Internet Return on Investment. April 23, 2009
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1 Internet Return on Investment April 23, 2009
2 Introductory Notes Blackbaud s SONI Survey Series: Return on Internet Investments Survey was open from April 7 to April 17, valid responses were received Number of responses varies by question Market Research Page #2
3 Website 97% have a website 2008 median spend on the website: $5,000 Median donations collected through website: $3,000 Measurement Value Median amount collected through website transactions $5,000 Median ROI of website 110% Median amount collected through website transactions (for those that collect more than $0) $20,000 Median ROI from website transactions (for those that collect more than $0) 372% Market Research Page #3
4 Marketing or Fundraising 56% conduct marketing or fundraising The purpose of marketing is often solely communication rather than direct revenue generation (memberships, events, ecommerce, donations) Median amount collected in 2008: $1,000 One-third collected more than $10,000 as a result of marketing/fundraising in 2008 Median ROI: 53% For those that collect funds as a result of marketing/fundraising the median ROI is 200% Measurement Value Median amount collected as a result of marketing or fundraising $1,000 Median ROI from marketing/fundraising 53% Median amount collected as a result of marketing /fundraising (for those that collect more than $0) Median ROI from marketing/fundraising (for those that collect more than $0) $10, % Market Research Page #4
5 Participation in Online Events Only 1 offer online participation in a-thon or friends asking friends -type events Arts/cultural organizations and K-12 schools were the most likely to say they offer online event participation The median amount raised through such events is $11,000 Median return on investment in 2008: $1,084% Measurement Value Median amount raised through a-thon or friends asking friends type events $11,000 Median ROI from a-thon or friends asking friends type events 1,084% Market Research Page #5
6 Social Networks Where Organization has a Profile 52% said their organization participates in social networking Facebook is by far the most popular networking site for respondents These organizations connect with a median of 600 constituents through social networks 38% attribute a portion of fundraising contributions to social networking 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Social Networks Where Org Has Profile 92% 4% 4% 33% 29% 44% 8% 13% Measurement Value Median amount raised through social networking (for those that receive contributions $175 through this method) Median ROI from social networking 100% Market Research Page #6
7 Appropriateness of Current Internet Investment Level 100% 80% Appropriateness p of Current Internet Investment 2% 3% 19% 34% 27% 34% 60% 40% 20% 61% 78% 66% 69% 0% Website marketing Online events Social networking Not enough Just right Too much Most organizations would like to invest more in the Internet, particularly in the area of marketing Market Research Page #7
8 Anticipated 2009 Change in Internet Investments Interestingly, even with the poor economy in 2009, most organizations plan to increase their investments in marketing, social networking, and their organization s website Most project no change in their organization s investment in online events The percentages were slightly different for those currently conducting online events 46% plan to increase, 46% plan to keep the same, and 8% expect a decrease 100% Anticipated 2009 Change in Internet Investment 80% 60% 53% 58% 36% 57% 40% 20% 41% 39% 62% 39% 0% 6% 3% 2% 3% Website marketing Online events Social networking Decrease investment No change Increase investment Market Research Page #8
9 Respondent Demographics Organization Income 34% have annual revenue <$1m 3 $1m-$9.9m$9 9m Total Contributions 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Less than $100,000 30% $10m+ 14% Total Revenue 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Less than $100,000 6% $100,000 to $249,999 10% $250,000 to $499,999 $500,000 to $999,999 13% $1 million to $2.9 million 16% $3 million to $4.9 million 9% $5 million to $9.9 million 11% $10 million to $24.9 million 13% $25 million to $49.9 million 8% $50 million to $99.9 million 4% $100 million or greater $100,000 to $249,999 $250,000 to $499,999 $500,000, to $999,999, 16% 1 17% $1 million to $2.9 million 16% $3 million to $4.9 million 4% $5 million to $9.9 million $10 million to $24.9 million $25 million to $ million 2% $50 million or greater 4% 4 raise <$500k in contributions annually 38% raise $500k-$4.9m 17% raise $10m+ Market Research Page #9
10 Respondent Demographics Vertical and Role Good spread across verticals Healthcare, social service, and community/youth comprise 46% of respondents Fundraising/ Development 52% Functional Role Marketing/ Public relations Program staff 2% Technology 7% Religious 4% International School 8% Organization Type Social service 17% Higher education 11% Other 10% Healthcare 17% Advocacy Animal related 1% Community and youth 12% Arts and cultural 8% Environmental 2% Executive/ Management staff 28% Other 3% Administrative staff 3% More than half of respondents are in fundraising roles 28% are executive/management Only are marketing Market Research Page #10
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