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Mon, June 01, 2009
At a recent travel conference, I noticed something that was very disappointing – Broadway is missing out on significant opportunities happening in the travel industry. Here were all of these travel brands saying “we need to find new ways to make revenue and to deliver ‘value’ to our customers during a difficult economy.” I’m saying to myself, “sell your customers Broadway tickets!”. And, that’s when it hit me - what value can we truly give these travel brands customers when you consider how we currently market our shows? Take it a step further – what value can we truly give any reseller?
With those questions in mind, consider that there are millions of emails sent out each week with special discount offers to Broadway shows. The sellers of these emails have no incentive to stop... the buyers of these emails will continue to get results that illustrate a demonstrable return-on-investment (it's hard to argue a media spend of $7,500 that could convert $250,000 in revenue) and consumers get to pay 40% off the ticket price. As an industry, I think it’s safe to say that Broadway is now completely and undeniably addicted to the primary theatre discount emails – it’s turned into a drug for our industry… its crack for Broadway marketers.
What’s most alarming about it to me is that we are on a path to cut out the middleman in the ticket buying process all together (group sales agents, FIT sellers, etc.) by selling directly to the consumer. I’m not saying “selling directly to the consumer” is a bad thing – I’m just saying that’s what those millions of emails are both directly and indirectly doing (or going to do) and there are serious consequences to those actions that need to be explored.
Nobody is saying “screw Expedia” – but we have completely pushed away the travel industry from really wanting to find ways to enhance our relationship together. In a time where travel brands are pushing 'value', why on earth would they want to offer their customers tickets to a Broadway show at full-price to receive a 10% commission when they know their customer can see a price for that same tickets for 40% cheaper on other sites? We get a ton of value from being on Expedia, Travelocity, Orbitz - MUCH more than the ticket sales report show - remember, people use these sites more as guides rather than necessarily the purchasing path. We get a lot of free exposure which I can say we will be in danger of losing if we don't keep our relationship strong with travel sites.
Aside from the travel industry, look at the group sales market. Nobody is saying “to hell with group sales” – but through our discounting practices we are stripping them of their value proposition to their consumer with every email we send out screaming 40% off. Their customers bought a ticket for $90 - the next day they received an email offer to see that same show for $65 (I would not want to be the one fielding that phone call). Where we used to have a limit of 8 tickets per order – most discount codes don’t really have limits below 20 anymore. I know there is other value than cost when it comes to group sales booking, but we sure as heck are making their life a lot harder by our current pricing strategy.
I don’t see this as an intentional move on behalf of the industry against the group sales folks or FIT outfits – I just see it as a byproduct of the perceived gold mine that email communications has brought the Broadway industry.
The loss of the middleman in the buying process would mean a big savings in paying out commissions on sales. At the same time, it would mean the outlay of additional expenditures to get to the people that those middlemen once spoke to.
This leads to my biggest concern for the future of Broadway marketing (and it’s a wordy concern) - the industry is not equipped to effectively market directly to consumers with the precision necessary to make up for the lost revenue by cutting out the middleman. Furthermore, the industry is not currently equipped to maximize the opportunities with the customer relationship that will keep those consumers returning over time. Simply put, we don’t have the money, technology or manpower to go down the path we are currently heading if we expect long-term success.
As I type this email, there are hundreds of thousands of emails going out for discounts on Broadway tickets with underlying strategies that had the following constraints while being developed:
Lack of Comprehensive Targeting Capabilities: None of the publishers email systems allow us to really talk to consumers in the right way. What percentage of email lists will allow you to target by age, demographic, buying history, etc? It’s not a pretty percentage. Also, all of the primary discount email lists that are used I’m convinced have a ton of overlap in terms of members between each one. If they bought a ticket at one point in their recent lifetime, they are ultimately on a Telecharge or Ticketmaster email list. In short, we are using a shotgun approach and without question, are leaving boat loads of money on the table. Just ask the secondary market that is standing their scooping it up.
A Flawed Tracking System in Which We Gauge Performance: Broadway has a system for tracking sales that has holes the size of China in it. Ever wonder why your discount code sales from your email blasts are no longer bell curves rather straight lines over time? Your discount codes live all over the place. Even if the main ticketing systems found ways to create 'one-off' discount codes (meaning codes that immediately expire after usage) that technology would also have to be deployed on each of the main discount email services (i.e., Playbill, etc.). Don't hold your breath for any of this to happen in the short-term.
Limited Access to Customer Data: Broadway shows don’t own their cash register – we rely on the ticketing systems which, from a marketer's perspective, can be cumbersome. We have limited access to our customers data in real-time. We can’t effectively put the right message in front of the right prospect with any certainty. In fairness, if you ask, the ticketing systems they will give you whatever data you want to analyze – but, this leads to my final point.
Lack of Marketing Resources: Finally, and most importantly, Broadway has marketing staffs that are completely under-funded and/or non-existent. Who has the time to analyze consumer data? Who has the time to manage a customer relationship management system?
I can’t see how Broadway can expect to succeed with these barriers in place.
I am not claiming to have the answer on how to address this. We have a lot of shows right now that are really hurting and I too would feel really good about moving $100k in ticket sales in a discount email blast. It puts butts in seats and keeps people employed – so, preaching on my soapbox during a recession I admit is a bit inappropriate. But, sitting at that travel conference was both too concerning and disappointing not to put some thoughts to paper.
I’m not saying sending out discount emails is a bad thing (hey, we are selling millions of dollars each year using them) – I’m just making the argument that, as an industry, we need multiple improvements in technology and an increase in resources to commit to the time to speak directly to consumers with the precision that is ultimately needed.
I am trying to organize an event with some folks from the travel industry in July to talk about this topic and I hope many of you can join the discussion. Register for our ‘EVENTS @ Situation’ speaker series here to be notified if you want to be part of the discussion. Obviously, would love to hear any feedback you have on the topic by email.
In the meantime, here is an article from May 2008 from Allegiant airlines who was able to remain profitable, sell direct to consumers and integrate in show offerings to their customers.
Read on.
Sat, May 30, 2009
I think the most confusing thing for most marketers to wrap their head around in using Twitter is that there really are so many ways to use it. The reality is you can use it for driving sales, improving customer relations, reaching new audiences – the question is what makes the most sense for your organization? I came across this great article from Mashable that highlights forty different brands using Twitter. There are some interesting travel and entertainment brands that I think you should definitely read about including Marriot, Marvel, Luxor Las Vegas, 92nd Street Y, Carnival Cruises among many others – at a minimum it should trigger some ideas for your organization.
This article is from January, so it is a bit dated (which is scary that five months is considered dated!) – but here are some interesting quotes I pulled from the story.
So why is JetBlue tweeting?: “Our goal would be to make ourselves available, help whenever possible, and to show that our brand is built by real people who care about our customers.”
Lessons learned by Southwest Airlines: “Be honest, be real, be quick, be FUN.”
On how Carnival Cruise Line promotes their Twitter account: “…it’s not in your face. Our online guests visiting carnival.com, our Facebook page or one of our blogs find links to the acct. We let word of mouth do the rest.”
How Twitter is affecting the day to day at Marvel: “Well, it’s an important part of our day to day activities for Marvel.com and our staff & creators have gained more exposure.”
In short, Twitter works – whether it works for your organization is a different question. It will depend how smart you use the technology, what your marketing goals are and what resources you put to it.
Click here profiles of forty different brands using Twitter!
Fri, May 29, 2009
Hype + more hype = Twitter. You hear it and see it on every news outlet and it would feel nothing short of irresponsible to not really question if Twitter is simply a byproduct of hype or if it’s really here to stay. Having spoken with the Twitter folks, I’m quite impressed with their vision and their clear success of breaking thru the clutter with a service that has piqued all of our curiosity. But aside from the hype, there is a school of thought that believes the recent Twitter wave will soon feel like the conversations we all had years back about the idea of buying real estate in Second Life – mostly hype, little reality. The following story I came across says… “According to Quantcast, 72% of Twitter visitors stop by once and don't come back. Only 1% of the Twitter audience visits daily and this group of ‘addicts’ accounts for 35% of all visits. These numbers compare unfavorably to other social networks.” The story goes on to say, “60% fail to return for a second month. This number holds true, even accounting for the websites and applications that feed into the Twitter community.” Wow.
My favorite piece of data though is…”In the March 2009 Nielsen Netview, Twitter has an index of 40 against the demographic of kids 12-17, and below-average index against full-time students. The highest indexing demographic group on Twitter is Males 35-49 (167). I question the youthfulness and hipness of any media that Sarah Palin & Senator Claire McCaskill have embraced before our interns.” LOL!
It’s easy to find coverage on how fabulous it is but I thought I would share the view of a few naysayers. Eventually a strategy for driving revenue will have to emerge and I think at that point we will begin to see a clearer path of where Twitter will land in our daily life.
Read on.
Thu, May 28, 2009
Just about every marketing plan ever created for a Broadway show put the 35 – 54 year old mom as the primary target market. Here’s a really informative article that dives into this demographic by looking at what is labeled the ‘Power Mom’ - women between the ages of 25 and 54 with at least one child and who participate regularly in online activities. These women currently represent 19.2% of the active internet population in the US and have significant online influence that continues to grow, according to a new study from Nielsen Online.
Here's an excerpt from the story...
Nielsen found that the group it labels Established Moms - those between ages 40 and 50 with three or more children at home - are heavy online shoppers. “Established Moms gravitate to online shopping destinations where they are likely to be receptive to highly relevant promotions to allow her to indulge herself while saving on her family’s needs,” said Jessica Hogue, research director, Nielsen Online. “However, marketers shouldn’t rule out the rising prominence of social networking sites among this cohort, which is one of the fastest growing demographics on Facebook.”
Top sites visited by Newbie Moms - more recent mothers between ages 25 and 34 with one or two children in the home - include several social networking destinations. Newbie Moms are more than twice as likely as the average web user to visit Blogger, and 85% more likely to visit Facebook, Nielsen said. “For Newbie Moms social networking is literally woven into their day-to-day existence,” said Hogue. “Newbie Moms use the internet to gather information about everything from nursery décor to choosing the right pediatrician. As they navigate caring for a newborn, returning to work or managing a growing household, the internet acts as a lifeline to answer worrisome middle-of-the-night questions and to build community.”
There is so much great information in this article, so be sure to read it in its entirety.
Read on.
Thu, May 28, 2009
I’ve seen numerous reports that say, for the most part, we will see the same number of travelers this year in major markets (including New York City) but I’m consistently seeing data showing that consumers will be spending significantly less per vacation. Take a look at the below article – the one point that should be slightly concerning to us is that 60% of those surveyed said they are hoping to economize their leisure travel this summer by finding less expensive activities or meal options. I’m assuming a Broadway show would not fall into the category of ‘less expensive activities’. Let’s keep a close eye on this.
Read on.
Wed, May 27, 2009
We have a handful of new job openings at Situation Interactive in our New York office and we invite you to pass this along to your friends and colleagues. This is an exciting time for us and we are looking to attract the best and the brightest, so if you know of anyone you think might be a good fit for one of these positions please have them follow the application direction on the links below. You can also reach out to me directly.
Senior Account Executive
Senior Designer
Traffic Coordinator
Web Developer
Mon, April 27, 2009
The heat is on for live entertainment organizations to keep pace with the ever changing consumer behavior of ticket buyers and the emergence of social media platforms is the hot topic at hand. Twitter, Facebook, MySpace, YouTube, Vimeo – the list of new media opportunities is endless and depending on the day and the direction of the wind, many Marketing Directors I’ve been speaking with are getting pressure from their higher-ups (including Board members) to engage in one or all of these new technologies. Essentially what is happening with the rate of change in consumer behavior and the newfound sense of urgency a recession brings arts and entertainment organizations, is that many of these Marketing Directors are being forced into reactive positions and, I believe, are right now being set-up for failure beyond their control.
Once you become reactive with technology, you might as well jump in a hamster wheel. You can’t expect to keep up with the speed of technology. If history has told us anything, you can guarantee the list of popular social media outlets will only expand over the next few years so treating them as checklist items will leave you in a perpetual chase. So, creating a Twitter account for the sake of creating one will only turn out to be a huge waste of time without an underlying strategy of what you are aiming to achieve.
If you look closely, the one core consistency across the movement of social media outlets is the need for a sound communications strategy – both outbound and inbound. And, without question, executing a communications strategy within social media has a heavy cost (which I think is well worth it) if you expect to do it right. It’s not just money – it’s also not just time – it’s the cost of change that is associated with the fundamental core of social media that requires all facets of an organization to participate in if you expect to succeed.
Organizations can’t think “Twitter strategy” or “Facebook strategy” – they must think “communications strategy” and aim to formulate how a Twitter or Facebook (or any tool for that matter) can help you advance the main goals of your communications strategy. Furthermore, a strong, comprehensive communications strategy is executed at all levels – not just on the shoulders of your marketing department.
This is a fairly complex issue and I can write for hours on this topic, but for the sake of time (and your sanity) let me talk about some super-basic examples that I believe illustrate this point.
For outbound communications, in a social media driven strategy, this means news announcements are no longer simply distributed as press releases – they are adapted to also include a distribution path to the social media outlets you have opted to participate in. You have 140 or so characters to deliver this announcement via a tweet, Facebook status update or text alert. This requires a process in your organization to closely coordinate press and public relations initiatives directly with those handling you ongoing marketing strategy. You get out of social media what you put in to it – so, if you are operating a Twitter, Facebook and MySpace presence, you can see the challenges of creating and distributing timely, relevant content and how the internal coordination and process of understanding this is paramount. I can tell you first-hand that nothing angers your core customers/fans more than when they read a major news announcement or receive a special discount offer from your brand from a random website or newspaper rather than hearing it directly from you first. Those committing to you (by giving their contact information or ‘friending’ you) means they expect you to commit to them that they are part of your inner-circle, not just the general public. This sounds easier said than done – but, if an organization can wrap their hands around this and build a process that creates and distributes content this way, they are essentially building the framework for long-term success in the social media space no matter who the major players are.
For inbound communications, there is another critical issue that many organizations we have worked with have fallen victim to. In a social media driven strategy, organizations must also understand the ongoing dialogue with consumers in real-time has no boundaries – questions about customer service, issues with their ticket buying experience, questions about cast member performance schedules – these questions will be asked and your organization will have the responsibility to listen and act, quickly. Social media is all about ‘the now’ – it’s about community and conversation and you need to be prepared to have a process in place where you can respond effectively. And, from what we’ve learned, this means a process that incorporates all departments and a commitment by all that they will need to be prepared to support. In short, if you ask – they will tell. And if you’re not prepared to respond in a meaningful way, you should seriously consider avoiding taking an active role in social media and play the role of the lurker until you’re ready to commit.
Both of the major points illustrated above about the changes of outbound and inbound communication come with a heavy cost. In fact, I think the cost is ultimately so heavy that I believe marketing plans will begin (and have begun) to go through one of the single biggest transitions of our time – a transition that makes the marketing plan a new found responsibility for all facets of the organization to truly participate in. Your Marketing Director (and marketing team) can’t do this all themselves. In fact, I can say with confidence, that they need more resources to take advantage of the opportunities that social media can bring. Questions like, “What’s your organizations policy for bootleg video on YouTube?” or “What’s your policy for fans using your logo on their Facebook page?” or “What’s your stance on how acceptable consumer criticism is in your MySpace comments?” are just a sample of issues that need to be addressed company-wide and come with all kinds of costs, time and resources along with collaboration across disciplines (i.e., legal, press, management, etc.)
Your marketing team will bring the social media strategy to the table and they can lead the charge but, at the same time, they are destined for failure if their internal resources continue to get cut and if they don’t have the full support and buy-in from the entire organization to contribute to this new way of doing business.
A commitment of transparency, customer service and the investment in funding the existence of your brand in new communities where consumers will make a public mark (both good and bad) on your brand are the realities that social media brings to your brand. These are big changes in how brands are marketed and I think there needs to be a very honest conversation at all organizations on how and when they prepared to tackle this new way of marketing head-on.
There is a lot more to this topic that I can ramble on for hours about – I’m more than happy to extend this conversation onward, so email me if you have a bone to pick with me over this topic. :)
Here's a great rant on the topic that even Seth Godin chimed in on (scroll down to the comments section after you read it).
Sun, April 26, 2009
With all of the recent changes in the newspaper industry, a new question is being asked as many begin to expand their presence online – does a print edition drive significant online readership? Last month, the Seattle Post-Intelligencer shuttered its print edition to move exclusively online. A little over a month after this change, it’s now being reported that SeattlePI.com (the official site for the former newspaper) experienced a 23% drop in website traffic while 75% of the top 30 online editions of newspapers saw double-digit upticks in traffic. Does this mean that the print edition was having that much influence on web traffic? If so, you can bet your bottom dollar that the other print publications exploring moving to a digital-only format had better readjust their website traffic projections upon making such a move. Our friends at the NY Times continue to lead the pack and were up 7% from last year at this time.
For what it’s worth – we still are yet to see a strong connection between print and online.
Read on.
Sat, April 25, 2009
We have so much data floating around our office at the end of a quarter, I’m like a kid on Christmas morning (yes, I realize I’m a complete nerd). Each quarter, we do a deep dive analysis into survey data of Broadway ticket buyers and it gives us a moment to step back and better understand the changing consumer behavior of those we are marketing to. We break out the data by age group, experience in attending theatre, geography, etc. – but, for the sake of this article, I want to share with you some top line data we received about the core audience many theatre marketers are going after, the 45-54 year old.
This past quarter, we had approximately 1,500 participants and about 450 of them were in the 45-54 year old age segment. These surveys were all completed online but it’s important to note that people who purchased by phone also do get the email survey in their confirmation.
For fun, let’s create a character called Ethel (which I know my friend Debbi likes to call her) who will represent this age segment. This is what Ethel had to tell us…
- I am most likely to see a show with my partner (29.6%). I am also used to bringing along children (21.8%) – by far the most likely across all age groups to do so. I am typically least likely out of all age groups to bring a group of friends (12.1%).
- I have most likely seen 2-4 shows this past year (42.5%) or even less than that (0-1 shows at 21.3%).
- I am most likely to buy online (77.8%) but still not averse to ordering by phone (12.9%)
- “Interest in the story or music” is my primary motivator in buying tickets (35.7%) and I am more likely to care about reviews than my younger counterparts.
- I am most likely to pay $101 - $135 per ticket (41.1%) but I do get those discount offers you send via email that allow me to purchase between $51 - $75 per ticket (27.4%). I am least likely across all age groups to buy in-between at the $76 - $100 price point which may reinforce the point that my seat location is important.
- I am most likely not to buy any merchandise (35.4%) but if I had to, I would take the cast recording (33.6%), a T-shirt (23.8%) or the souvenir book (21.2%).
- I am not interested in many of the special incentives currently being offered (30.3%) but if I was interested, I’d select a parking discount (15.4%) or a restaurant discount (14%).
- I do use my mobile phone to text message (69.7%) and do often take pictures with it (46.6%).
- I am not likely to be part of a social networking website (38.2%) but when I do use one it’s far and away Facebook (86.4%).
- I’m also most likely across all age groups to use LinkedIn (20.1%).
How well are you talking to Ethel? I will try and do these breakdowns more often across different age groups as I personally actually find them interesting to do.
Fri, April 24, 2009
Here’s an interesting article that dives into a variety of topics of how and why people use Twitter. I can say that from our internal agency survey to over 1,500 theatergoers last quarter, usage of Twitter has seen a 100% increase from Q4 2008 to Q1 2009 with 11% of respondents saying they are now using Twitter which falls in-line with reports I’ve seen as the national average of the general public. So, yes, there’s a lot of hype around Twitter but I’m beginning to come around to the basic fact that a lot of it is well founded. Before I go further with this story, I know that despite its popularity there are many marketers that still don’t really understand Twitter – so, I would encourage you to visit here for a good primer on how it’s used. I would also encourage you to connect with us at @situationonbway – it’ll give you real-time information about Broadway while allowing you to get comfortable using Twitter.
The following research report dives into Twitter use by looking at 425 active users and one of the key issues it aimed to tackle was the “why tweet?” question. According to the study from Pew Internet and American Life Project…
“Interestingly, there is does not appear to be one standout reason why people use Twitter, the research found. Rather, there are a variety of economic, learning and social motivations.
When tweeters were asked to rate the reasons why they participate, on a scale from 1 to 5 (with 1=strongly disagree and 5=strongly agree), MarketingProfs calculated the following averages for each of the responses:
- “I find it exciting to learn new things from people”: Average score 4.65
- “I value getting information in a timely manner”: Average score 4.58
- “I like to be connected to lots of people”: Average score 3.91
- “I want to generate new business”: Average score 3.70
- “I find it gratifying to have people follow me”: Average score 3.64
The findings show that the highest number of respondents are motivated by learning new things and getting information in a timely manner.”
Not really surprising to me but it reinforces the importance of the timeliness of publishing content.
Another interesting point discussed on usage relates to Twitter etiquette – are egos bruised if Tweets go unanswered? Here was the response from the study…
“Tweeters do not necessarily feel badly when nobody answers their tweets, the study found. When asked how strongly they agree with the statement “I feel bad when I tweet something and nobody responds,” the average response among Twitter users (2.41) implies people aren’t too troubled by a lack of response. Moreover, less than 2% say they strongly agree with the statement, and nearly 32% disagree. The remaining two-thirds are roughly equally divided among “mildly disagree,” “neither agree nor disagree,” and “mildly agree:”
For what it’s worth, I posted the following tweet to my 64 followers a few weeks ago – “Do any of my 64 followers actually use Twitter regularly? Hit me with a reply ASAP?” To date, I’ve received 11 responses. Maybe I’m boring… or maybe they’re not really using it... or, maybe that’s how many will actually see my posts daily with the hundreds of other tweets they are getting. Not sure – but it helped put some of it in context for me.
There are a few more important points in the study that talk about tweeting etiquette, egos and more at the link below. Enjoy.
Read on.
Thu, April 23, 2009
Here is a new job opportunity that was passed on to me from the fantastic folks at the Roundabout Theatre Company. It’s for an Associate Director of Marketing and I have posted the details below which includes the contact information on whom you should reach out to if you are interested. Good luck.
Roundabout Theatre Company, one of the nation’s leading cultural institutions is seeking a highly motivated Marketing professional with a minimum of 5-6 years of institutional marketing experience. Candidates should have superior organizational and management skills, and have an extensive knowledge of all forms of advertising and marketing with a particular emphasis on interactive communication.
- Manage and execute all aspects of subscription and production specific sales strategies: Including budgets, media plans and promotional programs.
- Increase sales revenue through detailed analysis and reporting of all marketing and advertising initiatives.
- Coordinate all interactive sales and promotional initiatives.
Individual must be a self-starter with excellent oral, written and PC skills – EXCEL and POWERPOINT a must and knowledge of Tessitura Ticketing System a major plus.
If you are interested, please send your resume to Steve Deutsch, Director of Human Resources at jobs@roundabouttheatre.org.
Thu, January 22, 2009
I don’t know about you – but I’m excited for 2009. Over the past few weeks, I’ve been speaking with the best and brightest marketers in the industry (see below) and I have the feeling that most folks are actually more optimistic that one would think for 2009.
Sure, the economy sucks – so what? There is nothing you or I can do to change that and if we spend time trying to deny it, fix it or toss and turn in our sleep about it (ok, a few times), then next year is going to suck too.
There is a one major reason I see to be optimistic for what 2009 will bring – that is, there is a new sense of urgency that will bring action to key issues in our industry.
You know that big elephant in the room (we all have one) – that big marketing issue that you’ve been meaning to address. Whether it’s concern over broker commissions, issues with retaining your subscribers, frustration packaging shows with add-ons, this is the year you can address and overcome major issues you’ve had in the past. This isn’t meant to be an emotional pep-talk – without question, the market conditions over the next year will create a new tone from many players in the live event industry – more flexible vendors, better media rates, more collaboration between companies.
This is the year that removes excuses, delays and reasons to put off big problems for later – with hardship comes a new found focus, a “sense of urgency” for positive change.
We are only three weeks into the New Year and we can already see exciting changes! To start, both Telecharge and Ticketmaster are making exciting new enhancements to their website that will make our customers have a better buying experience. We have already met with new media partners this year who miraculously are saying “yes!” to things they once said “no way!” too. And, oh yeah, we have a new President.
There is no room for naysayers – optimism will be the critical ingredient to innovation in ’09. Don’t just take my word for it – I asked a sampling of super-smart marketing folks in New York and Las Vegas on their reasons to be optimistic in 2009.
Here’s what they told me in no particular order:
“First, with a new president, even one facing ENORMOUS challenges, comes a great sense of hope and optimism. His youth alone will feel like a breath of fresh air, and he is steeped in current social and cultural trends, such as making the country more green and more e-friendly, which will quicken our embrace of modernity. We will also see what is now an inevitable trend towards more online activity, which I feel is good for the arts and theatre, particular the live arts. We already gather communities of people every night who have at least one thing in common--they all want to see that show on that night, so we just need to continue to find ways to keep them captivated. We are gathering them in a live, not virtual setting, but the virtual world can support this, and I feel with change in the air we will continue down the path of connectivity. All of that being said, however, the horizon for now does not look encouraging, but at least we are on the cusp of welcoming new, energized leadership while the rest of us feel drained.”
- Harold Wolpert, Managing Director, Roundabout Theatre Company
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“The reasons to be optimistic are fundamentally because we have no choice - any other way of thinking is only self defeating, un-motivating, and depressing. We honestly don't know what's going to happen, so we need to do our best and beat the shit out of our competition.:)”
- Carol Chiavetta, Vice-President of Marketing and Press, Blue Man Group Productions
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“Some good news? Gloom and doom stories seem to be the only thing interesting the press right now. But the fact remains: we are going to see a Broadway season unlike any other in recent years. Major stars doing plays in limited engagements. Yes, the economy may be in trouble and no one knows just how all of this will play out. But for now, let's focus on what is good: Major names coming to Broadway to star in smart, sophisticated, tough, timely, interesting, though-provoking PLAYS. That gives me hope.”
- Chris Boneau, Partner, Boneau Bryan-Brown
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“With the on-going negative chatter about our economic climate and the live entertainment marketplace I have every reason to be optimistic in 2009 as our team will tackle the challenges head-on and utilize new technology from social media, mobile marketing and web opportunities to conquer new frontiers to increase visibility and enhance value.”
- Jordan Fiksenbaum, Vice-President of Marketing and Public Relations, Cirque du Soleil, RSD
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"My thoughts -
• Labor gains for all - we have smarter deals with the unions that benefit all, and will really help the web and broadcast, hopefully keeping every show running longer.
• Competitive pricing of vendors - some partners are getting the message that prices must re-adjust - seeing some flexibility in print as well as outdoor buys. Radio also showing a willingness to get in the boat with us and help row.
• Quality sells - a quality show is still a quality show. This fall, in the midst of the supposed economic Armageddon, we saw Boeing-Boeing, The Seagull and In The Heights pay back, and Billy and Shrek launch to strong advances(really strong actually) and sell large quantities of tickets.
• Variable pricing - direct mail is working again. I know there are some in the industry who struggle with discounting. But what has happened over the last 5 years is variable ticket pricing, and a market correction of sorts. Any show now has a $25 student ticket, a $40 TKTS ticket for rear mezzanine, a $59/$65 ticket for previews on direct mail, an $80 full price balcony seat, a $110 to $125 orchestra prime seat, and a $250 premium seat. And we need consumers to know that there is a price for them, as well as reward (no need for waiting in line, preplanning) that matches that price. Sometimes I think our toughest problem currently is we are delivering almost the same value at $75 as we do at $125. Madison Square Garden does not have this problem. But it's an asset for consumers.
which leads me to...
“Broadway is a value - we cannot continue to set ourself up as a luxury good. Consumers are willing to spend dollars on experiences that they consider part of a life well lived, even if that price is substantial. Think skiing, or wine, even fine kitchen and entertainment systems and how the perception of those products has changed to the average household over the last 20 years. Conversely, if you think of what we do as an elite splurge, we are in danger of being seen as an "irresponsible purchase" as one client put it, particularly in tough times like these. We must remind people that we are a unifying experience, arts are good for education, and are enriching for all. Theater is a habit that holds generations together, not to mention killer first dates and grand anniversaries.”
- Drew Hodges, President, SpotCo
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“2009 is going to be a fantastic year on Broadway for the theatre consumer, or I should say, the theatre lover. Now that the theater industry is no longer in denial about the global economic recession, we can deal openly with the fact that there are alot of affordable tickets in the market place, and there will be availability at previously sold-out shows.
Looking ahead there are more than twenty new productions scheduled to open from now until the beginning of May on Broadway.
With the diversity of productions, combined with a remarkable number of Hollywood stars on stage this Spring, I believe that we should be able to revive a theatre-going habit among former avids who may have given up on Broadway, and bring in audiences that rarely go, if ever, to see a show.
It’s a great time for the industry to jointly promote. The editorial story of dozens of big stars coming to the stage will reach media that wouldn’t usually consider covering Broadway.
Affordable tickets may encourage people to see more than one show. The explosion of mechanisms to reach audiences online and by texting means that we can more effectively target offers and promotions. With so much production activity, we will learn even more this year about how we can become even more efficient in communicating directly with potential audiences.
The volume of production will also help the ailing old media by providing a steady stream of news which will justify their fight for editorial space. It is also a great time for publicists to engage traditional press who have stopped covering Broadway and new media who don’t usually cover theatre -- we should be able to make Broadway national news again this Spring.
The fact that all the Broadway houses will be occupied or accounted for over the next few months is a great sign. I think the economy will ultimately cause the creation of stronger shows which will eventually bring in larger audiences."
- Adrian Bryan-Brown, Partner, Boneau Bryan-Brown
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"I'm actually as optimistic as I've ever been about the prospects for the future, albeit after a period of real challenge. Here's why:
1. Start with the plays and musicals coming in this spring... Beckett, Ionesco, Noel Coward, Yasmin Reza, West Side Story, Guys and Dolls; look at the actors -- Geoffrey Rush, Jeremy Irons, Susan Sarandon, Jane Fonda, James Gandolfini (just some of the "names" among a pantheon of really great talents... to me this is the most telling indicator of the astonishing vibrance and resilience of our business, and of the Producers tenacity, respect for the art form, and respect for the brains and taste of the American theatre-goer. I'm in awe of and in gratitude to who bring these gifts to the public. And that makes me optimistic.
2. I think we're on the cusp of developing a true distribution mechanism for theatre via an extensive partner network of loyalty programs that crave what we have to offer.
3. Other entertainment is struggling, as we are, to evolve their economic model when content is so widely disseminated and hard to monetize. Music? The News (yes... News is entertainment)? Movies? Live theatre, however, is hand-crafted, uniquely made each performance and therefore we can't get digitized, atomized, and reconstituted-- you actually have to BE THERE (in caps) in order to get it, and we're just starting to understand how to commercialize that wonderful fact.
4. We're learning how to communicate with our customers to tie in their preferences and likes and dislikes with what we offer them in our marketing. How powerful will that be, and it’s not far off.”
- Charles Flateman, VP of Marketing, The Shubert Organization
Wed, January 21, 2009
Here’s an interesting story about the California government issuing a bill that would ban digital billboards. I’ll shut up and just provide an excerpt from the story:
“As promised, the California assembly is considering a bill that would place a three-year moratorium on the construction of new digital billboards, including the conversion of existing billboards; it would also halt the construction of digital billboards currently underway. Assembly Bill 109 was introduced last week by Assemblyman Mike Feuer, (D-Los Angeles), close on the heels of a court victory for opponents of digital billboards in the Los Angeles area. Feuer explained the motivation behind the bill: ‘Many states and municipalities have raised concerns over the safety of electronic billboards. Common sense dictates that before we allow these displays to proliferate, we should know the results of pending safety analyses and evaluate how to respond.’ The moratorium is intended to give legislators a chance to study the potential ill effects of digital billboards more thoroughly before allowing further rollout.”
Now, maybe this is just a PR stunt and it may not get approved but, if it did, I would assume this would be a major speed bump in the growth of the rapidly growing digital outdoor industry. We are keeping a close eye on this.
Click here to read the article.
Wed, January 21, 2009
Over the past quarter, we ran a survey online that aimed to dive deeper into theatergoers’ behavior and preferences online. While there is a lot of information we took from the research, I pulled out two specific focuses of the research that I think many of you would find interesting. The first bit of information surrounds social networking and usage by website and age group. In short, is it just younger audiences connecting through social networks and which social network do they actually prefer – MySpace or Facebook? The second bit of information is on text messaging usage by age group. The real issue we were trying to understand here was do older audiences feel comfortable text messaging.
Before I share the data, here are a few important points about the survey. We had a little over 1,250 surveys completed in full. We offered no incentive for those to complete it and it ran across a variety of Broadway show websites along with email lists to past ticket buyers. The surveys were completed in October through December of 2008.
Onward with the information…
Social Networking Usage of Theatergoers
The first bit of research I wanted to share was some information we learned on the social networking front. Social networking, particularly Facebook, is a very hot topic right now and will continue to be over the next year. So, we wanted to dive in and see what actual ticket buyers are doing in the social networking space.
When we asked the 1,250 folks, “Are you part of a social networking website such as MySpace or Facebook?”, 45.3% answered “Yes” while 54.7% said “No.” Interesting, huh? Well, let’s make it a lot more interesting by looking at the age breakdown by usage.
Social Networking Usage by Age
18-24 years old (95.3%)
25-34 years old (71.1%)
35-44 years old (48%)
45-54 years old (30.5%)
55-64 years old (21%)
So, before I continue, let’s keep in mind that these percentages are most likely higher than the ‘average person’ because these people are completing the survey online (meaning they are more online savvy to begin with). With that being said, these numbers pretty much paint a direct correlation by age and usage of social networks. No major surprise to me here – but, the big question you must ask yourself is if the usage percents are high enough to justify you using investing in participating in the social nets in a way that justifies the expense. When I say expense, I mean the time, commitment and actual costs that are required to have a meaningful presence.
Finally, one more bit of research that I think you’ll find interesting on this topic. When asked which social network that they used, a whopping 83.4% said Facebook with MySpace coming in a far second at 37.6%. There was nothing even close after that and we listed at least another ten so-called popular social networking platforms.
Beware of the hype surrounding social networking – it’s the Wild West right now as there are a lot of false promises and, quite frankly, ‘scare tactics’ that your brand needs to be on Facebook. The reality is, your marketing plan and goals will determine that – not hype. Know “the what” you are getting into first and fully understand “the why” before jumping in – I’ve seen it backfire in a bad way if you don’t.
Text Messaging Usage of Theatergoers
You know my stance on mobile marketing, so I couldn’t possibly offer up some research that didn’t include data on mobile marketing. When asked, “Other than making phone calls, which of the following do you use your cell phone for?” take a look at the % of respondents by age that say they use their phone for text messaging.
Text Messaging Usage By Age
18-24 years old (92.3%)
25-34 years old (84.9%)
35-44 years old (81.3%)
45-54 years old (69.5%)
55-64 years old (52.4%)
So, it’s not just kids text messaging. The bigger question here is which mobile marketing concept/application makes the most sense for which age group. I have my hunches here based on campaign performance we’ve been seeing as of late, but want to do more research to try and support those hunches.
I hope you found this helpful. There was a lot of other interesting information we have from the survey which we will be talking about in client meetings over the coming weeks. We will have (what I think will be) even more interesting data to share next quarter as we expand our research efforts. If there are specific issues or research you would like to see from us, please don’t hesitate to send me a note. Your feedback is helpful.
Tue, January 20, 2009
Imagine suing customers who give your show bad reviews? Well, there are companies doing just that as I type. Wow! According to the story that profiled the review website Yelp, “In the last two years, at least five lawsuits--and possibly more--have been filed against Yelp reviewers. In California alone, in addition to the chiropractor's case, two dentists have sued reviewers and a spa owner sued an ex-employee. A fifth case was filed, but does not appear to have ever gone forward. Yelp is not notified about all cases, and lawsuits brought in state courts are not always in legal databases, so it's difficult to determine whether other cases have been filed.”
What I'm most interested in seeing with these cases is how Yelp or the other websites that allow reviews could be effected. Consumers rely on what other consumers have to say and that trend is only on the rise online. It's something to keep an eye on although I think the law suits mentioned in the following story are just ridiculous.
Click here to read the article.
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