1. Audience Insights & Media Landscape Kevin White, Sr. Vice President of Medial Insights & Integration David DeBetta, Vice President of Media Buying

2. The fundraising landscape

3. 3 Have you done any of the following in the past month?

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7. Fundraising environment insights Charitable giving grew across all sectors in the first three quarters of 2014, a result of improving economic conditions Giving online continues to grow at a higher rate than overall giving, especially for smaller organizations 2015 giving is expected to decline compared to 2014, especially in April through September Economic factors (bull stock market, low interest rates, and virtually no inflation) continue to drive strong major gift activities, donor advised fund giving, and foundation grants 7

8. Four key factors that impact charitable giving are: Stock market performance – most often impacts higher level giving Inflation – affects disposable income available for charitable giving Unemployment – affects people’s willingness to give Consumer sentiment – affects people’s willingness to give 8

9. Canadian & US stock market performance 2012-2015 9

10. Inflation looks good The US inflation rate decreased to less than 2% in September and October (this is comparable with Canada @ 1.94%) This decrease was partially driven by falling energy costs (gasoline, electricity and fuel oil) 10

11. Unemployment is better than it was Unemployment is now just below 5.9%, following a pattern of slow, steady declines with periodic plateaus – the current rate is a six-year low (Canada slight increase to 6.6%) Other employment indicators (involuntary part-time workers and unemployed persons not looking for work) have either decreased or remained unchanged over the previous year 11

12. Consumer sentiment Consumer sentiment has been consistently over 80 since the beginning of 2014 and has been climbing for the last three months Canada has seen a decline since September of 5.2 points to 82.7% 12

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14. Age differences in Canadian donors 14 Statistics Canada, 2010 Survey of Giving, Volunteering and Participating; Turcotte, Martin. 2012.

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17. “Our donors are women” is a myth…globally Many organizations are finding their gender split is closer to 50/50, with men sometimes giving as frequently as women, and usually giving larger gifts. 17

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19. Wealthier donors are giving less From 2006 to 2010, people earning less than $100,000 per year increased giving by 4.5% compared to a decrease of 4.6% among those earning $200,000+ 19 Source: The Chronicle of Philanthropy October 5, 2014 updated January 13, 2015

20. Multi-screen… …is not just about screens

21. Multi-screen / Multi-touch point Consumer behavior has changed A single channel is no longer enough to capture consumers Multiple devices/channels are used to make purchase decisions Simultaneous or near-simultaneous interaction with multiple channels is frequent Similar or complementary experiences are no longer an option 21

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24. In-direct response is now a way of life The days of one-to-one measurement of all donor interactions is past. The new norm is being in front of the right person with the right message at the right time, and they’ll respond wherever they prefer. 24

25. The silver bullet is (still) dead Successful programs comprise a complicated mix of multiple activities with 1%, 2%, 3%, or 5% improvements in performance adding up to a 25% increase—there are few to none that produce 25% alone. 25

26. Data

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28. You may not realize it… 2014 programs utilized more than a dozen data sources, from Wiland & Apogee co-ops, to list models & profiling, RFM, donor tagging, loyalty models, website optimization, DSPs, Facebook, TV & radio ratings, demographic appends, DFAs, and other sources to maximize acquisition & cultivation performance 28

29. Mobile

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32. Content marketing

33. What is content marketing? Technique of creating and distributing valuable, relevant and consistent information to attract and acquire a clearly defined audience – with the objective of driving profitable donor action. 33

34. 6 rules of Content marketing Non-promotional Doesn’t always ask for money Relevant to donor Provides valuable content Closes a gap Helps better explain the mission Well written Is engaging, interesting, and professional Relevant to you Ties the donors more closely with you Gives proof Shares successes of your organization 34

35. Other trends

36. Direct mail is (still) not dead It remains the principal acquisition source for most organizations, and even those new to market are seeing success in this channel. In many cases, performance is rebounding. 36

37. Outdoor advertising is growing More and more organizations are including out-of-home advertising for its (indirect) lift to other channels, and its ability to help charities break through the clutter. 37

38. Radio is being discovered (again) This channel in its diverse forms is directly acquiring donors (through radiothons), driving web traffic (through :60 spots or :10 traffic sponsorships), and increasing awareness among new audiences. 38

39. Personalization is more important than ever Higher long term value (general market sees up to 300%) Personalized display ads see up to 10X higher click thru rate Increases loyalty and propensity to give another gift 3 out of 4 consumers are willing to give their personal info for a more custom experience 39

40. Rate trends Media rates remain steady across most media channels Digital is showing a slight increase year over year Mobile is fluctuating depending on channel 40

41. Kevin White Sr. Vice President of Medial Insights & Integration kwhite@russreid.com David DeBetta Vice President of Media Buying ddebetta@russreid.com Tweet your takeaway from this session #RussReidLive 41 Thank You