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FEATURE | ||
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TO PROMOTE AN EVENT? When it comes to promoting an event in the entertainment industry, there's one thing that most industry experts agree on: the costs are all relative. There's no magic formula that will guarantee the successful promotion of an event start to finish, but there are some underlying basics that can be applied. The vagaries of event promotion have often deterred facilities from taking on 100 percent of the risk. Yet when the event calendar is empty and they don't have a choice, it's important to know what to expect. “The reason buildings are promoting shows now is not because they really want to," says Brad Parsons, director of Arena Network in Los Angeles, CA. "Often there aren't enough shows to go around, and the more proactive buildings will be the ones to get more events." Where it used to be that 70 percent of events were straight rentals 20 years ago, says Parsons, nearly 80 percent of events today are either co-promotions or total promotions. "Most of the time, the venue will be some kind of partner (in promoting the event)," he says.
Defining the bottom line That number tends to hover around $12,000 for the Bank of America Center's events in Boise, ID, according to Debbie Kling, general manager. "On the average in my market, we're spending anywhere between $12,000 and $17,000 to promote a concert or special event," says Kling. That money is spread between various advertising mediums, depending on the target audience. "It depends on what the event is, what the demographic is we're trying to attract and what media is going to be the best fit to reach them," says Kling. Even if facility managers used the same mix of advertising for every show, the cost would vary depending on the time of year. Advertising fees for television, newspaper, radio and billboards will fluctuate through the year, as will the ads' effectiveness, says Kling. "During the summer in Boise, it takes twice as much airtime to reach the same number of people," says Kling, who credits the nice weather and vacation schedules for the change. Political campaigns and holidays will also impact the price and effectiveness of ad campaigns. Navigating the ebb and flow of advertising requires promoters to really understand the market they work in: know which television station has captured the largest share of the market, what the demographics are of each radio station's listeners, the type of content featured in each section of the local newspaper and the neighborhoods in which it makes sense to place your outdoor advertising. Redefining the usual mix Kling has had success in advertising events at a local movie theater, for example. For $800, she was able to run event ads before every movie in every theater for a month. To boost the facility's profile in the community, Kling has purchased indoor signage at an area shopping mall that can be changed every month to feature upcoming events. Her team is also working to update the Bank of America Center's web site to improve data collection. By tracking those people who visit the web site and attend events, Kling can market directly to them through e-mail blasts. According to Lane, collecting patrons’ contact information is the most important thing venues can do these days. By targeting proven buyers of entertainment, venues are more likely to find future buyers, he says. "Mining databases is hard work. It's not as sexy as buying TV ads, but it can be very valuable in decreasing the risk of an event," says Lane. E-mails can be used to offer recipients the chance to purchase tickets in advance or at a discount. For niche events like Korean wrestling matches, three-on-three basketball tournaments and off-Broadway plays, venues will benefit from stepping up their creativity. Promote the event by giving away free tickets at churches and community centers or partner with a niche-market radio station for promotions.
"There's a golden triangle theory that includes advertising, promotion and publicity," says Lane. "And without a major effort in all three areas, you face much higher risk than you have to." Risky business "Every venue has fixed costs that are going to exist whether you have an event or not," says Lane. If there isn't enough business walking through the doors, venues have to go out and put it together themselves. "That's where the risk analysis comes in. It's all about evaluating what will work in your community," he says. It's also important to know what the competition is going to be like at the time of the event and how the event performed in other markets. "Industry relationships are so important," says Kling, who relies on her networking contacts for information about traveling shows. The value comes when you can pick up the phone and ask them how a specific event went, and the problems or challenges associated with it, she says. It's tempting to think the less you pay out for a show, the less risk you'll be taking on. Not so, says Brad Parsons. The cost of the show alone doesn't indicate its potential risk, he says. A facility could spend $1 million on a big-name music concert or it could buy an up-and-coming comedian for $25,000; the cost is all over the place, explained Parsons. Either way, you can easily lose money. "Risk and reward is all relative, and you can sit there and pretend there's less risk with smaller shows, but that's not necessarily true. It can be more difficult to sell those tickets." To help reduce the risk, there are a couple things building managers can do. Lane recommends hitting the pavement and doing some "roll up your sleeves market research." Visit the local chamber of commerce and find out who the local employers are, he says. After identifying companies with big employee populations, you can offer them discounted tickets through their human resources departments. Another way to share the risk is to bring in a cash sponsor like a radio or television station, which can also furnish you with demographics reports and provide free on-air announcements about the event. "If you know the demographic that major retailers are after, for example, it's easy to match up sponsors," says Lane. Sponsors can pay cash or provide advertising opportunities for you, and your event gives them the opportunity to bring in additional traffic. So how do you know when to promote an event? At times, says Lane, the question is really, "Can you afford not to?" If you've done your annual forecast and the numbers aren't adding up, it's time to consider your options. Evaluate each event on an individual basis to decide what makes sense financially and in terms of the risk you're willing to take. Stacey Closser is a freelance writer in McKinney, Texas. |
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2002-2004 International
Association of Assembly Managers |
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Another way to stretch your advertising dollars is to try and get some free publicity. Newspaper articles that preview the event and radio announcements about ticket sales can boost the bottom line without taking away from it. Getting that kind of attention from local media outlets, however, requires venue managers to establish good working relationships with members of the media. "Taking time to nurture relationships (with the media) is so important," says Kling. "They can pre- view your event and you don't have to spend any of your advertising dollars."
