For all of us in the for-profit education sector, change and uncertainty has become the status quo. Regulatory changes and deteriorating macro-economics are impacting everything from how schools recruit students to the type of programs they will be able to offer. Recently, LeadsCouncil and CUnet conducted a survey among marketing professionals in higher education to measure and understand the full impact of these issues. This presentation provides a review and analysis of the results from the 2011 Higher Education Marketing Survey, including: • How budgets are being affected, and how the money is being allocated; • How cost per enrollment is changing, and what schools plan to do about it; • Concerns and priorities for school marketers for 2011; • How the survey numbers compare to what we're seeing in the market as we approach the end of Q2.

1. Marketing Trends & Analysis
2011 Higher Education Survey Results

2. PRESENTERS:
Jamie McDonald
• Managing Director of Customer Solutions at CUnet
• CEO at Sparkroom
Dave Wengel
• Co-Founder of LeadsCouncil
2

3. Survey Overview and Goals
• Conducted from February 7 to February 25, 2011
• 293 marketing professionals in higher education participated
• Establishing benchmarks, current trends, and best practices
3

4. 1. Schools are Spending
More in 2011

5. For-Profit School Marketing Budgets:
Change from 2010 to 2011
Decline in Spending
Budget More
32% 54%
Maintaining
Budget
from Last
Year
14%
5

6. Wishful Thinking?
• Industry data and financial reports clearly point to smaller budgets for the largest
schools
• These numbers reflect the sentiment of many small and mid-market schools
• Are schools are waiting to see the impact of the regulations before adjusting
budgets?
• Opportunity to capture additional market before the full regulations are enforced?
Breakdown of Survey Respondents By Marketing Budget
$40 M + Under $1 M
20% 24%
$10 - 40 M
24% $1 - 10 M
32%
6

7. 2. Cost-Per-Enrollment is Up
Over Last Year

8. Cost-Per-Enrollment vs. Last Year
3rd Party Affiliate Inquiries Self-Generated Inquiries
Not Sure
Not Sure 23% Increase
23% 39%
Decrease Increase Decrease
13% 58% 16% No
No Change
Change 23%
7%
8

9. No Surprises Here
• This is not surprising, as schools continue to take more steps to tighten up
their recruitment practices and “cast a smaller net”.
• Stricter recruitment policies, compliance with regulations, and increased
competition for quality inquiries all point to this trend continuing.
9

10. 3. Schools are Spending Less
on 3rd Party Affiliates

11. 3rd Party Affiliate Budgets—2010 vs 2011
2010 2011
Not Sure
Spending 3%
Less 5.56% Don't know
7%
Spending
No Change Less 29%
Spending
16.67%
More
Spending 50.00%
More No Change
70.37% 18.00%
11

12. Can Enrollment Goals Be Achieved?
• Time will tell whether schools can reduce their 3rd party affiliate budgets and still meet
enrollment goals.
• We suspect the shift will be less dramatic than the survey suggests.
12

13. 4. Marketers Want to Take More
Inquiry Generation into Their
Own Hands

14. Cost-per-Enrollment By Source
100%
90% 6% 3%
6% 13% 19% 23%
80% $2,000 +
70% 16%
13%
60% 19% $1,500 - $2,000
13%
50%
40% 35% 27% 10% $1,000 - $1,500
19%
30%
20% 13% $500 - $1,000
10%
10% 13% 13% 7%
6% Under $500
0%
Self- Self- 3rd Party 3rd Party
Generated Generated Affiliate: Affiliate:
Inquiries: Inquiries: Campus Online
Campus Online
14

15. The Question Remains…
Can Schools Scale the Volume of Self-Generated
Inquiries & Maintain Strong CPE?
Percentage of Schools Reporting Increased
Spending on Self-Generated Inquiries By Channel
70% Search Advertising
60%
50% 64% 61% Social Media
40%
30%
Targeted Display
36% 32%
20%
Mobile Advertising
10%
0%
15

16. 5. Social Media is Hitting it’s
Stride

17. Social Media Spending for 2011 (vs. 2010)
3% Spending More
7%
No Change
29% 61%
Spending Less (0 %)
Not using
Don't know
17

18. 6. Offline Marketing Will Take a
Hit this Year

19. In 2010, 70% of marketers reported that they
felt offline media was an effective marketing tool
In 2011, 39% of marketers are planning to
decrease spending in offline marketing
19

20. 7. Hot Transfer Phone Call
Solutions Are Heating Up

21. Spending Adjustments for 2011
(Among Schools Using Hot Transfer Solutions)
13% Spending More
33% 54%
No Change
Spending Less
21

22. 8. Leading Concerns and
Priorities? Compliance &
Inquiry Quality Top Both Lists

23. Top Concerns for 2011
Inquiry Volume 22% 26%
Significant Concern
Lack of Internal Resources 7% 11%
Visibility into Inquiry Performance 19% 33% Major Concern
Budget Constraints 19% 33%
Inquiry Quality 26% 44%
Compliance 33% 30%
ED Regulations 30% 37%
0% 10% 20% 30% 40% 50% 60% 70% 80%
23

24. Top Priorities for 2011
90%
Increased inquiry quality
80%
85%
Improved technology
70%
60% 67% solutions
50% 56% Increased inquiry volume
40% 48% 44%
30% Compliance monitoring
20%
10% Web analytics
0%
24

25. 9. Schools are Increasingly
Pushing for Transparency in
Response to the ED
Regulations

26. Changes in Response to ED Regulations
Increase academic standards 37% 26%
In process or
completed
Re-train admissions staff 52% 26%
Eliminate programs 22% 30%
In planning or
under
Reduce/eliminate call center inquiries 7% 22% consideration
Use vendors that generate their own inquiries 33% 33%
Demand affiliate transparency 48% 44%
Reduce staff headcount 15% 19%
Reduce 3rd party affiliate budget 19% 22%
0% 20% 40% 60% 80% 100%
26

27. 10.Schools Using a Call Center
Have Significantly Better
Response Times

28. 88% of schools that use a 3rd party call center report
response times under 5 minutes
40% of those respond to inquiries in under 2 minutes
48% of schools are still not using call centers
28

29. Our Takeaway:
The Times, They Are A-Changing
• The business of education has changed
− Regulation
− Deteriorating micro-economics
• Change equals opportunity
− Shift in balance of power
− Innovative ways to reach new students
− Tighter partnerships in the supply chain
• Who will the winners be?
− Schools who commit to sustainable models based on
outcomes not starts
− Inquiry providers who control the process from start-to-
finish

30. Questions?
Jamie McDonald Dave Wengel
416.323.1366, ext. 41225 501.825.0750
Jamie.McDonald@cunet.com Dave@leadscouncil.com
www.cunet.com www.leadscouncil.com