How the University of Arizona Global Campus’ online recruiting ads are putting a strain on its finances

Amid this firestorm, UAGC’s enrollment continues to decline.

Zak argued that this decline was “anticipated and planned during the transition period” as the institution works to integrate the former Ashford into the University of Arizona. He said UAGC is trying to increase enrollment, including through programs that help prevented students return to college.

Nevertheless, the decline in enrollment raises particular questions about the efficiency of marketing efforts.

While the analysis doesn’t reveal the full extent of UAGC’s marketing donation, hundreds of millions of dollars are likely being spent on it, according to figures from the EY audit. A similar institution to UAGC, the University of Maryland Global Campus, also saved $500 million on just two six-year advertising deals, according to a separate audit.

UAGC is investing significantly in lead generation, a strategy that colleges have pursued for more than a decade. They pay to have advertising appear on websites, particularly social media platforms, which typically summarizes a program and also entices potential students to click on a new link for more information.

This ad directs interested parties to a separate web page where they can enter their name and other information, becoming a “lead” that a college can try to convince them to enroll.

Still, UAGC’s use of lead generation was surprisingly unsuccessful, the audit shows.

Less than 1% of students reached through UAGC’s top five paid marketing sources, including Google and Facebook, actually enroll. The numbers for Facebook are particularly grim: Only 0.5% of prospective students end up registering at UAGC after clicking on an ad on the platform. The auditor said this meant that if just one person enrolled on Facebook, it would actually cost the university more than $34,000 in marketing dollars.

Even UAGC’s most successful lead generation source – Google Search Ads – only converted 3% of prospects, with each signup costing more than $7,500.

These numbers are even more astonishing when you consider that UAGC pays to find 85% of its prospects, according to the audit. In contrast, Arizona Online — the university’s homegrown online program that still runs parallel to UAGC — buys only 50% of its students’ leads.

Zak said that UAGC has since “refined” its marketing to “prioritize efficiency and effectiveness,” but did not elaborate.

“UAGC has implemented a targeted approach consistent with its mission to support non-traditional learners,” Zak said. “UAGC is focused on retention and success and focuses on students who are most likely to benefit from a flexible and supportive learning environment. UAGC leverages data analytics, audience segmentation and advanced tracking mechanisms to improve conversion rates and reduce marketing costs.”

He later said that UAGC serves non-traditional students such as working adults, military members and first-generation college goers.

“Reaching these students in a competitive market requires a different approach than traditional four-year universities,” Zak said.

The University of Arizona has generally struggled with budget problems, reporting a $177 million budget deficit last year, which it has since significantly reduced.

But despite all of the university’s promotional efforts surrounding UAGC, prospective students recognize Arizona Online as part of the institution’s brand, even more so than UAGC, the audit says. According to the audit, keeping both platforms has actually caused “market confusion.”

To remedy the situation, the University of Arizona has decided to integrate UAGC and Arizona Online, and Zak pointed to a statement from the university last year that said audit results confirmed this merger.

Still, this “confusion” underscores broader marketing challenges, such as: B. the heavy reliance on lead generation, a strategy the UAGC has embraced even though experts said it was ineffective at increasing enrollment.

That’s partly because institutions don’t realize that students aren’t making life-changing decisions, like where to attend college, based on what is essentially a pop-up ad, two marketing experts wrote in one Essay from 2022.

“Prospective students would be wise to take the time to research the offerings of your programs and many others,” they wrote. “They are not naive, impatient and are not easily persuaded by flashy advertising and texts. They spend many months researching and thinking.”

Worse, lead generation can be used for nefarious or even predatory recruiting efforts. For example, some lead generation companies have experienced repercussions from the Federal Trade Commission, particularly those that target current and former military personnel.