Allison Porter, President To close out the day, Allison will share some top-level trends in the direct marketing industry. She’ll present industry benchmark data as well as trends with Avalon clients.

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Avalon Consulting Group, Inc.
All rights reserved, 2016
Cover Page
Avalon Consulting Group
www.avalonconsulting.net
Client Training Day
Direct Marketing 101: Industry Outlook
September 7, 2017
©2017 Avalon Consulting Group.
All Rights Reserved.

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State of the Industry

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Industry Benchmarks
Using readily available benchmarking reports allows for
comparison to the industry and individual sectors.
Provides annual online
benchmarking tools.
Provides online and other
benchmarking information.
Provides industry-level
trends and insights.
Provides quarterly industry
updates and offers individual
organization benchmarking.

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Source: Giving USA 2017
Industry Benchmarks

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Industry Benchmarks
Source: Giving USA 2017

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Overall Giving Trends
 Overall giving grew approximately 1.0% in
2016. This is the fifth consecutive year to
show an increase in giving.
 While there were numerous reports of
increased giving to a number of nonprofits
after the U.S. presidential election, there is
no evidence that this resulted in a significant
rise in overall giving.
 Online giving grew 7.9% in 2016.
 Online donations represented 7.2% of
all fundraising in 2016.
 17% of online donations were made on
a mobile device in 2016.
Source: Blackbaud’s 2016
Charitable Giving Report includes
overall giving data from 6,845
non-profit organizations.

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Overall Giving Trends - Giving by Generation
GENERATION YEARS % OF TOTAL % OF DONOR % OF U.S.
GIVING POPULATION POPULATION
Greatest Generation 1900–1927 6.7% 4.2% 1.5%
Silent Generation 1928–1945 30.5% 28.1% 11.3%
Baby Boomers 1946–1964 41.6% 41.6% 30.2%
Gen X 1965–1980 15.7% 19.0% 26.6%
Gen Y 1981–1997 5.4% 7.1% 30.4%
 Currently, 72% of all giving comes from the Silent Generation and Baby
Boomers.
 The average age of a donor is 62.
Source: Blackbaud’s 2016 Charitable Giving Report includes overall giving data from 6,845
non-profit organizations.

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Overall Giving Trends – Highlights from
Target Analytics
Target Analytics donorCentrics Index
of Direct Marketing Fundraising
analyzes direct marketing giving for
many large nonprofit organizations.
 Overall revenue for the index grew
significantly in Q1, increasing a median
10.0% from the same period a year before.
 Overall donors increased a median 5.6%
year-over-year reversing an 11-year trend
of decline.
 In early 2017, many organizations
experienced increased giving which is
likely related to concern over the polices of
the current presidential administration.
Note: Target Analytics evaluated transactions from 68
organizations, including more than 34 million donors and more
than 80 million gifts totaling over $3 billion in revenue.

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Source: Target Analytics donorCentrics Index of Direct
Marketing Fundraising, 2017 First Quarter Results
• Rolling 12-month revenue growth
can provide longer-term context
for year-to-year trends.
• Over the past five years, the
index has generally seen
halting, inconsistent revenue
growth punctuated by periodic
disaster-related revenue spikes.
• In the most recent two quarters,
roughly a quarter of the
organizations had spikes in
revenue and donors which are
likely related to the results of the
November presidential election.
• The end result is that overall
index revenue has grown a
cumulative median 11.5% from
the twelve months ending Q1
2012 to the twelve months
ending Q1 2017.
Overall Giving Trends – Highlights from
Target Analytics

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 Nonprofit website traffic grew by 4%.
 Nonprofit email lists grew by 10%.
 Nonprofits sent 10% more messages/subscriber.
 On average, subscribers received 69 separate email messages
from a single nonprofit.
 Nonprofit social media audiences also increased.
 Facebook: 23%+
 Twitter: 50%+
 Instagram: 101%+
 Nonprofits digital ad spending increased by 69%.
Overall Giving Trends – 2016 Online Trends:
More, more , more!
Source: 2017 M+R Benchmarks Study

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Overall Giving Trends – Online Revenue
Source: 2017 M+R
Benchmarks Study

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Benchmarks: Email Revenue
Source: 2017 M+R Benchmarks Study

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Traffic to nonprofit websites grew by about 4% over 2015 totals.
Nonprofit email lists grew by 10% in 2016, building on 16% growth the
previous year.
Nonprofits sent 10% more messages per subscriber in 2016 than in 2015.
On average, a subscriber could expect to receive 69 separate email
messages from a single nonprofit in 2016.
Nonprofit social media audiences also increased.
Facebook, 23% growth.
Twitter, 50% growth.
Instagram, 101% growth, with nonprofits doubling their audiences in a
single year.
Nonprofits increased digital ad spending (including paid search, display, and
social media advertising) by 69%.
Online Trends
Source: 2017 M+R Benchmarks Study
representing 133 nonprofit organizations

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2016 Email Metrics from M+R Benchmarks
Source: 2017 M+R Benchmarks Study

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Avalon Analytics®
Observations and Trends

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Individual Giving - cornerstone of funding mix
Individuals represent 72% of funding mix.
Provides revenue diversification and
reliability.
Unrestricted funds.
Supporters can be quickly
mobilized to bridge a funding gap.
Individual donor outreach can be a first line of
defense against program funding cuts.
Increase organizational visibility and reach --
engage the public more broadly in
supporting the broad scope of your mission

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Growth is possible!

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Investment is Half the Battle
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Acquisiti
on Mail
Quantity
MAIL QTY
FILE GROWTH

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Online Growth is Driven by Multiple Join Channels
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
DM Joins Online Joins Other
ONLINE INCOME MATCHED TO JOIN CHANNEL

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Membership/Donor programs are a pipeline to the Major
Donor Program
First Gift Distribution of $1,000+ Donors

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Multi-channel donors are the best donors

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Thank you!
Allison Porter
President
Avalon Consulting Group
805 15th Street NW, Suite 700
Washington, DC 20005
202-627-6502
allisonporter@avalonconsulting.net
Connect with Avalon Today!