Web Channel Marketing and Advertising Survey

I have just arrived in Denver for the National Performing Arts Convention and the TCG Conference. I will be blogging from both conventions, and I can't wait for the official kick off later today.

On my way from DC to Denver, I reread the results from a survey that Arena Stage participated in a couple of months ago, and found a couple of surprising things that I figured I would share with you.

Bil Schroeder, Director of Marketing & Communications, at South Coast Repertory commissioned Klear Sky to study marketing and advertising practices at some of the larger regional theaters in the nation. Participating organizations included South Coast Rep, Center Theatre Group, Huntington Theatre Company, La Jolla Playhouse, Arena Stage, Steppenwolf Theatre, Seattle Rep, Goodman Theatre, Actors Theater of Louisville, Yale Rep, and several others.

Below are some results that I found to be interesting:

1. The average numbers of e-mail sent per month by survey participants was 6.3, but on the high end, one organization on average sends 13 emails per month. We can only assume with so many e-mail campaigns sent per month that this organization uses highly segmented and targeted campaigns.

2. There was one question on the survey that was misinterpreted by most of the respondents. The question was: "What is the average number of online impressions you have per month." I answered for Arena Stage, and I went back into our online impression reports from the past three months from every place online that we advertise. On average, we had 3,145,182 online impressions every month. Arena Stage had by far the most, with the average being 1.6 million of impressions. However, one organization reported only having 13,000 online impressions. Online advertising is relatively new, and this misinterpretation shows me that we aren't all on the same page on how to measure the impact of online advertising.

3. "Single ticket direct mail advertising has stayed the same or increase for 80% of the respondents. This remains a strong channel for advertising even with the rise of online and email advertising." I found this surprising because our direct mail campaigns at Arena Stage have decreased mostly because we are finding much higher ROIs on other types of campaigns, especially with the cost of the stamp constantly going higher and printing/delivery costs skyrocketing because of the fuel crisis.

4. Only 40% of respondents reported spending less on newspaper advertising over the past three years, which I found shocking. The state of the newspaper nationally is abysmal. Most newspapers are bleeding subscribers, and raising rates on advertising, so in essence we are paying more for less. However, it seems that less than half of the companies have reduced their expenditures which suggests that some folks like to stick with the tried-and-true techniques even as they become less and less effective.

5. Out of all the respondents, the organization that had the oldest website had their last redesign in February 2003. Most of the organizations have had a major redesign since December 2006. A note from Klear Sky says "websites that are older than three years run the risk of feeling dated and old." I always thought that the life span of a website was around four years, but now it looks like it is three years or less.

6. In 2004, I started speaking at conferences about using social networking platforms to promote arts organizations. At that time, most people didn't know what MySpace was. In this survey, 87% of the respondents reported to using MySpace and Facebook to promote their organizations.

Thank you to Klear Sky and South Coast Rep for publishing the information from this incredibly helpful survey.

The Create Your Own Phenomenon

Arena Stage is in the middle of a rebranding campaign in preparation for the opening of the Mead Center in 2010. The first part of the rebranding campaign is finished, and we now have a new brand platform.

The new brand platform embraces the fact that our audience's purchasing behaviors are very different then they were ten years ago when our last brand refreshment occurred and this was a little alarming for some of the Arena Stage staff.

Thanks to the amazing work of Danny Newman, many marketing professionals have been trained since day one that the goal of any cultural institution is to design a complete season that can be packaged and sold as one product -- a complete cultural sampling if you will. Arena Stage operated under this belief for a long time, and only recently started selling subscription packages that didn't contain the entire season.

We now recognize that although our full season subscribers are incredibly important and valuable to us, our acquisition campaigns rely almost fully on our mini-packages. Even up until last year, our subscription brochure primarily pitched full season subscriptions. This year, full season subscriptions are only mentioned once--on the order page. Instead, when a customer opens our subscription brochure, on the inside front cover in large text, they see the following line: "Pick the shows that are the most exciting and meaningful to you!"

We aren't the only industry to notice this trend. In fact, customization is one of the hottest trends on the market today. Check out the following examples:

Capital One: Create Your Own Credit Card
Alltel: My Circle
Burger King: Have It Your Way
Scion: Build Your Own Car

However, even some of the most inventive and cutting-edge companies don't seem to be grasping this concept. Consider Apple's launch of the iPhone. The iPhone was supposed to be one of the hottest developments in cell phone technology, but they made the critical mistake of trying to force people to use AT&T as a wireless carrier by signing an exclusive deal with them. Then in walks George Hotz, a 17-year-old that dealt Apple and AT&T a lesson in marketing to millenials. He and four collaborators spent their summer devising a plan to unlocked the iPhone so that it can be used with any wireless carrier, and then posted the plan on the world wide web. He gained instant fame for teaching a world-wide leader in technology that they can no longer dictate to the customer, and that the customer now is in the position of dictating to them.

Why does someone have to tell us not to lie?

Several months ago I had the pleasure of listening to Ben Cameron speak at the National Arts Marketing Conference in Miami. If you haven't had the opportunity to listen to Ben speak, jump at the chance if you get it. One of the points he made was that potential audiences no longer believe the fake hype that marketers use when designing their advertising campaigns for productions. Seriously--if you listen to some of us, every show that we promote is going to be a life altering event. There are some of us that make promises that we cannot deliver, and our potential audiences are seeing through these promises.

Arena Stage is in the middle of a rebranding campaign, and I have been clear that we need to stick to brand promises that we know that we can deliver. If you are doing consistently good work, then it will speak for itself. We need to be mindful to not "over promise."

So I found an article on Playbill today that I found fascinating. British authorities have now made it illegal to pull a couple of words out of context from a review in an attempt to deliberately mislead consumers. We have all been tempted after unfavorable reviews to use a reviewer's words against them, but once again we would be lying to our customers. The times have changed. Information flows too quickly for us to falsely spin or hype a show that doesn't merit it. Be strong. Don't give into temptation. Or else you will pay for it later (literally if you live in Great Britain).

Is this happening in your neck of the woods?

I will share my thoughts in a future post, but it begs the question--is it really a bad thing that some theatre companies are closing their doors? is this a "market adjustment" to equalize supply and demand?

From this Wednesday's Washington Post:

More Shows, Fewer Showgoers
Helen Hayes Group Cites Increase of 402 Performances, Decrease of 36,000 Patrons
By Jane Horwitz
Special to The Washington Post
Wednesday, April 23, 2008; Page C05

The number of stage performances and theater companies in and around Washington went up last year, while overall attendance dropped 1.9 percent, according to statistics from the Helen Hayes Awards organization.

Despite that dip, 2007 was the busiest year since the first tally in 1985, the Hayes group said, with 67 professional companies presenting 8,050 performances of 454 shows. That is an increase from 2006 of three companies, 402 performances and 20 shows. (These figures represent all area professional theaters, not just those eligible for Hayes Awards, but do not include attendance for the Capital Fringe Festival, which drew 19,000 people.) Metropolitan Washington is a busier theater district than the Chicago area, according to Hayes Executive Director Linda Levy Grossman. Though Chicago has more theater companies, "the D.C. area still does more work," she noted via e-mail.

Even so, derrieres in seats numbered about 36,000 fewer in 2007, the Hayes staff reported, with 1,908,557 people attending shows. The dip in comparison with 2006 adds more weight to the conventional wisdom that the audience isn't quite keeping up with the burgeoning theater community. Attendance also dipped by about 1.2 percent from 2005 to 2006, much less than the 8.5 percent drop the previous year.

The end of the critic?

The Los Angeles Times ran an article on Tuesday, April 8 about the possible demise of the cultural critic. In the article, they cited numerous high profile critics which have recently left their posts, begging the question whether or not they are a dieing breed.

As many major newspapers continue to lose large numbers of readers, the impact of reviews and critics is beginning to shift. I myself blogged about this experience in a previous post. This is the first time that I have read an acknowledgement of this trend in a major daily newspaper. With the rise of many online, "citizen" review sites such as Yelp.com, more and more people are looking to common lay folks for their opinions on cultural attractions. Fewer and fewer people are turning to what Mr. Goldstein refers to as the "arbiters of culture." In fact, Mr. Goldstein's son hits it right on the head when he said "I trust my friends more than I trust that guy writing the review." This highlights the power of social media--it provides a context and an opportunity for friends to share their personal opinions of your product. With this ongoing paradigm shift, we as marketers and publicists are going to need to start paying more and more attention to our online reviews as we do to the major daily writers.

Part of what that means is being consistently on our game. No longer can we invite the major reviewers in for one specific night where we all dress up and put out the good china--we have to constantly have the good china on display because every performance is going to be reviewed by someone.

Just a couple of days ago, Arena Stage hosted a panel of professional theater reviewers who volunteered to speak to the participants of our Young Critics Program (a program that invites students to attend shows and review them). On the panel was Peter Marks (chief theater reviewer for the Washington Post). One particularly smart student asked Peter about how he perceived the power of his positive and negative reviews. And although I am paraphrasing, Peter acknowledged there was a time when a reviewer could make or break a show, but he feels this is no longer the case. I can attest that the Washington Post and Mr. Marks in particular still has a very large following, but I would tend to agree with him.

And let's not forget that even though we might get the occasional bad review (and let's admit, sometimes it is deserved), critics are providing us a service by writing about us. The loss of the critic is tragic. Fewer critics = less coverage. Less coverage = less public knowledge.

Congratulations to...my boss

I promise to have a new post tomorrow, but in the meantime...

Congratulations are in order for my soon to be former boss Maggie Boland, Arena Stage's Director of External Affairs since 2003. Maggie will be leaving Arena Stage at the end of April to join Arlington's Signature Theatre as their new Managing Director. I think many of else felt that she was more than ready to take this step in her career, and I am glad that the DC theatre scene is not going to lose her. Now she is going to go work for a "competing" theater so I might have to Tonya Harding her before she leaves, but until that time, I can be very proud of her. One of her first responsibilities on the job--attend the opening of Signature's GLORY DAYS on Broadway. What a rough way to start.

Check out the article in Variety.

National Arts Marketing Project Conference 2008--Call for Proposals

Americans for the Arts invites you to submit a proposal for the National Arts Marketing Project Conference in Houston, November 10-12, 2008. Priming the Pump: Fueling Integrated Arts Marketing, Fundraising, and Sponsorships to Optimize Revenue will focus on best practices in marketing and audience development in the arts.
New This Year!

For 2008, the NAMP Conference is about fundraising too! In addition to the marketing track, there is now a fundraising track, and a track focusing on where the two areas interact. We encourage you to propose sessions in marketing, fundraising, or the intersection of both. Topics of interest include:

-Branding
-Social networking
-Sponsorships
-Young philanthropists
-Dynamic copywriting
-Loyalty programs
And more!

You can share your experience in any format-choose from three types of sessions. Applications for conference sessions, exemplary practices presentations, and roundtable discussions will be accepted. Americans for the Arts welcomes proposals from: marketers and fundraisers arts and culture organizations marketing and fundraising consultants corporate and foundation funders board members government agencies educators executive and/or artistic directors corporate sponsorship and/or marketing directors communications professionals technology professionals

Each track will be divided into two levels:
101 Level for beginner/intermediate skill level and small organizations
201 Level for intermediate/advanced skill level and larger organizations

Visit the NAMP Conference Website for the session proposal application, instructions, and more information on the conference.

Watch the website for registration and hotel information along with the program.