Why Did Broadway Lose Almost a Third of a Million Theatergoers Last Year?

February 1, 2025

**Welcome to the first Theater Tourism Talks for 2025. Let’s take a look back at 2024.**

The Broadway League’s Demographic Study revealed something concerning: while total ticket sales and per-ticket prices held steady year over year, the number of unique theatergoers dropped by 330,000. That’s the equivalent of losing the entire population of Orlando in just one year. This happened during a time when global spending on experiences is estimated at one trillion dollars (according to McKinsey), and NYC tourism increased compared to the previous year. As no doubt Broadway’s best marketing minds (producers, agencies and theater owners) are grappling with this, we want to offer thought starters that might help reverse this pattern.

Dissecting the Market

The “avid” theatergoers—those who see 10 or more shows a year—bought about 700,000 more tickets last year and accounted for roughly half of all tickets sold, despite being only 10% of the audience. These aficionados are less influenced by advertising—they already read the trades, follow reviews, and stay engaged with the theater world.

The “fans,” the non-avids who make up the other 90% of theatergoers, shrank by over 350,000. This decline presents worrisome implications: fewer mouths to spread word-of-mouth buzz, fewer first-time or occasional attendees discovering new shows, and a shrinking pipeline of future audiences.

Approximately 900,000 metro New Yorkers (from the city and suburbs) attended Broadway last year out of a 15-million-person DMA. That’s 175,000 fewer than the year before. Coincidentally, the drop was the same for tourists, even though NYC welcomed more visitors than the previous year.

The real opportunity for reversing this decline lies in the “fans,” the non-avids—the Net Addressable Market (NAM). These are the people who can be persuaded to buy a ticket. Since tourists likely make up 70% or more of this group, targeting and engaging them presents the largest opportunity for attracting significantly more attendees.

Communicating the “Worth It” Factor

The experience market is competitive, and Broadway isn’t just up against other shows. It’s competing with Taylor Swift concerts, the US Open, immersive art exhibits, and even casual nights out at rooftop bars. Consumers constantly ask: Is this worth it? Why does this activity warrant their time and money?

Broadway’s challenge is to highlight the emotional payoff. How will the show leave people—awed, laughing, crying, or inspired? What memory will it create? Marketing messages need to clearly demonstrate why a Broadway show is a one-of-a-kind investment that delivers an experience audiences will treasure and share with others.

The Tourism Opportunity

Tourists represent about two-thirds of theatergoers. McKinsey reports that experience tourism increased 65% since 2019, and NYC welcomed more tourists last year. So why aren’t tourist ticket sales growing? Rian Dunham, Account Group Director at Situation, commented after attending IPW (an annual tourism sales conference), “The interest is there, but the education is not.” Broadway is competing with all of NYC’s attractions for the tourist dollar, and part of the issue lies in how and when Broadway markets to this group.

Deferring Marketing to Tourists: Many shows intentionally delay targeting tourists until months into their run, focusing initial advertising efforts on locals, a much smaller pool, and on avids, who don’t rely on advertising to make decisions. This deferral diminishes early word-of-mouth—the “Oh yeah, I’ve heard of that!” factor—and postpones the growth in tourism sales momentum. For shows struggling with early sales, this delay can be critical. Is it counterintuitive to not aggressively reach out to the largest market segment?
Pre-Arrival Marketing: About 60% of tourists purchase their tickets in advance, making pre-arrival marketing essential. Digital marketing technology offers strategic targeting capabilities, but the challenge lies in crafting messages that resonate with planners. With the growth of AI as a travel planning tool, this might present additional opportunities.
Post-Arrival Marketing: The remaining 40% of tourist ticket purchases happen after visitors arrive in NYC, representing an estimated $300 million annually. This group is highly motivated to spend but harder to reach. Out-of-home (OOH) ads, while effective for awareness, don’t provide much education, and digital ads often underperform because tourists aren’t glued to their phones while sightseeing. Because of these challenges, underinvesting is probably an unintended consequence. Failing to effectively reach the in-market tourist, early or at all, may have contributed to shows ending their runs prematurely last year.

To capitalize on the tourism opportunity, Broadway should consider fresh thinking. Collaborate with NYC Tourism & Conventions (NYC T&C) to create educational programs that position Broadway as a must-do experience could help. A coordinated industry ad campaign—similar to “Got Milk?” or “Virginia Is for Lovers”—with messaging like “Broadway—NYC’s Must-See!” could make Broadway a staple for visitors. Allocating a portion of marketing budgets to research and development could help identify and target untapped audiences. Finally, Broadway must actively boost word-of-mouth through incentives for user-generated content (UGC), social sharing, or recommendations, going beyond selfies in front of marquees and Playbills as mementos.

The Quants Took Over Broadway Marketing

Broadway marketing allocations largely revolve around Return on Advertising Spend (ROAS). While it’s seductive to rely on hard numbers to justify ad budgets, ROAS has well-known limitations:

Flawed Attribution: ROAS typically credits conversions to digital ads but ignores all the other influences—like word-of-mouth or other media—that lead to a purchase. Does anyone believe a 300×250 banner ad, text on the top of a Google search, or an intrusive social media post sandwiched between pictures of high school friends is enough to convince someone to spend $200 on a ticket?
Short-Term Thinking: ROAS drives campaigns that focus on immediate conversions at the expense of building a show’s brand. Great theater creates memories, emotions, and stories, but bottom-of-the-funnel advertising often neglects those elements.
Messaging to the Decideds: Digital ad algorithms target people already predisposed to buy. Millions are spent on audiences who would likely buy tickets anyway, offering reminders rather than true influence.

For example, most shows invest heavily in buying their own name in search ads—not to grow their audience but to ensure purchases happen through their box office. Does that strategy create new theatergoers or simply redirect dollars?

Digital marketing campaigns are vital, but if the data doesn’t reflect actual audience growth, it may be time to reevaluate the strategy. Could this over-reliance on flawed metrics be contributing to the 10% decline in attendance?

Repositioning for 2025

Broadway lost over 300,000 attendees last year. That hurts producers, the city, and the thousands of people who depend on this industry. But it’s not an insurmountable problem.

Tourists—the most important audience segment—are arriving in NYC in greater numbers, yet a smaller proportion are choosing Broadway. Why? Because they aren’t getting the message—or, if they are, it’s not compelling enough to convince them. Shows need to do a better job communicating their “worth it” factor, educating tourists before they even arrive, competing with other activities for undecided visitors, and making Broadway an essential part of their NYC experience.

“The 2023 State of the American Traveler” study, conducted by Destination Analysts and Miles Partnership, found that 40% of visitors used a print resource to help plan their trip. For tourism marketing, print is an ideal way to tell compelling stories and showcase unique experiences. Broadway producers often prioritize other advertising investments over print resources.

As the publisher of City Guide and City Map, I know the influence our media has in educating undecided tourists. Hundreds of thousands of readers and most concierges rely on our content to choose among NYC’s activities. Our 2024 reader survey found that 43% of readers will buy a Broadway ticket, and 64% say our content influences their choice of show. As a company, we haven’t done enough to prove our value—or to fully communicate our “worth it” factor. We’re committed to helping stem the decline in Broadway attendance in 2025. We’ll gladly strategize with anyone interested in growing the audience and lifting every show.