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Return On Investment for Marketing Dollars

  • 1.  Return On Investment for Marketing Dollars

    Posted 12-20-2018 04:35 PM
    I am sure that many of you have Board members who are business people.  We also know that often these are the WORST people you can have on a museum board.  I have recently put together an "aspirational" Five Year Budget.  In that budget are funds dedicated to Marketing.  The general sense I have developed in twenty years in the field is that marketing is mostly an expense to keep a museum's name out there, rather than a huge revenue builder.  In conversations with other museum folks over the years, the consensus is that you can expect pennies back on the dollar.

    But being tasked with providing proof of my statements, I am seeking input from the Hive Mind on your various experiences.  Incidentally, I have to meet with The Lads in the morning, so please help!  Thanks in advance and everyone have a happy holiday season, no matter what your reason.
    Cheers!

    ------------------------------
    David Beard
    Executive Director
    USS KIDD Veterans Memorial Museum
    Baton Rouge LA
    ------------------------------
    AAM Annual Meeting & MuseumExpo, Baltimore, May 16-19, 2024, click to learn more


  • 2.  RE: Return On Investment for Marketing Dollars

    Posted 12-21-2018 07:07 AM
    Ha! David - great post!  After more than 35 years in the industry, I've learned the importance of "marketing," especially if you consider Marketing an umbrella term that includes advertising, web development, product development and on and on.  One thing I'm glad to have learned from millenials (especially when I do not have to do it myself) is FB, Instagram, etc.  Our event attendance definitely jumped after we engaged someone who put the effort into making our accounts lively and up to date.

    I know exactly what you mean about the wisdom of boards... I've often said that boards are successful, smart people whose brains are suddenly sucked into a black hole the moment they enter the board room!  However, if they are local; businesspeople (businessmen?) another point you can make about advertising in local print media is for the museum to be seen as a good corporate citizen ... supporting independent reportage...Also, in New England anyway, one does NOT get editorial without advertising.  In fact, most of the time, I am writing articles, supplying the images AND PAYING for the privilege of doing the work of journalists.  On the other hand, you know it's accurate if you're written it yourself and the outlet doesn't spend money on copy editors!

    Vivian F. Zoë, Director
    Slater Memorial Museum
    108 Crescent Street, Norwich CT 06360
    860-425-5560 vox
    860-885-0379 fax

    "Inspiration is for amateurs - the rest of us just show up and get to work," Chuck Close, 2003


    Please note:  The information contained in this e-mail and any attachments hereto is intended only for the personal and confidential use of the designated recipients.  If the reader/recipient of this message is not the intended recipient, you are hereby notified that you have received this e-mail and all attachments hereto in error and that any review, dissemination, distribution or copying of this e-mail or any of its attachments is strictly prohibited.  If you have received this communication in error, please notify the sender immediately by e-mail and destroy the original message received.  Thank You.



    AAM Annual Meeting & MuseumExpo, Baltimore, May 16-19, 2024, click to learn more


  • 3.  RE: Return On Investment for Marketing Dollars

    Posted 12-21-2018 07:40 AM
    Good morning ad happy holidays...…….

    Wow.....really?

    …."marketing is mostly an expense to keep a museum's name out there, rather than a huge revenue builder"

    People have options on what they do and how they spend their hard earned money and many times visitors make those choices in a short lead up to those decisions......so "to keep a museum's name out there" is one critical building block to success and revenue.

    Successful revenue seeking organizations are aware there rarely is one single answer on how to build revenue, it takes a quiver full of arrows that make a difference on consumer engagement.

    A museum may be clean, with great lighting, great exhibits but if people don't know - they won't come in the numbers that could.

    Getting them in the door is the 1st step, keeping them there is #2, having them return is #3 and having them engaged and form a relationship is the "close". 


    Knowing who your visitors are now and separately who you are targeting for growth, what their needs are, how can you connect with them are critical factors, as is knowing what that group uses to make decisions.....mobile, virtual /augmented reality, etc.

    The solution involves a universe of coordinated action and marketing is a critical but very nuanced component.


     

    ​​

    ------------------------------
    Richard Griswold
    Director
    Daruma Tech
    Boca Raton FL
    (561) 990-1625
    ------------------------------

    AAM Annual Meeting & MuseumExpo, Baltimore, May 16-19, 2024, click to learn more


  • 4.  RE: Return On Investment for Marketing Dollars

    Posted 12-24-2018 08:33 AM
    As a member of the Tour and Travel Industry for 20+ years, I am astounded that not one person speaks about working with the travel industry as an integral part of marketing spends.  After the Intrepid Sea, Air & Space Museum came out of its bankruptcy years ago, I spent literally a few years on the road, domestically and Internationally, attending sales conferences, trade shows and the like meeting up with tour operators and wholesalers.  The results took time but they were measurable and productive.

    It is an expensive initial effort but it is a direct response ROI...lt's of work and time but well worth the effort.  Anyone want to talk to me offline, I'll be glad to help.

    ------------------------------
    Myron Baer
    Managing Director
    Orpheo USA
    New York NY
    212 464 8155
    Myron.Baer@Orpheo.US
    ------------------------------

    AAM Annual Meeting & MuseumExpo, Baltimore, May 16-19, 2024, click to learn more


  • 5.  RE: Return On Investment for Marketing Dollars

    Posted 12-24-2018 11:23 AM
    We do market with the tour industry, mostly by giving the riverboat and bus companies discounted group rates.  And while we do get some traffic from this, it would likely not offset costs if we were paying for ads.  We make direct contact with companies through our convention and visitor bureau.

    ------------------------------
    David Beard
    Executive Director
    USS KIDD Veterans Memorial Museum
    Baton Rouge LA
    ------------------------------

    AAM Annual Meeting & MuseumExpo, Baltimore, May 16-19, 2024, click to learn more


  • 6.  RE: Return On Investment for Marketing Dollars

    Posted 12-26-2018 12:16 PM
    The best source of information about marketing for cultural organizations - using real data - is Colleen Dilenschneider's blog Know Your Own Bone.   This week she's reviewing the 10 most used/useful articles of 2018.   Don't miss it.  

    --



    Janice Klein
    EightSixSix Consulting
    SMAC-AAM Board Member



    AAM Annual Meeting & MuseumExpo, Baltimore, May 16-19, 2024, click to learn more


  • 7.  RE: Return On Investment for Marketing Dollars

    Posted 12-27-2018 09:08 AM
    ​I been reading this chain for the past week or so.
    We are a 9000 SF state owned historic house museum with botanical gardens. We receive  no state support so we are challenged to self fund. Fortunately we are also located in a tourist destination and we have the distinction of being a presidential museum.
    We run a lot of ads . Why ? because visitors may not know the museum exists. We are off the beaten path so the  guests have to hunt for us as we are located within a gated community ( the former Naval base).  They need a reminder to visit when they come to town and  that they wanted to see us.
    We offer free admission to journalists/ travel writers, travel bloggers and appear in many articles.

    We offer free to locals on the first Sunday of each month. Because locals have visitors and friends and family. Our membership program allows members to bring 4 guests at a time  for free and thus some of these free guests become members as well.
    Our visitorship is 70,000 to 80,000 a year. we offer guided paid tours every 15 to 20 minutes
    As our mission is education, we fail if no one "hears" our story.  With limited funding we are careful as to where we advertise. We use print ads in a free magazines, brochures and social media. We focus on who is our customer/ guest. Many older visitors want a brochure in their hand rather than read it on their phone.
    So you see there is no one magic bullet rather a combination of public relations ( free promotion) and paid advertising. Both are needed
    and third party recommendations is an added benefit to further mission. We faithfully read Trip Advisor and similar sites and respond to any negative remarks offering a refund. We have a very small refund rate and thousands of positive remarks.
    Good luck. Hopefully our experience may give some insight. 





    ------------------------------
    Bob Wolz
    Executive Director
    Harry Truman Little White House SHL
    Key West FL
    ------------------------------

    AAM Annual Meeting & MuseumExpo, Baltimore, May 16-19, 2024, click to learn more


  • 8.  RE: Return On Investment for Marketing Dollars

    Posted 12-21-2018 08:20 AM
    I agree in that marketing is basically for general awareness.
    Any financial return is a very small percentage of dollars spent.
    A tv commercial, radio commercial or billboard can also increase a closer connection w/ that particular media group.
    We always do a print publication ad or online ad w/ a coded coupon so we can gauge "eyes-on" and financial return.
    For all ads, of any kind, we snivel for a lower nonprofit rate and/or try to do trades (exposure here, tickets, memberships, etc).
    Good luck w/ your meeting.


    Martin

    ------------------------------
    Martin S. Fisher
    Executive Director
    Science Central
    Fort Wayne, IN
    ------------------------------

    AAM Annual Meeting & MuseumExpo, Baltimore, May 16-19, 2024, click to learn more


  • 9.  RE: Return On Investment for Marketing Dollars

    Posted 12-21-2018 08:35 AM
    Again, stunned by the lack of awareness.

    "marketing is basically for general awareness.
    Any financial return is a very small percentage of dollars spent."

    I guess I can explain this by this group's lack of understanding and / or poor marketing execution / strategy in your professional experience. 

    Examples of organizations that know marketing, when done correctly, presents a huge return on investment: Disney, McDonalds, Dell, Microsoft, Modelo, Carnival Crises vs Viking Cruises…..by knowing who their audience is, and differentiation in speaking to them


    Again...great discussion and happy holidays !

    ------------------------------
    Richard Griswold
    Director
    Daruma Tech
    Boca Raton FL
    (561) 990-1625
    ------------------------------

    AAM Annual Meeting & MuseumExpo, Baltimore, May 16-19, 2024, click to learn more


  • 10.  RE: Return On Investment for Marketing Dollars

    Posted 12-21-2018 08:31 AM
    One of the first investment I made in this job was in an effective marketing director.  The effort has been about increasing visibility and facilitating word of mouth.  Not advertising.  So social media, online social groups, direct email, press, and onsite efforts to ensure positive experiences.  So yes I think marketing is effective and a smart investment, as long as the investment is smart.  So if you board thinks marketing means billboards, then you have a problem.

    ------------------------------
    Neil Gordon
    CEO
    Discovery Museums
    Acton MA
    ------------------------------

    AAM Annual Meeting & MuseumExpo, Baltimore, May 16-19, 2024, click to learn more


  • 11.  RE: Return On Investment for Marketing Dollars

    Posted 12-21-2018 10:23 AM

    Hi David,

    It can be hard to explain to outsiders how the ecosystem works. Kudos for line items for marketing! While we all know that 'marketing' is a broad umbrella, it is a term that is widely used and your board members will at least have an idea of what it means which saves you half of the explanation battle right there.

    I try to point people to more specific breakdowns. Marketing just covers too broad of a term-
    AAM
    Pew
    KYOB

    Evergreen Data

    (I was introduced to Evergreen Data, I found it a lifesaver. It helped me communicate numbers to outsiders so much more efficiently.) 

    And for return on investment, it's all about how they want to measure. It's rarely so easily tangible, but you can decide on what to focus on. Examples:

    Door counts? Gift shop sales? Website visits? Social followers? Museum Members? Programs? New exhibits? The number of inquiries served?

    We all know that we serve a public audience much larger than admission fees. But they're all part of the ecosystem. 

    Best of luck in the new year!

    Cheers!

    Jessica <g class="gr_ gr_2286 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del multiReplace" id="2286" data-gr-id="2286">Rockeman</g>



    ------------------------------
    Jessica Rockeman
    New Media Specialist
    State Historical Society of North Dakota
    Bismarck ND
    ------------------------------

    AAM Annual Meeting & MuseumExpo, Baltimore, May 16-19, 2024, click to learn more


  • 12.  RE: Return On Investment for Marketing Dollars

    Posted 12-21-2018 12:35 PM
    Good Luck David:

    The idea that a museum is a commercial operation akin to any business endeavor is increasingly expressed by the sort of trustees you refer to.  It is difficult if not impossible for staff to even suggest otherwise to these all-seeing all-knowing omniscient soothsayers.  Gender was referred to and in my experience with trustees the problematic one described are always men.  I read a profile once that explained the mind-set of these types.  In business they are always used to getting their way even if that way fails (in which case others are blamed).  Unfortunately this "my-way of the highway" attitude does not translate into being a successful trustee.  The governance of charities is a group effort requiring deference, patience, productive collaboration and enthusiastic positive leadership.  A sad aspect of the museum field is a refusal on the part of some to recognize it as a profession.  The "anyone can run a museum" approach to being a board member causes most of the difficulties museums encounter on a governance level.  Trustee exceptions are found when enormously wealthy board members put enormous sums of money where their mouths are, but that rarely happens.  When it does, the donors are usually more polite, thoughtful and reasonable in their service then the thundering nincompoops.    

    Be that as it may, marketing is important for museums.  There are three questions: what is meant by marketing;  what marketing should/can a museum pursue; how will a museum know if it is effective?  These are questions the noisy trustees you reference ask but expect immediate answers.  Was it Macy who said 50% of one's advertising dollars are wasted but who know which 50% that is?  (I am murky on this reference but you get the gist.)  I am always interested in why people go to museums.  I can explain my thoughts but how about quantifying the question.  This has to be done from within an institution or with a consultant.  Alas, to get helpful results takes time and can be costly.  When I was director of the Bennington Museum (1995 - 2001) we had a log book visitors could sign.  In addition to giving them the option to list names and addresses we asked two questions: How did you hear about the museum;  What exhibits would you like to see.  After the first six months of this informal survey I looked at the answers regarding how they heard about the museum.  A third said by driving by and seeing the sign.  Others noted listings in tourist sites and materials and word of mouth.  A by-pass was planned for the town so I knew we would lose a significant portion of the drive-by drop-in visitor.  This happened but the museum had been renovated and expanded to accommodate community programs and uses.  When I was director of Boscobel House & Gardens (2013-2018) we conducted a similar survey.  By this time social media and on-line tourism information was the norm.  It was interesting to learn that the lion's share of visitors came as a result of word-of-mouth recommendations.  This, by the way, is regularly noted in one of my favorite cultural institution on-line sites.  Check out Colleen Dilenschneider's Know Your Own Bone site.  it is always terrific, clear and to the point.  I recommend it to anyone in our field.  If trustees will pay attention they too can benefit. 

    Unfortunately David, because the troublesome trustees you mention don't need to read anything of value that you might bring to their attention from within our field, your best hope is to have the helpful trustees be your ally.  I have always been amazed at how board members defer and listen to each other more than to staff who know what they are doing.  Occasionally something brilliant I might offer (in all humility of course) would be ignored until another trustee said exactly the same thing and it was immediately agreed to by his or her colleagues.   As I said - Good Luck!!       



    ------------------------------
    Steven Miller
    Executive Director Emeritus
    Boscobel House and Gardens
    Garrison NY
    ------------------------------

    AAM Annual Meeting & MuseumExpo, Baltimore, May 16-19, 2024, click to learn more


  • 13.  RE: Return On Investment for Marketing Dollars

    Posted 12-21-2018 02:45 PM
    Thoughtful response Steven:
    I conducted a similar survey last year and got similar results to yours. Word of mouth is the most frequently cited reason for visiting the Channel Islands Maritime Museum. The question is what's next? This preliminary survey effort did not inform how to reach the untapped audiences in our area who may enjoy the museum. That is to be worked on in 2019.

    Anecdotally, our best results for spreading the word come from social media rooted in the mission. It's inexpensive, volunteers and board of trustee members can easily join in and help, The community can join in, and staff time is used to market and further the mission at the same time. 

    A thought about David's board concerns. I attended an AAM leadership lunch and the salient message from several knowledgeable speakers was that policy is a museum's best friend. A clearly defined board leadership policy document that outlines the responsibilities, duties and the cultural expectations for the board of directors will help tremendously. It helps the Board Chair and the Executive Director bring structure to discussion and any strategic efforts. You may already have this in place, but, I thought it worth a mention. Good luck!



    ------------------------------
    Peter Crabbe
    Executive Director
    Channel Islands Maritime Museum
    Oxnard CA
    ------------------------------

    AAM Annual Meeting & MuseumExpo, Baltimore, May 16-19, 2024, click to learn more


  • 14.  RE: Return On Investment for Marketing Dollars

    Posted 12-21-2018 12:35 PM

    Hi David,

    I know it's too late to help you out with your meeting, but I always appreciate the metrics and perspective from Colleen Dilenschnieider's Know Your Own Bone site. She has an article/video about the cost of cutting marketing budgets: https://www.colleendilen.com/2017/07/19/cost-cutting-marketing-budgets-within-cultural-organizations-data/

     

    Her most recent post featured the "most popular fast facts for cultural execs: https://www.colleendilen.com/2018/12/19/popular-fast-facts-videos-cultural-executives/

     

    I do believe that marketing is important for branding and keeping your organization top of peoples' minds. Digital marketing provides much better metrics these days, and doing quick visitor surveys asking how people found out about an organization are all great ways to provide some concrete evidence that the marketing is worth it.

     

    Best of luck,

    Christina

     

    Christina Claassen

    Marketing & Public Relations Manager

     

    Whatcom Museum

    121 Prospect St

    Bellingham, WA 98225

     

    Phone: 360-778-8936

    Email: cmclaassen@cob.org

    www.whatcommuseum.org

     

    My incoming and outgoing email messages are subject to public disclosure requirements per RCW 42.56

     

    DOCH_2018

     

    Give Membership

     

     




    AAM Annual Meeting & MuseumExpo, Baltimore, May 16-19, 2024, click to learn more


  • 15.  RE: Return On Investment for Marketing Dollars

    Posted 12-26-2018 10:56 AM
    Richard Griswold.  I suspect that many reading your comment are stunned at your lack of understanding of "for profit" vs "not for profit" environments.  When you are talking Disney, McDonalds and Carnival Cruise Lines, you are waaaaay off base with the realities of the majority of museums in this country.  If Carnival offers a great deal on a cruise, more people on the fence will go.  If a museum offers half-price entry, I doubt it sways that many more people to visit.  Free First Sundays is a zoo.  Why?  Because its FREE. 

    What's the answer?  I don't know.  All I know is that my trustees seem to think we can/should get a ROI for advertising/marketing, and that just is not realistic.  It is just the CODB.  That is why in 2019 I am reducing paid ads, focusing on regional travel guides, bringing in new exhibits (long shot as to increasing visitation), and getting on as much local print and broadcast media as I can in the form of stories about what we are doing.  That is FREE and reaches our local audience better.

    ------------------------------
    David Beard
    Executive Director
    USS KIDD Veterans Memorial Museum
    Baton Rouge LA
    ------------------------------

    AAM Annual Meeting & MuseumExpo, Baltimore, May 16-19, 2024, click to learn more


  • 16.  RE: Return On Investment for Marketing Dollars

    Posted 12-26-2018 11:35 AM
    I agree with the plan to reduce print media ads EXCEPT where you absolutely must be... like those pesky "special inserts" or state-wide magazines that often annually issue a number on things to do for, say, summer excursions.

    There is absolutely NOTHING free.  Unless you're in an environment there that no longer exists here, there is no editorial without paid content.

    Since you seem to want to avoid free days, it might be valuable to do an assessment of what it costs to serve each visitor.  It's (obviously) pretty easy to calculate - just divide total annual budget by total annual attendance.

    You don't say whether you use an electronic POS system.  It's a great way to count attendance on specific days when you might be able to link a special event, new exhibition or free day to attendance numbers...

    Vivian F. Zoë, Director
    Slater Memorial Museum
    108 Crescent Street, Norwich CT 06360
    860-425-5560 vox
    860-885-0379 fax

    "Inspiration is for amateurs - the rest of us just show up and get to work," Chuck Close, 2003


    Please note:  The information contained in this e-mail and any attachments hereto is intended only for the personal and confidential use of the designated recipients.  If the reader/recipient of this message is not the intended recipient, you are hereby notified that you have received this e-mail and all attachments hereto in error and that any review, dissemination, distribution or copying of this e-mail or any of its attachments is strictly prohibited.  If you have received this communication in error, please notify the sender immediately by e-mail and destroy the original message received.  Thank You.



    AAM Annual Meeting & MuseumExpo, Baltimore, May 16-19, 2024, click to learn more


  • 17.  RE: Return On Investment for Marketing Dollars

    Posted 12-26-2018 11:55 AM
    FYI  only,

    Wrong again, worked in management for non-profit (largest world-wide is USA) for many years.

    You are confusing advertising with marketing and don't articulate the understanding of the difference.

    Anyway  - Good luck and blessings to you and your organization in the coming year.

    Cheers,

    ------------------------------
    Richard Griswold
    Director
    Daruma Tech
    Boca Raton FL
    (561) 990-1625
    ------------------------------

    AAM Annual Meeting & MuseumExpo, Baltimore, May 16-19, 2024, click to learn more


  • 18.  RE: Return On Investment for Marketing Dollars

    Posted 01-10-2019 04:30 PM
    We invest heavily in local, regional, and international marketing. We partner closely with our local DMO (Destination Salem) and regional CVB (North of Boston) to take advantage of co-operative ads and learn about industry trends. Our staff spends time investing in networking at meetings and being on committees for both of these organizations to bring best practices back.

    We take advantage of free professional development opportunities to always be better with social media and digital marketing - an ever-changing trend!

    In 2015, we worked with a consultant to develop a comprehensive marketing strategic plan that we have been able to translate into an annual plan. A lot of work went into the front end of this plan, but annual planning has become significantly less time-consuming. Our consultants (New Arts Collaborative) challenged us to look at space rental, visitation, October visitation, events and programming, development, publicity, and analytics. The investment in that planning process has paid off with amazing coverage of our 350th anniversary in 2018 and local relationships that support ongoing programming. And before you think that marketing is my only job, I'll tell you that special projects manager covers A LOT of ground here. Let me know if I can send materials or help in any way!



    ------------------------------
    Julie Arrison-Bishop
    Special Projects Manger
    The House of the Seven Gables
    Salem, Mass.
    ------------------------------

    AAM Annual Meeting & MuseumExpo, Baltimore, May 16-19, 2024, click to learn more