SPRING FOR MUSIC (SFM)

2012 Campaign Analysis

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Executive summary

Order transactions received: 2,294 total SFM transaction records for 10,095 tickets.

Transactions fall into two categories: Comp tickets: 690 tickets Paid tickets: 9,405 tickets worth

$226,839. Paid tickets fall into two categories: Group sales: 4,588 tickets

worth $112,183 (32 orders) Consumer sales: 4,817 tickets

worth $114,656 (2,231 orders)

Reality check: We compared the data we received to the SFM sales report; tickets and revenue match 100%.

All promotable households (HH): 1,231 1,329 orders (1.1 orders/HH) 3,095 tickets (2.5 tickets/HH) $75,132 ($61.03/HH; $24.28/Tkt.) Promotable households account for

65% of consumer sales. Non-promotable accounts: 902

902 orders made by non-promotable accounts/walk-ups

1,722 tickets (1.9 tickets/HH) $39,524 ($43.82/order; $22.95/Tkt)

Please note: A promotable household has a first and last name on the record and an address recognized by the USPS as deliverable.

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Overview of SFM sales Consumer sales detailsPromotable vs. Non-promotable Households

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Executive summary (cont.)

In-Market households: 864 920 orders (1.1 orders/HH) 2,050 tickets (2.4 tickets/HH) $49,107 ($56.83/HH;

$23.95/Tkt.) Out of Market households: 367

409 orders (1.1 orders/HH) 1,045 tickets (2.8 tickets/HH) $26,025 ($70.91/HH;

$24.90/Tkt) This analysis will focus on the

864 in-market, promotable, consumer households

Sales channels for consumer purchases (both Promotable and Non-Promotable households; both In-Market and Out of Market) 47% of orders via internet 38% of orders in person 15% of orders by phone

Promotable consumer orders averaged 1.2 SFM events per order

Of the 1,231 promotable consumer households, 622 accounts (51%) were created specifically for SFM 2012 339 of the new accounts were in-market 283 of the new accounts were out of market

Of the 1,231 promotable consumer households, 88 (7%) attended SFM in 2011. 82 of the returning households were in-market 6 of the returning households were out of

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Promotable household (HH) detailsIn-market vs. Out-of-market C. Stager order questions

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Focus on the 864 promotable in-market households

Who are the SFM buyers?

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Education

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All categories represented; very high concentration with college and graduate degrees.

Purchasing TypeEducation

Less than HS HS Some College College Graduate Degree Grand Total

SFM Buyers 2012 3.9% 12.5% 13.8% 29.2% 40.7% 100%SFM Buyers 2011 5.5% 10.5% 13.0% 26.6% 44.4% 100%Total SFM Buyers 4.8% 11.4% 13.4% 27.7% 42.8% 100%NYC Market 18.9% 22.7% 21.3% 20.0% 17.1% 100%

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Direct response, cultural interest

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Very active direct response buyers; extremely high levels of cultural interest and activity.

Purchasing Type

Direct Response

Multi Buyers

Cultural Interest

Extremely/ Highly Likely

Very/ Somewhat Likely Likely Very/ Somewhat

UnlikelyExtremely/

Highly Unlikely

SFM Buyers 2012 77.4% 63.0% 21.3% 7.9% 7.5% 0.3%SFM Buyers 2011 81.7% 64.7% 20.8% 8.8% 5.8% 0.0%Total SFM Buyers 79.8% 63.9% 21.0% 8.4% 6.5% 0.1%NYC Market 62.8% 26.0% 34.5% 17.9% 19.6% 1.9%

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Age of head of household

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All age categories represented; concentration 55 years and older.

Purchasing TypeAge of Head of Household

19 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 to 74 75 to 84 85+ Total

SFM Buyers 2012 1.0% 7.5% 13.4% 20.7% 27.2% 17.7% 12.5% 0.0% 100%SFM Buyers 2011 1.5% 7.3% 16.8% 21.3% 25.8% 16.8% 10.0% 0.5% 100%Total SFM Buyers 1.3% 7.4% 15.3% 21.0% 26.4% 17.2% 11.1% 0.3% 100%NYC Market 2.1% 10.6% 21.7% 27.7% 20.5% 9.8% 6.2% 1.5% 100%

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Household income

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All income categories represented; concentration $150k+

Purchasing TypeHousehold Income

<$25K $25K to <$35K

$35K to <$50K

$50K to <$75K

$75K to <$100K

$100K to <$150K >$150K Total

SFM Buyers 2012 10.8% 2.6% 5.9% 16.7% 14.4% 16.7% 32.8% 100%SFM Buyers 2011 6.8% 4.0% 7.8% 18.3% 13.8% 17.5% 31.8% 100%Total SFM Buyers 8.5% 3.4% 7.0% 17.6% 14.1% 17.2% 32.2% 100%NYC Market 14.8% 6.6% 10.4% 17.9% 14.1% 17.2% 18.9% 100%

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Family structure:Number of adults, marriage, and presence of children

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Spring for Music buyers are less likely to have children in the household.

Purchasing Type

Number of Adults

% MarriedConfirmed

Presence of Children1 2 3+

SFM Buyers 2012 43.0% 26.6% 30.5% 45.6% 15.4%SFM Buyers 2011 40.6% 25.8% 33.6% 47.9% 15.3%Total SFM Buyers 41.6% 26.1% 32.2% 46.9% 15.3%NYC Market 40.7% 26.8% 32.6% 51.7% 37.2%

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Geographic concentration SFM 2012 Buyers: Top 12 ZIPs

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ZIP Community State/ County Total HH Promotable SFM HH

% Penetration

Promotable SFM Revenue

10023 Upper West Side NY New York 38,748 41 0.11% $2,55010025 Upper West Side NY New York 44,692 36 0.08% $2,22510024 Upper West Side NY New York 30,688 26 0.08% $1,66910011 Chelsea/Greenwich Village NY New York 30,009 20 0.07% $1,05010128 Upper East Side NY New York 31,771 18 0.06% $82511215 Park Slope NY Kings 29,203 18 0.06% $1,07510019 Chelsea NY New York 25,092 15 0.06% $72510022 Gramercy Park/Murray Hill NY New York 20,796 14 0.07% $97510003 Union Square NY New York 28,503 13 0.05% $77510016 Murray Hill/Kips Bay NY New York 32,058 13 0.04% $90010027 Harlem/Morningside Heights NY New York 23,096 13 0.06% $80010065 Upper East Side NY New York 16,369 13 0.08% $885

Total Top 12 Zips: 351,025 240 0.07% $14,454Total NYC Market: 7,409,645 864 0.01% $49,107

Total ZIPs as a % of Total: 4.74% 27.78% 29.43%

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Spring for Music 2012 Buyer Households by

ZIP Code

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Executive summary (cont.)Other Carnegie Hall Purchasing by 2012 SFM Buyers

235 promotable, in-market, consumer SFM buyer households purchased 1,485 Carnegie Hall single event tickets worth $81,872.

The top 10 single ticket concerts by number of households are listed below. See Attachment 3 for full ranking.

We don’t have enough data to provide perspective to the list of concerts purchased; Carnegie Hall’s most popular concerts will likely appear on this list.

Also, 103 households purchased 2,254 Carnegie Hall subscription tickets worth $140,006.

Other Carnegie Hall concerts purchased from 1/19/11 through 5/15/2012 Please note

Concert HH Tickets Revenue

San Francisco Symphony 34 81 $4,418

The Cleveland Orchestra 24 32 $1,791

Atlanta Symphony Orchestra 22 41 $1,933

Baltimore Symphony Orchestra 18 37 $1,540

The Philadelphia Orchestra 3 18 26 $1,494

American Composers Orchestra 2 17 29 $1,208

Boston Symphony Orchestra #9 17 22 $1,027

New York String Orchestra 16 27 $843

Mariinsky Orchestra #1A 15 26 $1,275

Mitsuko Uchida 15 42 $2,109

13 Performance of mailing

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Executive summary (cont.)Mail campaign

Campaign structure One mail wave on 4/2/2012 69,990 households targeted,

plus 10 seed names Total mail results

306 responses generating 753 tickets and $17.8k

The mail campaign accounted for 37% of tickets sold to promotable in-market consumer households, up from 28% in 2011.

Return on investment: The mailings were not profitable. Revenue/piece mailed: $0.25

0.44% response $58 average order size

Average cost/pc: $0.68 Comparison to 2011 on next

slide. Please note that 35% of total

SFM consumer sales were walk-ups where no name or address data was collected. Sales attributable to the mail campaign are probably underestimated somewhat.

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Campaign structure and

total resultsROI and perspective

Executive summary (cont.)Campaign comparison: 2012 vs 2011

Average order increased, driven primarily by an increase in tickets/order.

Although fewer concerts were promoted in 2012, the revenue generated by the mailing increased slightly.

Note that Impact of Direct Mail is for promotable, in-market, consumer households

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  Campaign Comparison

 2012 2011

Variance

% Variance(2012 from

2011)Promotions 1 2 (1) (50.0%)

Promoted Concerts 6 7 (1) (14.3%)

Households (HH) 69,990 60,380 9,610 15.9%

Pieces mailed 69,990 69,984 6 0.01%

Touches/HH 1.0 1.2 (0.2 ) (13.7%)

Responses 306 321 (15) (4.7%)

Response Rate 0.44% 0.46% (0.02%) (4.7%)

Tickets 753 727 26 3.6%

Tickets/Order 2.5 2.3 0.2 8.7%

Revenue $17,793 $17,401 $392 2.3%

Revenue/Tkt $23.63 $23.94 ($0.31) (1.3%)

Rev/Pc mailed $0.25 $0.25 $0 0.0%

Avg cost/Pc mailed $0.68 $0.68 $0 0.0%

Avg Order $58 $54 $4 7.3%

Impact of Direct Mail 37% 28% 9% 32.1%

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Executive summary (cont.)Summary of segment profitability

Overall, the mailing was not profitable. The only profitable segment was SFM Buyers from 2011. Modeled Prospects in Tier

1, both from Experian and List Trade sources, were close to break even. At a cost of $0.68 per piece mailed and keeping response rate (0.44%) and tickets/order (2.5)

constant, ticket price would have needed to be $62 in order for the mailing to break even.

Executive summary (cont.)Performances purchased by mail responders

See Attachment 1 for additional details

Performance Tickets

Revenue % of Total Revenue

Generated by Mail

Alabama Symphony Orchestra 149 $3,588 20.2%

Houston Symphony 134 $3,175 17.8%

Milwaukee Symphony Orchestra 134 $3,175 17.8%

Nashville Symphony 127 $3,000 16.9%

New Jersey Symphony Orchestra 128 $2,967 16.7%

Edmonton Symphony Orchestra 81 $1,888 10.6%

TOTAL 753 $17,793 100%

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Two-step modeling process

We matched 2011 SFM buyers to the Experian universe of households in the New York City market.

Based on these matches we modeled SFM buyers based on such variables as: Education Direct response multi-buyer Interest in cultural arts Location Age, Income, Presence of children

After scoring the model, we selected 97.5k households for inclusion in the list trade model.

Initial preparation We received 152,229 gross records from

ten organizations. After householding, these trades yielded

123,081 promotable households Final list trade model table

Prospects from the market model were added to the list trade prospects.

220,662 promotable households were in the final table for modeling.

Modeling We matched SFM buyers from 2011 to

the model table Based on these matches, we modeled

SFM buyers based on the interactions with your ten list trade partners.

After scoring the model table, we selected 38,088 list trade households and 31,183 Experian households for mailing.

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Develop market model using Experian data

List trade cross sell model

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Executive summary (cont.)Summary of Modeled Prospects

Modeled Experian Prospects generated 118 responses 275 tickets; $6,566 revenue; $0.21 revenue/piece mailed

0.38% response $55.64 average order size

Modeled List Trades from the 10 organizations generated 161 responses 404 tickets; $9,452 revenue; $0.25 revenue/piece mailed

0.42% response $58.71 average order size

The top 5 lists accounted for 98% of revenue generated by modeled prospects: Experian (118 HH; $6,566) Carnegie Hall (78 HH; $5,050) New York Philharmonic (43 HH;

$2,213) Lincoln Center (22 HH; $1,100) American Symphony Orchestra

(10 HH; $714) Please note that households may

have relationships with more than one list source but were assigned to one source as part of the merge/purge process.

See Attachment 2 for additional details.6/18/2012

Overall Modeled Prospect Performance

Top 5 List Sources by Revenue

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Executive summary (cont.)Conclusions and discussion

The mail campaign was not profitable. Some discussion points: Sales attributed to the mail campaign are probably underestimated.

35% of consumer revenue was associated with walk-up sales without associated name and address information.

We estimate that the rev/pc mailed would increase from $0.25 to $0.38 if a proportionate number of walk-up sales were attributed to the mailing.

Reducing the cost/pc would increase likelihood of profitability. Average price per ticket is low.

Breakeven price per ticket: two scenarios Keep the following constant:

Cost per piece mailed: $0.68 Response rate: 0.44% Tickets/order: 2.5

Scenario 1, Ignore walk-up sale impact: Breakeven price per ticket is $62.

Scenario 2, Include walk-up sale impact: Breakeven price per ticket is $41.

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Attachment 1: Single ticket purchasing by performance

Performances purchased by mail responders

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Attachment 2: Modeled List Results by Source

Results by modeled list source

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Attachment 3: Other Carnegie Hall Purchasing

Other Carnegie Hall Purchasing

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