Why Are Associations Falling Behind in Revenue?

Overcoming revenue challenges in associations through strategic digital marketing.

Associations today face a dual challenge: declining memberships and the need to diversify revenue streams. A strategic marketing budget is critical in addressing these challenges. However, many associations underinvest in marketing, often allocating just 1% of their budget compared to the industry standard of 10-15%. This lack of investment hampers opportunities for growth in memberships and nondues revenues.

What the marketing budget figures show

Strategic budgeting for success according to Deloitte, marketing budgets rose to 13.6% of total company budgets in 2023, highlighting the importance of strategic marketing investment. HubSpot notes a shift from traditional advertising to digital platforms like Facebook and TikTok, emphasizing the need to align budget allocation with industry benchmarks and emerging trends.

Lessons from Kabloom’s Case Study Kabloom’s $16,000 campaign, which generated $1.8 million in revenue and record attendance for a medical association, illustrates the power of strategic marketing. Key elements included precise audience segmentation, optimized channel selection, and data-driven budget allocation.

How can you succeed in digital marketing?

5 Steps for Associations to Succeed in Digital Marketing

1. Invest Strategically: Allocate marketing budgets in line with industry benchmarks to fuel growth in memberships and revenue.
2. Understand Your Audience: Use data analytics for refined segmentation and tailored messaging to enhance engagement.
3. Optimize Channel Selection: Focus on digital platforms like social media, SEO, and PPC to reach and engage your target audience effectively.
4. Leverage Data: Continuously optimize campaigns with real-time insights to improve performance
5. Develop a Comprehensive Strategy: Align marketing goals with organizational objectives to ensure sustainable growth.