What it takes to build audience and sustainability

From 2015 to 2019, the Wallace Foundation conducted the Building an audience for the sustainability initiativea large, cross-disciplinary study of how performing arts nonprofits sought to grow their audiences while increasing their revenues. Twenty-five arts groups—including the Baltimore Symphony Orchestra, Los Angeles Philharmonic, New York Philharmonic, Oakland East Bay Symphony, and Seattle Symphony—tested different approaches to attract new audiences while captivating their existing ones. Read the full report on Francie Ostrower’s Wallace Initiative at https://wallacefoundation.org/report/search-magic-bullet-results-building-audiences-sustainability-initiative-results-building.

Here is a summary of the initiative’s key discoveries, courtesy of the Wallace Foundation.

In search of the miracle cure: Results of the Building an audience for the sustainability initiative

There is no one-size-fits-all solution for arts organizations seeking to grow their audiences while simultaneously increasing revenue. While it is possible to use a variety of strategies to reach both new and existing audiences, successful audience building may not always be achieved on the terms desired by the organization, and it may not bring the financial returns hoped for, at least not immediately.

This is one of the key findings of the performing arts nonprofits participating in Wallace’s Building target groups for sustainability (BAS) initiative from 2015 to 2019. The 25 organizations tested different approaches to building new audiences while retaining their existing audiences. Some focused on age groups like Millennials or Gen-X; others looked at location and how they interacted with their community. Some worked to attract more racially or ethnically diverse audiences. Some sought to build audiences for new or lesser-known works.

What worked?

To find out which approaches worked and which were less successful, researchers at the University of Texas at Austin conducted in-depth interviews with leaders and staff at BAS organizations. They also examined ticket data and audience surveys for a sample of 15 BAS organizations. Notably, most of this subgroup were able to expand their audience. However, the increases were often more modest than the gains initially hoped for and did not lead to an overall increase in attendance.

The researchers found that some approaches to building audiences were more effective than others. Many organizations found that changing the way they communicated their programs to potential audiences made a difference. For example, when promoting new works, one organization found that “world premieres” had little appeal to the audience it was trying to reach. However, giving audiences an idea of ​​what to expect from the performance was effective.

Successful audience building strategies meet the audience where they are.

The change in the way program information was delivered to audiences also made a difference: increased use of digital communication tools (email, social media, video) to share important and informative content proved consistently effective.

What didn’t work?

Other approaches to building audiences often did not work as expected. For example, the results of “crossover strategies” – in which organizations presented different types of programming specifically to attract new viewers in the hope that those viewers would then attend traditional programming – were consistently disappointing. This led many organizations to question the myth of the “long, slow escalator,” which one interviewee described as a “long, slow climb.” This is a long-held theory that viewers move slowly from a first visit to more frequent visits and eventually become subscribers and donors.

When building an audience, organizations should define their goal right from the start.

And some approaches have produced mixed results. For example, some organizations have had varying degrees of success attracting new audiences to their mainstage productions by hosting performances at external venues.

What are the effects?

Building an audience is hard work. Organizations should determine their goal from the start. For example, is it to grow the audience even if that requires changing or expanding the program? Or is it to build an audience solely for what they already do? Both require a different focus and strategies.

All BAS organizations used data and market research to understand what worked and what didn’t. The data helped them understand and revise long-held assumptions about their respective audiences. It also helped them better target and communicate with new audiences. Using data also highlighted the pitfalls of advocating approaches without first weighing the costs and benefits. It prevented some organizations from judging success based on a single effort. And it helped underscore that there may be mission-driven reasons for targeting a particular audience that don’t add to the financials and may, in fact, require additional investment.

The final report examines these and other audience-building approaches that BAS organizations employed, as well as the financial impact of these efforts. Perhaps the most unexpected lesson for participating organizations was that building an audience does not depend on the audience alone. If arts organizations want to change the way they interact with their audiences, they may first need to be open to changing themselves.

Key findings

• Most BAS organizations expanded their audience, although the changes were often more modest than the gains originally hoped for and generally did not lead to an increase in overall attendance, at least in the short term.
• Untested and unfounded assumptions often made it difficult for organizations to reach their desired audiences. Data helped organizations uncover these assumptions.
• Successful audience building strategies spoke to audiences where they were. For example, more inviting and informative communication styles and expanding the use of digital and multimedia platforms tended to work.
• Offering unique programs to specifically attract new audiences and presenting at external venues in the hope that these audiences will “convert” to traditional programs have consistently proven ineffective.
• Over the course of the initiative, organizations gained more viewers overall, but saw fewer subscribers and lower traffic, suggesting that organizations may need to attract and engage more infrequent viewers and/or find ways to build stronger audience engagement.
• Building an audience with purpose doesn’t necessarily lead to revenue growth. Businesses should be aware that some audience building efforts require financial support and serve other important needs that aren’t tied to financial health.

If arts organizations want to change the way they interact with their audiences, they must first be open to change themselves.

What we don’t know

• This study was conducted with 25 large and established nonprofit arts organizations. How do these findings apply to smaller, less established arts organizations?
• The report describes long-term trends that preceded and were often exacerbated by the pandemic. Interviews with leaders of organizations after the pandemic suggest that the urgency of the pandemic has not yet produced new solutions to long-term challenges. What does redesigning an institution look like?

Implementation tips

• Be clear about your goal in building an audience. Do you want to target a specific audience or increase overall traffic? Do you want to build your audience to generate additional revenue or to support a specific type of art that may not contribute to your bottom line? Being clear about these questions will help you develop more effective audience-building strategies.
• Consider the financial impact of audience-building efforts. Some audience-building initiatives require financial grants rather than earned income to cover costs. Will grants, donations, or other contributions be required in addition to ticket sales to support your initiative?
• Use data and seek external input to uncover unfounded assumptions, and be open to rethinking those assumptions. Organizations can seek external feedback from audiences they want to reach.