Fighting For Tickets

With ticket sales down again this year, all of us in the event & entertainment business are looking for what does sell.  How about Ultimate Fighting?

To my surprise, today’s Boston Globe has not one but two articles on the Ultimate Fighting Championships.  One is front page center and the other is front page top of the sports section. That is extraordinary to get that much ink in a major newspaper. The sport has gone from underground to prime time and real money. 

The UFC is coming to the TD Garden here in Boston this Saturday.  According to the article ticket prices range from $75 to $600, with an average ticket price of $244.  That is really impressive with the state of our economy when we can’t sell $100 concert tickets. Not only are they doing this big event at the Garden but they are also hosting a fan expo with prices running from $30 to $50.  All of this is really big money.

The fans and organizers of mixed martial arts are very passionate about the sport.  I have several Twitter followers that are part of that world.  I do read their tweets.  There passion also gives them the gift of being really good marketers.

The success of this sport is a perfect example of ticket buyers looking for new and exciting things.  Our job is to continue looking ahead of the curve and find these ticket selling events before they happen.  Do you want to be a trendsetter or someone that jumps on the wagon when it’s already reached its destination?

How Rabid Are Your Customers?

How rabid are your customers?  Will they buy anything? This is the gamble that Jerry Remy’s Bar & Grill in Boston is going for according to the article in today’s Boston Globe.

Anyone who loves or follows the Boston Red Sox knows Jerry Remy.  Besides being the TV color commentator for the game broadcasts, he is also the “President” of Red Sox Nation.  Jerry owns a restaurant which is opening a location next to Fenway Park.  Taking a cue from sports and events he is offering a season pass to his restaurant.  The cost for this perk is $500.  What does this get you? The season pass is a skip the line pass.  With the pass, you also get a table while the Red Sox game is on.  So if you don’t have a ticket for the game, you can watch it on TV at his restaurant guaranteed. You also get other stuff they claim has a $3,000 value. 

If you have the right product and the right fans/customers you can always offer up-sells.  We all need to find new revenue sources.  The more loyal your customers are, the more opportunities you have for revenue. 

In our business, we have season tickets, suites, club seats, etc…  But what else can we offer?  Many of your most loyal customers cannot afford these high price luxuries.  But they will pay extra for some things.  Think about the average customer.  What is the median income of your core demographic?  Once you know this, you can create offers they will pay extra for. I am not suggesting raising ticket prices.  Think of any and all potential revenue sources for your product.  Give your customer the option to have it. This can be anything from a “once in a while treat” to a “once in a lifetime opportunity”.

What’s A Freemium And Will It Work For Us?

There is an article this morning in The Boston Globe about “freemiums”.  This is the concept of giving something away for free and offering an upgrade or additional services for a price.  I started thinking how all of us in live events and entertainment could apply this to our business.

This concept is all the rage on the internet. This blog runs off of that type of service.  The blog site that hosts (WordPress) is free.  They offer upgrades and other services for a price.  There are other types of freemiums out there.  Some offer a free trial up front and then ask you to pay later.  Some video games and mobile phone apps run on this concept.

So, what if we tried to offer freemiums for our shows and events?  Let’s use the example of a family show.  It usually plays multiple performances in a large venue.  Does the show fill every seat? Not likely. What if you offered a performance where the most upper level seats were free?  That’s right, I said free.  They would be limited.  If the customer wants the seat, it’s theirs.  However, they can always upgrade for a “special” ticket price to a better seat. Once the “limited” free seats sell-out do you think a customer would then buy tickets?

Now for those who choose to stay in the free seats, why not offer them an up sell for merchandise and/or concessions?  You could offer this as a package upgrade if you wanted. 

The common practice of papering the house has become “too common” these days.  Why not make a freemium out of the empty seats?

Do you think it would work?

Is Radio Next To Go Bye-Bye?

Last week I wrote about the demise of WBCN in Boston.  This “tastemaker” station was once the place where you found your next great band.  Today, there is an article in The Boston Globe about young people finding their new music in different places but not on commercial radio.

Top 40 and pop stations still exist on commercial radio.  These stations still appeal to children and pre-teens. However, once they hit the young adult years, their choices on commercial radio gets really thin.

Have you listened to commercial pop radio today?  How much music are they really playing?  During morning drive on a commercial radio station you will hear very few songs.  You will hear lots of on-air personalities talking.  You will hear lots of commercial spots running. Instead of saying “where’s the beef”, we need to say “where’s the music”? While this may work for the moms and dads that are driving, what does this do to build a future audience?

Where are younger people hearing their music today?  They learn about new music from friends (word of mouth), the internet, bloggers, and social networking.  They are downloading songs on their iPod.  You can put thousands of songs on an iPod and plug it into your car stereo.  No need to ever listen to a radio station.  Satellite radio plays music with no commercials (endless music).  The listener can hear any genre they want.  Internet radio is on the rise.  The article mentions Pandora Radio.  Even mobile devices are playing music. On my Blackberry I have Slacker Radio.

If music is not what drives commercial radio today, what does?  The answer is talk. The problem with talk radio is that you are not attracting a younger audience.  If we don’t get the younger demos listening to radio then we are going to see a dramatic drop off of listeners. Fewer listeners mean less advertising dollars.  

Doesn’t this whole discussion sound familiar?  Didn’t newspapers lose the younger readers first?

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!

Stop Looking Back At Marketing

As I read through all my morning newspapers and online sources today I find a very common thread. Marketing in the digital non-traditional way is hot, traditional (old school) advertising is not.

21st century online newspapers

Google CEO Eric Schmidt spoke yesterday to newspaper executives at the Newspaper Association of America’s annual convention.  He told newspaper peeps that if they want to survive in the online world they need to push online advertising revenue and not charge readers.  He made a very good point.  People don’t need to pay for online news.  The way the internet is set up, you can find whatever news you want for free. Of course by using Google.  He suggested pushing more online advertising and maybe charging readers for niche articles.  For example the online paper is free but if you want to know more about wine, then you can buy this type of service.  He compared this to the TV business.  The broadcast networks started and continue to be funded by advertising.  Cable networks are niche and can charge. 

Maybe the traditional version of newspapers should charge less and gain more readers.  This in turn will bring back advertisers.  As I say this The Boston Globe has announced a price increase at the newsstand.  Yea, that will keep your readers.  “Our NYT owners want to close us so let’s charge more”!

Mobile marketing is slowly getting there

The Wall Street Journal is reporting that mobile advertising is gaining momentum slowly. The biggest issue I see facing mobile advertising is budgets.  As companies cut back on advertising, marketers tend to go into the “comfort zone”.  They look to traditional advertising methods which don’t have the ROI they once did.  Mobile marketing has a few different elements for use of advertising.  You can run banner type ads like internet websites. It has better data capture for an enhanced personal sell.  You can send text messages directly to a customer.  You have a better chance that a customer will read your advertising message on this personal small screen.  The article quotes Eran Hertzmann from Mobixell Networks ”it’s the last screen they look at when they go to bed, and the first one they look at in the morning”.

Ad Age today is full of digital marketing

Today’s online version of Ad Age is full of articles about marketing in the 21st century because they have been hosting a digital conference. 

There is an article about venture capitalist Fred Wilson telling marketers at the Ad Age Digital Conference to spend more dollars on Facebook and Twitter and less on TV.  He calls these sites “earned media”.  He gives examples such as the Burger King Whopper Sacrifice “killed friend” promotion on Facebook or Disney promoting the Jonas Brothers online instead of radio.  He also predicts that Twitter will have 50 million users by the end of 2009.  Check out today’s Ad Age online.  They have some really good stuff.

Tuesday Tirades

Another newspaper in trouble

This story broke last week and I wasn’t going to mention it to the whole event & entertainment marketing world but since I have so many Boston readers now (Boston.com has picked up this blog) I thought I needed to say something.

The Boston Globe has been told by its parent The New York Times Company to make $20 million in union labor cuts now or they will close the paper.  As all of you know I am a fan of newspapers.  I grew up in a newspaper family.  My dad worked at newspapers for many years.  Yes, less people are reading them.  Yes, newspapers have screwed themselves by greed and arrogance over the years.  But newspapers are part of the country and we need to try and save at least some of them.  I am not asking for a government bailout.  I am asking that people try to read a newspaper a little more.  Advertisers take a second look at buying ads in a newspaper.  As for newspaper owners, re-do your business plan.  Price your newspapers and your ads accordingly.  If you have poor circulation, then do something about it.  Stop thinking old school and make newspapers work for the 21st century. 

Change the trend back quick

Not sure if you have noticed but marketing trends are leaning people to “stay home”.  Have you heard the new term “staycation”?  It is real.  Go ahead and Google it, you will find it right away.  This is not good for all of us in the live event and entertainment business.  We need our customers out and about.  Over the last week I have seen more TV shows mentioning this term and telling people to stay home this summer.  “Turn your backyard into a resort, etc…”  We need to quickly counter this trend with consumer price friendly offerings and marketing that will make them want to buy a ticket.  We need to market encouragement and tell our customers to get out of the house and enjoy economy friendly events. 

Venues are still not going social

Why are most venues still not marketing their events on social network sites?  I am on Twitter and Facebook everyday.  I search for venues.  If I find one I “follow”or “friend” them.  This list is very short.  Why are you not doing it?  It’s FREE!!!!   I promise that if you do use it as part of your marketing plan, you will make promoters happy and you might even sell a few more tickets.  Please send me you comments on this one.  I really want to know why?  Maybe I can become the social network “Dr. Phil” and talk you through this.  If you do use Twitter or Facebook then let me know and I will add you to my list.

 

Events Are A Stimulus For A City

Today’s front page story in The Boston Globe is a perfect example of making sure you have your act together when planning an event.  Sail Boston which is a tall ship festival is returning to the city after a nine year break. For those of you outside Boston or the tall ship world this is a big deal.  According to the article the event drew 8 million people in 2000 and 6 million in 1992. 

As with any event of this size you need to have a close working relationship with the city.  Today’s article discusses how Sail Boston passed a deadline on financing costs to the city.  The City of Boston wants $2 million for city services including safety and clean-up.  As soon as the deadline passed the city said it would not allow the event to happen.  Sail Boston returned fire by saying they were coming anyway.  The Mayor of Boston Tom Menino then let loose on them and threatened to get the Coast Guard involved.  None of this crap is good for Boston or the event.  I take fault with both sides on this issue. 

When you plan any event big or small you have to “plan”.  You need to understand what goes into the event. You need to know who has to be involved and all costs associated with the event.  You need to cross every “t” and dot every “i”.

With an event of this size and magnitude of course the City of Boston has to be involved.  They really should be a partner with you.  Sail Boston is wrong for not having the plan ready for the city by the deadline.  Why didn’t they go to the city and ask for more time?  The City of Boston needs to understand that money is harder to come by these days.  Why won’t they work with the event?  The last time the event was held the city contends it was stuck with a $1.6 million bill.  I can understand their concern. However, isn’t this event big enough that issues can be worked out?

I go back to my statement that the city needs to be a partner with an event of this size.  I believe that both sides need to share in the costs.  Mayor Menino doesn’t think that the city should have to spend its money on this event when they are having budget issues.  However, how does a city make money?  They make it with tax revenues.  If several million people come to your city for an event are they not going to spend money?  What is the economic impact of this event?  Has the City of Boston ever heard the term “it takes money to make money”? 

Sail Boston needs to understand they should never let a situation get to this stage.  As important as it is to secure the main attraction (the ships), it is also as important to have a deal with the city. 

If this event is that big and will bring millions of people into the city maybe all of those that will see revenue from it can share in the costs.  What if the chamber, convention bureau, hotel and restaurants associations all chipped in a little money?  Would that cover some of the city costs?

This event needs to happen.  Stop the fighting and work as a team.  Creating and hosting an event of this size in a recession is a win-win for everyone.  It will bring millions of people to the city; it will fill up hotel rooms, restaurants, and other attractions.  It will provide a low cost entertainment “escape” for families.  An event like this is a “stimulus package” for all involved.

 

Attention Newspapers: Do You Want Loyal Customers?

I know one reason why newspaper circulation is down, the customer experience.  I wrote a few weeks back that newspapers have created some of their own problems.  I experienced one of them yesterday.

I was looking over my monthly credit card bill and saw the charge for my monthly subscription for The Boston Globe was about the same price as the newsstand price.  I called the customer service number.  The woman acknowledged that I was paying just under the full rack rate for being a good loyal customer.  Before I could get another word out, she informed me that they had a better rate for me.  My question was “why wouldn’t I already have it”? No answer from her.  I then asked her how would one know about this better rate?  Her answer was that “some” customers received a letter but I was not one of them. Gee, that makes me feel better. Why wouldn’t you give ALL your loyal full subscription customers the “best” rate possible?  Are you not losing more of them everyday?  Don’t your advertisers want to market to people who read the newspaper on a daily basis? Is this not part of reach and frequency?  Oh, by the way they offered nothing for over charging me for the past several months.

One major issue with newspapers today is the circulation departments in general.  I grew up around a newspaper office.  My dad worked for a newspaper for 18 years.  In those days the circulation department was a major in-house department.  They were part of the newspaper family.  They took pride in keeping their customers happy.  Today, newspapers tend to outsource the department.  The person I spoke to didn’t work here in Boston.  She had no clue about her customers.  She reads from a script.  If a customer complains, give them a better rate.  If they are a loyal, seven day a week subscriber, treat them like an account number. 

I will say it again & again, newspapers are creating their own destiny.  They either adapt to the 21st century reader and advertiser or end up in a museum.