NEW DEVELOPMENTS IN ARTS MARKETING Heather Maitland in association with

Audiences North East (ANE) is the strategic agency for the North East of England, working across the whole cultural sector to grow, sustain and develop the region’s audiences. We offer a range of research, development and promotional opportunities, all of which are tailored to meet the specific needs of the cultural sector. We commissioned cultural sector consultant and author Heather Maitland to develop a 4 hour seminar aimed at disseminating the latest thinking in Marketing and audience development. The seminar was delivered to a variety of arts professionals in Stockton and in Newcastle in March 2009.

Audiences North East (ANE) is the strategic agency for the North East of England, working across the whole cultural sector to grow, sustain and develop the region’s audiences.

We offer a range of research, development and promotional opportunities, all of which are tailored to meet the specific needs of the cultural sector.

We commissioned cultural sector consultant and author Heather Maitland to develop a 4 hour seminar aimed at disseminating the latest thinking in Marketing and audience development.

The seminar was delivered to a variety of arts professionals in Stockton and in Newcastle in

March 2009.

New Developments in marketing Consumer trends Tips for surviving the recession The future of advertising New ways of looking at audiences Branding trends Online trends 2009’s most influential marketing theory

Consumer trends

Tips for surviving the recession

The future of advertising

New ways of looking at audiences

Branding trends

Online trends

2009’s most influential marketing theory

CONSUMER TRENDS

FACT Consumers are cutting back

THE LIPSTICK EFFECT

The rise of the FRUGALISTA

“ We did a survey with our customers at the beginning of the year. They said they are now making product choices around quality and value for money.”

“ We did a survey with our customers at the beginning of the year. They said they are now making product choices around quality and value for money.”

But they don’t take our word for it Data firm Jupiter found that 77% of online shoppers are using reviews and ratings when making their purchasing decisions

The death of bling

COCOONING

AUTHENTIC HUMAN CONTACT

VIRTUAL ESCAPES

Consumer trends Less conspicuous consumption Reduced spend on big items The rise of small self-treating instead Researching expenditure Value for money Retreat into the home Less experimentation Escapism

Less conspicuous consumption

Reduced spend on big items

The rise of small self-treating instead

Researching expenditure

Value for money

Retreat into the home

Less experimentation

Escapism

So what?

SURVIVING THE RECESSION

Innovate 72% of marketing executives said the resources they put into innovation will be sustained or increased in 2009

Insight 39% of marketing executives say that their spend on market research will increase

Do what works The trend gurus all say that return on investment will become all important – so you need to know what works

Keep existing customers More resources will be focused on building relationships with customers and on making the most of customer data

Customer satisfaction Keeping customers depends on how happy they are – marketers will be striving for better dialogue with them to resolve problems quicker

THE FUTURE

THE FUTURE OF ADVERTISING

Engaging and empowering the people Asking for $25 contributions The total? $500 million Using the internet to register new voters Enlisting supporters to create their own campaigns on social networking sites: the YouTube election “ At homes”

So what?

GENERATION G

(THAT’S G FOR GENEROSITY)

Cynical consumers 13% of Americans say they trust big business ¾ of Americans feel that companies don’t tell the truth in advertising

Wall Street sign

Need for Generosity Challenging times see people craving care, empathy, sympathy and generosity

Generosity as status symbol The lasting trend is for passionate, empowered individuals more willing and able to give, share, collaborate

33 million flickr users 16 million Wikipedia pages 13 hours of video uploaded to You Tube every minute 20 million hotel reviews on Trip Advisor

Values not social responsibility projects

Strategies to target Generation G Show you care …

Co-donation

Free love

Make their lives easier Give your customers fun or useful services using widgets and apps

Random acts of kindness Send your best customers surprise gifts. Send thank you letters (that don’t try and sell them anything).

Help them out, be flexible

So, be nice to your customers….. They’ll be extra-appreciative in these troubled times They won’t forget They’ll tell other people about you They’ll be more willing to collaborate And working for a company with a caring, generous mindset can actually be good for your soul, too :-)

So what?

THE YOUTH MARKET

Summary It’s a dialogue Show you care Build a fan base Relevance not price Relevance is about social currency Your whole organisation needs to have the right mindset

It’s a dialogue

Show you care

Build a fan base

Relevance not price

Relevance is about social currency

Your whole organisation needs to have the right mindset

So what?

BRANDING TRENDS

BACK TO BASICS FOCUS DISTINCTIVENESS

FACT Our brains act as filters to protect us from too much information

"In the West we maybe see, at a conservative estimate, 500 advertising messages every day. We see as many advertising messages in a year as our parents saw in their entire lives.” Tim Phillips, Technology Journalist http://news.bbc.co.uk/1/hi/programmes/click_online/5285058.stm

"In the West we maybe see, at a conservative estimate, 500 advertising messages every day. We see as many advertising messages in a year as our parents saw in their entire lives.”

Tim Phillips, Technology Journalist

http://news.bbc.co.uk/1/hi/programmes/click_online/5285058.stm

THREE MORE TRENDS ROBERT JONES HEAD OF NEW THINKING WOLFF OLINS

Post-Consumer Activist Brands will become platforms on which people can do things

BUT

Brand as multiplier Umbrella brands that grow the impact exponentially

Post-Western Plurality Brands will become a theme with variations rather than the duplication of a formula

“ Identity not identical”

So what?

AUDIENCE DEVELOPMENT IS DEAD

… .LONG LIVE PUBLIC ENGAGEMENT

Audience development ‘ The term audience development describes activity which is undertaken specifically to meet the needs of existing and potential audiences and to help arts organisations to develop on-going relationships with audiences. It can include aspects of marketing, commissioning, programming, education, customer care and distribution.’ [1] Information: Grants for the Arts - audience development and marketing, Arts Council England, consulted at www.artscouncil.org.uk/documents/information/audiencedevgfta_phpx05G6i.doc accessed 30th June 2008

‘ The term audience development describes activity which is undertaken specifically to meet the needs of existing and potential audiences and to help arts organisations to develop on-going relationships with audiences. It can include aspects of marketing, commissioning, programming, education, customer care and distribution.’

[1] Information: Grants for the Arts - audience development and marketing, Arts Council England, consulted at www.artscouncil.org.uk/documents/information/audiencedevgfta_phpx05G6i.doc accessed 30th June 2008

The McMaster Report Tessa Jowell, the Secretary of State for Culture, Media and Sport asked Brian McMaster to consider, among other things, ‘how artistic excellence can encourage wider and deeper engagement with the arts by audiences’ Supporting Excellence in the Arts: from measurement to judgement, Sir Brian McMaster, DCMS, January 2008, p 6

Tessa Jowell, the Secretary of State for Culture, Media and Sport asked Brian McMaster to consider, among other things, ‘how artistic excellence can encourage wider and deeper engagement with the arts by audiences’

Supporting Excellence in the Arts: from measurement to judgement, Sir Brian McMaster, DCMS, January 2008, p 6

What is public engagement ‘ Public engagement’ has a political dimension centred on public value. It is based on a belief that for public subsidy to be legitimate, the organisations that get funded must have the trust and support of the public. Public engagement is a process. It’s the way that public managers can help citizens identify and express their collective preferences. It is, in effect, a tool for bringing public services and citizens closer together, for redressing the ‘democratic deficit’. Deliberative Democracy and the Role of Public Managers, L Horner, R Lekhi and R Blaug, The Work Foundation, November 2006.

‘ Public engagement’ has a political dimension centred on public value. It is based on a belief that for public subsidy to be legitimate, the organisations that get funded must have the trust and support of the public. Public engagement is a process. It’s the way that public managers can help citizens identify and express their collective preferences. It is, in effect, a tool for bringing public services and citizens closer together, for redressing the ‘democratic deficit’.

Deliberative Democracy and the Role of Public Managers, L Horner, R Lekhi and R Blaug, The Work Foundation, November 2006.

What’s the difference Public engagement is about trust through accountability In theory, effective audience development is a two-way exchange requiring the building of trust In practice, most arts organisations don’t see themselves as accountable to their audiences Many arts organisations see themselves as artistically led Public engagement responds to the public’s collective preferences Public engagement i about the importance of democracy in the delivery of effective public services. Audience development describes a set of activities to increase and broaden audiences for the creative work.

Public engagement is about trust through accountability

In theory, effective audience development is a two-way exchange requiring the building of trust

In practice, most arts organisations don’t see themselves as accountable to their audiences

Many arts organisations see themselves as artistically led

Public engagement responds to the public’s collective preferences

Public engagement i about the importance of democracy in the delivery of effective public services.

Audience development describes a set of activities to increase and broaden audiences for the creative work.

Excellence and engagement Excellence in culture happens ‘when an experience affects and changes an individual.’ ‘ for something to be excellent it has to be relevant, and for it to be relevant it has to be continually reinterpreted and refined for and by its audience’ ‘ nothing can be excellent without reflecting the society which produces and experiences it’ ‘ Excellence is about experience and good practice is what leads to it’ Supporting Excellence in the Arts: from measurement to judgement, Sir Brian McMaster, DCMS, January 2008, pp 9-10

Excellence in culture happens ‘when an experience affects and changes an individual.’

‘ for something to be excellent it has to be relevant, and for it to be relevant it has to be continually reinterpreted and refined for and by its audience’

‘ nothing can be excellent without reflecting the society which produces and experiences it’

‘ Excellence is about experience and good practice is what leads to it’

Supporting Excellence in the Arts: from measurement to judgement, Sir Brian McMaster, DCMS, January 2008, pp 9-10

Excellence is about experience So we need to understand the experience…

MARKET RESEARCH TRENDS

Don’t ask questions Observe and listen

So what?

ONLINE TRENDS

ONLINE DIALOGUE

Who’s online? Ofcom report 2008 65% of homes have internet access 58% of households have access to broadband 59% in rural areas

Social networking Twice as many marketers as last year say they are sick of hearing about social networking

E-STRATEGY

Offline and online integration Use offline media to drive people to the web

Do what works Was it worth the time, energy and money?

Do what works Work to increase conversion rates so A/B testing is crucial

Better targeting What are the customer behaviours that lead to ticket sales

Better leverage of online communities It’s good to talk but it’s much better if they do something

User saturation Users are making choices – find out which ones

ONLINE COMMUNICATIONS

Anticipated, relevant, timely Better targeted, more pertinent messages…

… over a variety of devices

… over a variety of devices

Non-intrusive communications Providing information when and where people need it

Events led communications Customer behaviour should trigger a communication so we need our databases to integrate with sales functions

WEBSITES

Two way communication so… … can visitors to your website communicate easily with you?

Social content not just sales Co-creation through comments, reviews and ratings

More attractive content, not just sales talk Business blogs are now standard (because they support SEO and customer engagement)

Lightweight websites … … that work on netbooks and smartphones

SEARCH ENGINES

Search engine optimisation matters They are still the first place online users look for information

www.ranks.nl

Google really matters 74% of UK searches are through Google

BUT Some people don’t like Google and are searching via blogs and co-created sites like Trip Advisor

SO 14% trust advertising but 78% trust recommendations so user generated content is King

Use of local searches growing cinema stockton theatres in newcastle

More smartphones means… … even more localised searches using mobile applications

So what?

MOST INFLUENTIAL MARKETING CONCEPT 2009

Influencers A small number of people can influence the mass market

The bottom line? More than £500m is spent each year on targeting influentials. This is growing at 36% a year

But this is old news to the arts Alan Brown wrote about Initiators and Responders: a new way to view orchestra audiences in 2004

Initiators People who enjoy creating cultural experiences for friends and family

Responders The potential attenders of your event sitting at home waiting for a friend to phone or email with an invitation

www.wolfbrown.com

Sometimes NEW DEVELOPMENTS IN MARKETING start with the arts!

Credits TRENDS Top Marketing Trends for 2009: http://www.marketingcharts.com/interactive/top-marketing-trends-for-2009-execs-sick-of-web-20-7448/ Key trends in 2009: http://www.marketingimprovement.com/key-trends-in-2009 Daphne Kasriel, Top 10 Consumer Trends for 2009 : http://www.euromonitor.com/TOP_10_CONSUMER_TRENDS_FOR_2009 UK Film Council: A Short Note on UK Cinema Admissions During Recessions: http://www.ukfilmcouncil.org.uk/media/pdf/n/t/A_short_note_on_UK_cinema_admissions_during_recessions.pdf AUDIENCES Generation G : http://trendwatching.com/briefing/ http://www.cultureoffuture.com/ Graham Brown, mobileYouth.org, 50 Youth Marketing Trends for 2009 http://www.slideshare.net/mobileyouth/part-1-50-youth-marketing-trends-for-2009-by-graham-brown-mobileyouthorg-presentation BRANDING Marty Neumeier, Neutron LLC, The Brand Gap http://www.slideshare.net/coolstuff/the-brand-gap

TRENDS

Top Marketing Trends for 2009:

http://www.marketingcharts.com/interactive/top-marketing-trends-for-2009-execs-sick-of-web-20-7448/

Key trends in 2009: http://www.marketingimprovement.com/key-trends-in-2009

Daphne Kasriel, Top 10 Consumer Trends for 2009 : http://www.euromonitor.com/TOP_10_CONSUMER_TRENDS_FOR_2009

UK Film Council: A Short Note on UK Cinema Admissions During Recessions:

http://www.ukfilmcouncil.org.uk/media/pdf/n/t/A_short_note_on_UK_cinema_admissions_during_recessions.pdf

AUDIENCES

Generation G :

http://trendwatching.com/briefing/

http://www.cultureoffuture.com/

Graham Brown, mobileYouth.org, 50 Youth Marketing Trends for 2009

http://www.slideshare.net/mobileyouth/part-1-50-youth-marketing-trends-for-2009-by-graham-brown-mobileyouthorg-presentation

BRANDING

Marty Neumeier, Neutron LLC, The Brand Gap

http://www.slideshare.net/coolstuff/the-brand-gap

Credits ONLINE TRENDS Heidi Cohen, Seven Top Online Marketing Trends for 2009 : http://www.clickz.com/3632306 30 Web Trends for 2009 : http://www.seoptimise.com/blog/2008/12/30-web-trends-for-2009.html Strange Corporation, Online Marketing Trends for 2009 http://www.strangecorp.com/news/view/online-marketing-trends-in-2009 SEARCH ENGINE DATA Hitwise http://weblogs.hitwise.com/robin-goad/2008/03/local_search_in_the_uk.html http://weblogs.hitwise.com/to-go-uk/2009/02/searches_for_valentine_breaks.html http://weblogs.hitwise.com/robin-goad/2009/01/searches_for_flights_down_eurozone_usa_turkey.html INFLUENCERS Duncan Brown and Nick Hayes, Influencer Marketing (2008) Ruth Mortimer, ‘Marketing Theory: Treasure Seekers’ , Brand Strategy , 9/6/08 http://goliath.ecnext.com/coms2/gi_0199-7953006/MARKETING-THEORY-Treasure-seekers.html Alan Brown, Initiators and Responders : a new way to view orchestra audiences http://www.wolfbrown.com/index.php?mact=News,cntnt01,detail,0&cntnt01articleid=37&cntnt01origid=414&cntnt01detailtemplate=articles_detail&cntnt01returnid=417

ONLINE TRENDS

Heidi Cohen, Seven Top Online Marketing Trends for 2009 : http://www.clickz.com/3632306

30 Web Trends for 2009 : http://www.seoptimise.com/blog/2008/12/30-web-trends-for-2009.html

Strange Corporation, Online Marketing Trends for 2009 http://www.strangecorp.com/news/view/online-marketing-trends-in-2009

SEARCH ENGINE DATA

Hitwise

http://weblogs.hitwise.com/robin-goad/2008/03/local_search_in_the_uk.html http://weblogs.hitwise.com/to-go-uk/2009/02/searches_for_valentine_breaks.html http://weblogs.hitwise.com/robin-goad/2009/01/searches_for_flights_down_eurozone_usa_turkey.html

INFLUENCERS

Duncan Brown and Nick Hayes, Influencer Marketing (2008)

Ruth Mortimer, ‘Marketing Theory: Treasure Seekers’ , Brand Strategy , 9/6/08

http://goliath.ecnext.com/coms2/gi_0199-7953006/MARKETING-THEORY-Treasure-seekers.html

Alan Brown, Initiators and Responders : a new way to view orchestra audiences

http://www.wolfbrown.com/index.php?mact=News,cntnt01,detail,0&cntnt01articleid=37&cntnt01origid=414&cntnt01detailtemplate=articles_detail&cntnt01returnid=417