2017 Advertising Effectiveness & ROI

Transcription

1 2017 Advertising Effectiveness & ROI November 2017 Revised January 2018

2 Background In 2017, the Wyoming Office of Tourism (WOT) continued its efforts to expand the reach of the state s marketing campaign by again targeting media among a national audience as well as increasing the number of spot markets receiving investment. In order to be accountable for the resources invested in these efforts, WOT has retained Strategic Marketing & Research Insights (SMARInsights) to measure the reach and impact of its marketing. The specific objectives of this seasonal awareness research are to: Measure the reach of the advertising among a targeted audience; Evaluate the effectiveness of the marketing through SMARInsights cost-per-aware household benchmarking; Understand the overlap and potential impact of multiple media; Determine the ability of the creative to communicate desired messages, again using SMARInsights destination marketing organization (DMO) benchmarking; Assess the ability of the advertising to improve the image of the state, motivate interest in visiting, and increase visitation; Calculate the number of influenced trips, visitor spending, and return on investment of the media campaigns; and Forward insights into future refinement of the marketing. 2

3 Methodology SMARInsights advertising effectiveness methodology requires respondents to view the actual advertising in order to gauge awareness, so we developed and programmed an online survey. National sample vendors provided a survey link to potential respondents. WOT placed media in target markets but also had RFI TV, digital, and print that could reach a national audience. Quotas were established in the spot markets with the largest media buys, including Chicago, Seattle, Portland, Minneapolis and Kansas City. The targeted investment in Kansas City was increased to warrant a quota breakout to evaluate the market individually for the first time. Salt Lake City and Denver received targeted digital and print, but recall and impact here are considered part of the national market. In order to qualify for the survey, respondents had be travel decision makers who regularly take overnight leisure trips of at least 50 miles from home. In addition to qualifying households as leisure visitors, WOT has a target audience for the campaign: those between the ages of 25 and 54, with incomes more than $75,000 who self-identify as holding adventure, curiosity, self-reliance or freedom as a core human value as defined by Mediamark Research, Inc. (MRI). Of the more than 3,000 completed surveys, 803 met this media target criteria. Upon completion of data collection, the results were cleaned, coded, and weighted to be representative of the population. The following report summarizes the results of the survey. The questionnaire and the ads tested appear in the Appendix to this report. Market Completed Interviews Chicago, IL 407 Seattle-Tacoma, WA 404 Portland, OR 407 Minneapolis-St. Paul, MN 410 Kansas City, MO-KS 404 National 1,012 Total 3,044 3

4 Insights The continuation of the That s WY campaign pushed recall to the expected level of awareness, had positive impacts on perceptions and visitation, and showed high engagement with the destination. The outcomes for the 2017 campaign are better than most state ad campaigns, as represented by SMARInsights benchmarks and predictive measures. The only benchmark where it falls below the industry average is for tax return on investment. This is a result of a lower tax rate in Wyoming than in most other states. Measure SMARInsights Benchmarks for State DMO Campaigns Wyoming 2016 Campaign Wyoming 2017 Campaign % Change Communication Ratings % Impact Rating: These ads make me want to visit Wyoming % Impact Rating: These ads make me want to learn more about things to see and do in Wyoming Impact Rating: These ads make me want to go to the Wyoming tourism website or request a Traveler s Journal Awareness % % Predicted awareness:38.7% 30.3% 39.8% +24.6% Cost per aware household $0.21 $0.14 $ % ROI $179 $275 $ % Tax ROI $11 $11.28 $ % 4

5 Insights The 2017 campaign positively influenced more trips than the previous year. But with visitors having shorter trips, average trip spending fell. This decline in overall business has also been seen in the state s Smith Travel Research data and anecdotal reports from the industry. 1,011,635 Influenced trips 8.6% $1.1 billion Influenced visitor spending -6.0% $257 Return on investment Overall, the campaign generated more than $1.1 billion in influenced visitor spending, returning more than $45 million in taxes for the state. Although the campaign is besting industry benchmarks for most evaluations, there are opportunities for refinement. SMARInsights has seen that successful DMO campaigns continually improve markets, media and creative. Insights into each follow: Market Insights Although Wyoming s print and digital media have had the opportunity to reach a national audience for seven years, 2016 was the first time brand-building TV was placed beyond spot markets. For the past two years it has been the inclusion of the national audience that has been the foundation for the campaign s success. It s possible Wyoming could move to a targeted national campaign. If spot markets continue to be a focus for resources, SMARInsights recommends a review of the potential of all markets across the country. For the past two years Seattle and Portland have had high costs to reach an aware household and lower than average return on investment. For 2017, there were no influenced trips from either market. -6.5% 5

6 Media Insights WOT has moved in the past two years to target its media to an audience that values adventure, curiosity, selfreliance and freedom. This media target has been limited to households with incomes more than $75,000 and respondents younger than 55. This means digital and RFI TV placements are being delivered to a younger audience, and those under 35 are most aware of the That s WY campaign. The state s visitors are older and are more affluent than the advertising is currently reaching. Though affluent audiences tend to more difficult to reach, the influence of the advertising could likely be improved with a shift in messaging and placement to an older audience. It is Gen-X, Boomers and the Silent generation that are most impacted by the campaign and who are Wyoming s traditional visitors. Almost 80 percent (78%) of the influenced trips for the 2017 campaign come from those 35 and above. If media were targeted to this older audience, awareness and influence could grow. Creative Insights The Wyoming creative continues to receive excellent ratings. But the creative is appealing to Millennials. In the 2016 visitor profile, 58% of Wyoming visitors were 55 and older. In general, high adrenaline, adventure activities, dominant product in the That s WY campaign, are not what motivate Wyoming visitors, especially older visitors. Targeting a younger audience with these kinds of activities is a crowded field. With more familiarity with competitors, there is certainly room for Wyoming to improve its position. A younger focus will build toward the future, but a focus on an older audience will attract visitors in the short term. Consideration should be given to future campaigns targeting an older audience and creative that supports the types of activities that appeal to Gen-Xers and beyond. With an increase in travel with kids and Wyoming being a good place for family vacations being considered a strength to promote, more family-oriented creative could serve both long and short-term travel. 6

7 Campaign Spending The 2017 campaign budget was similar overall to the previous year. There was a one-time allocation of dollars available in 2015 for Wyoming to begin targeting the Seattle market. Without that allocation, the budget again is about $4.4 million. However, how those resources are allocated shifted slightly, with less investment in print and radio in favor of additional TV and digital. Kansas City has previously been considered a lower, tier-two market for a number of years. For 2017 additional resources were allocated to the market, warranting its elevation for evaluation TV $3,094,206 $986,556 $1,280,092 Digital $1,171,500 $1,438,651 $1,670,665 Print $973,905 $1,013,048 $666,660 Outdoor $514,564 $752,662 $781,920 Radio $0 $184,540 $0 Total $5,754,175 $4,375,457 $4,399, Chicago $1,419,304 $507,285 $441,918 Seattle $654,911 $645,173 $580,606 Portland $0 $476,675 $439,640 Minneapolis $0 $436,959 $445,702 Kansas City $0 $0 $320,335 National $3,679,960 $2,309,364 $2,171,136 Total $5,754,175 $4,375,457 $4,399,337 7

8 Campaign Creative WOT developed the That s WY campaign in This campaign was expanded for the current fiscal year with additional TV, print, outdoor and digital. Digital executions consisted of banners, digital video, streaming audio via Pandora, native placements and paid social on Facebook and Instagram. 8

9 COMPETITIVE POSITION 9

10 Competitive Position Familiarity with a destination is often tied to interest in visiting. Competitors with strong familiarity (Texas and Colorado) also have strong likelihood to visit. Destinations build familiarity, and in turn interest in visiting, with paid and earned media. Wyoming s position among the competitive set is pretty middle of the road. Given Texas and Colorado s level of familiarity and interest, these are likely more aspirational competitors for the state. Destination Familiarity Likelihood to Visit 25% 24% 40% 39% 20% 18% 26% 25% 22% 21% 19% 16% 14% 10% 10% 7% 7% 9% 7% 6% 14% 12% 11% 10% 9% 9% 8% Texas Colorado Utah New Mexico Very familiar Wyoming Montana South Dakota Somewhat familiar Idaho Nebraska Texas Colorado New Mexico Utah Montana Wyoming South Dakota Idaho Nebraska 10

11 Market Position Wyoming has shifted resources over the past 10 years. And while Minneapolis was brought back into the mix as a spot market in 2016, it has received targeted investment for more than 10 years when it was considered part of the state s Core markets. With this, Minneapolis has the most familiarity with and interest in visiting the state. Portland and Seattle have now been targeted for two years, with both having the next highest levels of familiarity. The state has longevity in the Chicago market as well, but familiarity with Wyoming is unchanged from that of the national audience. 22% Wyoming Familiarity by Market 32% 32% 36% 23% 22% Likliehood to Visit Wyoming by Market 11% 12% 11% 10% 14.8% 12% 12.6% 14% 11% 13.4% 10% 7% 6% 10% 10% 9% 7% Chicago Seattle Portland Minneapolis Kansas City National Chicago Seattle Portland Minneapolis Kansas City National Very familiar Somewhat familiar

12 Competitive Image Wyoming has a unique selling position within the competitive set, with a strong image for national parks, the Old West and wildlife. Competitively, Colorado is viewed most favorably in terms of variety of product, including outdoor recreation, family travel, hospitality and dining options. New South Wyoming Colorado Idaho Montana Mexico Dakota Texas Utah Nebraska Is home to Yellowstone National Park Is where the Old West lives on Is a place to experience cowboy culture Has exceptional wildlife viewing Is a place to discover American Indian culture Offers great camping and RVing options Has diverse natural landscapes and scenery Offers abundant outdoor recreation options Where I can find adventure Is a good value for the money Is a good place for family vacations Is welcoming to all people Travel is safe and accessible Is a place to have new experiences Has interesting historical sites and museums Is great for a winter destination Is a good year-round destination Has modern, upscale hospitality options Provides a variety of dining choices Is an easy to get to destination

13 Motivating Image By understanding what motivates visitors to consider Wyoming and how the state is currently performing, the competitive position can be put into context in terms of what matters to consumers. Those activities in the upper right quadrant have both high correlation to interest in visiting and receive strong image ratings. These Strengths to Promote are centered around Wyoming as a destination for adventure and families. The lower right quadrant has attributes on which Wyoming rates better than average but are not considered drivers. However, some (wildlife, camping and outdoor activities) are motivating to a niche audience. The upper left quadrant s activities are motivating, but consumers don t have as strong a view of Wyoming for these attributes. Improving the state s image for these attributes and featuring them in the creative could improve interest in visiting. Growth Opportunities (strong driver & lower rating) Has interesting historical sites and museums Has modern, upscale hospitality options Is a good value for the money Is a good year-round destination Is an easy to get to destination Provides a variety of dining choices Items to Monitor (weak driver & lower rating) Is welcoming to all people Is a place to discover American Indian culture Is great for a winter destination Is where the Old West lives on Existing Strength to Promote (strong driver & high rating) Is a good place for family vacations Is a place to have new experiences Travel is safe and accessible Where I can find adventure Existing Strength to Maintain (weak driver & strong rating) Has diverse natural landscapes and scenery Has exceptional wildlife viewing Is a place to experience cowboy culture Is home to Yellowstone National Park Offers abundant outdoor recreation options Offers great camping and RVing options 13

14 Wyoming Image by Market Among the target markets, Minneapolis is the most positive about Wyoming, especially for those attributes considered Opportunities to Improve (in bold to the right). Given the population of the national audience, it is this market s image that drives the overall result. Seattle and Portland, markets with a more liberal demographic, do not view the state as welcoming to all people. As much as some attributes are drivers to interest in visiting, not being viewed as welcoming is a deterrent to interest in visiting, especially from these two progressive markets. Chicago Seattle Portland Minneapolis Kansas National City Is home to Yellowstone National Park Has diverse natural landscapes and scenery Is where the Old West lives on Offers great camping and RVing options Has interesting historical sites and museums Is a place to discover American Indian culture Offers abundant outdoor recreation options Is a place to experience cowboy culture Has exceptional wildlife viewing Is great for a winter destination Is a place to have new experiences Has modern, upscale hospitality options Travel is safe and accessible Where I can find adventure Is an easy to get to destination Is a good place for family vacations Is a good value for the money Is a good year-round destination Provides a variety of dining choices Is welcoming to all people

15 MARKETING AWARENESS 15

16 Overall Awareness While the Wyoming Office of Tourism had been reaching a national audience with print and digital placements since 2010, last year was the first with investment in national TV. With an increase in TV recall, especially among the national audience, there is a significant increase in the number of households reached. Destination marketing is able to build awareness when effective creative has a sustained investment. As will be shown, Wyoming continually produces some of the best creative in the industry. With additional investment in the That s WY campaign, recall increased. SMARInsights has established a number of benchmarks for DMO marketing based on the evaluation of hundreds of campaigns. For states attempting to reach a national audience, the average cost per aware household is $0.21. With a CPH of only $0.12, the That s WY campaign was more efficient than the national average. SMARInsights national benchmark: $0.21 per aware household Thousands 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5, ,153 8,919 Paid Media Recall 33.1 million 26,703 34,101 3,694 3, Spot Markets 30.4 million National 37.9 million Cost per Aware HH Awareness 33% 30% 40% Aware HHs 33,072,300 30,396,596 37,880,895 Media Spending $5,754,175 $4,375,457 $4,399,337 Cost per Aware HH $0.17 $0.14 $0.12 Given that a lower cost per aware household indicates improved efficiency, the Wyoming investment in paid media has improved in each of the past two years. 16

17 Market Awareness The increase in the total number of aware households is primarily attributable to the increase in recall from the national audience. With about half of the investment here, it is considerably more efficient than the individual spot markets. Among the individual spot markets, Chicago is the most efficient. Although recall fell, there is a considerable number of households here. As a result, the cost per aware household remains below the benchmark for DMO campaigns attempting to reach spot markets. The target is for spot markets to have a cost per aware household of $0.67 or less. Minneapolis is the only other spot market meeting this mark. In its first year as a dedicated core market, Kansas City s cost per aware household is higher than the target. Given the level of investment SMARInsights would have predicted the market to garner 56% recall. Although continued investment could put recall higher, the limited number of households would likely continue to result in a higher than average cost to reach the market. Seattle and Portland again have a higher cost to reach a household than the benchmark, but recall in Seattle improved. 70% 51% 50% 53% 48% 45% Paid Media Recall by Market 55% 49% 51% 52% 51% 39% 29% 28% Chicago Seattle Portland Minneapolis Kansas City National SMARInsights spot market benchmark: $0.67 per aware household Chicago Seattle Portland Minneapolis Kansas City National Targeted HHs 2,874,340 1,501, ,246 1,446, ,787 87,663,206 Recall 47.9% 52.7% 48.6% 52.4% 51.5% 38.9% Aware HH 1,376, , , , ,835 34,100,987 Media Spending $441,918 $580,606 $439,640 $445,702 $320,335 $2,171,136 Cost per Aware HH $0.32 $0.73 $0.95 $0.59 $0.82 $

18 Awareness by Media With additional investment in TV and digital, recall improved. Investment in print fell by more than a third. But limited investment with significant reach results in print as the most efficient medium. Cost per Aware Household by Media TV Digital Print Outdoor Aware HHs 27,791,242 28,793,694 24,082,899 1,849,139 Media Spending $1,280,092 $1,670,665 $666,660 $781,920 Cost per Aware HH $0.05 $0.06 $0.03 $ Cost per Aware HH $0.04 $0.05 $0.04 $0.44 Digital recall improved not only with more investment but also more forms of digital executions. While outdoor has the highest cost per aware household, this is mostly a function of the limited placements in the spot markets. In general, billboard has higher recall than bus or train executions, an indication that there could be opportunities for cost savings by forgoing transit outdoor. 26% 29% 29% 30% 28% Media Recall 25% 24% 25% 25% 20% 23% 16% Type of Outdoor Recall 24% 20% 18% 22% 18% 15% 10% 5% 12% 13% 11% 5% TV Digital Print Outdoor Radio % Chicago Seattle Portland Minneapolis Kansas City Billboard Bus Train 18

19 Media Overlap With the elimination of broadcast radio, the overall number of media consumers had the opportunity to be exposed declined. However, of those aware, again 70% were aware of more than one media component of the campaign. Much of the recall is driven by TV recall. Of those aware, 74% were exposed to this creative. However, often exposure to multiple media improves the image of the destination and interest in visiting. So it is not just making a consumer aware, but delivering more than one message that can influence them. But while print and digital are providing lift to overall recall, outdoor does not. Media Overlap Media Overlap 47% 46% 8% 11% 8% 10% 23% 24% 63% 1% 30% 30% One Two Three or More TV Only Print Only Digital Only Outdoor Only TV & Other No TV & Other 19

20 Digital Overlap There were a number of digital executions, with banners receiving the most recall. And while social posts reached nearly one in five households, consumers are likely unable to distinguish between sponsored posts and organic content. There was considerable overlap among the digital media, with nearly half of those exposed to digital media aware of three or more of the components within the medium. 24% Digital Recall Number of Digital Media Aware 19% 13% 12% 12% Five, 14% Four, 16% Three, 15% Two, 26% Banners Social Video Streaming audio Native One, 30% 20

21 Recall by Age The media is especially effective at reaching consumers under 35, with its heavy investment in digital and TV targeted to households who hold adventure, curiosity, self-reliance and freedom as a core value. However, these Millennials make up only 20% of the total traveling households. While Millennials have the highest recall, Gen-Xers and those over 55 have more aware households. Recall by Generation Millennials Gen-Xers Boomers and Silent Households 19,980,617 33,682,109 41,534,231 Recall 57% 39% 32% Aware HHs 11,454,854 12,985,401 13,440,640 Digital Recall by Generation 57% 39% 32% 43% 36% 35% 26% 25% 27% 22% 17% 13% 46% 29% 19% 38% 23% 13% 21% 23% 24% 11% 12% 10% 7% 5% 4% 31% 17% 11% Total Recall TV Print Outdoor Digital Banners Digital Video Streaming Audio Native Social Millennials Gen-Xers Boomers and Silent Millennials Gen-Xers Boomers and Silent 21

22 CREATIVE REVIEW 22

23 Communication Attributes With an expansion of the That s WY campaign deployed in 2016, the creative continues to garner some of the best creative ratings SMARInsights sees. The campaign is performing in the top 10% of all destination marketing evaluated for communicating the desired messages of the campaign. Ads show a place With vast landscapes full of endless natural beauty To escape to the comfort of the wide open spaces Where I can disconnect from daily life Where I can seek adventure Where I feel a sense of freedom and release Where I can indulge a passion for the great outdoors Where I can understand western culture Where I can reconnect with my family Communication Ratings Average Good (top 25%) Excellent (top 10%) 23

24 Impact Attributes Because impact ratings require an action from the consumer, they are more difficult to generate than communication ratings. Therefore the benchmarks are a bit different. Although the ads are still performing better than average for making consumers want to learn more or visit, there was a slight decline from Impact Ratings Ads make me Want to visit the state Want to learn more about things to do Want to go to the state website Average Good (top 25%) Excellent (top 10%) 24

25 Impact Attributes Although overall the impact attributes are above the industry average, the creative is especially appealing to Millennials. Several creative executions skew towards featuring high adrenaline adventure activities. While appealing to a younger audience, the ads are not as effective with consumers 55 and older. Ads make me Creative Impact Ratings by Age Want to visit the state Millennials Gen-Xers Boomers and Silent Want to learn more about things to do Millennials Gen-Xers Boomers and Silent Want to go to the state website/ request guide Millennials Gen-Xers Boomers and Silent Average Good (top 25%) Excellent (top 10%) 25

26 IMPACT OF THE ADVERTISING 26

27 Impact on Image While the short-term goal of destination advertising is to influence travel, over the longterm it can shift the image of a destination, providing a unique selling position and differentiation amongst the competitive set. For Wyoming, there is well-defined product in the outdoors, wildlife and National Parks. For these, the image is strong, making it difficult for advertising to further improve the image. However, for those attributes on which the state is less well positioned, the advertising improves the image. This is especially true of attributes previously shown to be Opportunities to Improve those attributes that are closely tied to interest in visiting but on which the state receives lower ratings. Those important attributes are in bold to the right. Lift in image ratings by recall* No Recall Recall % Lift Is an easy to get to destination % Is a good year-round destination % Is a good value for the money % Is great for a winter destination % Is a good place for family vacations % Provides a variety of dining choices % Has interesting historical sites and museums % Has modern, upscale hospitality options % Is welcoming to all people % Is a place to experience cowboy culture % Is a place to have new experiences % Where I can find adventure % Is where the Old West lives on % Is home to Yellowstone National Park % Is a place to discover American Indian culture % Has exceptional wildlife viewing % Offers great camping and RVing options % Offers abundant outdoor recreation options % Has diverse natural landscapes and scenery % Travel is safe and accessible % *Ratings based on a 5-point scale where 5=Completely describes Wyoming 1=Does not at all describe Wyoming 27

28 Impact on Information Gathering In order to achieve the shortterm goal of generating travel, destination marketing can also move consumers through the travel planning cycle by motivating them to gather information and research the destination. Those with recall of the advertising also more often engage with the state s owned media such as the Traveler s Journal, website and social media. Those with recall of the advertising have considerably more awareness of articles or stories that had been the focus of the state s public relations efforts. 8% 32% Saw or heard an article or story Impact of Advertising on Information Gathering 18% 9% 9% 12% 1% 1% 3% 4% 6% 0% 0% 0% newsletter Travelers Journal Travel website Facebook Page No Recall Twitter account Recall Instagram feed Difference in awareness of PR pitched articles or stories by recall of paid media* 11% 27% Other method WY Public Relations Pitches No Recall Recall Call of the WY HGTV Tiny House Contest 2% 18% Great American Eclipse in Wyoming 19% 36% Eaton's Ranch 4% 14% King Ropes 2% 10% Devil s Tower Close Encounters of the Third Kind 12% 24% 17% 64% Gathered any Information *Of those who recall seeing an article or story 28

29 Impact on Likelihood to Visit While this report evaluates the short-term travel that occurred because of the advertising, the media can also have longer-term impact on future travel. Those with recall are considerably more likely to visit Wyoming in the next 12 months as well. The same is true of the Core Value Target audience. They mirror the overall interest in visiting, with no more likelihood than other consumers. There are, however, differences in interest in visiting depending on the number of media to which consumers are exposed. While a single exposure does generate additional interest, there is a considerable jump in likelihood when consumers see three or more forms of the That s WY campaign. Impact of Marketing Overlap (Likelihood to Visit by Recall) Impact of Recall on Likelihood to Visit 17% 17% One: 8% Two: 10% Three: 27% Four: 30% 5% 5% None: 5% No Recall Recall No Recall Recall Overall Core Value Target *Likelihood defined as 100% of households already planning a trip + 80% very likely to visit + 20% somewhat likely to visit 29

30 Influence of Advertising on Travel SMARInsights methodology for measuring the impact of destination advertising relies on establishing a base rate of travel. Certainly, there would be travel to Wyoming even without any paid advertising. Thus not all visitation, or even visitation by aware households, is attributable to the ads. In this evaluation, the level of travel among unaware households is considered the base and what the state would see without the marketing campaign. Accordingly, any travel above that base by aware households is what is considered influenced. As such, this is a very conservative measure of influence. But in addition to influencing a decision to visit, destination marketing can also motivate consumers to take more than one trip. Just as with incremental travel, repeat trips are considered incremental by comparing the number of trips by those aware of the advertising against those who are unaware. Because of this, the influence is not limited to just the number of incremental trips the campaign is able to influence but also the number of repeat trips it is able to motivate. Incremental Trips Repeat Trips Total Influence 30

31 Impact of the Advertising on Travel Given the number of aware households outside of the spot markets, even a small increment generates a considerable number of trips. With more travel to Wyoming by aware households, the That s WY campaign generated more than 784,000 incremental trips from across the national audience. The number of influenced trips in the targeted spot markets is dwarfed by this national influence. Chicago is a well-established market with significant population. However, a strong increment here is primarily attributable to little travel by unaware households. Seattle and Portland have higher rates of travel by unaware consumers, resulting in no incremental trips. Minneapolis is the most familiar market, but it too has a low rate of unaware 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Impact on Travel by Market 0.5% Chicago Seattle Portland Minneapolis Kansas City National Aware HHs 1,376, , , , ,835 34,100,987 Incremental Travel 5.7% % 1.8% 2.3% Influenced Trips 78, ,893 7, ,323 travel, generating a strong increment. Kansas City received an increased level of investment from previous years. With a small population even good recall results in few aware households. But a small increment generates at least some influenced trips. 6.2% Impact of Recall on Wyoming Travel 3.1% 2.3% 4.3% 3.0% 1.0% 6.0% 1.6% 3.4% 3.6% 1.3% Chicago Seattle Portland Minneapolis Kansas City National Travel With No Recall Travel With Recall 31

32 Influence on Travel by Age With heavy digital investment and TV targeting those under 55, recall is lowest among Boomers and the Silent generations. However, these are the consumers with the highest rate of travel to the state. Even with lower rates of recall, given the size of the audience, there are the most aware households among those 55 and older. And with the largest rate of incremental travel, the oldest consumers make up more than 40% of the influenced trips. Given the importance of older consumers to overall Wyoming travel, media targeting and possibly brand positioning should be reconsidered. Millennials are far more likely to hold adventure as a Core Value. But this is a far smaller audience and they have less travel to Wyoming than older generations. 1.5% Impact of Media on Travel by Generation 3.2% 0.9% 3.5% 1.5% 4.2% Millennials Gen-Xers Boomers and Silent Travel With No Recall Travel With Recall Impact on Travel by Age Households 19,980,617 33,682,109 41,534,231 Recall 57% 39% 32% Aware HHs 11,460,240 12,993,640 13,457,359 Increment 1.7% 2.6% 2.7% Incremental Trips 198, , ,521 % Total Incremental Trips 22% 37% 41% % 2016 Incremental Trips 21% 62% 17% 32

33 Impact on Multiple Trips Besides encouraging consumers to take a trip, destination marketing also can encourage repeat visitation, with multiple trips in a single year. In most markets, consumers made a single trip. However, in Minneapolis and among the National audience there is slightly more than one trip by aware households. Minneapolis is a market that is familiar with Wyoming and has long been targeted with paid media. While the National audience certainly includes far-flung states, it also includes contiguous markets. These multiple trips generate another 100,000 influenced trips to Wyoming Impact of Recall on Multiple Trips Impact of Multiple Trips Minneapolis National Recall 52% 39% Aware HHs 757,861 34,100,987 Travel by Aware HHs 6.0% 3.6% Visiting Aware HHs 45,472 1,227,636 Repeat Trips Multiple Trips Influenced 10,583 93, Chicago Seattle Portland Minneapolis Kansas City National Travel With No Recall Travel With Recall 33

34 Total Influenced Travel The number of incremental trips fell among the national audience. If not for those 100,000 repeat trips, the total influence would have been lower than the previous year. With more repeat trips by aware consumers, the total number of influenced trips is just over 1 million. The sustained success of the campaign can be attributed to continued investment in campaign creative that is well received by consumers. Total influence Incremental trips spot markets 124, , ,442 Incremental trips national markets 605, , ,323 Multiple trips 120, ,870 Total influenced trips 850, ,809 1,011,635 There are, however, steps Wyoming could take that would likely continue to improve the results of the campaign. Consider expanding the media targeting to older consumers. Gen-X, Boomers and the Silent generations make up far more traveling households than Millennials. Since they have higher rates of travel to and interest in Wyoming, they need less messaging than younger audiences. Ensure product featured in creative is accessible to visitors. While rock climbing is considered an aspirational activity, overall it receives little participation. Again, it appeals to younger audiences, but the average Wyoming traveler is 46 years old. Evaluate spot market spending. The targeted spending could likely be pulled back while maintaining recall, bringing the cost per aware household in line with national averages. 34

35 Trip Details While increasing the overall number of influenced trips is good, visitor spending is an important component to the equation for generating economic impact. Aware Trip Specifics Nights Aware Spending $1,369 $1,291 $1,118 People on Trip Kids on Trip 35% 33% 41% Aware Per Person Per Day Spending $113 $107 $87 With a drop in the average trip length, total trip spending for 2017 has declined. This corresponds to Wyoming s Smith Travel Research data showing year-over-year occupancy declines. Anecdotally, industry partners have also reported declines in business for Considerably more trips for 2017 included children under 18. With less spending but more people on trips, the per person, per day spending fell. Of those visiting, consumers with recall did more on their trips than those who were unaware. However, trip activities that receive the highest participation are mostly free or inexpensive. Activity Participation by Recall No Recall Recall Visiting a state or national park 42% 60% Wildlife watching 34% 47% Scenic drive 42% 47% Visiting historical sites 25% 46% Shopping 24% 45% Visiting Native American sites 1% 34% Sightseeing tour 16% 34% Visiting museums 8% 34% Hiking or backpacking 33% 33% Visiting hot springs 16% 25% Visiting an archeological site 17% 18% Horseback riding 8% 17% Attending a rodeo 0% 17% Attending a festival or fair 0% 17% Bird watching 8% 17% Camping 17% 15% Bicycling or mountain biking 0% 14% Attending performing arts (music/theater) 0% 13% Mountain climbing 8% 13% Rock climbing 8% 13% 35

36 Demographics Destination advertising can be most effective when it reaches the same kind of audience as is inclined to visit. Wyoming s paid media is reaching an audience far younger and in a different stage of life than tend to visit the state. The state s visitors are older and are more affluent than the advertising is currently reaching. Though affluent audiences tend to more difficult to reach, the influence of the advertising could likely be improved with a shift in messaging and placement to an older audience. Millennial Gen X Boomers/ Silent Married Kids Under 18 in House High school or some college College grad or higher Less than $50K $50K to $100K $100K or more Ad Aware 39% 32% 29% 60% 44% 43% 57% 37% 42% 22% Visitors 32% 29% 39% 72% 42% 44% 56% 15% 63% 22% Core Value Target 38% 62% 0% 73% 58% 26% 74% 0% 49% 51% 36

37 RETURN ON INVESTMENT 37

38 Return on Investment With nearly 1 million influenced trips, the 2017 That s WY campaign generated more than $1.1 billion in influenced visitor spending. This returns $257 for every $1 invested, higher than the average of $179 SMARInsights sees for state DMO campaigns. Most of this influence, 87%, comes from the national audience. While Chicago s ROI bests the national average, the other spot markets fall short. But with no influenced travel out of Seattle and Portland, more than $1 million in media spending had no immediate return. Return on Investment Chicago Seattle Portland Minneapolis Kansas City National Total Total Influenced Trips 78, ,476 7, ,610 1,011,635 Influenced Spending $87,722,787 $0 $0 $54,186,144 $7,903,993 $980,991,680 $1,130,804,604 Media Spending $441,918 $580,606 $439,640 $445,702 $320,335 $2,171,136 $4,399,337 ROI $199 $0 $0 $122 $25 $452 $257 38

39 Tax Return on Investment More than $45 million was returned to the state through taxes. For every $1 in media spending, the state received more than $10 in taxes generated by the influenced visitor spending. Total Economic Impact Total influenced trips 850, ,809 1,011,635 Influenced Visitor Spending $1,164,213,985 $1,203,379,006 $1,130,804,604 Expenditures $5,754,175 $4,375,457 $4,399, ROI $202 $275 $257 Taxes generated $47,732,773 $49,338,539 $45,232, Tax ROI $8.30 $11.28 $

40 Recall & Impacts MARKET BREAKOUTS 40

41 Chicago As targeted investment in Chicago has been pulled back over the past two years, the media has become more efficient as the cost per aware household declined. The number of influenced trips has increased, but it comes with a decline in recall. Chicago likely continues to be a good target at the lower level of investment. By expanding the media target to again include older audiences, overall recall could again improve. Chicago Recall 70% 57% 51% 45% 48% 36% 32% 34% 37% 30% 30% 31% 33% 26% 29% TV Print Outdoor Digital Total Chicago Cost per Aware HH Awareness 70% 51% 48% Aware HHs 2,139,353 1,566,998 1,377,141 Spending $1,305,708 $507,285 $441,918 Cost per Aware $0.61 $0.32 $0.32 Chicago Total impacted trips 0 35,179 78,251 Economic impact $0 $45,432,075 $87,469,113 Media spending $1,305,708 $507,285 $441,918 ROI $0 $90 $198 41

42 Seattle For the third year, Seattle s cost per aware household is higher than the national average and the return on investment in lower than the industry average. While Seattle is a market with relative ease of access to Wyoming, its inclusion as a market receiving targeted investment should likely be reevaluated. Seattle Recall 53% 50% 45% 35% 30% 31% 32% 31% 32% 30% 25% 23% 23% 20% 19% TV Print Outdoor Digital Total Seattle Cost per Aware HH Awareness 45% 50% 53% Aware HHs 710, , ,411 Spending $654,911 $645,173 $580,606 Cost per Aware $0.92 $0.81 $0.73 Seattle ROI Total impacted trips 31,409 55,866 0 Economic impact $42,998,740 $72,148,262 $0 Media spending $654,911 $645,173 $580,606 ROI $66 $112 $0 42

43 Portland Just as with Seattle, the cost per aware household in Portland continues to be too high and the return on investment too low. With this, its use as a targeted spot market should be reconsidered. SMARInsights has developed a market potential model evaluating the amount of investment a destination might consider given distance, cost of media in the market as well as existing rates of travel. Were Wyoming going to continue to invest in spot markets, evaluating all potential markets is likely a worthwhile exercise. Portland Recall 55% 49% 40% 35% 32% 34% 30% 26% 17% 17% TV Print Outdoor Digital Total Portland Cost per Aware HH Awareness 55% 49% Aware HHs 554, ,795 Spending $476,675 $439,640 Cost per Aware $0.86 $ Total impacted trips 5,621 0 Economic impact $7,259,663 $0 Media spending $476,675 $439,640 ROI $15 $0 43

44 Minneapolis Though the return on investment in Minneapolis has been lower than national averages, the investment continues to be efficient. It is a market with high familiarity and existing rates of visitation to Wyoming, which can make generating an increment difficult. Given Chicago is the only market exceeding the industry average for return on investment, a review of not only what spot markets are used but if media should be placed in such a targeted way is likely in order. Minneapolis Recall Minneapolis Cost per Aware HH % 52% Awareness 51% 52% Aware HHs 772, ,426 37% 31% 34% 30% 27% 25% 34% 30% Spending $436,959 $445,702 Cost per Aware $0.57 $0.59 ROI TV Print Outdoor Digital Total Total impacted trips 14,354 48,662 Economic impact $18,537,895 $54,394,631 Media spending $436,959 $445,702 ROI $42 $122 44

45 National With continued investment to a national audience, recall of the That s WY campaign grew significantly here. Given the size of the potential audience, marketing can influence a significant number of trips. With continued success in targeting a broader audience beyond spot markets, a market review should also include evaluating if Wyoming is able to move to a truly national campaign, forgoing spot markets. National Recall 39% 29% 26% 27% 29% 30% 24% 25% 28% 29% 17% TV Print Online Total National Cost per Aware HH Awareness 28% 29% 39% Aware HHs 24,153,052 26,702,760 34,129,746 Spending $1,156,090 $2,309,364 $2,171,136 Cost per Aware $0.05 $0.09 $0.06 National ROI Total impacted trips 715, , ,210 Economic impact $979,930,991 $1,060,001,111 $966,013,596 Media spending $1,156,090 $2,309,364 $2,171,136 ROI $848 $459 $445 45

46 Questionnaire APPENDIX 46

47 Questionnaire 47

48 Questionnaire 48

49 Questionnaire 49

50 Questionnaire 50

51 Questionnaire 51

52 Questionnaire 52