2016 Arts Industry Digital Marketing Benchmark Study. Market research data from 182 arts organizations

Transcription

1 2016 Arts Industry Digital Marketing Benchmark Study Market research data from 182 arts organizations CAPACITY INTERACTIVE May 2017

2 INTRODUCTION Thank you for downloading our report! For the fifth year in a row, this survey takes a granular look at the digital marketing practices of arts and cultural organizations across the U.S. I am very grateful for the time arts marketers took to give us this data, which makes us stronger as a field. Successful digital marketing requires spending time in the clouds as well as in the weeds hopefully this survey will help you to do both. Before you dive into the weeds, let me share with you what I see as the two major takeaways from our 2016 survey. Thank you again for downloading this report. I truly hope it is helpful. Erik The industry is underinvesting in websites, particularly mobile experiences. 63% of organizations indicated they did not have enough budget to adequately maintain their websites. With 55% of tickets now sold online and website traffic up 17% year over year, this is fast becoming a crisis. As people become more digitally adept, organizations must prioritize investing in web experiences. The situation for mobile is even more grim. We now are firmly in a mobile-first world was the year we saw mobile web browsing overtake desktop for the first time globally.* Our survey saw a 17% jump in mobile traffic across organizations. However, 39% of organizations reported not having a mobilefriendly ticketing path, 37% reported not having a mobile select-your-own-seat module, and 61% reported not having a mobile-friendly subscription path. This must change. Arts organizations are underinvesting in content and digital marketing compared to other industries. In a world where people are addicted to mobile phones and social media, content marketing is critical to success. This means arts organizations must invest in video, social story-telling, and social promotion. Organizations that successfully tell their story on digital channels are rewarded with followers and ticket sales. In our survey, 49% of organizations indicated that creating compelling content was a challenge. We also saw that 57% of organizations spent 5% or less of their budget creating content for the web/social. According to the Content Marketing Institute s 2016 survey, B2C marketers in North America are allocating 32% of their total marketing budget on average to content marketing.* The arts sector is indexing far below that. I was heartened to see an increase in the number of videos being produced by arts institutions. The number of organizations that reported CAPACITY INTERACTIVE page 2 of Arts Industry Digital Marketing Benchmark Study

3 producing 1-5 videos per year decreased by 27%, while the number that reported producing 6 or more increased by 11%. The number of organizations that indicated they review social insights regularly has also increased dramatically since In order to stay relevant in an increasingly digital world, it is critically important that we act as artists and scientists creating compelling content, then measuring and optimizing to reach more people. We also saw the percentage of marketing budgets allocated to digital increase to 29% (up from 22% in 2014 and 24% in 2015). While this is on the right track, our sector is under-indexing versus other industries. Forrester Research has the 2016 average of all industries at 35% of spend on digital, up from 32% in For the fifth year in a row, we saw that not enough budget was the biggest challenge for organizations in implementing digital initiatives. 63% of organizations listed limited budgets as a challenge for them. 44% said not enough internal knowledge was a challenge. Only 15% of organizations listed no leadership support, the lowest this has ever been. In order to increase budgets and grow internal knowledge within the sector, we must invest in professional development. If you are a leader of a cultural organization, it is your responsibility to learn about digital marketing, harness its power for your institution, and then provide adequate resources for your staff to build their digital skills. Professional development for the arts sector is an issue I feel very passionately about; it is why we recently launched a free podcast called CI to Eye where I speak with thinkers and leaders inside and outside the arts about leadership, marketing, professional development, organizational culture, and innovation. With almost all of the guests I ve interviewed, our conversations always come back to the importance of investing in people. I invite you to listen. Surveys were collected from January 11, 2017 to January 31, 2017 via SurveyMonkey. Applicants were invited to participate via Capacity Interactive , Facebook, and Twitter. 223 organizations responded, but incomplete or erroneous entries were deleted or edited to ensure accuracy. *Sources: uploads/2015/10/2016_b2c_research_final.pdf nov/02/mobile-web-browsing-desktopsmartphones-tablets CAPACITY INTERACTIVE page 3 of Arts Industry Digital Marketing Benchmark Study

4 KEY FINDINGS Media The percentage of marketing budgets allocated to digital increased to 29%, up from 22% in 2014 and 24% in Nearly all respondents purchased Facebook advertising in Organizations that purchased Instagram advertising doubled from 25% in 2015 to 50% in % purchased Snapchat Geofilters. Tracking The majority of surveyed organizations tracked both clicks and conversions in display campaigns. Only 25% did not track conversions, or were unaware if they tracked conversions on Facebook. Only 11% of arts organizations ran their ads through ad servers in Google Grant 70% of surveyed organizations used a Google Grant for AdWords advertising in % of organizations spent % of their monthly Google Grant budget in On the whole, surveyed organizations Google Grant spends increased since Social Facebook, Twitter, and Instagram were the most frequently used platforms. 22% reported posting on Snapchat. Organizations saw followers increase by 21% on Facebook, 19% on Twitter, and 118% on Instagram. The number of organizations who reported producing 5-15 videos increased by 29%, while the number of organizations who reported producing 1-5 videos decreased by 27% from Content 57% of organizations spent 0-5% of their total marketing budget on content creation for the web/social, 23% spent 6-10%. As a percentage of overall marketing budgets, smaller organizations spent more on content creation than larger organizations. Analytics Since 2012, Google Analytics has remained arts organizations preferred analytics platform. 57% of arts organizations used tag management programs, such as Google Tag Manager. Only 8% of arts organizations felt that they were using web analytics to its potential. CAPACITY INTERACTIVE page 4 of Arts Industry Digital Marketing Benchmark Study

5 Fundraising Most respondents used segmented and organic social posts to support their fundraising efforts. Only 42% of organizations used fundraising videos in their campaigns and only 27% supported fundraising campaigns with display. Larger organizations used both paid and organic social to support fundraising. Smaller organizations were not using paid social as widely. Website On average, arts organizations saw a 17% increase in the number of unique sessions on their website per month. In 2016, 55% of tickets were sold online. Roughly half of arts organizations redesigned their website in the last year. Website Maintenance 62% of organizations surveyed felt they did not have adequate budget to properly maintain their websites. Mobile 76% of arts organizations had a mobile or mobile-responsive website. 20% plan to build one. Many arts organizations are lacking critical mobile infrastructure. Only 39% reported having a mobile-friendly subscription path. Only 63% reported a mobile select your own seat module and only 61% reported mobile-friendly ticketing. On average, arts organizations saw an increase in their mobile device traffic of about 18%. Arts organizations saw an increase in the size of their lists of approximately 14%. Most organizations ed constituents just once or twice per week. Only 7% ed each constituent three or more times. 83% of arts organizations felt as though there is room for improvement in segmenting their s. 59% of arts organizations said that they were putting very little effort into managing their SEO. CAPACITY INTERACTIVE page 5 of Arts Industry Digital Marketing Benchmark Study

6 TABLE OF CONTENTS Demographics Respondent Role Respondent Organization Type Media Digital Budget Allocation Types of Digital Media Purchased Third Party Services Tracking Display Campaigns Facebook Campaigns Paid Digital Media Google Grant AdWords Advertising Spending of Monthly Budget Third Party Services Social Posting on Social Networks Followers Insights/Analytics Reports Video Production Organic Video Video Promotion Content Content Creation Fundraising Tactics Using Social CAPACITY INTERACTIVE page 6 of Arts Industry Digital Marketing Benchmark Study

7 Analytics Tracking ecommerce Tracking Tag Management Reviewing Reports Utilization Mobile Responsive Websites Adaption of Mobile Technology Traffic Site Infrastructure Website Traffic Growth Percent Online Ticket Sales Online Ticket Sales Last Redesign Website Maintenance Minor and Major Changes to Website Budget for Maintenance Time Spent Making Minor Changes Time Spent Making Major Changes SEO Platforms Used Lead Collection List Size Frequency Sent to Users Open Rate Segmentation Challenges Implementing Digital Marketing Initiatives CAPACITY INTERACTIVE page 7 of Arts Industry Digital Marketing Benchmark Study

8 DEMOGRAPHICS Respondent Role 9% Other 11% Executive/ Managing Director 14% Digital Marketing Director/ Manager/ Associate Respondent Role 42% Director of Marketing 24% Marketing Manager/ Associate/Assistant CAPACITY INTERACTIVE page 8 of Arts Industry Digital Marketing Benchmark Study

9 DEMOGRAPHICS Respondent Organization Type 3% Modern Dance Company 4% Orchestra 5% Ballet Company 7% University 8% Other Respondent Organization Type 3% Opera Company 34% Theater 9% Museum 27% Presenting Organization CAPACITY INTERACTIVE page 9 of Arts Industry Digital Marketing Benchmark Study

10 MEDIA Digital Budget Allocation The percentage of marketing budgets allocated to digital increased to 29%, up from 22% in 2014 and 24% in Percent of media budget allocated to digital media in organizations from 2015 to % 46% 51% 21-40% 31% 34% 41-60% 12% 15% 61-80% 2% 8% % 0% 1% CAPACITY INTERACTIVE page 10 of Arts Industry Digital Marketing Benchmark Study

11 MEDIA Types of Digital Media Purchased Nearly all respondents purchased Facebook advertising in The only notable change versus last year is the number of surveyed organizations who reported purchasing Instagram advertising. This number doubled from 25% in 2015 to 50% in % purchased Snapchat Geofilters. % of organizations who purchased digital media Facebook Ads 99% Display: Retargeting/ Remarketing Search Engine Marketing 70% 69% Display: Direct Buys 62% Display: via networks (e.g. Yahoo or Google) 58% Instagram Ads 50% YouTube Ads 25% Snapchat Geofilters 23% Twitter Ads 12% CAPACITY INTERACTIVE page 11 of Arts Industry Digital Marketing Benchmark Study

12 MEDIA Third Party Services More than half of all surveyed organizations used third parties to purchase their digital media. 65% Yes 35% No Used a 3rd party to purchase any portion of digital media CAPACITY INTERACTIVE page 12 of Arts Industry Digital Marketing Benchmark Study

13 TRACKING Display Campaigns The majority of surveyed organizations tracked both clicks and conversions in display campaigns in However, 20% of surveyed organizations did not track conversions, or were not aware if they tracked conversions. Of those that did not track conversions, most were organizations with smaller budgets. 33% had annual budgets of less than $1 million, and 53% had annual budgets of $1-5 million. Yes No Don t Know 3% 2% Click tracking in Display campaigns 95% 5% 15% Conversion tracking in Display campaigns 80% CAPACITY INTERACTIVE page 13 of Arts Industry Digital Marketing Benchmark Study

14 TRACKING Facebook Campaigns 96% of surveyed arts organizations tracked clicks in their Facebook campaigns. Only 24% did not track conversions, or were unaware if they did track conversions on Facebook. Yes No Don t Know 3% 1% 96% Click tracking in Facebook campaigns 5% 19% Conversion tracking in Facebook campaigns 76% CAPACITY INTERACTIVE page 14 of Arts Industry Digital Marketing Benchmark Study

15 TRACKING Paid Digital Media 80% of organizations used their analytics platform to track paid digital media. Only 11% of arts organizations ran their ads through ad servers in How respondents tracked paid digital media Analytics platform 80% Metrics from the vendor/site 75% Run through an ad server 11% Do not track 4% CAPACITY INTERACTIVE page 15 of Arts Industry Digital Marketing Benchmark Study

16 GOOGLE GRANT AdWords Advertising The majority of surveyed organizations used a Google Grant for AdWords advertising in Of the organizations that did not use a Google Grant in 2016, 92% had annual budgets of $10 million or less. Budget size of those without a Google Grant 2% 6% $21 million + $11-20 million 53% $1-10 million Yes 70% Used a Google Grant for AdWords advertising No 30% 39% <$1 million CAPACITY INTERACTIVE page 16 of Arts Industry Digital Marketing Benchmark Study

17 GOOGLE GRANT Spending of Monthly Budget 28% of organizations spent % of their monthly Google Grant budget in On the whole, surveyed organizations Google Grant spends increased since % of surveyed organizations had Google GrantsPro in (GrantsPro increases the monthly budget to $40K/month. This program is no longer accepting enrollees).* Percentage of organizations that spent specific amounts of their $10,000 monthly Google Grant budget from 2015 to % of monthly budget 22% 28% % of monthly budget 61-80% of monthly budget 13% 41-60% of monthly budget 6% 9% 61-80% of monthly budget 21-40% of monthly budget 16% 13% 41-60% of monthly budget 12% 21-40% of monthly budget 0-20% of monthly budget 37% 30% 0-20% of monthly budget * CAPACITY INTERACTIVE page 17 of Arts Industry Digital Marketing Benchmark Study

18 GOOGLE GRANT Third Party Services More than half of all surveyed organizations used a third party to manage their Google Grant in % No 53% Yes Used a 3rd party to manage any portion of their Google Grant CAPACITY INTERACTIVE page 18 of Arts Industry Digital Marketing Benchmark Study

19 SOCIAL Posting on Social Networks Facebook, Twitter, and Instagram are the most frequently used platforms. Only 22% reported posting on Snapchat. A few times a month A few times a week Once a day Twice a day More than twice a day Frequency at which arts organizations posted content on social networks Facebook 11% 27% 37% 21% 3% Twitter 21% 16% 17% 28% 13% Instagram 5% 21% 41% 23% YouTube 4% 76% Blog 11% 39% Snapchat 6% 16% Vimeo 20% Pinterest 13% Flickr 15% Google+ 7% Unlabeled bars in the graph above represent 2% or less. CAPACITY INTERACTIVE page 19 of Arts Industry Digital Marketing Benchmark Study

20 SOCIAL Followers Arts organizations largest followings are on Facebook. In 2016, surveyed arts organizations reported nearly four times more Facebook followers than Twitter followers, and nearly three times more Facebook followers than Instagram followers. From 2015 to 2016, all surveyed arts organizations reported an increase in followers across all platforms. On average, these organizations saw a 21% increase on Facebook, a 19% increase on Twitter, and a 118% increase on Instagram. Facebook Instagram Twitter Respondent organizations average number of followers by platform $31 million + 56, , ,399 $26-30 million $21-25 million 16,095 19,261 31,017 14,000 65,181 68,833 Annual budget size $16-20 million $11-15 million $6-10 million $1-5 million <$1 million 38,143 5,347 14,986 32,616 4,984 12,922 22,201 5,457 5,668 12,134 3,298 6,958 2, ,815 CAPACITY INTERACTIVE page 20 of Arts Industry Digital Marketing Benchmark Study

21 SOCIAL Insights/Analytics Reports 75% of surveyed organizations reviewed social insights/analytics via reports at least once a month in 2016, a 47% increase since our first Benchmark Study in In that same time, the percentage of organizations that never reviewed reports decreased by 48% Frequency at which arts organizations reviewed social insights/analytics via reports in 2016 versus % 26% 26% 23% 22% 15% 12% 13% 7% 10% 7% 8% Never Quarterly Monthly Every other week Weekly Daily CAPACITY INTERACTIVE page 21 of Arts Industry Digital Marketing Benchmark Study

22 SOCIAL Video Production Arts organizations are investing more in video. The number of organizations who reported producing 5-15 videos increased by 29%, while the number of organizations who reported producing 1-5 videos decreased by 27% from There was little change in organizations who reported producing more than 15 videos annually from 2015 to Percentage of respondents that produced videos from 2015 to % 28% 29% 24% 17% 20% 11% 11% 10% 5% 6% 7% None Number of videos produced CAPACITY INTERACTIVE page 22 of Arts Industry Digital Marketing Benchmark Study

23 SOCIAL Organic Video Facebook remained the preferred social platform for arts organizations when posting organic videos. YouTube remained a close second Percentage of respondents that posted their organic video by platform from 2015 to 2016 Facebook YouTube 98% 96% 86% 89% Instagram 49% 60% Twitter 47% 48% Facebook Live* 39% Other 17% 25% Snapchat* 9% *2015 Data unavailable CAPACITY INTERACTIVE page 23 of Arts Industry Digital Marketing Benchmark Study

24 SOCIAL Video Promotion Facebook remained the preferred social platform for arts organizations when posting promoted videos. YouTube, while preferred for organic video, is not used for promotion as widely. The percentage of arts organizations that used Instagram to post promoted videos increased by 181% from 2015 to Percentage of respondents that used each platform to promote their videos from 2015 to 2016 Facebook 94% 99% YouTube 44% 47% Instagram 16% 45% Twitter 12% 44% Other 8% 20% CAPACITY INTERACTIVE page 24 of Arts Industry Digital Marketing Benchmark Study

25 CONTENT Content Creation 57% of organizations spent 0-5% of their total marketing budget on content creation for the web/social, 23% spent 6-10%. This includes budget spent on video production, graphic design, and work with consultants or agencies. As a percentage of overall marketing budgets, smaller organizations spent more on content creation than larger organizations in While only 20% of surveyed organizations spent 11% or more, 82% of these organizations had annual budgets of $10 million or less. Notably, only two organizations spent 40% or more on content creation, both of which had annual budgets of $5 million or less. Percentage of total marketing budget spent on content creation for the web/social 57% 23% 20% 0-5% of budget 6-10% of budget 11+% of budget According to the Content Marketing Institute s 2016 survey, B2C marketers in North America are allocating 32% of total marketing budget to content marketing. CAPACITY INTERACTIVE page 25 of Arts Industry Digital Marketing Benchmark Study

26 FUNDRAISING Tactics Most respondents used segmented and organic social posts to support their fundraising efforts. Only 42% of organizations used fundraising videos in their campaigns and only 27% supported fundraising campaigns with display. Percentage of respondents that incorporated the following into fundraising campaigns Segmented 87% Organic social posts 81% Paid social posts 64% Fundraising videos 42% Display advertising 27% CAPACITY INTERACTIVE page 26 of Arts Industry Digital Marketing Benchmark Study

27 FUNDRAISING Using Social Larger organizations used both paid and organic social to support fundraising. Smaller organizations were not using paid social as widely. Organic Paid Percentage of respondents that used social posts in online fundraising campaigns by annual budget $31 million + $26-30 million $21-25 million 67% 94% 94% 100% 100% 100% $16-20 million $11-15 million 53% 80% 80% 79% $6-10 million 61% 85% $1-5 million 54% 74% <$1 million 64% 82% CAPACITY INTERACTIVE page 27 of Arts Industry Digital Marketing Benchmark Study

28 ANALYTICS Tracking Since 2012, Google Analytics has remained arts organizations preferred analytics platform. Since 2014, the percentage of arts organizations who are not tracking their website s analytics has been steadily decreasing. 5% Do not track 1% Other 94% Google Analytics Ways of tracking website analytics CAPACITY INTERACTIVE page 28 of Arts Industry Digital Marketing Benchmark Study

29 ANALYTICS ecommerce Tracking 52% of arts organizations had ecommerce tracking set up in their analytics platform. Integration of ecommerce tracking continues to correlate with the size of an organization s budget, likely because of resource constraints or because smaller organizations may be using third party ticketing platforms rather than managing their own platform. Those who do not have ecommerce, by annual budget 19% $21 million+ 15% $11-20 million Yes 52% Had ecommerce tracking on their analytics platform No 48% 58% $1-10 million 69% <$1 million CAPACITY INTERACTIVE page 29 of Arts Industry Digital Marketing Benchmark Study

30 ANALYTICS Tag Management 58% of arts organizations used tag management programs, such as Google Tag Manager. Over 90% of those who said that they did not use Google Tag Manager or other tag management programs were arts organizations with budgets of $10 million or less. Those without tag management, by annual budget 5% 1% $21 million+ $11-20 million 56% $1-10 million Yes 58% Used Google Tag Manager or other tag management programs No 42% 37% <$1 million CAPACITY INTERACTIVE page 30 of Arts Industry Digital Marketing Benchmark Study

31 ANALYTICS Reviewing Reports Half of arts organizations reviewed web analytics reports at least once a month. One third of respondents never reviewed their web analytics reports while nearly half of the respondents never conducted meetings to review. via Meetings via Reports Frequency at which web analytics were reviewed via reports and meetings Never 33% 43% Quarterly 18% 20% Monthly 18% 24% Every other week 6% 8% Weekly 11% 18% Daily 0% 2% CAPACITY INTERACTIVE page 31 of Arts Industry Digital Marketing Benchmark Study

32 ANALYTICS Utilization Only 8% of arts organizations felt that they were using web analytics to its potential. 92% No 8% Yes Whether web analytics were being utilized to their fullest potential CAPACITY INTERACTIVE page 32 of Arts Industry Digital Marketing Benchmark Study

33 MOBILE Responsive Websites 76% of arts organizations had a mobile or mobile-responsive website. 20% plan to build one. 4% No 20% Planning 76% Yes Whether respondents had mobile or mobile-responsive website in 2016 CAPACITY INTERACTIVE page 33 of Arts Industry Digital Marketing Benchmark Study

34 MOBILE Responsive Websites Since 2014, the proportion of arts organizations who have mobile or mobile-responsive websites has been steadily increasing. Mobile or mobile-responsive websites over time from 2014 to % % % CAPACITY INTERACTIVE page 34 of Arts Industry Digital Marketing Benchmark Study

35 MOBILE Adaption of Mobile Technology Arts organizations are lacking critical mobile infrastructure. Only 39% reported having a mobile-friendly subscription path. Only 63% reported a mobile select your own seat module and only 61% reported mobile-friendly ticketing. Yes No Planning 11% 9% 80% 74% 6% 20% Mobile Ticket Purchase Capability Mobile app(s) 21% 61% 18% Mobile-Friendly Ticketing Path 7% 63% 21% 30% Mobile Select Your Own Seat Module Mobile-Friendly Subscription Path 39% 40% CAPACITY INTERACTIVE page 35 of Arts Industry Digital Marketing Benchmark Study

36 MOBILE Traffic On average, arts organizations saw an increase in their mobile device traffic of about 17%. Change in percentage of mobile traffic to respondents websites from 2015 to % change 36% 42% CAPACITY INTERACTIVE page 36 of Arts Industry Digital Marketing Benchmark Study

37 MOBILE Site Infrastructure 43% reported using a licensed platform to build their mobile site. 43% of mobile sites were custom built. 14% Other 43% Custom built 43% On a licensed platform How mobile sites were built CAPACITY INTERACTIVE page 37 of Arts Industry Digital Marketing Benchmark Study

38 WEBSITE Traffic Growth On average, arts organizations saw an 17% increase in the number of unique sessions on their website per month. Average number of unique sessions per month from 2015 to % change CAPACITY INTERACTIVE page 38 of Arts Industry Digital Marketing Benchmark Study

39 WEBSITE Percent Online Ticket Sales 59% of arts organizations sold more than half of their tickets online. 1% 10-19% sold online 9% 20-29% sold online 3% 0-9% sold online 11% 30-39% sold online Percentage of tickets sold online 18% 40-49% sold online 45% 60+% sold online 14% 50-59% sold online CAPACITY INTERACTIVE page 39 of Arts Industry Digital Marketing Benchmark Study

40 WEBSITE Online Ticket Sales In 2016, 55% of tickets were sold online. Average percentage of tickets sold online, by organization type University 61% Ballet Company 58% Orchestra 58% Presenting Organization 56% Modern Dance Company 52% Theater 51% Opera Company 49% Museums removed due to low response rate. CAPACITY INTERACTIVE page 40 of Arts Industry Digital Marketing Benchmark Study

41 WEBSITE Last Redesign Many arts organizations are redesigning their websites. Similar to last year s findings, roughly half of arts organizations redesigned their website in the last year. 15% 5 years or more 7% 4 years ago 13% 3 years ago Timing of last website redesign 16% 2 years ago 49% Within 1 year CAPACITY INTERACTIVE page 41 of Arts Industry Digital Marketing Benchmark Study

42 WEBSITE MAINTENANCE Minor and Major Changes to Website When major changes need to be made to their websites, most arts organizations used outsourced programmers, whereas most used in-house programmers for minor changes. In 2016, as compared to 2015, a smaller percentage of arts organizations stated that they had no resource for making changes to their websites. Minor Changes Major Changes Means by which respondents made minor and major changes to website 61% 42% 38% 12% 18% 23% 2% 4% In-house Programmer(s) Outsourced Programmer(s) Both No Resource CAPACITY INTERACTIVE page 42 of Arts Industry Digital Marketing Benchmark Study

43 WEBSITE MAINTENANCE Budget for Maintenance 62% of organizations surveyed felt they did not have adequate budget to properly maintain their websites. 62% No 38% Yes Did respondents have the budget to maintain their website? CAPACITY INTERACTIVE page 43 of Arts Industry Digital Marketing Benchmark Study

44 WEBSITE MAINTENANCE Time Spent Making Minor Changes Most arts organizations spent less than 10 hours monthly on minor website upgrades. Organizations with budgets of larger than $20 million consistently spent upwards of 30 hours on website upgrades. 0-9 hours hours hours 30+ hours Hours spent making minor changes to website per month <$1 million 56% 22% 19% 3% $1-10 million 63% 15% 11% 10% $11-20 million 50% 4% 17% 29% $21 million + 9% 14% 14% 64% CAPACITY INTERACTIVE page 44 of Arts Industry Digital Marketing Benchmark Study

45 WEBSITE MAINTENANCE Time Spent Making Major Changes Most arts organizations spent less than 10 hours monthly on major website upgrades. Organizations with budgets of larger than $20 million were the only ones who consistently spent upwards of 30 hours on website upgrades. 0-9 hours hours hours 30+ hours Hours spent making major changes to website per month <$1 million 83% 10% 7% $1-10 million 79% 12% 4% 4% $11-20 million 67% 13% 4% 17% $21 million + 17% 13% 17% 52% CAPACITY INTERACTIVE page 45 of Arts Industry Digital Marketing Benchmark Study

46 WEBSITE MAINTENANCE SEO 77% of arts organizations said that they were putting very little budget into Search Engine Optimization (SEO). 59% of arts organizations said that they were putting very little effort into managing their SEO. Budget Effort How respondents perceived the amount of effort and budget they put into SEO 77% Very Little 59% 22% Some 39% 1% A Lot 2% CAPACITY INTERACTIVE page 46 of Arts Industry Digital Marketing Benchmark Study

47 Platforms Used platforms used by surveyed arts organizations MailChimp 30% WordFly 22% ConstantContact 15% Mail2 10% PatronMail 4% DotMailer 2% *Other 18% *Other includes MyEmma, Exact Target, tm Messenger, etc. CAPACITY INTERACTIVE page 47 of Arts Industry Digital Marketing Benchmark Study

48 Lead Collection 88% of arts organizations felt that lead collection was very important. 7% 5% Unimportant Moderately Important 88% Important The importance of address collection for arts organizations CAPACITY INTERACTIVE page 48 of Arts Industry Digital Marketing Benchmark Study

49 List Size In 2016, arts organizations saw an increase in the size of their lists of approximately 14%. Average change in size of lists over time from 2015 to % change CAPACITY INTERACTIVE page 49 of Arts Industry Digital Marketing Benchmark Study

50 List Size Arts organizations of all sizes saw an increase in the sizes of their lists Average size of lists by annual budget from 2015 to 2016 $31 million + 169, ,997 $26-30 million $21-25 million $16-20 million 96,000 84,333 68,667 95,000 82, ,500 $11-15 million $6-10 million $1-5 million 50,016 44,183 39,403 36,621 31,781 28,058 <$1 million 9,300 7,770 CAPACITY INTERACTIVE page 50 of Arts Industry Digital Marketing Benchmark Study

51 Frequency Sent to Users Most organizations ed constituents just once or twice a week. Only 7% are ing each constituent three or more times a week. 7% Three or more times a week 33% Once a week 29% Less than once a week Frequency with which respondents sent s to each constituent 31% Twice a week CAPACITY INTERACTIVE page 51 of Arts Industry Digital Marketing Benchmark Study

52 Open Rate As we ve seen in years prior, s that are segmented by user behavior, namely pre/post-performance and triggered s, had the highest open rate Average open rate by type from 2015 to 2016 Pre/postperformance 47% 48% Triggered s 32% 40% Donation appeals 24% 26% Newsletter 24% 25% Show promotion 25% 27% CAPACITY INTERACTIVE page 52 of Arts Industry Digital Marketing Benchmark Study

53 Segmentation 83% of arts organizations felt as though there is room for improvement in segmenting their s. 10% Not at all effectively 17% Extremely effectively How effectively respondents felt like they were segmenting their s 73% Somewhat effectively CAPACITY INTERACTIVE page 53 of Arts Industry Digital Marketing Benchmark Study

54 CHALLENGES Implementing Digital Marketing Initiatives Consistent with our findings both this year and in years prior, not enough budget remains the arts industry s most pervasive obstacle to implementing digital marketing initiatives. Only 15% indicated no leadership support was a challenge. What challenges arts organizations face in implementing digital marketing initiatives Not enough budget 63% Determining ROI 51% Creating compelling content 49% Not enough internal knowledge 44% No clear digital strategy 32% No leadership support 15% CAPACITY INTERACTIVE page 54 of Arts Industry Digital Marketing Benchmark Study

55 About Capacity Interactive Digital Marketing for Arts Marketers by Arts Marketers Capacity Interactive (CI) is the premier digital marketing consulting firm for culture and the arts. Founded in 2008, CI partners with leading arts and cultural organizations in the U.S. and internationally to help them build audiences, engage community and market smarter. Practice areas include digital advertising, web analytics, search engine optimization, search engine marketing, strategy, and online fundraising. Capacity Interactive has a strong focus on education for our clients and for the arts and cultural sector. CI hosts Digital Marketing Boot Camp for the Arts, an annual conference each October in New York City, and Capacity Classroom, a series of small group workshops and webinars where arts marketers can strengthen their digital skills. Market Smarter. Check out our podcast CI to Eye on itunes, SoundCloud, and Google Play. Capacity Interactive 1239 Broadway, Suite 1103 New York, NY capacityinteractive.com bootcamp.capacityinteractive.com CAPACITY CAPACITY INTERACTIVE INTERACTIVE page 55 of Arts Industry Digital Marketing Benchmark May 2017 Study