INCREASING DEMAND FOR THE ARTS THINK TANK WITH MARKETING MASTERS NATIONAL ARTS MARKETING PROJECT PRE CONFERENCE NOVEMBER 2010 SAN JOSE, CA

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1 INCREASING DEMAND FOR THE ARTS THINK TANK WITH MARKETING MASTERS NATIONAL ARTS MARKETING PROJECT PRE CONFERENCE NOVEMBER 2010 SAN JOSE, CA 1

2 INCREASING DEMAND Think about a personally meaningful occasion in which you were able to increase demand for an arts event. When was it, who else was involved? Please describe with a metaphor, simile or just a word. 2

3 NATIONAL ARTS INDEX Fell 4.2% in 2008: losses in charitable giving & declining attendance even as the # of arts organizations grew. Demand for the arts lags capacity. From , Nonprofit arts organizations grew: 73,000 to 104,000. One third failed to achieve a balanced budget even during the strongest economic years of this decade; sustaining this capacity is a growing challenge. 3

4 NATIONAL ARTS INDEX 4

5 DEMAND VS. SUPPLY Rocco Landesman: You can either increase demand or decrease supply. Demand is not going to increase, so it is time to think about decreasing supply. 5

6 THE INSPIRATION FOR THIS SESSION However, several successful marketers are increasing demand. How did they discover and deploy their ideas to increase demand? Ten leading arts marketers shared breakthrough ideas and revealed the challenges they still face. 6

7 Sara Billmann THE MASTERS David Harrison Matt Montgomery Matt Campbell Nan Keeton Jim Royce Jara Dorsey Kara Larson Laura Sweet 7

8 THEMES & THROUGH LINES FROM INTERVIEWS Data driven decisions, ask questions/test assumptions Audience-centric in thinking, planning & execution Takes time for new strategies to become rooted. Value of cross-department conversations & thinking in creating engaging audience experiences. Marketing communicates brand promise. Everyone must deliver the brand promise. See marketing as a strategic tool - bring expertise to the Strategy table early in planning. 8

9 MARNIE BURKE DE GUZMAN 9

10 SARA BILLMANN UNIVERSITY MUSICAL SOCIETY MICHIGAN March 23, 2009

11 SARA BILLMANN UNIVERSITY MUSICAL SOCIETY MICHIGAN Concentrate on relationships, not the technologies An organization-wide social media strategy focused on audience Involved all levels of staff across the organization 11

12 SARA BILLMANN UNIVERSITY MUSICAL SOCIETY MICHIGAN Turn the Megaphone Into a Tube Advertising is not talking, it s shouting. Advertising thrives on repetition: reach (gross number of people screamed at) and frequency (how many times they hear the shout) Social technologies as WOM Social networking sites and virtual worlds are by definition about the facilitation of relationships with technologies. Li, Charlene Li and Josh Bernoff. Groundswell: Winning in a World Transformed by Social Technologies. Harvard Business School Press, 2008.

13 SARA BILLMANN UNIVERSITY MUSICAL SOCIETY MICHIGAN

14 JARA DORSEY CARNEGIE MUSEUMS PITTSBURGH ACCESS Granted Increasing visitation by low income audiences 14

15 What It Is Statistics Partnerships Research to Date Benefits CMA Strategic Plan: CONNECT Goal: Attract and engage diverse audiences Partnerships & community advocacy Accessibility for low income audiences SOLUTION: ACCESS Card Admissions Program

16 What It Is Statistics Partnerships Research to Date Benefits What is the ACCESS card? Pennsylvania s federal assistance EBT card for SNAP (Supplemental Nutrition Assistance Program) TANF (Temporary Assistance for Needy Families) Medicaid/Medical Assistance Each state s Department of Human Services administer these programs Families must meet income guidelines to qualify

17 What It Is Statistics Partnerships Research to Date Benefits 2010 HHS Federal Poverty Guidelines Persons in household 48 Contiguous States & D.C. Alaska Hawaii 1 $10,830 $13,530 $12,460 2 $14,750 $18,210 $16,760 3 $18,310 $22,890 $21,060 4 $22,050 $27,570 $25,360 5 $25,790 $32,250 $29,660 6 $29,530 $36,930 $33,960 7 $33,270 $41,610 $38,260 8 $37,010 $46,290 $42,560 For each additional person, add $3,740 $4,680 $4,300 Source: U.S. Dept. of Health & Human Services.

18 JARA DORSEY CARNEGIE MUSEUMS PITTSBURGH Cardholder presents ACCESS card to admission desk $1 admission for up to 4 people vs $15/adults, $12/seniors, $11/children Discount active all year Unlimited usage by participants 18

19 What It Is Statistics Partnerships Research to Date Benefits What We ve Learned: Focus Groups Families have same concerns as full priced visitors when discussing amenities: More interpretive materials More kid friendly activities More hands on experiences like touchables Most are repeat visitors, some coming 6x/year Perception of program improved upon learning it was not subsidized by federal or local government

20 What It Is Statistics Partnerships Research to Date Benefits Why It Works No cannibalization of the membership customer base Provides easily quantifiable results with a demographic proven to be underserved Non embarrassing method of redemption Exponential growth in community partnerships/promotional opportunities Greater heart share within the community

21 KARA LARSON UNC CHAPEL HILL Dynamic Pricing: How to begin thinking about revenue, accessibility, and selling out in a whole new way Kara Larson interim Director of Marketing Carolina Performing Arts University of North Carolina 2010 arts knowledge, llc founder & principal Arts Knowledge artsknowledge@gmail.com

22 KARA LARSON UNC CHAPEL HILL Accessibility & Demand Oskar Eustis, artistic director of The Public Theater, said the arts need to be more accessible for everyone. Even the nonprofit theater's free Shakespeare in the Park creates barriers. By giving Shakespeare away for free, it has become inaccessible for many, Mr. Eustis said. Tell someone they have to wait hours in line for a ticket and it erases 90% of population that would have considered going arts knowledge, llc Crain s New York Business, Nov. 4, 2010

23 KARA LARSON UNC CHAPEL HILL Paying for the Arts Whether in opportunity costs or direct expenditures; Accessibility programs cost $ Technology costs $ Staff time & effort cost $ How can we ensure that your most enthusiastic patrons support all the other work you do? 2010 arts knowledge, llc

24 KARA LARSON UNC CHAPEL HILL Setting prices correctly is fundamental to maximizing revenues But to do this, we need to know enough to accurately predict demand for tickets. Is this as simple as it sounds? Dynamic pricing offers the opportunity to re-set pricing to react to errors in our predictions or unpredictable changes in the marketplace arts knowledge, llc

25 NAN KEETON SAN FRANCISCO SYMPHONY Began with Dia de los Muertos Program as part of a long term Strategic Initiative to actively involve the Latino community in the work and leadership of the San Francisco Symphony. 25

26 DAVID HARRISON PARSONS DANCE COMPANY MONEY = MEANING People pay for what they value Popular is not a dirty word MORE MISSION = MORE MEANING MARKET YOUR MISSION All the time

27 DAVID HARRISON PARSONS DANCE COMPANY SOLUTION

28 DAVID HARRISON PARSONS DANCE COMPANY

29 LAURA SWEET ORDWAY CENTER Ordway Center for the Performing Arts Presentation: National Arts Marketing Conference Joy as a social value November, 2010

30 From stage LAURA SWEET ORDWAY CENTER

31 To audience. LAURA SWEET ORDWAY CENTER

32 LAURA SWEET ORDWAY CENTER From a paragraph Vision: To bring joy and insight that art can provide at the highest level of quality to the most people we can reach. Mission of the Ordway Center: To be a catalyst for the artistic vitality of our community by hosting, presenting and creating performing arts and educational programs that engage artists and enrich diverse audiences. Mantra: Variety is the spice of life Entertainment is not a four letter word Neither is art Quality is Job 1 We, too can be hip and cool We are the world on our stages and in our audience 32

33 LAURA SWEET ORDWAY CENTER The organization has many great things going for it. Engages Participation Hub Independent Leader Non profit Out of the box Community Catalyst Variety Unexpected For the audience Insight Inspiration Quality Entertainment Welcoming Art Education Generous 33

34 LAURA SWEET ORDWAY CENTER Organizing these principles revealed a broader opportunity. Engages Participation Hub Leader Independent Advocate Non profit Out of the box Community Catalyst Variety Unexpected Quality Entertainment Joy Welcoming Art For the audience Insight Inspiration Social Value Education Generous 34

35 Brilliantly simple LAURA SWEET ORDWAY CENTER The Ordway is an advocate for joy as a social value.

36 LAURA SWEET ORDWAY CENTER Let s analyze the words. The Ordway is an advocate A non profit organization that is not just a venue, but an active participant and a leader in the local arts community. for joy as a social value. Placing our flag in the ground and promoting for a larger human need, reshaping people s perception of joy as an emotion and elevating it to a position worthy of pursuit. 36

37 JENNY BILFIELD 37

38 QUESTIONS/COMMENTS 38

39 TAKE HOME MESSAGES What are the most important key message(s) from today? What first steps will I personally take to implement this new knowledge? 39