Why Optimism is Key in 2009

Thu, January 22, 2009

Related Topics : Advertising, Behavioral, Broadway, New Audiences, Public Relations, Statistics, Telecharge, Ticket Prices, Ticketing, Ticketmaster, Usage Behavior

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

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Travel Portals Compete for Prominence

Mon, March 26, 2007

Related Topics : Travel, Research Techniques, New Audiences

Travel portals like Expedia continue to prove to be a critical component in both a consumer's purchasing and research planning process. Personally, I think a majority of productions are not taking full advantage of what these portals have to offer.

For the most part, you only pay on a performance basis meaning you pay a commission only if someone buys a ticket. Yes, the commission could be upwards of 30 percent when you include all the fees; however, if you factor in all the additional awareness you get by positioning your show to people we know are traveling to NYC (read this study on the awareness effect) and the fact that you are solidifying a purchase before someone arrives in NYC... I don't know why we wouldn't embrace this channel more.

Here's an interesting article on the competitive landscape within the travel portal segment now. Since they know that competing on price is not a strong long-term plan, they are now trying to find additional benefits to offer consumers to build brand loyalty.

Click here to read the full story.

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Social Networking - Key to New Audiences?

Sat, February 11, 2006

Related Topics : Friendster, MySpace, New Audiences, Social Networking, Word-of-Mouth

We all know that advertising to a non-traditional theater base is often like hitting a moving target. Sure, there are organizations like Plum Benefits that effectively recruit the non-traditional base, but from an advertising perspective it's not often that we see figures that suggest that a dollar spent towards a new audience immediately yields a dollar returned.

So, instead of chasing new audiences with online advertising, we have been testing numerous concepts in a semi-new trend called "social networking." This includes MySpace.com, Friendster, etc. We will be reporting on a lot of our findings over the next few months, but in the meantime simply wanted to pass along the article for you to review because it's clear that this is becoming a powerful channel in word-of-mouth communications.

Click here to read more about social networking from Clickz.

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Statistics Theater Marketers Should Know

Thu, October 13, 2005

Related Topics : Advertising, Consumers Researching, Diversity, New Audiences

Focus on the African American Online Audience
Study conducted by IMAGES Market Research for AOL Black Voices

- Nearly 80 percent of African Americans surveyed have access to the Internet, compared to the 88 percent of the general population. The digital divide is rapidly closing.

- Two-thirds of online African American households have access to broadband connections, compared to 53 percent of the general population. Although late adopters, the newbies coming online will do so with high-speed connections.

- Entertainment is a popular destination for 55 percent of African Americans, compared to 26 percent of the general online population.

- Compared to the general population, African American Web users spend more time online. They report spending five hours surfing per day, compared to 2.9 hours for the general population. What drives this group online? Seventy-two percent cite the need to obtain general information as a key driver.

- 73 percent of African American respondents who say they respond favorably to advertising featuring multiple cultures. Many respondents don't feel enough content "speaks" to the community as a distinct culture with it's own needs and values.

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