of scarcity is key to performing arts marketing–even lacking a hot-demand show like the current musical “Hamilton.” Nothing attracts a crowd like a crowd! Offering all tickets prior to marketing-generated demand undermines that desired sense of urgency, but marketers can still use the secondary ticket market, such as StubHub or TicketsNow, to produce a feeling of scarcity, he advises.

Define the Target Audience and Value Message

Performing arts marketers need to define the audience target of a show/event and then tailor a value message that appeals specifically to that audience. Targeting and creative messaging will be very different for a family show, a political commentary, a well-known classic, or a one-off by a famous author. New attendees will need a different approach than members and donors. Certainly, many shows don’t have the time for the sort of traditional agency advertising that waits for reviews to come out and then creates ads around positive lines from those reviews. Plus, that kind of reactive, critic-centered promotion can miss a more persuasive value message to win over the target audience.

Create Multiple Forms of Value

Wakeman notes that in today’s market, people often aren’t just going to “see a show.” They are likely looking to make a night of it and are attracted to events with multiple value offers. He lauds the successful audience-building efforts of the Chattanooga Symphony & Orchestra, which promotes multiple ways to engage even for those without a dedication to the symphony. Pairing a wine tasting, art show or discussion group/lecture with a performing arts event may be just what it takes to attract a new audience or convince an existing audience to try a new entertainment option. “If we don’t make it easy for people to see themselves in our seats, we are missing out,” he argues.

 

 

 

Performing Arts Boosted by Social Video Ticketing Partnerships

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AccuList USA’s performing arts marketing clients have more tools this year for reaching ticket buyers, fans and supporters via partnerships that link online ticketing and social media videos.

Using Social Video Pages to Sell Tickets

The latest entry in the competitive social media ticketing race is Google-owned YouTube, which has partnered with Ticketmaster to show viewers upcoming U.S. tour dates and nearby concert listings on artists’ YouTube videos and then allow viewers to jump directly to Ticketmaster to purchase tickets. YouTube is actually a latecomer to the social media ticketing world. Ticketmaster started promoting ticket sales on Spotify and Facebook in 2016. YouTube’s end-of-2017 move is one reaction to Spotify’s growth in the streaming market with integrated data and artist information. For Ticketmaster, its global roster of concerts and lock on the concert-ticket industry can only be enhanced by access to YouTube’s 1.5 billion user base, driving more fans to pay Ticketmaster prices and service charges. But competitive social video ticketing is a win for performing arts promotion, too.

Why It’s Good News for Performing Arts

YouTube is leveraging one of its strengths with the ticketing partnership; music videos account for 30% of all time spent on YouTube and represent 94% of the 250 most-viewed videos on the platform, per the Video Advertising Bureau. And that means performing arts promotions can look forward to generating additional ticket sales from the platform’s added feature. The YouTube ticketing feature also addresses a running feud between YouTube and the recording industry. Some record labels have argued that YouTube hasn’t paid enough in fees for music videos hosted on its platform, but now ticket sales will provide another revenue stream for labels to monetize and boost royalties. This kind of partnership may even help cut down on the sales drain from pirating since the increased ability to monetize videos via ticket sales is likely to push performing arts promotion to drive as much traffic as possible to official videos and to be more proactive in flagging unofficial channels. (See the story in Direct Marketing News.)

Arts Marketers Need Digital CTAs That Drive Subscriptions

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While direct mail continues to be a sturdy workhorse for AccuList USA’s performing arts marketing clients, digital campaigns–via online display ads, e-mail and social media–are required in a multi-channel world. Digital subscription drives offer cost-effectiveness, off-season branding, audience segment targeting, and synergy with direct mail. (Check out our Digital2Direct program to see we help mate mail with e-mail and social media ads.)  But with more competition for attention in the crowded digital space and with less room for persuasion than “snail mail,” digital promotion success is especially dependent on a well-designed and targeted call-to-action, as pointed out in a recent blog post by strategists at MogoARTS, a digital marketing agency for arts and cultural organizations.

Customizing CTA by Audience

An effective call-to-action will differ by targeting, the post points out. With renewals, the targets are lists of current season subscribers, so the CTA messaging can be direct and should highlight an incentive like a discount or savings for renewing early or by a deadline. For acquiring new members or reactivating lapsed subscribers, targeting includes lists of previous season ticket buyers and e-mail opt-in prospects, who need to be shown the benefits of subscription (or reminded). The CTA messaging for lapsed subscribers and multi-ticket buyers should give a reason to come back or upgrade to a subscription by promoting package savings or special benefits, such as free parking or early access to add-ons. CTAs to entice new members will need to spell out subscriber benefits, either across ad units or on a landing page, and showcase varied package options.

Tips on CTA Creative

The blog post also lists some CTA creative suggestions for arts marketers, whether the decision is to leverage programning/events or benefits to drive action. In pushing benefits in digital ads, listing one benefit per banner maximizes message impact and avoids overcrowding with too much text; patrons will see multiple banners over the life of the campaign after all. If the decision is to push programming, then other formats such as video or Facebook/Instagram News Feed Carousel ads may spark greater engagement than a static ad.

General CTA Best Practices

MogoARTS cites three best practices for any CTA: 1) customization for the different audience types, meaning renewing, lapsed or new members; 2) emphasis on the benefits of a subscription package over a single ticket purchase; and 3) highlighting of the savings/special rewards available for subscribing now. For CTA examples, see https://www.mogoartsmarketing.com/blog/subscription-campaign-best-practices-2018

Millennial Attendees Reshape Event Success Strategies

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As the millennial cohort expands event attendance, trade show and conference marketing clients, as well as performing arts marketing clients, with AccuList USA are beginning to change their targeting, messaging and event planning strategies to cater to a demographic that demands technological multi-channel savvy, interest-specific targeting, and experiential and interactive content. A recent post by UK-based Conference News highlights three strategies that event professionals can adopt to woo the millennial audience.

Offering Multiple Connection Points

While millennials are known for their social media, mobile-phone-addicted personae, studies show that these digital preferences can actually fuel greater live event interest; Conference News cites one survey showing 73% of millennials consider live event attendance as a way to express their beliefs and personality online. But it also means that event planners need to take cues from their digital experiences. Since millennials flock to online platforms that offer a nexus of various interests and connectivity, an event that focuses too narrowly can misfire. Conference News argues for a “multi-faceted event” and cites North Carolina’s Moogfest as an example. Moogfest is primarily a music festival, but, in 2016, it added a stage for workshops, installations and discussions of the current political climate. By combining art, activism, food/drink, and activities in one place, it addressed attendees’ multiple passions and created more social media fodder and buzz at the same time.

Playing With Non-Traditional Venues

Meeting the millennial demand for a multi-faceted event experience can require going beyond hotel conference rooms and exhibit spaces. In 2017, the demand for non-traditional spaces rose by 3.8%, notes the article. The right non-traditional venue will be a site that generates interest in itself while still providing comfort and meeting attendee requirements. Although on-site logistics may be more challenging, more event pros are betting that this venue creativity pays off in attracting and retaining audience.

Investing in Event Technology

Millennials are technically savvy and expect technically savvy event support. The Conference News article cites three event technology ideas likely to gain ground this year: 1) RFID (radio-frequency identification) wristbands, long in music festival usage, can work in other event milieus to speed up entry lines and to allow purchases without cash or cards; 2) Mobile Event Apps can let attendees craft customized experiences via eased navigation, personalized schedules, push notifications about upcoming activities, and social sharing with other attendees; and 3) Artificial Intelligence (AI) not only means chat bots to answer attendee questions but, in coordination with social-media-based event app info, can generate personalized on-site recommendations. See the complete article at http://www.conference-news.co.uk/blogs-features/top-3-event-trends-explore-2018

How Can Performing Arts Marketing Find the Best Targets?

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Since AccuList USA has successfully worked with performing arts and cultural organizations in audience development, supplying data and data services to help them acquire new patrons, ticket buyers and supporters, we were happy to see a recent npENGAGE.com post underscoring the key role of quality data targeting in performing arts marketing success.

Identify & Understand the Best Audience

Basically, performing arts marketers must acquire prospects with the potential to become long-term, high-value patrons; retain them; and maximize their dollar contributions. That challenge is not easy when studies show 72% of single-ticket buyers do not return, points out npENGAGE article author Chuck Turner, a senior analytics specialist at the Target Analytics agency for arts and cultural clients.  So a cost-effective marketing strategy will rely on data analytics both to target those with the highest relationship potential and to personalize messaging and offers for boosted ROI and loyalty.

Target to Increase Revenue & Donations

Analysis should look at the value of patrons in terms of the average of all revenue earned, including things such as gift shop and concession sales and tuition for classes offered, as well as ticket sales and subscriptions, Turner urges. That means targeting likely high-revenue prospects, plus, since it’s easier to increase revenue from existing patrons than to acquire new ones, targeting the right members of the audience pool for offers of add-ons and upgrades. For both groups, Turner suggests selecting those with higher average income, and thus higher capacity to spend. According to the Bureau of Labor Statistics, the average high-income person spends over $8,200 on entertainment each year, so if average program revenue per attendee is $34.33 (the average performing arts program revenue per attendee in 2013), there’s room to grab a bigger share! When it comes to increasing donations, external list data on both discretionary spending ability and nonprofit donation history can be used to target significant nonprofit donor prospects for acquisition, and that data can be appended to the existing audience database to better target for add-ons and upgrades. Turner points to Target Analytics findings that, on average, up to 40% of nonprofit audiences can be top prospects for significant contributory giving–if you communicate to prospects with a message that resonates with their mission-based interest.

Segment to Maximize Lifetime Value

With limited resources, performing arts marketers need to be more strategic and proactive in focusing on the most valuable segments. This means tracking lifetime value, defined as the net profit attributed to the entire future relationship discounted to its current value. Again, quality data can help target the right people–those with high lifetime value–with the right message. For both audience database and prospecting mailing lists, Turner stresses selecting targets based on charitable giving and income/discretionary spending ability. Conversely, knowing those unlikely to donate or spend helps minimize investment in unprofitable segments. For more, see https://npengage.com/nonprofit-fundraising/arts-fundraising-and-analytics/