Cultural and Tourism Marketing Survey 2005: John Nicholls, London Calling Arts, and Andy Martin, Ipsos MORI

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1 Cultural and Tourism Marketing Survey 2005: John Nicholls, London Calling Arts, and Andy Martin, Ipsos MORI John and Andy explored some of the relevant findings from the Cultural and Tourism Marketing Survey 2005 including the state of internal communications in the arts today. The three areas of particular interest to this conference were: Marketing budgets Major events Internal communications Andy Martin began by describing the methodology. London Calling Arts promoted the survey widely in advance to encourage participation, and so that people could contribute to possible question areas. The questionnaire was tested internally and piloted before going live. Using an on-line method, a total of 1,257 individuals were sent a link to the survey. The link was also made available in various e publications, including the ArtsProfessional newsletter. A total 304 individuals from 283 organisations completed it between 13 th September and 14 th October Where responses do not add up to 100 per cent this was either due to computer rounding or multiple response options. First, profile of respondents: PAGE 9

2 More responses came from theatres than from any other artform (22 per cent) though the size of responders organisations was fairly well distributed. In terms of location (see chart below), many more responses were received from London organisations than from any other region, and more questionnaires were completed (as might be expected) by marketers than by people in any other role. Respondents were asked to state what percentage of their annual expenditure went on marketing. The responses are illustrated below. The method for working out percentage marketing spends was not clearly described to respondents by the researchers but John Nicholls felt that there was a common PAGE 10

3 understanding among respondents as to how this should be calculated; he was confident, therefore, that the figures quoted by respondents were comparable. As might be expected, the percentage was lowest in non-performing arts organisations, and highest in London organisations. A somewhat scary 19 per cent of respondents either didn t know or wouldn t reveal what this figure was for their organisations. The marketing budget in responding organisations is spent in the following ways: Print is still the most popular area for marketing spend (though this is a high cost activity since it involves both producing the print and distributing it), but if this is compared with the most effective marketing spend (see table below), it demonstrates that organisation believe it is worth the cost: PAGE 11

4 Around seven per cent of organisations budgets are spent on digital marketing, 7 th in order of spend, but in terms of return on investment (ROI) it is rated 3 rd (and is rated higher by directors and London organisations). This indicates that there may be some potential here to invest in digital marketing to positive effect. Marketers still value print more than directors do, putting it top in terms of effectiveness, whereas directors put it 3 rd. Performing arts organisations rate digital marketing top in terms of ROI, whereas nonperforming arts organisations and multi-artform companies rate the ROI for print top. Digital marketing, it appears is taking off, and the greatest increases in marketing spend are to be seen in the e-marketing area. PAGE 12

5 The next set of results concerned the impact of major events on London arts organisations. Surprisingly, more than half the London organisations said that they had suffered no ill effects after the London bombings of 7 th July 2005 and alarmingly an additional 27 per cent (and 37 per cent of chief executives) did not know whether or not their organisation had suffered any ill effect. In addition even most of those who had suffered from a decline in business because of the bombs had not altered their strategy to take account of it. In terms of the Olympics, 36 per cent of respondents felt that the effect of the Olympics was likely to be positive and 32 per cent negative. Many believe that private sector funding for the arts will be negatively affected because the money whirlpool created by the Olympics. PAGE 13

6 John and Andy expressed the opinion that brand partnerships with the private sector were being under-exploited in the arts, and they were also concerned that some respondents had no idea whether or not benefit was being or could be had from entering into such partnerships: A significant section of the survey looked at internal communications, which was particularly pertinent to the conference theme. A sizable proportion (70 per cent) of board members/trustees hold qualifications, but many respondents were unaware of what qualifications were held. Another question established that 65 per cent of respondents felt that qualifications on the board were a positive help to the organisation. Andy felt that boards might not be being exploited as much as they could be. PAGE 14

7 Respondents were asked what one change they would make regarding internal communications if they sufficient time and money. Although 29 per cent of respondents were happy that their internal communications were working effectively, 38 per cent accepted that there was a lack of emphasis on such activity within their organisation and felt it should receive higher recognition. Desire for change was higher in non-performing arts organisations. Respondents were also asked to say what changes they would make (time and money permitting) to their front of house/visitor experience; in this instance just four per cent of respondents were happy with their current experience. The most popular changes were signage, catering facilities and more informed and articulate staff. PAGE 15

8 Question 33, showed that 67 per cent of respondents felt that there was good understanding of their organisation s brand values among staff. Chief executives were far more likely to say there was (85 per cent) and marketing personnel were more sceptical (57 per cent). However, that left 33 per cent of organisations who either had not yet defined their brand values, who didn t know whether there was any understanding, or who felt there was no understanding. John and Andy felt this was a real opportunity for organisations. In conclusion, Andy summarised the presentation in the following way: One pound in eleven pounds goes on marketing. Print accounts for one-third of this; Print, direct mail and digital marketing are regarded as offering the best ROI for marketing spend. Digital marketing is only ranked 5 th equal in terms of the actual amount spent, although this has been increasing more quickly than for any other form of marketing. However, around half of all organisations are yet to exploit it; PAGE 16