2024 Nonprofit Advertising Benchmarks: Insights to Plan for the Year Ahead

Digital advertising is an increasingly essential tool for nonprofits looking to expand their reach and engage donors. But how do you know if your advertising efforts are hitting the mark? Benchmarking your strategies against industry standards and implementing proven tactics can help you maximize your results while making the most of your budget.

Here’s a deep dive into key insights and strategies from a recent webinar featuring George Weiner, Founder and Chief Whaler of Whole Whale, and Aidan Augustin of Feathr.

Key insights from nonprofit advertising benchmarks

The data from over 7,000 nonprofits reveals trends that can guide your advertising decisions:

• Median advertising spend: The typical nonprofit allocates $13,000 annually to paid advertising, which equates to about $1,000 per month. This figure represents 0.66% of total expenses on average.
• Smaller nonprofits are betting bigger: Organizations with annual revenue under $4 million dedicate a higher percentage of their budgets to advertising compared to larger organizations. This suggests smaller nonprofits see advertising as a way to amplify their voice in a crowded space.
• Increasing ad budgets post-COVID: Total ad spending among nonprofits has risen 12% since the pandemic, reflecting a shift toward digital channels as in-person engagement declined.

Practical tips to maximize your budget

1. Build a sustainable ad strategy
Rather than concentrating your entire budget on year-end campaigns, consider a steady, ongoing investment in advertising throughout the year. A consistent $1,000 monthly spend can serve as a "list-building engine," acquiring new email subscribers and nurturing them into donors over time.

2. Leverage multi-channel campaigns
Effective campaigns engage supporters across multiple platforms. Paid social media, Google Ads, programmatic display, and even traditional channels like print can work together to increase awareness and conversions. Multi-channel approaches often outperform single-channel efforts by providing multiple touchpoints that keep your organization top of mind.

3. Experiment with Facebook ads
Meta platforms (Facebook and Instagram) remain a cost-effective way to acquire new emails and donors. By carefully targeting your audience and designing compelling welcome series emails, you can see measurable results. Use tools like Facebook’s Ad Library to analyze how similar organizations structure their ads.

4. Measure and optimize for ROI
Track key performance metrics, including email sign-ups and donor conversions, to ensure your campaigns are delivering value. Improving even small percentages in conversion rates can significantly enhance your overall return on investment.

Why focus on list building?

Email remains one of the most valuable communication tools for nonprofits. Acquiring 500 new email subscribers each month through advertising can create a steady pipeline of potential donors. Even if initial campaigns run at a loss, the long-term donor lifetime value often pays off.

For example, a campaign that costs $1,000 and results in 500 emails may generate $969 in donations within 12 months. While that may seem like a loss initially, donor retention over a 24-month period can turn it into a profitable effort while expanding your reach.

Top tools to simplify digital advertising

• Google Ad Grant: The grant offers $10,000 per month in free search ads, making it an excellent starting point for nonprofits. Ensure you're maximizing its potential with tools like Whole Whale’s Ad Grant GPT for campaign optimization.
• Feathr platform: Feathr provides a comprehensive suite of tools for nonprofit digital advertising, helping organizations integrate campaigns across social, search, and programmatic channels.

Final thoughts

Digital advertising offers nonprofits an unparalleled opportunity to connect with audiences and drive meaningful engagement. By benchmarking your efforts, adopting proven strategies, and leveraging the right tools, you can amplify your impact without breaking the bank.

Start by asking: Are you keeping pace with the sector’s shift to digital? With the right strategy, your nonprofit can move beyond simply keeping pace to leading the charge.

Ready to dive deeper? Check out Feathr’s on-demand webinar for a full breakdown of these insights and actionable strategies.