Convio Predicts Key Trends For The Nonprofit Sector In 2012

Social and Mobile Gaining Momentum; Personalized Engagement Becoming Necessity

Austin, Texas (January 4, 2012) —

Convio (Nasdaq: CNVO) today announced its key predictions and expected trends that will have the biggest impact on the nonprofit sector in 2012: social and mobile continuing to mature; peer-to-peer engagement having greater influence; and donors dictating terms of interaction.

“Successful nonprofits must continuously adapt to changes in consumer expectations and opportunities presented by new media and technologies,” said Vinay Bhagat, founder and chief strategy officer for Convio. “Respecting donor communication preferences and leveraging low cost channels and outreach strategies to their full potential are critical success factors.”

Key Predictions and Trends for the Nonprofit Sector in 2012

• Online and New Media Channels Will Continue To Extend Their Influence:
• Based on Convio’s 2010 holiday giving survey, online fundraising was up 40 percent from 2009. Online will continue as the fastest growing giving channel.
• Online’s influence outside of transactions is growing as older donors engage in web-based communications and advocacy.
• Acceleration in new media channels and devices (social and mobile) will have significant increase in material importance for nonprofits. For example, recently a Convio client found that 15 percent of direct respondents to a specific TV campaign accessed the nonprofit’s website via a mobile device.
• Peer-to-Peer Engagement Will Play An Expanded Role:
• Direct communications by nonprofit organizations will have less impact on the giving decisions of donors than in years past.
• Donors will increasingly rely on referrals and guidance from friends, family and co-workers to make decisions, particularly the younger generations.
• Nonprofits will want to tap their most vocal and loyal supporters to be active promoters.
• Donor Fatigue Will Be More Pronounced:
• Information overload will continue as individuals receive mail, email and other communications from marketers with increasing intensity, making it challenging for nonprofits to have their messages heard.
• Text messages, RSS feeds, tweets and Facebook posts only compound the problem.
• Tailored communications that resonate with donors will be critical.
• Supporters Want To Control Their Experience:
• Nonprofit supporters want to be able to define and customize how they are communicated to (e.g. go paperless, set frequency of emails and filter for content).
• The burden of expectation for nonprofits is being set by the for-profit sector.
• Integrated Marketing Will Rise To New Heights:
• Multi-channel marketing will have an increasingly significant role in driving integrated marketing tactics as nonprofits rely more on various channels to deliver their communications.
• Strategic communication efforts that are consciously coordinated, orchestrated, and targeted – based on particular audience segments and their individual preferences – will become more prevalent.

“The macro economy in 2012 will certainly continue to pose challenges for fundraisers, and in the United States the presidential election will likely play a role in the mindshare game. This only increases the need for nonprofits to adapt to changing consumer preferences and to capitalize on new opportunities,” said Bhagat. “Greater emphasis on strategy, organizational alignment and process design will be applicable to all nonprofits, large or small. Essentially, being more sophisticated and savvy when it comes to supporter engagement won’t be just a ‘nice to have’ – it will be a necessity.”

About Convio
Convio is a leading provider of on-demand constituent engagement solutions that enable nonprofit organizations to maximize the value of every relationship. With Convio constituent engagement solutions, nonprofits can more effectively raise funds, advocate for change and cultivate relationships with donors, activists, volunteers, event participants, alumni and other constituents. Convio offers two open, cloud-based constituent engagement solutions: Convio Common Ground® for small- and mid-sized nonprofits and Convio Luminate™ for enterprise nonprofits. Headquartered in Austin, Texas with offices across the United States and United Kingdom, Convio serves more than 1,500 nonprofit organizations globally. Convio is listed on the NASDAQ Global Market under the symbol CNVO.

Forward-looking Statements
This press release may contain forward-looking statements intended to convey expectations as to the future based on plans, estimates and projections. Although we believe that the expectations reflected in such forward-looking statements are reasonable, future circumstances might differ from the assumptions on which such statements are based. In addition, these statements can be affected by inaccurate assumptions and the impact of a variety of risks and uncertainties that could cause actual results to differ materially from those described in this press release including, among others: unfavorable economic and business conditions, in particular with respect to the nonprofit market in which we operate; challenges and risks relating to attracting and retaining customers; a loss of significant customers or a substantial reduction in orders from our existing customers; a reduction in usage of our systems by our customers or their clients and a corresponding reduction in usage revenue; an inability of customers to pay for our solutions and services; risks related to challenges associated with developing new and enhanced solutions that meet the needs of our clients; risks related to technological changes or alternative technologies that could make our products and services less competitive; risks associated with successful implementation of multiple integrated software products; risks associated with acquisitions and their integration; and the ability to attract and retain key personnel. Other risks that could impact our business adversely are those risks generally associated with management of growth; lengthy sales and implementation cycles; intellectual property infringement claims and other litigation; reliance on certain third-parties, including hosting facilities, software and application providers; the ability to access sufficient funding to finance desired growth and operations; and legislative actions which could reduce the effectiveness of our solutions and increase the costs of our business. These factors and other risks and uncertainties are described in more detail, from time to time, in Convio’s filings with the Securities and Exchange Commission which are available free of charge at www.sec.gov or on our website at www.convio.com/investor. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Convio does not undertake to update or revise any of these statements as a result of new information, future events or otherwise.

For more information: www.convio.com

Press Contact:
Karoline McLaughlin
Director, Corporate Communications
Convio, Inc.
kmclaughlin@convio.com
512-652-7865