American museums are facing a critical juncture. A recent study underscores their predicament: despite rising operational costs, many institutions are hesitant to significantly increase their marketing investments. This reluctance is contributing to lower visitor numbers compared to pre-pandemic levels. The traditional belief that unique exhibits alone will draw crowds is proving outdated, as detailed in the latest report from Remuseum, an initiative dedicated to advancing museum practices.
Museum Marketing: A Strategic Imperative for Growth
The landscape for American museums has become increasingly challenging. Post-pandemic, many institutions observe a persistent lag in visitor attendance, juxtaposed with a sharp increase in operational expenditures. A compelling report by Remuseum, an organization established by entrepreneur David Booth and supported by the Ford Foundation, shines a light on a critical shortfall: museums are not allocating adequate resources to marketing. This phenomenon suggests that the ingrained 'build it and they will come' philosophy is no longer viable in today's dynamic cultural sphere.
Historically, museums have often shied away from robust marketing strategies, perhaps viewing them as diminishing the intrinsic value of art and culture. This perspective is evident in past statements from figures like William Luers of New York's Metropolitan Museum of Art, who in 1990 expressed skepticism about marketing. In stark contrast, Harold Williams, former head of the Getty Museum, championed marketing as an essential, ongoing endeavor. Remuseum's comprehensive research indicates that museums typically dedicate less than three percent of their operating budgets to marketing, a figure comparable to industries like mining and construction, which do not rely on public attendance for their sustainability. This pales in comparison to performing arts institutions, which invest three to four times more, and movie studios, which can allocate up to half their budget, or even more for blockbusters, to promotion.
The study features illuminating case studies from institutions like the Art Gallery of Ontario (AGO) and the Peabody Essex Museum (PEM). These museums have pioneered the use of research data to develop audience 'personas,' moving beyond traditional demographics to understand visitor motivations. The AGO, for instance, identified segments such as 'Urban Families' and 'Young Downtown Actives,' while the PEM crafted more imaginative personas like 'Artsy Alex,' 'Learner Lee,' and 'Social Sam.' This innovative approach, focusing on visitor motivations, offers a fresh pathway to connect with existing and potential audiences more effectively.
Despite a period of significant expansion, most American museums operate well below their potential capacity. Experts suggest that to reach 90% or more of their 'market potential,' museums should consider investing between 13.9% and 18.7% of their annual revenues into diverse marketing channels, including paid advertising, social media engagement, and public relations. Current data from Southern Methodist University's DataArts project reveals that a cohort of 75 museums, varying in size, spends only three to seven percent of their annual revenues on marketing, with median spending even lower. Furthermore, Remuseum's analysis of 150 major museums found that only two percent of their total budgets go towards advertising, a stark contrast to non-profit theaters and symphonies, which spend three times as much, and opera companies, which spend four times more.
The findings from Remuseum's report serve as a powerful catalyst for introspection within the museum community. It highlights the urgent need for a paradigm shift, encouraging museums to embrace modern marketing as a fundamental tool for relevance, growth, and long-term sustainability. By strategically investing in understanding and engaging their audiences, museums can not only recover from recent challenges but also forge a vibrant future where art and culture are more accessible and celebrated than ever before. This calls for leadership to re-evaluate priorities and allocate resources in a manner that reflects the crucial role marketing plays in a thriving cultural institution.
