Digital Business Models for Museums
How can museums make money in the digital age?
In recent years, the rapid development of the Internet and digital technology has provided people with multiple forms of digital entertainment, such as streaming media services and social media, and people can enjoy rich entertainment and cultural experiences in the home, which is competing with traditional museums. In addition, the COVID-19 pandemic has caused most museums to close or limit the number of visitors, and many people are still cautious about public places, resulting in a decline in the number of visitors to traditional museums, which has lost a lot of revenue and significantly reduced operational capacity. To be sustainable, museums need to expand to new revenue streams and find new ways to generate revenue - and the answer is digital transformation.
“Now that physical spaces are no longer the priority, the cultural sector is rushing to adapt events, exhibitions and experiences for an entirely digital-first audience.” ——Jiajia Fei
Through a range of digital content such as commercial sponsorships, virtual events, and digital memberships, more and more museums are adopting digital business models and fully leveraging the power of the Internet to generate sustainable revenue streams.
Commercial Sponsorship of Online Content
Commercial sponsorship of online content through partnerships with businesses or brands can provide a diversified revenue stream for museums. The museum highlights the company's brand display in its social media platforms and content, such as product placement and logo display, placing sponsors' messages on websites and social media posts for promotional purposes. This mutually beneficial collaborative approach allows the museum to increase its online presence and visibility while generating revenue.
Video: Asia Pacific Offset Showcases their printing excellence. The video was shown at the closing ceremony of the USC Pacific Asia Museum's Digital Publishing Conference 2020. Video by Asia Pacific Offset.
Virtual Events and Exhibitions
Museums can make a lot of money by offering many types of paid virtual experiences to their visitors. Running an online campaign and charging admission is a direct way for museums to leverage digital channels to generate revenue. Virtual campaigns are scalable and have a wider audience reach than traditional offline campaigns. Museums launch new and creative online events or adapt existing projects into virtual forms to give visitors an interactive online digital experience.
Post: No matter where you are, a virtual museum experience is a great way to learn about history. Post by holocaustcenter.
The Matatuck Museum, for example, presents the original physical event "Murder Mystery" as an online format and charges $15 for admission. The event attracted more than 150 guests from 24 states and two countries, and the response was excellent.
Video: Murder Mystery campaign video. Video by The Matatuck Museum.
Virtual exhibition using VR, AR, 3D modeling, and other digital technologies, the museum for the audience to create an immersive experience, and enhance the audience's sense of participation and experience. Virtual exhibitions open up new development paths and market Spaces for museums. The audience can access the exhibition anytime and anywhere, regardless of the geographical and space restrictions, which also appeals to a wider audience for the museum, so as to obtain more income. At the same time, virtual exhibitions reduce the costs required for physical exhibitions, such as venue, exhibition layout, labor, and maintenance costs, and save other costs such as exhibit transportation and insurance.
Video：Objects of Wonder Exhibit —— Celebrating Creativity. Video by Smithsonian's National Museum of Natural History.
Virtual Fundraising
Fundraising activities have long been a major part of the museum's operating budget. The COVID-19 outbreak has led many museums to cancel or postpone major fundraising events and galas. In order to compensate for the damage caused, while adapting to the digital and globalized modern society, virtual fundraising activities have become an effective alternative. This not only allows the museum to maintain its income but also increases its exposure and visibility. Through social media platforms, the museum provides convenient donation channels to the public, combines live interaction, content display, online auction, and other ways to enhance the attractiveness of activities, and maintains continuous communication with donors to establish long-term donation relationships.
Video: Imagine Children's Museum's 2021 Virtual Fundraising Event. Video by Imagine Children's Museum.
Digital Membership
Offering virtual memberships is a major way for museums to generate revenue. By introducing virtual membership levels or special virtual access, museums can use premium digital content and resources to motivate new members to join and build long-term loyalty among existing membership groups. The museum regularly updates its membership resources and online activities, providing visitors with a unique interactive and engaging experience.
Video: Membership gives patrons free, unlimited access to the museum and a range of discounts and exclusive events. Video by Museums Victoria.
Online Courses
Offering online lessons to visitors could increase revenue for museums. The online courses are scalable and adaptable, and customers can interact and immerse themselves in the topics they are interested in, learning knowledge while having a good educational experience, which helps museums build prestige and influence.
The Melbourne Museum has set up a series of online courses in the humanities and sciences, delivered in the form of interactive virtual sessions, with learning resources shared through social media platforms after the course.