The Arts Fight for Out-of-Home Entertainment Spending

by | 3 minute read

Dig­i­tal enter­tain­ment spend­ing is con­tin­u­ing to win a greater share of con­sumers' spend­ing, while the share devot­ed to out-of-home enter­tain­ment and the arts declines, accord­ing to research from White Hutchin­son.

"The share of all house­hold spend­ing for dig­i­tal enter­tain­ment increased by near­ly two-thirds from just 2.5% in 2000 to 4.2% in 2016. Dur­ing that same time peri­od, the share of spend­ing for OOH loca­tion-based enter­tain­ment and arts has declined by one-sixth. Dig­i­tal enter­tain­ment spend­ing in 2016 was twelve times greater than for OOH enter­tain­ment and arts."

"A declin­ing per­cent of the pop­u­la­tion is par­tic­i­pat­ing in OOH enter­tain­ment or art events on the aver­age day."

But not all hope is lost. The newest Audi­enceS­CAN sur­vey found 9% of Amer­i­cans plan to attend sym­pho­ny, jazz or orches­tra con­certs this year.

"Not only is there a drop in par­tic­i­pa­tion, but there also a drop in aver­age time spent by the pop­u­la­tion age 15+ at OOH enter­tain­ment and arts activ­i­ties. Even with a one-sev­enth (+14%) increase in the total pop­u­la­tion age 15+, the larg­er pop­u­la­tion spent near­ly one-fifth less total time at OOH enter­tain­ment and arts events (-19%) in 2016 com­pared to 2003."

"A small a share OOH enter­tain­ment and arts spend­ing com­pris­es of all enter­tain­ment spend­ing. And com­mu­ni­ty leisure venue enter­tain­ment and arts spend­ing on non-live enter­tain­ment such as typ­i­cal­ly found in fam­i­ly enter­tain­ment cen­ters is only one 50th of all enter­tain­ment spend­ing."

Those in the OOH enter­tain­ment seg­ment should note that the lat­est Audi­enceS­CAN sur­vey showed 54% of Sym­pho­ny Per­for­mance Atten­dees also plan to see pop music con­certs this year too. And 38.5% of Jazz Per­for­mance Atten­dees will go to Broad­way-style musi­cals this year as well.

"When peo­ple are leav­ing home for enter­tain­ment and arts, it's the high­er socioe­co­nom­ic adults who spend the most time at those venues. Although adults age 25+ with a Bachelor's or high­er col­lege degree made up only 36% of the age 25+ pop­u­la­tion in 2016, they account­ed for more than half (57%) of all hours spent par­tic­i­pat­ing in enter­tain­ment and arts."

Impli­ca­tions for OOH enter­tain­ment

"The mar­ket pie for par­tic­i­pa­tion at and time and mon­ey spent at OOH enter­tain­ment and arts has sig­nif­i­cant­ly declined as screen-based dig­i­tal options dis­place it. This trend is like­ly to con­tin­ue into the future as new con­sumer dig­i­tal enter­tain­ment options go main­stream, such as vir­tu­al and aug­ment­ed real­i­ty."

Enter­tain­ment venues and plan­ners can tar­get Orches­tra Per­for­mance Atten­dees through news­pa­pers. The most recent Audi­enceS­CAN research revealed 32% of per­for­mance atten­dees took action after see­ing adver­tis­ing in the news­pa­per (print, online, mobile or tablet) dur­ing the past month.

"Today there is less demand for OOH enter­tain­ment and arts than in the past. This means that many CLVs that might once have been suc­cess­ful will become mar­gin­al or fail and that many new projects that are based on pro­jec­tions of past demand into the future will not achieve their pro­ject­ed results."

"There is still oppor­tu­ni­ty for suc­cess­ful CLVs. How­ev­er, to win, they will need to be high qual­i­ty, High Fideli­ty, offer­ing share­wor­thy and repeat­able expe­ri­ences built on new for­mu­las rather than for­mu­las from the past that tar­get the high­er socioe­co­nom­ic con­sumers."

Audi­enceS­CAN data is avail­able for your appli­ca­tions and dash­boards through the Sales­Fu­el API. Media com­pa­nies and agen­cies can access Audi­enceS­CAN data through the Audi­enceS­CAN Reports in AdMall.

Courtney Huckabay
Court­ney is the Edi­tor for Sales­Fu­el Today. She ana­lyzes sec­ondary cus­tomer research and our pri­ma­ry Audi­enceS­CAN research. Court­ney is a grad­u­ate of Mid­dle Ten­nessee State Uni­ver­si­ty.