Domestic Fiscal Year Advertising ROI Report. November 2016

Transcription

1 Domestic Fiscal Year Advertising ROI Report November 2016

2 Contents Section Page Background & Objectives 3 Domestic Methodology 4 Key Insights 5 US External Considerations 7 Advertising Campaign 8 Advertising Recall & Creative Ratings 9 ROI Wave Detailed Findings 16 Trip Specifics 28 Appendix: Rental Cars 37 Appendix: Incremental Travel & ROI Methodology 39 Appendix: Questionnaire 41 2

3 Background & Objectives In fiscal year (fall 2015/spring 2016), Visit California (VCA) ran national TV and digital advertising in the US. Television was used in both the fall and spring, and digital efforts ran throughout the year. TV advertising was refreshed, including the new brand spot Average Joes and the new family spot Kids Unplugged. The digital advertising included banners, video, and native content. The specific digital campaigns were Dream365TV/CA Dreamers, Come True, Bay Area or Bust, and Dream Eater. VCA partners with Strategic Marketing & Research Insights to conduct research that measures the level of California travel attributable to the advertising calculates return on the investment. The research also explores travel behavior and gathers information to assist Visit California in refining future marketing efforts in the US. 3

4 Domestic Methodology The survey was conducted online, with actual advertising shown to measure advertising recall. In total, 3,076 surveys were completed: 1,005 in the surrounding Western states, 602 in California, and 1,469 in the remainder of the country, from Sept , Of the 3,076, a total of 1,364 reported a visit to California in the last 12 months, and 831 were considered qualified trips. This means they stayed overnight, and the main purpose of the trip was not VFR. Two specific target groups were included in the survey: Family target 938 respondents Culinary target 1,944 respondents Region Completed Surveys Western US 1,005 California 602 Remaining National 1,469 Total 3,076 4

5 Key Insights The domestic campaign this year reached more households, had a stronger impact on travel, and generated more visitor spending in the state $10.5 billion. This was achieved as part of the launch of the Dream Big initiative and a significantly increased budget ($28.3 million). As a result, the ROI of $369 is extremely strong, but less than last year ($418). But the results are surpassing projections for the roll-in of the initiative, highlighting the strength of these efforts. The additional impact was achieved by generating more incremental trips to the state, with incremental repeat travel holding steady. Refreshed television creative was launched to positive reviews, maintaining VCA s strong performance in this area. This campaign saw the use of multiple digital campaigns, and more effort to target specific audiences. Consumers reacted positively, and it has become clear that while this targeted content doesn t appeal to everyone, those who are seeking it are overwhelmingly positive. It is important to ensure that the content does work for specific segments and motivates travel. It will also be important to monitor the balance between broad brand efforts and more targeted efforts, as the synergy and impact seems to wane after multiple exposures. 5

6 Insights: ROI Calendar Year 2015 Fiscal Year Insights Total Qualified HHs 52,998,188 60,501,076 US consumers reported higher levels of travel this year, as well as more households above $50K in income, increasing the targetable base. Ad Recall 73% 70% With the introduction of refreshed spots, recall was slightly lower, in spite of Ad-Aware HHs 38,427,608 42,147,119 increased spending, but still at near saturation levels. The result is a 10% increase in aware households. Travel Increment (Ad-Influenced Travel) Incremental Trips (Ad-Influenced Trips) 6.20% 6.50% 2,372,945 2,742,362 The impact of the advertising was stronger, due generally to the multiple campaigns that were deployed and the ability to provide more targeted messaging to different segments of consumers. The result was an increase in the incremental travel generated from the campaign. Incremental Repeat Trips 1,926,790 1,922,392 The impact on repeat trips was similar to calendar year. Total Incremental Trips 4,299,735 4,664,754 Total trips increased 8% compared to the calendar year measure. Average California Trip Expenditures $2,090 $2,240 In addition to more trips, consumers also report higher per trip spending another sign of the strength of the consumer leisure travel market in the US. Ad-Influenced Visitor Spending $9 billion $10.5 billion The result was an increase in the ad-influenced visitor spending, as well as Ad-Influenced Tax Revenue $575 million $658 million the ad-influenced tax revenue. Media Expenditures $21.5 million $28.3 million At the same time, the increase in impact was generated through higher media spending. ROI (Total Visitor Spending ROI) General Fund ROI (Tax ROI) $418 $27 $369 $23 Even though the ad-influenced visitor spending increased, so did media expenditures, and the result is a decrease in the ROI for the campaign. But the ROI is still extremely strong and trending ahead of projections for the phase in of the Dream Big initiative. 6

7 US External Considerations The situation in the US has been interesting in the past year, with a number of positive factors fueling growth in leisure travel, in spite of some negative economic factors such as relatively slow GDP growth. Consumers are generally doing well and net wealth is up, unemployment is down and consumers confidence continues to climb. Additionally, consumers are spending an increasing share of their disposable income on travel. As a result, the visitor economy is outperforming other sectors, and domestic travel is increasing. Additionally, people are also spending more on their travel. While there is continued concern that the economy is not growing as fast as in the past, and global economic conditions are causing concern, these did not impact domestic travel over the past year. 7

8 Advertising Campaign In total, VCA spent $28.3 million on the fiscal year Domestic advertising campaign. This is the media expenditure figure that will be used to calculate ROI. VCA spent about 32% more in FY than in calendar year 2015, with the implementation of the Dream Big initiative. TV/OTV advertising received the largest portion of the FY investment, but spending also increased across digital campaigns. VCA implemented six digital campaigns domestically during the fiscal year. The FY campaign included ads focused at specific audiences namely Kids Unplugged TV, which is aimed at families and Dream Eater digital, which targets culinary travelers. Fiscal Year Spending Impressions Average Joes TV $14,562,716 2,072,748,274 Average Joes OTV $2,508, ,253,944 Kids Unplugged TV $4,667, ,176,420 Kids Unplugged OTV $1,487, ,323,165 Total TV $23,226,206 3,334,501,803 Come True Banners $750, ,154,199 Dream365TV/CA Dreamers $905, ,345,354 California Dream Eater $851, ,779,940 Bay Area or Bust $456,266 24,850,114 CA Restaurant Month $276,877 21,781,611 Catch the Winter Wave $338,463 27,573,769 Total Digital $3,578,870 1,407,484,987 Always in Season $1,048, ,007,432 Top Chef $450,000 5,300,000 Total Other $1,498, ,307,432 Total $28,303,111 5,505,294,222 Media FY Difference Television 9.6 million 19 million 23.2 million 22% Digital 2.9 million 2.5 million $3.6 million 44% Other 1million $1.5 million Total 13.5 million 21.5 million $28.3 million 32% 8

9 Advertising Recall & Creative Ratings

10 Advertising Recall: TV, Digital, Total The domestic campaign reached 70% of the households with $50K income during the fiscal year. TV advertising continues to drive reach with 60% recall, while digital advertising reached 36%. Fiscal Year Awareness by Media/Wave 66% 69% 70% 57% 60% 60% 36% 28% 22% TV Digital Total Fall 2015 Spring 2016 Fiscal Year Total 10

11 Advertising Recall: Trending Any Ad Recall 73% Calendar Year 2013 Calendar Year 2014 Calendar Year 2015 Fiscal Year % 68% 70% Households 53 million 53 million 53 million 60.6 million Awareness 70% 68% 73% 70% Calendar Year 2013 Calendar Year 2014 Calendar Year 2015 Fiscal Year Aware Households 37.3 million 36.1 million 38.4 million 42.1 million VCA introduced refreshed creative this year, and despite increased spending there was a slight negative impact on the percentage of aware households. But both increases in the percentage of households in the $50K+ target and higher reported levels of leisure travel meant the targeted household base was larger. A larger household base and slightly lower awareness still yielded a 10% increase in the number of aware households for the calendar year. 11

12 Advertising Recall: Campaigns 56% Fiscal Year Recall by Campaign 25% 29% 18% 15% 14% 12% 10% 10% TV (Average Joes) TV (Kids Unplugged) Dream365 TV/ CA Dreamers Foundational (Come True) Always in Season Catch the Winter Wave Dream Eater Bay Area or Bust California Restaurant Month Of the various advertising campaigns, TV generated the greatest awareness, with Average Joes reaching 56% of the respondents, and Kids Unplugged reaching 25%. The domestic advertising included six digital campaigns. The Dream365TV/CA Dreamers campaign had the strongest reach, doing better than the family-focused TV. The Come True campaign had high awareness given its foundational nature and its use across seasons. The other campaigns were more focused in nature and had lower recall, but were aimed at specific audience segments. 12

13 Creative Ratings Sentiment: Brand & Family Brand & Family TV Reaction 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 3% 4% 4% 4% 26% 21% 71% 75% 2015 Brand TV (Dreamers) 2016 Brand TV (Average Joes) 28% 24% 68% 72% 2015 Family TV (Kids at Play) 2016 Family TV (Kids Unplugged) Negative Neutral Positive The Average Joes and Kids Unplugged TV ads received mostly positive reactions. Given that the spots were just updates of the previous ads, it is not surprising that the ratings are similar to the ratings of the prior brand and family TV spots. It is encouraging that the positive percentages increased for both refreshed spots. 13

14 Creative Ratings Sentiment: Digital Ratings by Awareness Response to Digital Ads by Awareness 100% 80% 60% 4% 1% 4% 3% 5% 0% 6% 3% 24% 15% 16% 15% 52% 55% 46% 44% 12% 47% 3% 6% 5% 3% 1% 10% 18% 21% 38% 56% 40% 20% 44% 75% 41% 82% 49% 84% 50% 83% 41% 79% 38% 74% 59% 89% 0% Dream365TV No Recall Dream365TV Recall Dreamers No Recall Dreamers Recall Come True No Recall Come True Recall Catch the Winter Wave No Recall Catch the Winter Wave Recall Bay Area or Bust No Recall Bay Area or Bust Recall California Restaurant Month No Recall California Restaurant Month Recall Always in Season No Recall Always in Season Recall Positive Neutral Negative While the reaction among consumers as a whole is neutral to positive for these six digital campaigns, Dream365TV, CA Dreamers, Come True, Catch the Winter Wave, California Restaurant Month and Always in Season all receive a more positive reaction among the consumers that are seeking this type of content. This indicates that the content is connecting with the audience and among those segments reaction is strongly positive. 14

15 Creative Ratings Sentiment: Niche Program Ratings by Target Family TV & Dream Eater Reaction 100% 80% 60% 40% 20% 0% 4% 1% 15% 24% 72% 2016 Kids Unplugged TV (Overall) 84% 2016 Kids Unplugged TV (Family Target) 11% 11% 34% 28% 55% 61% 2016 Dream Eater (Overall) 2016 Dream Eater (Culinary Target) Negative Neutral Positive As noted, two of the programs are targeted at specific audiences, and it is important to assess their appeal to those groups. The Kids Unplugged TV ad and the Dream Eater digital ads have greater appeal among the intended target. The Kids Unplugged spot gets fairly positive reactions overall, but is very strong among families. The Dream Eater spot gets neutral reactions overall, but more positive among the Culinary audience. 15

16 ROI Wave Detailed Findings

17 Fiscal Year Incremental Travel & Influenced Spending Western States California Remaining National Total Total Qualified HHS 6,775,244 7,374,694 46,451,138 60,601,076 Ad Recall 72% 71% 70% 70% Ad-Aware HHs 4,895,114 5,261,107 31,990,898 42,147,119 Travel Increment (Ad-Influenced Travel) 6.2% 8.6% 6.2% 6.5% Incremental Trips (Ad-Influenced Trips) 301, ,751 1,987,438 2,742,362 Repeat Increment 1.6% 26.9% 1.3% 5% Incremental Repeat Trips 79,301 1,413, ,958 1,922,392 Total Incremental Trips 380,474 1,866,884 2,417,395 4,664,754 Average California Trip Expenditures $1,932 $2,125 $2,378 $2,240 Ad-Influenced Visitor Spending $735 million $3.97 billion $5.75 billion $10.45 billion Overall, the fiscal year advertising in the US generated a 6.5% travel increment, with the greatest impact realized in the national market. There was also significant impact in terms of repeat travel generated by the advertising. The travel increment translates to more than 2.7 million ad-influenced trips, 1.9 million incremental repeat trips, and 4.66 million total incremental trips. Given average trip spending of $2,240, the marketing generated $10.45 billion in ad-influenced visitor spending. 17

18 ROI Compared to Prior Year The fiscal year VCA advertising ultimately returned $369 in visitor spending and $23 in tax revenue for each $1 invested. Compared to the prior measurement, there was an 8% increase in trips and a 7% increase in trip expenditures, for a 16% increase in ad-influenced visitor spending. With higher ad spending, ROI is down a bit. Additionally, a slightly lower tax rate was used this year (6.34% vs. 6.4%). Calendar Year 2015 Fiscal Year Total Qualified HHs 52,998,188 60,501,076 Ad Recall 73% 70% Ad-Aware HHs 38,427,608 42,147,119 Travel Increment (Ad-Influenced Travel) 6.20% 6.50% Incremental Trips (Ad-Influenced Trips) 2,372,945 2,742,362 Incremental Repeat Trips 1,926,790 1,922,392 Total Incremental Trips 4,299,735 4,664,754 Average California Trip Expenditures $2,090 $2,240 Ad-Influenced Visitor Spending $9 billion $10.5 billion Ad-Influenced Tax Revenue $575 million $658 million Media Expenditures $21.5 million $28.3 million ROI (Total Visitor Spending ROI) $418 $369 General Fund ROI (Tax ROI) $27 $23 18

19 Historical ROI Incremental Trips (Ad-Influenced Trips) Average California Trip Expenditures Ad-Influenced Visitor Spending Ad-Influenced Tax Revenue ,543,427 3,586,621 3,818,640 3,955,920 3,737,816 4,299,735 Fiscal Year ,664,754 $1,569 $1,675 $1,726 $1,790 $1,877 $2,090 $2,240 $5.6 billion $6.0 billion $6.6 billion $7.1 billion $7.0 billion $9 billion $10.5 billion $354.6 million $348.3 million $454 million $488 million $484 million $575 million $658 million Media Expenditures $16.2 million $18.3 million $14 million $16.4 million $13.5 million $21.5 million $28.3 million ROI (Total Visitor Spending ROI) General Fund ROI (Tax ROI) $343 $328 $472 $431 $521 $418 $369 $22 $23 $33 $30 $36 $27 $23 With the implementation of the Dream Big initiative, VCA increased the domestic ad spend by 32%. This generated a 16% increase in incremental visitor spending this year and that should grow as the increased spending has time to influence travel. With the large increase in media spend, the ROI decreased. But at $369 it is still high and performing above projections relating to the impact of the increased budget. 19

20 Ad Influenced Spending by Region $2,438.2 $2,097.5 San Los Francisco Angeles Bay County Total Ad-Influenced Spending Allocation Across Regions (millions) $1,740.1 San Diego County $1,167.4 Orange County $912.4 Central Coast Total ad influenced spending = $10.5 billion $432.7 $367.9 $344.9 $289.5 $288.4 $202.7 $169.3 Desert North Coast High Sierra Central Valley Inland Empire Gold Country Shasta Cascade Region Ad-Influenced Spending San Francisco Bay $2,438,165,138 Los Angeles County $2,097,469,966 San Diego County $1,740,053,560 Orange County $1,167,351,247 Central Coast $912,352,407 Desert $432,661,966 North Coast $367,867,179 High Sierra $344,875,480 Central Valley $289,486,388 Inland Empire $288,441,311 Gold Country $202,744,979 Shasta Cascade $169,302,508 Total $10,450,772,129 The gateways of Los Angeles and San Francisco get the largest ad influenced spend, followed by San Diego and Orange counties. Domestically there is more distribution of influenced spending across the regions, although the top 5 regions garner 80% of the spending. 20

21 Ad Influenced Spending by Industry Category Inn/B&B, $317.4 Homeshare, $555.4 Hotel/Motel, $3,094.5 Total Ad-Influenced Spending Allocation Across Industries (millions) Total Accommodations, $3,967.3 $2,057.4 $1,326.7 $1,269.9 $819.2 Accommodations Meals/food Attractions Shopping Transportation within California (minus fuel) Total ad influenced spending = $10.5 billion $577.0 $433.3 $317.4 Gas/fuel Entertainment Inn/B&B Ad-Influenced Industry Category Spending Accommodations - Hotel/Motel $3,094,490,659 Meals/food $2,057,375,028 Attractions $1,326,721,081 Shopping $1,269,901,978 Transportation within California (minus fuel) $819,155,007 Gas/fuel $576,991,303 Accommodations - Homeshare $555,421,400 Entertainment $433,332,015 Accommodations - Inn/B&B $317,383,657 Total $10,450,772,129 Hotels account for the largest portion of ad-influenced travel revenue, followed by meals and attractions. The accommodation spending is estimated based on the percentage of nights spent in each. For this market homeshare represents about 15% percentage of usage. Visitors in-state were the most likely to use homeshare, followed by the surrounding western states. 21

22 Impact by TV Campaign In exploring the impact of the various types of ads, it is helpful to isolate impacts. Domestically, it is important to consider behavior by market as it differs considerably. With the Kids Unplugged TV spot focusing on families, that also matters. Nationally, among the non-family audience, impact grows when there is recall of both Average Joes and Unplugged (there are too few people who saw only Unplugged to look at that impact) Among the Family target, the general brand spot doesn t spur travel alone, but there is a synergy with recall of both ads Impact of TV - National Markets 18% 21% Unaware 19% Non-Family 19% Aware of Average Joes Only Family Target 25% 21% Aware of Average Joes & Kids Unplugged 22

23 Impact by TV Campaign In the nearby Western markets, among the non-family audience, recall of Average Joes has impact, but there is only a slight synergy when Kids Unplugged is added. While among the Family audience, the general brand spot has no impact, but they do respond to the Kids Unplugged and report higher travel. Probably with higher familiarity of the product, these consumers are less impacted by pure brand, and are looking for more specific messages. 31% 46% Unaware Impact of TV Ads - Western Markets 41% 34% 34% Aware of Average Joes Only Non-Family Family Target 47% Aware of Average Joes & Kids Unplugged 23

24 Impact by TV Campaign California residents react differently. Among the non-family audience, recall of Average Joes is linked to higher visitation but there is no synergy with Kids Unplugged. In fact those who have seen only Kids Unplugged or both report slightly lower travel than those with no TV recall. The in-state family target does not seem to react to television at all and there is no bump in travel related to TV recall. Again, this may be due to such high familiarity with the product, and the need for more specific information. 28% 41% Unaware Impact of TV Ads - California 32% Aware of Average Joes Only Non-Family 34% 34% Family Target 26% Aware of Average Joes & Kids Unplugged 24

25 Impact by Digital campaign Visited California by Awareness of Digital Campaigns 32% 29% 28% 28% 29% 26% 27% 28% Aware of 4 or more digital campaigns, 27% Awareness by Number of Digital Campaigns Unaware, 26% Unaware Aware of Dream365TV Aware of CA Dreamers Aware of Come True Aware of Catch the Winter Wave Aware of Bay Area or Bust Aware of California Restaurant Month Aware of Dream Eater Aware of 3 digital campaigns, 31% Aware of 2 digital campaigns, 29% Aware of 1 campaign, 29% With 7 digital campaigns, there are too many combinations to consider, and generally there are few people who have only seen digital let alone a specific digital campaign. Looking at the level of travel among those who have seen each of the campaigns provides some information but there isn t a great deal of variation. Those unaware of any digital report a travel level of 26%, with the highest level at 32.2% (for California Restaurant Month, which had a small audience). Generally the lift is 1 to 2 percentage points. There is some synergy with travel rising as consumers see multiple digital campaigns. But after three campaigns there is little additional benefit probably due to the more targeted nature of the campaigns. 25

26 Media/Campaign Overlap Impact With such a mix of television and digital campaigns, it is also helpful to look at the impact of campaigns generally and seeing multiple campaigns does impact visitation. % Visited California by Number of Campaigns Seen About 19% of the consumers have seen four or more campaigns, so the continuing build helps support more incremental travel. 29% 29% But given the other findings that impact tends to wane after a certain point, it will be important to continue to explore how each of the campaigns is working and what audiences react best to targeted messaging. 27% 27% 25% Aware of 1 Campaign, 29% Aware of 2 Campaigns, 15% Aware of 3 Campaigns, 8% Aware of 4 Campaigns, 4% Aware of 5 Campaigns, 4% 19% aware of 4 or more campaigns Unaware Aware of 1 Campaign Aware of 2 Campaigns Aware of 3 Campaigns Aware of 4 or More Campaigns Unaware, 30% Aware of 6+ Campaigns, 11% 26

27 Impact by Target Consumers - Culinary Culinary Target California Travel 32% 32% 32% 28% 28% Unaware Aware of Dream Eater Aware of California Restaurant Month Aware of Always in Season Aware of Top Chef VCA has two specific target groups: culinary (those who often or always participate in culinary activities while traveling) and families (those with kids under 18 at home). The impact on the Family audience has already been explored, but it is also critical to look at the Culinary audience especially since several programs were aimed at this group. Generally the Culinary campaigns did impact travel to the state, although this was not the case for California Dream Eater. The program with the strongest impact was Top Chef, which was a public relations partnership rather than a specific campaign. But given the television component and long form, it was able to highlight a wealth of California s culinary product.. 27

28 Trip Specifics

29 Trip Specifics: Trip Planning Considered 1 st When Planning CA Trip 1% 2% 2% Started with a desired destination in mind Ad Impact on 1 st Consideration 55% 62% 22% Started by considering specific activities you wanted to do Started with the idea of a certain type of vacation experience 18% 14% 23% 18% 16% 57% Considered another destination first Don t know/not sure 1% 2% 2% 2% Aware Unaware Someone else planned this trip 2% 3% In the US, almost 60% of the California visitors first decided that they wanted to visit the state rather than first choosing an activity or type of vacation. It is interesting to note that the ad-aware visitors are more likely to start by considering specific activities and trip types which suggests that ads are giving visitors ideas of things to do. 29

30 Trip Specifics: Length of Stay & Lodging Ad Impact on Length of Stay Ad Impact on Paid Accommodations & Type % 84% 85% 89% % 13% 18% 17% Nights in CA Nights in paid accommodations Used paid accommodations Stayed in hotel Stayed in inn or B&B Stayed in homeshare Unaware Aware Unaware Aware Domestic trips to California are fairly long, and generally involve paid accommodations. Homesharing is a significant part of paid lodging, more prevalent among California residents than national visitors. 30

31 Trip Specifics: Regions Visited % US Travelers that Visited Each Region 9% 9% 5% 6% 36% 9% # regions visited Mean Total 2.0 Aware 2.1 Unaware 1.9 Nights in Paid Accommodations (among visitors to each region) Average # Share San Francisco Bay % San Diego County % Los Angeles County % Orange County % North Coast 2.5 5% Central Coast 1.5 5% Inland Empire 2.2 4% Central Valley 2.1 3% San Francisco and San Diego get a larger share of nights, due to longer average trip length 37% 19% 26% 12% 9% Desert 1.5 3% Gold Country 2.4 3% High Sierra 1.5 2% Shasta Cascade 2.0 2% 30% 31

32 Top motivating activities: Ideal for broadly targeted brand ads The top trip motivators have both high participation rates and high motivation rates (mass appeal and mass motivating power). Domestic FY Top Motivating Activities Participated Motivated (of participants) Viewing and enjoying natural scenery such as beaches, oceans, mountains, etc. 50% 52% Visiting a theme or amusement park 27% 75% Going to the beach 41% 47% Dining at a unique local restaurant(s) 54% 30% Driving on scenic byways or roads 42% 34% Visiting state or national parks 28% 42% Visiting a winery or wine regions 22% 53% Urban sightseeing 32% 32% 32

33 Niche motivating activities: Good options for highly targeted advertising Niche motivators have relatively low participation rates, but relatively strong motivation. That means that if you can target the right audience, they will travel and participate. Domestic FY Top Motivating Activities Participated Motivated (of participants) Snow sports activities such as skiing or snowboarding 1% 54% Golfing 5% 51% Attending a live sporting event 8% 48% Taking kids to the beach 14% 47% Visiting a zoo or aquarium 20% 44% Hiking or camping 18% 42% Attending a live music event, concert or festival 10% 37% Visiting a high-end resort 10% 35% 33

34 Trip Specifics: Other Activities & Ad Impact These activities offer less potential for advertising application and are best left for promotion by partners or other outlets such as the website. Activity/Attraction Participated Motivated (of participants) Exploring neighborhoods or small towns 34% 26% Visiting historical sites 27% 24% Visiting museums, science centers or exploratoriums 21% 29% Visiting museums and other visual arts venues 21% 22% Night life 18% 22% Shopping at a unique local shop 31% 11% Shopping at a mall 28% 12% Shopping at an outlet mall 19% 14% Dining at a celebrity/notable chef's restaurant 12% 18% Visiting a microbrewery 13% 16% Water sports activities such as surfing, paddleboarding or boating 7% 29% Luxury shopping 10% 20% Hollywood/celebrity sightings 8% 25% Attending a culinary festival or event 7% 27% Road/trail sports activities such as biking, cycling or running 8% 23% Gambling 6% 30% Attending performing arts events (theater, dance, etc.) 6% 23% Participating in a VIP tour or experience 4% 30% Going to a farmers market 19% 6% Visiting a spa or wellness center 7% 12% Exploring farm tours or farm trails 5% 16% Adventure activities such as whitewater rafting or rock climbing 3% 23% # Activities on CA Trip 6.0 Unaware 7.4 Aware The ads not only drive visitation, but they also give visitors ideas of things to do, which leads to more active, satisfying trips and more spending. 34

35 Trip Specifics: Trip Rating Top 2 Box Trip Rating Top 2 Box Trip Rating 88% 87% 86% 76% 71% 65% 88% 90% 90% 86% 82% 81% 73% 75% 76% 69% 66% 62% Meals & food Entertainment & attractions Lodging/ Accommodations Entertainment such as shows, theatre or concerts Shopping Transportation within California Lodging/ Accommodations Meals & food Entertainment & attractions Unaware Shopping Aware Entertainment such as shows, theatre or concerts Transportation within California Overall, California visitors are satisfied with their trips, with top two boxes over 70% for everything except transportation. The ad-aware visitors rate all aspects of their trip higher. We previously reviewed that the ads led visitors to do more stuff on their trip. These more active trips are more satisfying, so the ads are leading to better California trips. 35

36 Trip Specifics: Social Sharing & Advocacy Ad-aware visitors have more active, satisfying trips. They also share more about these trips and are more likely to recommend and return to California. Impact of Ads on Social Sharing & Other Advocacy Measures 87% 83% 47% 67% 39% 59% 51% 63% 10% 4% 13% 26% 8% 3% 1% 3% 2% 3% Any social sharing Facebook Twitter Instagram (Shared on ) YouTube Blogs Other Very likely to return to CA Likely to recommend (Top 3 box) Unaware Aware 36

37 Appendix: Rental Cars

38 Rental Cars Among Ad-Aware Visitors Primary Mode of Transportation $272 Rental car, 34% Transportation within California (minus fuel) Personal car/truck, 46% Spending among Those Who Rented Car $140 Gas/fuel Airplane, 7% Private bus/tour bus, 1% Taxi, 1% Public bus, 1% Train above ground, 1% $412 Total Transportation Uber/Lyft/other shared service, 6% Other, 2% Boat/ship, 1% Limousine/private car, 1% $299 Rental Car Rental Car Usage 48% Rented Car on Trip Enterprise Budget Hertz Avis National Fox Payless Advantage E-Z Rent a Car Midway TravCar Other The advertising influenced $669.5 million in rental car fees. 34% Rental Car was Primary Mode of Transportation on Trip Rental Car Brand Used 6% 4% 3% 2% 2% 0% 0% 4% # Days Rented Car in California 13% 7 days, 18% 15+ days, 3% 1-2 days, 7% 8-14 days, 11% 5-6 days, 31% 21% 21% days, 30% 34%

39 Appendix: Incremental Travel & ROI Methodology

40 Methodology: Incremental Travel & ROI Review Incremental travel is the key measure in assessing advertising impact and ROI: People would visit California even if there was no advertising. The level of travel among those who are unaware of the advertising is the baseline the level we assume would have occurred anyway. Additional travel among those with ad awareness is attributed to the ads and is considered incremental travel. The level of incremental travel is applied to the quantity of ad-aware households to determine the number of ad-influenced trips. This is multiplied by average trip expenditures to determine the economic impact from the campaign. The economic impact is divided by the media expenditures to determine the return on investment (ROI). The tax ROI is calculated by first multiplying the economic impact by the tax rate (6.34% this year) to produce the tax revenue influenced by the ads. This tax revenue is then divided by the media expenditures to determine the tax ROI. Incremental Travel Example 5.0% Unaware Travel 10.0% Aware Travel % of Total Visitor Spending Local Tax Revenue from Visitors 2.86% State Tax Revenue from Visitors 3.48% Total Visitor Tax Rate to Use 6.34% 5.0% Increment 40

41 Appendix: Questionnaire

42 Questionnaire 42

43 Questionnaire 43

44 Questionnaire 44

45 Questionnaire 45

46 Questionnaire 46

47 Questionnaire 47

48 Questionnaire 48

49 Questionnaire 49