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Increasing NAMC’s Museum Patronage Among Young Adults Prepared for NAMC management Prepared by Tiffany Luu Vivian Ly Lucky Phan Brittany Wooten November 21, 2013

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Increasing NAMC’s Museum Patronage Among Young Adults

Prepared for NAMC management

Prepared by Tiffany Luu Vivian Ly Lucky Phan Brittany Wooten

November 21, 2013

N A M C MEMO OF MEMORANDUM TO: Mary Gibson, Vice Chairman of Marketing Operations FROM: Tiffany Luu, Vivian Ly, Lucky Phan, and Brittany Wooten DATE: November 21, 2013 SUBJECT: Social Viral Marketing Campaign Here is the report you requested on September 17 regarding creative concepts for a social media viral marketing campaign directed at the National Art Museum Consortium’s target audience of 18 to 25 year olds. As seen in the following report, museum participation from young adults is declining at an increased rate. A large component to this decline stems from a lack of communication and appeal from museums. To get more young adults to come to the museums, we require new methods of marketing to the target audience. During the course of our research, we explored innovative approaches in revitalizing consumer perception through social media. We found creative ways to engage and attract our target audience by investigating current entertainment alternatives that have successfully integrated social media in marketing campaigns. Thank you for giving us the opportunity to work on this assignment. We have gained valuable knowledge and will present the details of our findings on November 21.

TABLE OF CONTENTS PAGE

Introduction …………………………………………………………………………........... 1

Reasons Museum Patronage Is Declining ………………………………………………… 1 Influences On Young Adults’ Purchasing Decisions ………………………………………2 Product Popularity…………………………………………………………………......... 3 Reference Groups …………………………………………………………………..........4 Product Interaction ……………………………………………………………………… 6 Social Media Campaigns Reaching Young Adults …………………………....................... 6 Guggenheim ……………………………………………………………………….......... 7 Tate Modern ……………………………………………………………………….......... 7 Museum Of Me …………………………………………………………………………. 8 Old Spice ……………………………………………………………............................... 8 Conclusions …………………………………………………………………....................... 9 Recommendations ………………………………………………………………………… 11 References ………………………………………………………………………………… 14 LIST OF ILLUSTRATIONS

FIGURES PAGE 1. Most Visited Museums in 2011………………………………………………………… 4 2. Museums With the Most Facebook Likes…………………………………… ……........ 4 3. Frequent Moviegoers (Millions) by Age …………………………………………......... 5 4. Users Reached Through Tate Modern Twitter Campaign …………………………….. 7 TABLES 1. Smithsonian Institute 2010 Visitor Statistics ………………………………………...... 2 2. Smithsonian Institute 2013 Visitor Statistics ………………………………………...... 2 3. Group Composition of Typical Visit to Museums and Cultural Institutions ………....... 4

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INCREASING NAMC’S MUSEUM PATRONAGE AMONG YOUNG ADULTS INTRODUCTION Museums nationwide noticed a peak in attendance in 2010. Since then ticket sales have declined over 21 percent; the vast majority of this figure is from shrinkage in turnout from young adults. Studies have shown that loss in attendance is not due to dislike of either the art offered or the museum locations. Instead, decreased attendance is due to the fact that museums are not marketing themselves in an engaging manner. Young adults are constantly using new technologies and social media to keep themselves updated on various forms of entertainment. However, many museums have not adjusted with the growth in technology and have lost touch with young adults. Museums will need to hold a larger presence within the realm of social media in order to create a more relevant image within the eyes of 18 to 25 year olds. To reconnect with our target audience, Mary Gibson, Vice Chairman of Marketing Operations, has asked a team of college-student interns to explore creative forms of marketing that will help increase museum participation. The purpose of this report is to evaluate what appeals to young adults, discover successful cases of viral marketing, and offer creative concepts. The report outlines several methods of reaching the younger demographic to increase museum visits, but the exact impact of these methods is challenging to predict. In the process of this report, we analyzed statistics on museum participation and compared trends in social media. We researched cases in which other museums reinvented their marketing strategies and properly utilized new forms of technology in order to reach young adults. Through this proposal, you will find several different available social media outlets that will successfully help increase attendance by the target audience. REASONS MUSEUM PATRONAGE IS DECLINING In 2010, most museums saw a large spike in both visits and visitors. Although in the heat of recession, it was expected. With over half of the museums across the country charging an average $7 entrance fee and the remaining 41 percent offering free admission, visitors could not help but seize the discounted activities. As the economy regains strength, however, this satisfying increase is diminishing once again. Who still visits museums regularly? Each type of museum receives its majority from differing demographics. According to a study completed in 2010, art and history museums received the bulk of their attendance from patrons over the age of 50 while 89 percent of science and children’s museum visitors were under the age of 50. Since this study was published, the overall attendance of museums has decreased almost 21 percent.

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Smithsonian Museum Visitors in 2010 and 2013

Table 1 Table 2

Smithsonian Institute 2010 and 2013 Visitors Statistics

Above are the figures the Smithsonian released at the end of September 2013 on their reported attendance for the past seven years. Since 2010, visits have decreased by almost five million. Researchers believe that these numbers are continuing at a steady decline and The Survey for Public Participation in the Arts (SPPA) states that it is not the participation that is expiring but rather the marketing methods museums utilize. Although these same museum out-of-date practices still appeal to older generations, our youth is far from intrigued. With these facts in mind, a call to action has been announced, and museums nationwide are working together to increase the relativity of the arts with younger generations.

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INFLUENCES ON YOUNG ADULTS’ PURCHASING DECISIONS As we know, our target market consists of 18 to 25 year olds, which is part of the Generation Y or Millenial’s demographic. Generation Y (1982-2003) presently makes up one third of the U.S. population, and they demonstrate a unique set of purchasing behaviors. We analyzed the different factors that affect their purchasing decisions and found some key influencers.

PRODUCT POPULARITY

One of the biggest traits among young adults is the desire to fit in and to be accepted by their equivalents. They continually engage in activities or purchase products that are mainstream in order to be seen as trendy among their peers. When young adults participate in mainstream activities, they believe they will become more socially accepted. Therefore businesses, products, or services that seem popular will appeal to this demographic.

Yelp

Sites based on ratings from online users have become an almost necessary factor in the Millennia’s decision process for where they should spend their time and money. Yelp is a site that connects online visitors to a variety of locations and businesses. From October 20, 2013, to November 18, 2013, Yelp had over 152 billion visits from users within the U.S. The site primarily relies on user input in the form of comments, reviews, and pictures. Reviews are compiled into categories such as closest location, cheapest prices, and highest ratings so that users can easily filter through entertainment options. Businesses are able to use Yelp to show young adults that their establishments are the popular option compared to others.

Social Networking Sites

Facebook is the most popular social networking web site, with an estimated 750 million users worldwide as of August 2011, half of whom log in at least once on any given day. Also, Instagram has increased 50 million users since March 2013, enabling them to reach over 150 million active users by September 2013; 34 percent of which are young adults from the ages of 18 to 25. Businesses use social media to provide product and event information, while regular users post their personal information and illustrate their likes and dislikes. Through these sites, young adults can determine which businesses are most popular among their age group. Once young adults identify a business as popular on these social sites, they are more likely to become a consumer for that business.

The data below was obtained from Museum Analytics, which receives information directly from over 3,000 museums all over the world. Figure 1 illustrates the top four museums with the largest amount of Facebook page likes. Figure 2 illustrates the top four most visited museums in 2011. These figures show that museums such as the Musee du Louvre and the Metropolitan Museum of Art have successfully captured popularity online. Thus, they are leading in museum attendance.

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Figure 1 Most Visited Museums in 2011

Figure 2 Museums With the Most Facebook Likes

Museum Analytics 2013 Attendance Statistics

REFERENCE GROUPS

College students tend to distrust the statements advertisers make on products and services. Instead, if a product is recommended from within a young adult’s reference group, such as their role models or peers, they are more likely to purchase the product or service. Additionally, young adults are inclined to visit art museums with a group of friends instead of by themselves. This behavior is typical of Generation Y because they tend to be team-oriented with a reliance on group learning and tight peer bonds. Table 3 illustrates the propensity of young adults to visit museums with others, most notably their friends.

Table 3 Wallace Foundation 2011 Young Adult Study

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Musical Events

By experiencing moments together, young adults feel relatable and connected with their peers. Concerts and raves provide a place for peers to be around those with the same interest. The Coachella Music Festival and the Electric Daisy Carnival (EDC) are two of the most widely known and attended musical events. EDC attendance has risen from 185,000 people in 2010 to over 300,000 people this past summer. Many come for the good vibrations and electronic dance music, but most come to these events to share the experience with those that have the same interests and passions as they do.

Movies

According to reports conducted by the Motion Picture Association of America, 225 million people went to the movies at least once in 2012. The rate of attendance in movies is so high because they are able to influence consumers through celebrities and word-of-mouth advertisement. Young adults like going to the movies because they hear about a good film from their friends and trust their peers’ recommendations.

Nevertheless, the major factor for movie audiences is whether the actor or actress they like will be in the film. A-list celebrities wield a huge amount of influential power and are often paid millions before films are even made simply because celebrities are a determining factor on whether people will decide to purchase a ticket for that movie. The influence from celebrities and peer recommendations has led to 18 to 24 year olds being the second largest demographic to frequently attend movies, as seen in Figure 3.

Figure 3 Frequent Moviegoers (Millions) by Age

Age

Motion Picture Association of America, Inc. 2012 Theatrical Statistics Pg. 12

Meetup.com

People all around the world have turned to social media in an effort to connect with others. For example, Meetup.com is the largest social media site that organizes interest groups. According to Meetup.com, they currently have “15.48 million members, 141,205 groups, and 424,191 monthly meet-ups.” Members can connect with others who have similar interests by organizing group gatherings and sharing information about museums.

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According to the The New York Times, Scott Douglass created a group called Met Museum Meetup to connect with those who also enjoy walking through museum galleries, so he could have company instead of going by himself. After the group was created, “more than 100 people registered to keep informed of the visits to the Met that he regularly schedules.” The site also allows members to express their opinions and discuss topics related to the group. In addition, Meetup.com is a great way to meet new friends locally and globally.

PRODUCT INTERACTION Customer interactions with products or services on a virtual realm have been shown to improve consumers’ product knowledge, attitudes, and objectives. Young adults especially perceive new media as more trustworthy sources of information for products and services than the traditional elements of the marketing mix.

Museum of Modern Art

The Museum of Modern Art realizes the importance of communicating and interacting with the online community to improve museum participation. Their active social media presence consists of over 218,000 Instagram followers, 1.58 million Twitter followers, and 1.49 millions Facebook page likes. However, MoMA has taken additional steps to appeal to consumers through the mobile world. In the U.S., over 235 million people are smartphone users. One study found that the average smartphone user frequently plays with 6 apps or more in a span of 30 days. MoMA is tapping into these users by providing a mobile app that can be viewed on smartphones and tablets.

The MoMA app is able to give a virtual tour of the museum through images of unique art pieces and brief video clips of theatrical performances. This app offers a wide range of activity interaction: blogs, music lists, and picture postcards. Posts in the blog section have received thousands of likes and comments, which inspire art enthusiasts and provides a chance for them to share their thoughts. Because MoMA continually uploads content onto their social media sites and provides opportunities for consumers to interact with the museum, they have become one of the top 25 most visited museums in America.

SOCIAL MEDIA CAMPAIGNS REACHING YOUNG ADULTS

Social media is a successful tool in not only appealing to young adults, but as a channel of communication. Through years of modernization, the Y Generation has shown enjoyment in quickly sharing their opinions and receiving updates about their peers. Social media has been effective in complementing the fast-pace lifestyle of young adults by allowing them to stay informed about current events at an instant, while providing a creative outlet for young adults to express themselves.

GUGGENHEIM

Technology has shifted in such a manner that video can be produced and watched anywhere-on cell phones, digital cameras, computers, or tablets. The Guggenheim Museum honed in on the artistic and pervasive nature of online videos, as they partnered

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with YouTube in a successful marketing campaign. They announced an online project during the summer of 2010 asking the world to submit videos showcasing art.

After the submission deadline, Guggenheim curators narrowed down the list to the top 25 videos which were later presented at the museum. The Guggenheim YouTube project was so successful that over 23,000 participants submitted videos that accumulated over 24 million views. Nancy Spector, the Guggenheim’s chief curator in New York, said that, “[This project] gave us the ability to touch people instantaneously.”

TATE MODERN

A museum that successfully utilized twitter is Tate Modern, a modern art museum in London. Tate used twitter to promote their new live art space called The Tanks and the festival, “The Tanks: Art in Action” while also permitting visitors to engage in voicing their opinions about the new addition to their art exhibit. The museum boosted visitor participation by providing a comment wall where tweets, hashtagged with #thetanks, were automatically posted for others to see. In addition, Tracey Moberly, an artist, encouraged visitors to take part in social media by hosting an event called “Tweet Me Up” which greatly contributed to the total number of tweets during the festival.

Throughout the fifteen week festival, there were a total of 12,910 tweets about The Tanks, in which 30 percent of them came from retweets (when a pre-posted tweet is then reposted by another user). With over 675,000 followers, each tweet made by Tate Modern generated an average of 40 retweets, which assisted the museum in spreading awareness well past their own followers.

During the events, questionnaires were given to attendees, where researchers found that over 11 percent of those who answered became aware of the festival through some form of social media. Furthermore, Tate Modern increased the traffic to their website. The average clicks on the link to their site for each tweet was about 570 clicks.

Figure 4 Users Reached Through Tate Modern Twitter Campaign

Museums and the Web 2013 Tate Modern Twitter Reach

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MUSEUM OF ME

Nowadays, young adults are constantly posting all kinds of pictures: the car they drive, events they attend, food they eat, and things they do. Of the variety of pictures they take, self portraits are the most common. To take advantage of these facts, Intel collaborated with Facebook in 2011 to create “The Museum of Me,” a gallery of memories of oneself. As long as users have a Facebook, all their photos and videos are turned into an online art exhibit to inform viewers about themselves in two minutes.

Within five minutes of launching their campaign, the page got 36 likes; within five days, the idea quickly became viral, capturing 2.5 million people’s attention. The project allowed users to be creative and expressive towards what photos they wanted to represent themselves. Intel’s unique twist on this new form of virtual art while appealing to the mass population of young adults won them the Best of Show Cyber Lotus at Adfest.

OLD SPICE

Ad agency Wieden & Kennedy created a campaign in 2010 known as “The man your man could smell” with former football player Isaiah Mustafa for Proctor & Gamble’s Old Spice. The overall campaign included coupons, public relations, coverage on blogs, Facebook, and Twitter. However, what sent this campaign over the top was the usage of social media combined with humor.

Old Spice solicited questions for the “Old Spice Guy” via Twitter and Facebook and then had Mustafa “answer” the questions in a comedic fashion. Viewers were attracted by the interactive and hilarious aspect of the campaign. The videos have been viewed hundreds of millions of times on YouTube, making the Old Spice YouTube channel one of the most popular channels. The campaign resulted in sales increasing by 107 percent and more than one million fans on Facebook, thousands of Twitter followers, higher website traffic, and press coverage valued at close to one billion impressions.

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CONCLUSIONS

1. Museum patronage is declining among young adults. a. Our generation today is amused by technology. Museums are not keeping up with

the technology and trends that young adults are following. Because of this, young adults are turning to other forms of entertainment.

b. The marketing methods that traditional museums are using are the main cause for the decline of 18-25 year old visitors.

2. Social media has been proven effective in reaching young adults. a. Because of the instantaneous and informal aspect of Twitter, more young adults

are turning to this site to quickly get updated answers to questions and information on almost anything. They are going to Twitter to keep up with news about friends, family, and celebrities.

b. Facebook’s simple design and easy- to- use features make it one of the most popular social media sites. Businesses enjoy using Facebook because of the free opportunities for advertisements and promotions.

c. Instagram enables young adults to share their lives creatively with friends and family in seconds.

d. Meetup.com is an effective social networking site for helping people join together and attend museums.

3. Many young adults today spend a great amount of their leisure time going to concerts and movies.

a. Concerts and movies appeal to young adults because they want to spend their free time having fun with friends and sharing moments together.

b. Music is a major source of entertainment for 18-25 year olds because it connects them with their peers. Musical events allow for group participation, which appeals to this demographic.

4. Young adults are intrigued by anything humorous. a. People like to laugh and have a good time. Anything comedic will most likely

capture an audience’s attention. 5. Media that allows users to assess trends and make friends is useful for businesses

a. Yelp is a good outlet for subscribers to interact with other users about enjoyable places to go and interesting experiences.

b. Museums can use the reviews on Yelp to improve on exhibitions and services. c. Young adults currently use Yelp to determine the ideal places to go.

6. Young adults are attracted to a product based on its popularity. a. Businesses that used social media were able to increase their popularity and

customer activity from young adults. 7. The biggest influences of Generation Y are their friends, family, role models, and

celebrities. a. Friends and family are normally the most trustable in a person’s life;; thus, when a

family member or friend makes suggestions, young adults will certainly take their words into consideration.

b. Peer pressure is a strong influential force among young adults. People conform to their peers to become accepted. Their purchase behavior is then dictated by what their peers like.

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c. Role models and celebrities affect the decisions of many 18-25 year olds because young adults aspire to be like their favorite people.

d. Young adults like to go to events that enable them to participate in group activities.

8. Social media allows for marketers to interact with larger numbers of consumers at the right place and time.

a. Because social media is easily accessible, people can interact with one another anywhere and anytime. This enables marketers to reach out to a large group of potential clients.

9. When businesses are active on social networking sites, they obtain a larger fan base. a. When museums provide a consistent upload of tweets, more users tend to follow

them. b. More activity on Facebook is linked to more page likes, which is an indicator of

higher museums visitors. 10. Young adults visit social media sites to search for entertainment alternatives.

a. In order to find good deals and affordable prices, people use social media sites like Yelp to read reviews written by other consumers voicing their experiences with a product or service.

b. Because young adults use Facebook to look up activities to do and places to go near their location, Facebook has become an ideal channel for businesses to post their latest promotions.

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RECOMMENDATIONS

The following is a list of social media recommendations that we have compiled based on our findings and conclusions. Supported by our research and data compilation, this list of creative concepts will help museums more efficiently and effectively reach the 18-25 year old demographic, successfully increasing attendance by this target audience.

SOCIAL MEDIA

1. YELP

2. YOUTUBE

3. FACEBOOK

4. TWITTER

5. INSTAGRAM

6. MEETUP.COM

CREATIVE CONCEPTS

1. Celebrity Involvement. Get celebrities or role models involved in our events and promotions. News of high profiled guests participating in the museums’ special events should be highly promoted on NAMC’s desired social media chosen. This can be accomplished through a video with the celebrity announcing the event, pictures of the celebrity at a museum, or blogging about the event and its special guests. The news will create awareness and young adults will attend to support their favorite stars.

2. Discounts for Reviews. Give discounts at NAMC’s gift shops to visitors who check into Yelp and write a review or give NAMC’s museums a ‘like’ on Facebook. This will give visitors an additional incentive to give our museums a good review. In exchange our museums will receive a lot of recognition and publicity and thus prompt more visitors to come to museums to experience what others are experiencing.

3. Celebrity Reviews. Hire a famous Youtube celebrity, or “vlogger”, to review our museums on Youtube. The title of the video should include the vlogger’s name to capture fans’ attention. Also, the video thumbnail must be one that looks appealing to get viewers to tune in; an example would simply be a celebrity admiring one of NAMC’s most dazzling art piece. Once views reach a certain amount, our video will be featured on Youtube’s main page where our video can further reach out to people.

4. Comedic Storytelling. Have famous people reenact stories of how some of NAMC’s art pieces were created and post them on Youtube or Facebook. The videos will include narrations by artists or curators of the museums telling the different stories of the makings of the art. As we know, all art pieces have a story behind them. The stories will be factual and retold in a creative and humorous way to get audience’s to laugh while learning about our art pieces. Young adults will not only watch to see their favorite stars but also for the humor content.

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5. Photo Impersonations. Use Instagram to engage young adults by getting them to post pictures of themselves impersonating art at NAMC’s museums. NAMC’s museums should hold a contest for the best photo impersonation of the art shown. Photos can be taken by NAMC’s iPads, which will be attached to each art showcase. After the photos are taken, they will be automatically posted on Instagram. The pictures will then be entered in monthly photo impersonation contest where the person with the best impersonation will win merchandise from one of NAMC’s gift shops.

6. Meme Games. Post some of the museums’ portraits onto Facebook and have users create memes for them. This will be a fun way to get people to participate and get involved in art while sparking creativity in young adults. The more humorous and creative the memes are, the more likes they will get on Facebook; the more likes on Facebook the paintings receive, the more exposure NAMC’s museums will get.

7. Interactive Apps. Create a mobile app to interact with young adults while providing them with information. We can create a mobile application that allows users to take a virtual tour of different museums by posting pictures and brief video clips of theatrical performances that are in the museum. These postings can receive “likes” and comments so that users can interact with one another. Events can be placed into calendar form and notify mobile users of highly anticipated exhibitions.

8. Trendy Hashtags. Use creative hashtags relevant to museums to get people to post tweets about us. Encourage tweets and tweet frequently to get twitter followers. Hashtags will provide people with a list of tweets related to NAMC’s museums;; this way, people can have easy access to updated information about our events and learn more about art. Trendy hashtags are more likely to get users’ attention and get them to reply to our tweets.

9. Music Videos. Create music videos using popular songs to showcase current exhibitions at the museum. The videos will then be uploaded onto Youtube and Instagram. Once the videos are uploaded, museums will need to create periodic tweets and facebook posts about the video to keep the online world informed. A contest will be held asking viewers which music video they enjoyed the most. Videos with the most comments and likes can then be compiled into a track list for an annual concert at the museum. The concert will have the original artists of the songs perform on stage as something for young adults to look forward to. The campaign uses a mixture of product interaction to create interest in young adults, but also to raise awareness about the museum.

10. Short Films. Allow Youtube celebrities to create short films at the museums and have them upload the films onto Youtube. The plot of the short film can be about two young adults on a classy and romantic first date admiring artwork or a detective solving the mystery case of a missing artifact. Youtubers can help promote the museum to their viewers through the setting of the film. The more museums are used as locations for filming, and Youtube users post the videos online, the more museums will become recognized. This can lead to more museum visitors because viewers are intrigued by the location of the film. In addition, the Youtube celebrity can credit the museum at the end of the clip for allowing them to use their space to record which will directly talk about the museum to young adult viewers.

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11. Instagram Advertisements. Construct creative advertisements that will be shown within users’ picture feeds. The advertisements can include different pictures of museum attendees enjoying their visits, artists that are featured within the museum, or sneak-peaks of artworks that are available to experience in person. These advertisements will raise awareness about the various museums available to visit, as well as provide museums with opportunities to promote featured deals and upcoming events.

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