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Arts Fundraising Study: Invest to Reap More

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.

For 2019 Edge, Event Pros Shouldn’t Overlook Direct Mail, SEO, Experiential Marketing

Per the latest industry surveys, AccuList USA’s trade show and conference marketing clients can look forward to solid event industry growth in 2019–along with potential marketing strategy shifts in an increasingly competitive landscape.

Businesses Are Bullish on Event Marketing

Event software firm Bizzabo’s survey of over 1,000 mid- to senior-level marketers at major companies in 2018 found good news for the event industry: Most respondents (41%) consider live events to be the most critical marketing channel in achieving business outcomes (out of 9 possible channels), a 32% increase from 2017. Business execs are also doubling down on live events. Between 2017 to 2018, the number of companies organizing 20 or more events per year increased by 17%. Additionally, the vast majority of respondents (95%) believe in-person events provide attendees with a valuable opportunity to form connections in an increasingly digital world. This reflects a 12% increase compared to 2017.

E-mail & Social Media Remain Favored Promotion Channels

Meanwhile, Eventbrite, an online event management and ticketing firm, surveyed 1,200 event professionals last year to see how marketers are likely to spend in 2019. Word of mouth, an effective tactic for 63% of event marketers, is bolstered by investments in social media marketing, which 49% of event creators placed among the top three most effective drivers of ticket sales. They cited Facebook and Instagram as the top social platforms for reaching event-goers. E-mail rounded out the top marketing channels per those surveyed, with 38% of event professionals relying on it.

Trends Encourage Growth of SEO & Direct Mail Use

However, with 89% of attendees using search for purchase decisions, Eventbrite foresees a necessary expansion of SEO efforts. There’s definitely room for growth, with almost half (46%) of event professionals saying they aren’t using SEO. And, while e-mail is cited among the favored marketing channels, direct mail continues to turn in higher response for the 41% of event pros who use it. Eventbrite thinks the 50% who cite competition as their biggest challenge will want to reconsider the edge offered by adding mail to their arsenal, urging the hesitant to take a trial run by segmenting mailing lists and sending flyers or save-the-date cards to a test portion.

Experiential Marketing Is 2019’s Hot Buzzword

Experiential marketing is a hot new trend for trade show exhibit providers, brand marketers and event planners. It is a strategy that engages attendees by using branded experiences at an event, as part of an event, or in a pop-up activation not tied to any event. It’s all about immersing people in memorable live experiences to create more lasting and positive brand impressions. Yet Eventbrite found that close to 60% of event creators are not using experiential marketing. Acknowledging an intimidation factor, Eventbrite urges starting small, for example by promoting a pop-up shop (temporary retail space) grand opening at an event, by offering a smaller experiential activation like an on-site art installation, or by using a partner on-site sponsorship to enhance the event experience.

Download the Bizzabo report “2019 Event Marketing Benchmarks and Trends” for more details on event industry trends.

New Marketing Trends Bolster Food Gifting Growth

One of AccuList USA’s areas of specialization is providing mailing lists, data services and marketing support for the food and wine gift market, and so we keep an eye on emerging trends in this growth industry. In fact, food gift sales will approach $20 billion in 2018, up 4% over last year, per the “Food Gifting in the U.S.: Consumer and Corporate” report for 2018-2020 by research firm Packaged Facts.

Holiday Sales Dominate, But New Trends Push Overall Growth

Marketing dollars will naturally focus on year-end sales, since, while consumers and businesses are giving food baskets across a wider variety of occasions today, ranging from anniversaries to graduations to birthdays, Christmas is still the food and wine gifting mainstay. More than half of the 130 million consumer food gifters purchasing in the last 12 months bought during the winter holiday season. But how can food gift marketers push sales growth year-round? One key factor will be continued innovation that creates exclusivity and artisanship, avoiding the commoditization that drains profit with discounting, notes the report. To support that kind of brand power, marketing efforts will need to embrace the kind of story telling that creates a sense of authenticity and uniqueness and builds a gourmet brand image. Capturing the high-end boutique buyer can require a softer sales approach that aims at building knowledge and trust, say via featured recipes as an example. Food gift marketers also need to continue expanding gifting occasions beyond holidays, not only for consumers but also for the lucrative corporate market, by pushing work anniversary and thank-you gestures for example. Finally, while the food gifting market is heavily dependent on older, high-income consumers, tapping into millennials will require a more omnichannel approach that takes into account millennial ordering preferences, stresses the Packaged Facts report.

Embracing Omnichannel Marketing Options

An omnichannel wooing of millennials will combine direct mail/catalogs with e-mail, social media and e-commerce strategies. While traditional direct mail continues as a food gifting workhorse, a strong online presence and SEO strategy is especially essential. Luxury biscuit gift company Biscuiteers provides an example of how it matters: The company increased their website traffic from new customers by 90% and SEO revenue by 77% in 6 months by optimizing category landing pages for different types of food gift buyer and season. E-commerce goes hand-in-hand with a good e-mail strategy. For example, the venerable Hickory Farms brand decided to improve the quality of its customer data and create a more agile e-mail campaign process by integrating its marketing and commerce tech to trigger consumer journeys and automated e-mail sends. E-mail inbox placement this year rose to 94%, almost 10% above industry standard, plus e-mail list growth improved. Hickory Farms CMO Judy Ransford explained to CMO magazine that the smarter list management “helps us deliver e-mails at the frequency customers want, and to make sure the content quality is better. This year we’ve seen a huge improvement and not such high attrition rates as a result.” Social media also has become a must-have for food gifting via leading platforms like Facebook and Instagram for consumers and LinkedIn for corporate prospecting. That should increase gift-basket marketer interest in AccuList USA’s Digital2Direct program, which is designed to link targeted direct mail with Facebook ads or e-mails to the same recipients.

Who’s Winning in 2018 Gift Basket Ratings?

By the way, marketers looking for successful food gifting models should check out Top Ten Reviews’ 2018 ratings. We’re happy to note that our client Wine Country Gift Baskets’ Gourmet Choice Gift Basket was awarded best overall value for 2018 in a test of 11 gift baskets from the leading gift basket companies. Top-rated winners delivered on value for the price in terms of food and wine taste; presentation; ease of payment; delivery speed, options and geographic coverage; range of baskets; special options such as kosher, vegan and organic; offers of extras such as add-on wine, tea, books, puzzles, etc; and, of course, quality customer support. To read more, see the review of best gift baskets of 2018.

 

Shoppers Demand Seamless Omnichannel Retail Strategies

Omnichannel marketing is the rule for today’s retailing. While print catalogs continue as a vital merchant tool, with 42% of households reading catalogs per the U.S. Postal Service, integration of multiple channels–including online, mobile and social with direct mail–is now essential to our catalog and e-commerce clients’ success. Unfortunately, while the majority of consumers expect to shop seamlessly across all those channels, only 7% of retailers provide the unified “start the sale anywhere, finish the sale anywhere” experience that customers want, per the recent “2018 Customer Experience/Unified Commerce Survey” by BRP Consulting, a retail management consulting firm.

Omnichannel, Cross-Device Shopping Is Now the Norm

Marketers just can’t afford to ignore that the majority of shoppers now interact with promotions, educational content and purchase services via multiple channels and devices. According to the same BRP study, three in five (62%) consumers surveyed said they check online reviews/ratings before visiting a store, yet just 61% of retailers offer consumer product reviews for research! Shoppers now rely on mobile to continue the digitally supported buying process in-store, with nearly 60% of shoppers looking up product information and prices while using their mobile phones in stores, per Retail Dive’s 2017 Consumer Survey. Also per BRP, nearly three out of four (73%) of consumers want the ability to track orders across all points of interaction, going beyond an estimated delivery date to include when the order is being prepared, date shipped from the warehouse, etc. Plus customers expect an automated return process, with 68% of consumers surveyed telling BRP they are more likely to choose a retailer offering an automated returns process.

Analytics Need Complex Channel/Device Attribution

Merchants can leverage customers’ cross-device penchant to optimize acquisition and conversion, argues a Direct Marketing News article by Pierre DeBois. But they must keep in mind that, while the opportunity to boost ad frequency and content persuasion across channels is huge, smart management is required to avoid turning targeted promotion into a bludgeon. As Bill Kee, Google’s group product manager for attribution, highlighted at the 2017 Google Marketing Next conference, “If I am on three devices, and if I see your ad five times, it means you’ve reached me 15 times…believe me I get it.” The first place to start is good omnichannel analytics to understand the contribution of each channel to ROI and its place in the customer journey. Only then can merchants cost-effectively tailor targeting and investment to maximize sales. One useful analytics tool is Google’s Unique Reach report, which displays digital ad frequency metrics across devices, campaigns, and formats to measure how many times a person views a given ad, and combines attribution influences from AdWords, DoubleClick, and Google Analytics, suggests DeBois.

Using Images and Chat to Direct the Customer Journey

Good omnichannel analytics also can improve use of image and video content to maximize the proven effectiveness of image/video in digital engagement, to answer the customer demand for education, and to direct prospects through the sales funnel. However, quantities of images bombarding customers across multiple channels can overwhelm and confuse, so both media curation and a content mapping strategy aligned to the customer journey are needed. One example of a targeted image strategy is use of an “image story” feature on a social media platform to orchestrate images and/or a short video, notes DeBois. Pinterest Lens, Instagram Stories, and Twitter Moments are all image story features. Because the majority of consumers research products and services online now, marketers also can gain an edge over competitors by offering customer-facing elements such as chatbots. In contrast to apps, which may be used only for a few discrete tasks and then ignored, a chatbot’s programmable assistance can provide both engagement and continuing response performance improvement.

For more, see the Direct Marketing News article.

Growing Magazine Audiences Continue Shift Toward Mobile

The good news for publishers is that total audience—across print, Web, mobile and video—grew robustly in 2016, up 6.4% over the prior year, according to the 2016 Magazine Media 360° Brand Audience Report from the Association of Magazine Media (MPA). But there is a challenge for publications within the data: the continued shift to a mobile audience. Certainly, at AccuList USA®, we have seen mobile optimization and responsive design become a key consideration in the multi-channel marketing strategies offered to consumer publication and business publication clients.

Desktop/Laptop Viewing Loses Traction to Mobile

Although print and digital editions continued to garner the largest audience for magazine media last year, the mobile platform had the most rapid growth rate, per the MPA’s trend analysis. Nearly 80% of the brands reporting showed mobile growth, with 79% of those brands up by either double- or triple-digit percentages. More than a quarter of the brands in the report grew their mobile unique visitors by one million or more each. That mobile growth came at the expense of Web (desktop/laptop) users.  In fact, the Web audience represented the only magazine media platform to decline as consumers spent more time on portable devices than computers. Meanwhile, though video remained the smallest audience platform in 2016, it also recorded strong growth, per MPA, up by double-digit percentage rates.

Print’s Lead Role Endures

“The key takeaway from this most recent analysis is that print still makes up the biggest portion of magazine media audiences, yet continued growth in mobile web means that the total audience continues to get bigger overall and reflects the multi-platform preferences of today’s readers,” concluded Linda Thomas Brooks, president and CEO of MPA, in a press release.

And the Winners Are…

Meanwhile, even though 2016 was an election year, nonpolitical interests led the way to top spots for magazine brands. Per the 2016 analysis, the top five magazines with the most total audience—across print, Web, mobile and video—were (in descending order) ESPN The Magazine, People, Forbes, Allrecipes and Better Homes and Gardens. The top five magazine brands with the greatest percentage growth in total audience compared to a year ago were (in descending order) DominoThe New Yorker, Harper’s Bazaar, W and Esquire.

For more see http://www.magazine.org/industry-news/press-releases/mpa-press-releases/mpa/mpa-%E2%80%93-association-magazine-media-releases-2016