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INVESTIGATIVE ANALYSIS Advertising Trends for Selected Postsecondary Institutions During the COVID-19 Pandemic

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INVESTIGATIVE ANALYSIS Advertising Trends for Selected Postsecondary Institutions During the COVID-19 Pandemic INVESTIGATIVE ANALYSIS Advertising Trends for Selected Postsecondary Institutions during the COVID-19 Pandemic AUGUST 2020 ISSUE BRIEF ALEX KISH ATTORNEY WALTER OCHINKO RESEARCH DIRECTOR Highlights Background Our investigation examined how a sample of In February 2020, the U.S. economy officially 27 primarily for-profit postsecondary entered a recession prompted by the COVID- institutions were responding to the COVID-19 19 pandemic and stay-at-home orders, with pandemic, including the nature of their unemployment numbers higher than those of advertising, and whether their ads were the Great Recession that began in December targeting veterans and military-connected 2007.2,3 During that recession, postsecondary students. We analyzed the schools’ active enrollment increased, particularly at for-profit social media ads appearing between February schools.4 (See our report on the counter and April 2020 on the Facebook Ad Library, cyclical relationship between recessions and which encompasses Facebook, Instagram, college enrollment.) Facebook Messenger, and Facebook’s Audience Network.1 A May 2020 Brookings Institution report using 2017 data on college advertising found that We identified six common advertising “Degree-granting for-profit institutions account approaches used by the 27 schools: for about 40% of all higher education ● Ads referenced, or appeared to reference, advertising spending, while serving just 6% of the COVID-19 pandemic, either through students. Among the institutions that advertise, indirect reference (e.g., ads discussed for-profit institutions spend almost $400 on homeschooling during “uncertain times” or advertising per student, compared to just $48 praising “healthcare heroes”) or mentioned per student among nonprofits and $14 per COVID-19 directly; student among public institutions.” ● Ads featured healthcare-specific roles and appeared to target prospective students Our interest in postsecondary advertising in interested in working in healthcare; response to COVID-19 was sparked by an ● Ads touted an institution’s online programs observed increase in social media advertising and referencing the benefits of online by schools, some of which have a history of learning; predatory or aggressive marketing and ● Ads promised low cost or scholarships; recruiting. The 27 schools whose advertising ● Ads referenced the ease of transferring we examined met one or more of the following credits from another institution; and criteria: (1) were profiled in a U.S. Senate ● Ads appeared to target servicemembers and Committee report of for-profit schools; (2) had veterans, a frequent target of for-profit faced law enforcement action for consumer schools because of the 90/10 loophole, protection violations; (3) were promoted by which allows for-profit schools to lead generation companies that may not circumvent the cap on Title IV funds the adequately disclose to students the companies’ schools would otherwise face by counting paid relationship to the schools they promote; GI Bill and military tuition assistance as or (4) converted from for-profit to nonprofit non-federal revenue. It is worth noting that status or were for-profit before being purchased the majority of the ads also appeared to by a public institution (see methodology). target underserved minorities. Evidence of Increased Advertising With the rise of social distancing in the wake of the pandemic, Facebook’s average daily traffic has increased dramatically (see “Websites” The ramp-up in recruiting activities by for- graphic).5 There has also been an increase in profit, public, and nonprofit institutions in the number of people using the Facebook app response to COVID-19 has been well on their smartphones (see “Apps graphic). documented. Facebook has the largest user base of all social media platforms, with 2.5 billion monthly Kivvit, a company that designs and manages active users as of December 2019. advertising campaigns for clients, analyzed the Facebook advertising of 416 U.S. higher education institutions between March 12 and May 19, 2020. The goal was to understand how postsecondary institutions were adapting their marketing in the age of COVID-19. Compared to the same period 1 year ago, Kivvit found that higher education advertising increased by 7 percent during the pandemic. According to the report, “private and for-profit online entities were among the largest education advertisers and drove the increase in spending, seeking to capitalize on the uncertainty that currently surrounds on-campus learning.” The top 10 institutions by ad spending were Western Governors University, Purdue, University of Pittsburgh System, Strayer, University of Phoenix, Massachusetts Institute of Technology, University of Florida, The Regents of the University of California, Walden University, and Chamberlin College of Nursing.6 Four of the top 10 institutions were for-profit schools and Purdue, a public college, had purchased for-profit Kaplan College in 2018 and rebranded it “Purdue Global.” Kaplan has a 30-year contract to provide services to Purdue, including marketing. The Chief Executive of for-profit American Public Education Inc., told New York Times reporters that “The pandemic has created an unexpected opportunity.” She informed investors that the company had started [images above: New York Times graphs spending part of its marketing budget originally showing increased Facebook traffic during earmarked for later this year. In late March the COVID-19 pandemic, downloaded April 2020, the owners of Ashford University 30, 2020] announced that it planned to hire more than 200 “enrollment advisors” in the next four months. The announcement stated that “these services meet an especially critical need during 2 this time of social distancing and self- Tech, Purdue University Global, Strayer quarantine.” One online reviewer of the role of University, Trident University, Ultimate Ashford’s “admissions counselor” stated that Medical Academy, University of Phoenix, and the position is essentially a highly regulated Walden University. and monitored sales job: “I am not a high enroller, but I retain students. That is because I Healthcare Industry Specific - Ads featuring only enroll people who WANT and NEED to healthcare-specific roles and appearing to go to school and are ready to take it on. I don't target prospective students interested in feel comfortable selling and pushing people working in healthcare. into it. Because of that, I am generally treated poorly by my manager and director.” Many advertisements by the schools we Numerous other reviewers expressed similar analyzed focused on the healthcare programs views. they offer, an apparent attempt to capitalize on the increased positive attention healthcare Advertising Behaviors Changed After professionals are receiving during the COVID-19 Was Declared a Pandemic pandemic. Some for-profit schools’ healthcare programs have been the subject of settlements We identified six common advertising with federal and state law enforcement approaches used by our sample of 27 schools agencies because the programs lacked the during the COVID-19 pandemic. Screenshots necessary programmatic accreditation, leaving of some of the ads we reviewed can be found at graduates ineligible to work in their field of Appendix A at this link. In addition to ads study.9 In addition, many for-profit healthcare organized by the six common approaches, programs have been criticized for charging Appendix A includes an example of a school students hefty tuition for careers that require with a large volume of ads, which helped to only a high school diploma.10 prompt our research.7 Schools publishing healthcare-specific COVID-19 Specific - Ads referencing the advertisements include American Career COVID-19 pandemic. College, Capella University, Colorado Technical University, Concorde Career Many ads of the schools we studied appeared College, DeVry University, ECPI University, to feature COVID-19 pandemic imagery or Fortis College, Grand Canyon University, directly referenced the pandemic. This focus Grantham University, Herzing University, may be an effort by the schools to create a Keiser University, Miller-Motte College, sense of “urgency” to enroll, a key finding of National American University, Purdue the U.S. Senate investigation of for-profit University Global, Trident University, colleges, or to create a shared sense of sacrifice University of Phoenix, Ultimate Medical or camaraderie during the pandemic.8 Academy, and Walden University. Schools with ads that appeared to reference, or Access to Online Degree Learning Stressed - specifically reference, the COVID-19 Ads touting an institution’s online programs pandemic included American InterContinental and referencing the benefits of online learning. University, American Public University, Capella University, Concorde Career College, Some schools we studied published DeVry University, Florida Career College, advertisements touting their online degree Fortis College, Keiser University, Lincoln programs, likely a recognition of the fact that 3 prospective students throughout the country are transferring credits from another institution to practicing social distancing or are struggling to complete a degree program. access online learning from their brick and mortar college during the pandemic. Many schools we studied ran advertisements encouraging prospective students to transfer Schools promoting online programs include into their degree programs from other American Career College, American universities.
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