What's Happening?
A recent report by Remuseum highlights the need for American museums to significantly increase their marketing budgets to boost attendance and reach their market potential. The study reveals that museums currently allocate less than three percent of their operating
budgets to marketing, a figure comparable to industries like mining and construction that do not rely on public attendance. In contrast, other cultural producers, such as movie studios, spend up to half their budgets on marketing. The report suggests that museums should invest between 13.9 to 18.7 percent of their annual revenues in marketing strategies, including paid advertising, social media, and public relations, to achieve 90 percent or more of their market potential. Despite a long period of expansion, many museums are not operating at full capacity and could accommodate more visitors.
Why It's Important?
The report underscores the critical role of marketing in revitalizing museum attendance, which has not returned to pre-pandemic levels. By increasing marketing investments, museums can attract more visitors, thereby enhancing their financial stability and cultural impact. This shift could also help museums compete with other cultural institutions that have more robust marketing strategies. The potential increase in attendance could lead to greater public engagement with the arts, fostering cultural enrichment and education. Additionally, improved marketing could help museums diversify their audience base, reaching new demographics and expanding their influence.
What's Next?
Museums may need to reassess their marketing strategies and consider adopting more aggressive approaches to attract visitors. This could involve developing targeted campaigns that appeal to specific audience segments, as demonstrated by case studies from the Art Gallery of Ontario and the Peabody Essex Museum. These institutions have successfully used research data to create personas for key audience segments, focusing on motivations rather than demographics. As museums explore these strategies, they may also need to address internal resistance to marketing, as some view it as potentially demeaning to the art. Overcoming these challenges will be crucial for museums to enhance their visibility and attendance.
