VALUE ADDED

What Does Value Added Mean?

Wikipedia defines VALUE ADDED as follows:
In economics, the difference between the sale price and the production cost of a product is the value added per unit. Summing value added per unit over all units sold is total value added. Total value added is equivalent to Revenue less Outside Purchases (of materials and services). Value Added is a higher portion of Revenue for integrated companies, e.g., manufacturing companies, and a lower portion of Revenue for less integrated companies, e.g., retail companies.

It is a great definition.

Can value added be intangible? YES.

So now the question: What is the value added benefit for a playbill, to a performing arts event?

Well we know that from the audience perspective:
1. The playbill is part of the evening’s experience.
2. The playbill informs the audience about the performance and performers biographies.
3. The playbill informs the audience of upcoming events.
4. The playbill gives accolades to those that have monetarily contributed to the organization.
5. The playbill is a keepsake from the performing arts event. (hopefully a wonderful reminder of the magic they experienced)

 Something that is often overlooked is the intangible, value added, from an advertiser’s prospective:
1. The advertiser is perceived as a “friend” of the performing art group by the audience. We like to say that “friends buy from friends.”
2. The advertiser becomes connected to the audience subconsciously.
3. The advertiser can become entertaining to the audience by virtue of their message.
(see Why are some advertisers happy and others sad?)

When selling ads for a playbill, it is important to emphasis these points. Too many times we concentrate on selling the value in terms of monetary value. Examples are cost of ad versus distribution, cost of ad over number of productions, etc.