Unlocking Success: A Recap of 2023 Year-End Digital Fundraising Trends
It feels like just yesterday we were busy planning our year-end campaigns, and here we are, a month into the new year (time flies when you’re having fun)! With the close of 2023, the team at Fuse Fundraising reflected on the highs and lows of the giving season, and we’re excited to share the digital trends we noticed along the way!
Google:
Search Engine Marketing (SEM) continued to be a powerhouse for fundraising programs at the end of the year. The platform's ability to connect potential donors with relevant causes saw significant success.
In comparing results from last year end, many of our clients saw an increase in revenue for Google Ads with healthier returns on ad spend (ROAS). Notably, cost efficiency improved, with a year-over-year decrease in the cost per donor across all SEM campaigns.
Meta:
Meta continued to be a crucial player in the digital fundraising landscape at this key time of year, leveraging its expansive user base on Facebook and Instagram. Although total donations experienced a dip, revenue held steady due to higher average gifts within the channel. Timing emerged as a crucial factor, with over 50% of December revenue generated in the last week of the year. However, organizations launching campaigns at the early end of the month outperformed others, emphasizing the importance of consistent ad exposure and broader audience reach.
Email Marketing & SMS:
Email, a reliable channel for fostering donor relationships and fundraising, faced challenges with a decline in revenue year over year. This decline, however, can be attributed to sector-specific challenges rather than an inherent weakening of email as a fundraising channel.
More emails did not equate to delivering more revenue year over year. Fearing a high unsubscribe rate because of inbox volume, many client partners maintained the same volume of emails from prior years and saw similar revenue per donor overall. One partner actually emailed a third of the volume from the prior year and raised just as much revenue!
Notably, a shift in performance towards SMS may also indicate a change in donors’ preferred giving channel, signifying the importance of an omni-channel approach to reach donors where they are most likely to engage.
Conclusion
As you look at analyzing the end of year performance, attribution is an incredible tool to see how one channel influences giving in others and where investments should be placed in future campaigns.
Overall, we leave year-end feeling positive about the trends we’ve seen – especially on the heels of some softer months in the late summer/early fall.
That said, we proceed into this year with caution. The disruptors we have faced over the last several years will increase significantly as we head into this election year and it will remain critical to shore up strategies, remain nimble, and stay focused on how to reach key donor audiences and break through the clutter – all while navigating cost increases and weakening philanthropic behaviors.
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