Total Earned Revenue vs. Earned Relational Revenue

Sidebar: Earned Relational Revenue vs. Total Earned Revenue, by Sector

What we learned

We also stop to show the relationship between total earned revenue and earned revenue from subscriptions and memberships, both as a percentage of expenses.

•The chart shows that sectors relatively high in relational revenue are not necessarily the same as those with high total earned revenue.  This is the case for Theatre but not Arts Education, Dance, or PACs.  These sectors apparently earn more revenue from non-relational customers.

Opera brings in 30% of its earned revenue through subscriptions. Symphony orchestras and theatres both earn 25% of their revenue through subscriptions and memberships.

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Sidebar: Earned Relational Revenue vs. Total Earned Revenue, by Size

What we learned

We also stop to show the relationship between total earned revenue and earned revenue from subscriptions and memberships, both as a percentage of expenses.

•The chart shows that Small and Medium organizations have very similar levels of relational and total earned revenue.

Small organizations tend to bring in 11% of total earned revenue with subscriptions/members.  That figure is 13% for Medium organizations and 15% for Large.

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Sidebar: Earned Relational Revenue vs. Total Earned Revenue, by Geography

What we learned

We also stop to show the relationship between total earned revenue and earned revenue from subscriptions and memberships, both as a percentage of expenses.

•While D.C. covers the highest level of expenses with total earned revenue, its relational revenue is lowest.  By contrast, San Francisco has a comparatively low level of total earned revenue relative to expenses and yet its relational revenue is fairly high.

Organizations in Los Angeles tend to bring in 23% of total earned revenue with subscriptions/members.  That figure is 22% for San Francisco organizations and 11% for Small Markets.

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Program Revenue vs. Marketing Dollars

Sidebar: Program Revenue vs. Marketing Dollars, by Sector

What we learned

We also stop to compare the total market dollars spent per attendee and the total program revenue earned per attendee – in other words, what it cost on average in marketing to attract someone to come, and the average amount that person spends with the organization once they’re there.

•The chart shows how diverse the sectors are in terms of net revenue, or the difference between program revenue per person and the cost of marketing efforts to attract that person.

•Art museums and ‘Other’ museums spend between $2 and $3 to bring in each person, yet art museums earn an average of $22.40 in program revenue per person whereas ‘Other’ museums earn an average of $10.70. The net revenue per person is $19.48 for art museums and $8.36 for ‘other’ museums.

PACs and Symphony Orchestras average $28.73 in net program revenue despite having different levels of program revenue and marketing expenses per attendee.

Music had the lowest net program revenue at $4.18 and Opera the highest at $58.60.  These sectors also had the lowest and highest program revenue and marketing expenses per attendee.

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Programing Revenue vs Marketing Dollars per Attendee, by Size

What we learned

We also stop to compare the total market dollars spent per attendee and the total program revenue earned per attendee – in other words, what it cost on average in marketing to attract someone to come, and the average amount that person spends with the organization once they’re there.

As arts organization go from Small to Medium to Large, the average program revenue they earn per attendee increases exponentially while their marketing expenses per attendee increase to a far lesser extent

•Small organizations tend to spend only 5% of their total marketing expenses on personnel while Medium organizations average 21% and Large organizations 29%.  Perhaps the increased investment in skilled marketing staff is a key element to growth in program revenue.

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Program Revenue vs Marketing Dollars per Attendee, by Geography

What we learned

We also stop to compare the total market dollars spent per attendee and the total program revenue earned per attendee – in other words, what it cost on average in marketing to attract someone to come, and the average amount that person spends with the organization once they’re there.

•The chart shows how diverse the geographic market clusters are in terms of net revenue, or the difference between program revenue per person and the cost of marketing efforts to attract that person, which ranges from $11.32 in Small markets to $25.34 in DC.

Like Small and Very Small markets, San Francisco’s net program revenue per person is under $12.

Chicago has the second highest level of program revenue per attendee, due both to a relatively high level of program revenue per attendee and a fairly low level of marketing expenses per attendee.

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