Why The Theory Didn’t Work

Two years ago when we were deep into the recession, I posted a blog about how the live entertainment industry would come out of the recession first.  I was wrong!  The reason I was wrong is because of price. 

It had long been the theory that while the entertainment industry is the first to feel a recession, we are usually the first to come out of it.  The theory went on to say that when consumers are depressed, out of work, and sitting in the house doing nothing, they need an escape.  During the Great Depression the movie industry did record business. It made Hollywood into a powerhouse!  Customers only needed a nickel to escape for a few hours.

I was working in the live entertainment industry during the 80′s recession.  The theory held up in that recession as well. The reason was again price.  It didn’t cost a car payment to see a show.   Here are two examples of prices then and now:

• Concert ticket price:  1989 - $20.00 / 2011 – $100+      
• Family show ticket price: 1989 – $10.00 / 2011 – $50+ (remember, a family needs to buy more than one)

We can no longer be the escape from recession because our prices put live entertainment into the luxury category. Consumers now look to other less expensive escapes. We used to “market to the masses not the classes” as stated by the late Allen Bloom. The words are reversed today.

Hollywood made its mark by making sure everyone got the opportunity to see a movie.  All of us in live entertainment need to give everyone an opportunity to see a show.

Less Flash More Cash?

So we find ourselves still hurting in the live entertainment business.  Our customers and fans are still not buying tickets the way we want or need them to.  What can we do about it?  I still think it’s the price point.

Even though the recession is supposedly over, we still have almost 10% of the population out of work.  80% live everyday with the fear they are next.  Our entertainment is supposed to be their stress reliever.  But the cost to go out and see us is part of the stress. 

What if someone had the balls to put out an affordable tour?  A tour that is based on volume? A tour where everyone involved cut their prices?  This would mean the artists, the production, the promoter, the staffing, the venues, the concessions, everything. 

Running a business based on volume and low frills is not new to the world.  McDonalds & Burger King are making a killing based on $1.00 double cheeseburgers.  McDonalds is also selling luxury items without the luxury. I just read today that Mickey D’s had a huge quarter because of low priced “fancy” coffee drinks and smoothies.  

When I first went to concerts, you went to hear the music.  You just wanted to see and hear your favorite band live.  You didn’t care about special effects. The one luxury you did request was decent sound.  Do all artists and shows today need expensive sets and mind blowing special effects to sell tickets? 

You don’t have to market the tour as the “no frills tour”.  Just put together a good show that customers will be interested in.  Charge no more than $20 for any seat.  Market the show in a way where the customer knows the show is fun and affordable but not a “cheap” production.  

If you want to spend some money, put it into the marketing!

OK, Time To Start Moving Tickets

The weather is not the only thing that is finally changing for the better.  The economy seems to be on the rebound too.  Now is the time for our industry to bounce back.

I am by no means an economist nor do I play one on TV. But my gut tells me we are on the other side of this recession.  Entertainment may be the first to feel a recession, but entertainment is also the first to get out.  That means we need to be marketing at full steam now. 

If you are currently planning marketing for the upcoming year, you need to jump in with both feet.  Don’t hold back!  Take advantage of every opportunity to promote your show or event. It is ok to spend marketing dollars again.  But spend it in the right places.  As a marketer, you know what works and doesn’t work.  Every market and every event is different.  Make it a marketing match.  Everybody picks on newspapers.  But if it works for you, then use them!  If TV is really expensive in your market and you don’t see the return at the box office, don’t buy it. Do what works, not what someone else thinks might work.  This is an opportunity to get back to thinking and planning instead of just reacting.

If you are currently out of work, call all your contacts again now.  As our business comes back, so will the jobs.  I know that jobs opportunities are opening up.  Get your name back out there!

For our customers, lets give them a good experience from start to finish.  From buying the tickets, to parking, to the experience inside the venue.  A good experience will sell more tickets.  Make ticket prices affordable.  This might include more package options. 

We need to re-build our fans and ticket buyers.  We need to offer them a good value.  We now have a new chance to build new and exciting opportunities for our customers and ourselves.

Our Fans Are Ready To Buy Tickets

If today’s front page story in The Boston Globe is any indication, we should have a good summer in the live events industry.  The article titled “Music lovers pack halls, drown the money blues” was quite a surprise read for me this morning. 

First off, I was happy that The Globe believes this is front page news.  Second, I believe this proves we are on the “other side” of the recession.  As I have mentioned several times before: entertainment is the first to feel the recession and the first to get out. The article states that the concert industry took a steep 20% decline between 2006 and 2007.  If this is true, then this was our first recession indicator.  Last year, despite the active recession the industry only dropped 2% from 2007. 

When you watch a sporting event and a great play happens for the home team, the crowd goes crazy.  This seems to change the momentum of the game and the home team feeds off the energy.  We should take this news story as our crowd cheering.  Our fans our telling us to “rock their sock off”.  They want shows and events.  We need to get out of the penalty box and score some goals.

What I took from the article is that people are sick of doing nothing.  They are sick of staying home.  They want to escape all the doom & gloom and have a little fun this summer.  Our live events are fun and they are an escape.  The live event and entertainment industry is coming out of the recession right now.  We need to strike while the iron is hot.

The best quote in the story was from a live event fan.  ”You might not remember a dinner you had two years ago at a restaurant, but you’ll remember a good show 20 years from now”.  That’s the marching orders we need to hear!

Don’t Let the Recession Get You Down

I remember the last big recession very well. I was working for Feld Entertainment at the time. I remember my company at its winter meeting discussing it and most of the meeting agenda was about how to handle it.  They started the discussion with this known entertainment fact:  The entertainment business is the first to feel a recession but entertainment is the first to get out.  Why are we the first?  People will use entertainment as an escape.  Hollywood in the 30′s was a perfect example.  The depression really took the movie industry to the next level.

The best advice I can give you in handling the recession is plan, think, and try.  When you are writing your marketing plan for an event, really think it through.  Use the recession as part of your plan.  Think about what you need to do for the customer or fan to come to your event.  Try new things.  I am always preaching to “think outside the box”.  This is a perfect time to do this.  During that last big recession I wrote a promotional plan for a St. Louis circus engagement that had as many as 25 possible promotions.  Now I knew that I was not going to do 25 promotions, but I had a nice stable of options to draw from.  Yes, we did have a very successful engagement that year.

One type of plan that I developed for my company during the last recession was called the “fire drill”.  Once you have a marketing plan written and approved then write a “fire drill” for it.  This is a plan used if the marketing plan is not working.  When I write a marketing plan and budget, I usually hold back some money from the budget for a “fire drill” plan.  If the marketing plan works, you are under budget.  If the plan is not working, you have money to use.

Send me your comments, thoughts and ideas and I will post them on the blog.

 

Now Is The Time To “Think Outside The Box”

So here we are in a recession and your company is cutting back.  You are told that you have to cut back on marketing budgets.  You can sit and cry about it or you can get creative.  This is why you are in marketing.  It is your job to make the best of anything.  You can even make liver & onions taste good. 

As I commented on in a previous post there will be “good” deals coming with traditional marketing.  I keep reading how the TV networks are bracing for the hit.  They are already cutting millions of dollars from their budgets. Take advantage of this.  What about promoting the event without running spots?  Be included in local programming? 

If there is anytime to start thinking outside the box it is now.  You don’t have to think alone.  Get your staff together and have a “brain storm party”.  You will be surprised how many ideas will come from the meeting. 

Now might be the time to embrace web marketing.  Maybe not the way you have looked or used the web in the past but put your creative hat on.  For example, I bet with unemployment on the rise, the e-based job sites are going to very popular.  The holiday shopping season is upon us.  Yes, there will be less spending this year on holiday gifts but people will still be spending something.  People still need gifts.  Where will they be?  Go where the people are. 

This could be a time in your work where you could really have some fun.  It can be boring doing the “same old stuff”.  Use this time to make your brain do some work and remember have fun with it.