Heading into 2020, AccuList’s performing arts marketing clients can take advantage of positive trends in both fundraising and ticketing sales according to recent studies.
Performing Arts Giving Holds Steady
While the Giving USA 2019 report released in June showed declines for many charitable giving sectors from 2016 to 2018, arts fundraising stood out by remaining relatively flat. Adjusted for inflation, giving to arts, culture, and humanities increased 11.1% between 2016 and 2017, declined 2.1% between 2017 and 2018 (though a 0.3% increase in current dollars) and ended up with a cumulative increase of 8.7% between 2016 and 2018, thanks to 2017 donations that reached the highest inflation-adjusted amount for the sector on record. Underneath the numbers are three important lessons for our performing arts clients, as fundraising counsel Alexander Haas points out in a recent post. First, a focus on high net-worth individuals via upper-level membership programs, project-related major gifts, and targeted marketing campaigns is likely to pay off, as proven by 2018’s 2.6% increase in gifts of $1,000 or more, and the fact that, of the 90% of high-net worth households giving, a quarter focused on arts donations. Second, targeted campaigns and quality donor lists are essential as fewer individuals give and a greater percentage of philanthropic revenue comes through larger gifts. Finally, online giving can be a boon to performing arts; for example, the Blackbaud Institute’s 2018 Charitable Giving Report showed that online gifts represented 9.5% of overall giving to arts organizations in 2018, and the 5.8% growth in online giving to the arts outpaced other nonprofit sectors by four times. Making online giving a convenient option for donors and members is one way to offset the decline in smaller gifts.
Marketing Innovations Help Ticketing Upward Trend
An October Reportlinker market research report forecasts a 5% compound annual growth in ticket sales from sporting events, movies, concerts, and performing arts events in the 2020-2024 period. While sporting events and concerts popularity is a key driver of growth, the research also credits a number of innovative marketing strategies for pushing ticket revenue, such as flash sales, early-bird offers, access codes, public discounts and adoption of mobile applications to make tickets more readily available to consumers. The integration of analytics with online ticket platforms–to automate services, to enhance more efficient back-end operations, and to better track and monitor consumer preferences–is also seen by researchers as a positive for ticket sales growth. Meanwhile, the secondary ticket market, especially in sports, is projected to have an even higher 9% compound annual growth rate in the same period despite a rise in fraudulent activities and artist opposition. A positive on this front is the adoption of blockchain to keep track of buyers and sellers in the secondary ticket market, helping to prevent fraud by scalpers, bots and touts.
For more detail on performing arts giving trends see the Alexander Haas post.