As I finalize the marketing budget for my day job, it gives me a chance to discuss the question that troubles many artists, how much should I spend on marketing?
If you have been following the blog for a while, you know that the most honest answer I can give you is "it depends", but I know that isn't helpful so let me provide a few specific things for you to consider while you are making your decision:
1. What are you trying to accomplish with your marketing?
Of course you are trying to reach a certain sales goal but what else are you trying to do? For example, with the current show we are producing we want to hit our sales goal AND diversify our audience. That helps to inform not only how much money we want to spend but also where we should spend it.
2. What's your return on investment (ROI) for marketing?
People make determing ROI more complex then it needs to be. The calculation can be very simple.
For example, I can look at our numbers and determine that for every $1 we spend on marketing (which includes marketing salaries, printing, etc.) we get about $2 back in the form of subscriptions or single ticket sales. Again that number isn't perfect but it's good enough for our analysis.
Your number may be closer to getting $1.10 back for every $1 spent. It might even be negative, so for every $1 spent you are getting 0.85 back.
The key is that you determine what your number is . . . BUT DON'T JUDGE THE NUMBER.
So if it turns out that you are spending $1 to get 0.85 that doesn't automatically mean your marketing is not working.
It may just mean that your goal for the next year is to spend $1 to get 0.90. Remember, most arts organizations are nonprofit so losing money is technically ok. If you're a for profit artist then you should absolutely be more concerned if your marketing is losing money.
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The key when it comes to spending money on marketing is that you should never, EVER, spend a dollar on marketing without knowing why you are doing it.
If you decide to put a print ad in Newspaper X versus Newspaper Y you have got to know why you are doing that.
I'd wager that 60-70% of people doing arts marketing are doing it unconsciously, meaning they are spending money without knowing why.
They spend money this year because that's what they did last year.
They spend money one way because that's what every other group in their industry does.
That's unconscious marketing. And it is costing you time and money. Avoid it at all times.
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