2016 China Spring Awareness Wave July 2016

Transcription

1 2016 China Spring Awareness Wave July 2016

2 Media Buy In spring 2016, VCA again invested marketing dollars in Beijing, Shanghai and Guangzhou and added Chengdu and Shenzhen as Chinese target markets. With increases in OTV spending and the addition of out of home and social advertising, the China investment increased 5% compared to The table below shows the campaign elements and the media employed for each. Media % Change TV $1,492,573 $1,678,900 $1,432,354 15% OTV $1,016,145 $1,602,139 $1,961,327 22% Digital $279,038 $966,279 $678,697 30% Brand USA Co op $400,000 $300,000 25% Out of Home $366,057 Social $152,038 Total $2,787,756 $4,647,318 $4,890,473 5% Campaign Element Media Dreamer Brand TV Dreamers Youku Video China Dreamers Brand TV/OTV Refresh :30 & :15 Videos Wanda Cinema Brand USA Co op :30 & :15 Videos China Dream365TV Digital & Video Banners OOH (Dream365TV) OOH Video Social Media: Dream365TV KOL Posts Dream365TV Banner OOH Dreamers Youku Video links Dream Eater Youku Video links Always in Season Youku Video links 2

3 Impact of Economy Around 10% of Chinese leisure travelers indicate that they are likely to alter their upcoming travel plans. This is comparable to the incidence observed in the 2015 China research and by way of comparison is lower than the potential negative impact of the economy in Canada, where we see between 20% and 25% of leisure travelers intending to alter their plans. 11% 10% 9% 7% 8% 7% Very likely Certain 3% 3% 3% 3% 3% 3% You will spend less money on leisure travel than last year You will choose destinations closer to home than last year You will take fewer leisure trips than last year 3

4 Image & Planning 4

5 Top of Mind Awareness Top-of-Mind Awareness (TOMA): Unaided recall of destinations 74% California Total Overall TOMA New York 44% California 33% Los Angeles 25% Washington 21% San Francisco 16% Hawaii 11% Las Vegas 10% Seattle 5% Chicago 5% Florida 3% Miami 3% One third of Chinese consumers mention the state of California as a top of mind U.S. leisure travel destination. When Los Angeles and San Francisco are included, nearly three quarters mention California top ofmind. Affluent consumers are more likely than the other consumers to mention California s cities. Top of Mind Awareness Affluent Other New York 45% 43% California 34% 33% Los Angeles 28% 23% Washington 22% 21% San Francisco 18% 14% Las Vegas 13% 8% Hawaii 10% 11% Seattle 7% 5% Chicago 5% 5% Miami 5% 2% Florida 3% 3% 5

6 Destination Preference Chinese consumers are most likely to pick California as the U.S. state that they would visit if time and money were not considerations. In fact, about half picked California up from a third in Affluent consumers are more likely to pick California. Preferred Destination Overall 49% 32% 28% 16% 9% 8% 8% 7% 5% 5% California Hawaii New York Alaska Florida % 29% 30% California Preferred Destination By Geography 54% 23% 51% 45% 41% California Preferred Destination By Affluent/Other 58% 44% Beijing Guangzhou Shanghai Chengdu Shenzhen Affluent Other 6

7 Brand Statement Trend While the ratings for the brand statements have declined somewhat since 2014, they are still above the 4.0 threshold, which would indicate that California has a strong brand image in China. Brand Attributes (5 point scale) California is a place full of possibilities California is a place that inspires you to try new things California s abundance provides endless experiences

8 2016 Brand Statements There are no significant differences between the Chinese markets in terms of their perceptions of California, but the Affluent consumers are more positive about the state than the other consumers Brand Attributes (5 point scale) 2016 Brand Attributes (5 point scale) California s abundance provides endless experiences California s abundance provides endless experiences California is a place that inspires you to try new things Beijing Guangzhou Shanghai Chengdu Shenzhen California is a place that inspires you to try new things Affluent Other California is a place full of possibilities California is a place full of possibilities

9 Product Statements In China, California s strongest images are scenery, beaches, variety, cities, and diversity. California generally rates well on the attributes with the exception of a good place for snow sports. As seen with the overall brand statements, Affluent consumers rate California higher than the other consumers. Top 2 box California Overall Affluent Other Is scenic and beautiful 80% 88% 76% Has picturesque national and state parks 78% 86% 73% Has excellent beaches 77% 84% 74% Is a place with lots to see and do 76% 85% 71% Has large cities with exciting urban experiences nightlife, shopping & dining 75% 83% 71% Has many unique vacation experiences in one 75% 84% 70% Is culturally diverse 75% 84% 70% Offers laid back luxury 74% 83% 69% Is a place where food & wine are part of the culture/lifestyle 74% 82% 69% Has a lot of family activities & theme parks 74% 79% 71% Has a variety of active outdoor activities hiking/climbing/biking 73% 79% 69% Has lakes for boating & fishing 72% 81% 68% Provides a good value for the money 72% 83% 66% Has interesting historical sites 70% 74% 68% Is the ultimate family playground 70% 79% 65% Has great professional sporting events 68% 77% 63% Has many quaint small towns 68% 72% 66% Is a good place for snow sports 58% 62% 55% 9

10 Attitude/Emotional Statements The attitude/emotional statements that the Chinese consumers feel best represent California are inspiring, laid back, fun, and accepting. Again, the Affluent consumers are more positive about the state. Top 2 box Represents California's feeling, vibe or culture Overall Affluent Other A place that inspires you to do new things 73% 79% 69% Casual and laid back 73% 80% 68% Fun and lively 72% 81% 67% Free spirited and accepting 72% 79% 68% A place where people live life to the fullest 70% 78% 66% Welcoming and friendly 70% 76% 67% A place that inspires innovation and new trends 70% 75% 67% Youthful 70% 78% 65% Has a unique and desirable lifestyle 69% 77% 65% A place that doesn t take itself too seriously 67% 74% 64% A place to indulge myself 66% 72% 63% A place I feel safe and secure 66% 73% 62% A place where I can be myself 65% 73% 61% Offers the best of everything in one place 65% 72% 61% A place where music is a part of the lifestyle 65% 73% 60% 10

11 Brand Index Overall Affluent Other Apple 100 Apple 100 Apple 100 The brand index shows how California compares to other brands in terms of embodying a sense of creativity, an anything is possible attitude, and inspiration to try new things. California and Disney are the leading destinations, followed by Las Vegas. California is slightly higher on the scale among the Affluent consumers, although the brand index (98) is the same among total consumers, the Affluent consumers, and the others. Disney 99 Google 98 California 98 Las Vegas 95 Alibaba 95 Tesla 93 Tencent 93 New York 93 Facebook 92 Baidu 92 Ctrip 92 Australia 92 Florida 91 Lenovo 90 Italy 90 China Airlines 90 California 98 Disney 98 Google 97 Las Vegas 95 Tesla 93 Alibaba 92 Facebook 92 New York 92 Tencent 91 Ctrip 90 Australia 89 Baidu 88 Florida 88 Marriott 88 Italy 88 Lenovo 87 Disney 100 Google 99 California 98 Alibaba 97 Las Vegas 95 Tencent 94 Baidu 94 New York 93 Tesla 93 Australia 93 Ctrip 93 Facebook 92 Lenovo 92 Florida 92 China Airlines 92 Italy 92 Marriott 88 China Airlines 87 Virgin Airlines 87 Virgin Airlines 89 Virgin Airlines 84 Marriott 89 Moutai 85 Moutai 81 Moutai 88 11

12 Potential Visits *Likelihood to Visit Overall and by Affluent/Other Overall, about a quarter of Chinese consumers indicate that they are likely to visit California in the next year. The percentage is higher among the Affluent consumers. Total Affluent Others 24% 21% 28% There are some directional differences between the Chinese target markets, with Guangzhou, Beijing and Shanghai being slightly more likely to visit California than Shenzhen and Chengdu. Shenzhen Chengdu Shanghai Guangzhou *Likelihood to Visit by Market 21% 20% 24% 26% Beijing 25% *Likelihood %=80% of those already planning a trip and 40% very likely used to adjust for overly positive responses 12

13 Potential Visits Potential California Trip Projected Room Rate 74% 82% 70% 95% 98% 93% 72% 78% 68% 100% 90% 80% 70% 3% 2% 3% 12% 11% 12% 16% 17% 16% $500+ per night $400 $499 per night 60% 50% 29% 36% 25% $300 $399 per night 40% $200 $299 per night 30% Rental Car Hotel Kids under 18 Total Affluent Other 20% 10% 0% 40% 33% 44% Total Affluent Other $100 $199 per night $50 $99 per night Percentage = sum of very likely and somewhat likely Most potential visitors indicate that they would rent a car in California and would bring kids on their trip. Almost all visitors would stay in a hotel, with most of these indicating that they expect to spend between $50 and $200 per night on their room. 13

14 Media Recall 14

15 Overall Recall & CPH Overall China Recall Overall, the China spring 2016 campaign reached 77% of consumers, or about 13.4 million households. The awareness percentage is down compared to 2015, but adding two target markets resulted in more households reached and a lower cost per aware household. 100% 95% 14,000 90% 12,000 85% 10,000 80% 75% 8,000 70% 6,000 65% 4,000 60% 55% 2,000 50% Recall 81% 85% 77% Aware HHs 9,795,391 10,744,553 13,380, Awareness 81% 85% 77% Aware HHs 9,795,391 10,744,553 13,380,239 Media Spending $2,787,756 $4,647,318 $4,890,473 Cost per Aware HH $0.28 $0.43 $0.37 Thousands 15 SMARInsights benchmark: $0.48 per aware household

16 Recall by Groups Recall by Market Recall by Target Recall by Age 76% 76% 77% 78% 78% 81% 74% 82% 72% 75% Beijing Guangzhou Shanghai Chengdu Shenzhen Affluent Other Advertising awareness is almost identical across markets. There are differences in the level of ad recall between the Affluent/Others and by age with the Affluent consumers and younger consumers having higher levels of awareness. 16

17 Recall & CPH by Initiative The social media initiatives, which include several posts and videos, achieved the highest awareness. The brand TV and Dream365TV digital initiatives also had relatively high awareness. 53% 20% 61% 45% 67% All of these initiatives were reach efficient compared to the benchmark. China Dreamers Brand TV/OTV Refresh Wanda Cinema Brand USA Co op China Dream365TV Digital Video & Banners Out of Home Social (KOL posts & Dream365TV Video Youku Video links Dreamers, Dream Eater, Always in Season) China Dreamers Brand TV/OTV Refresh Wanda Cinema Brand USA Co op China Dream365TV Digital Video & Banners Out of Home Dream365TV Video Social (KOL posts & Youku Video links Dreamers, Dream Eater, Always in Season) Awareness 53% 20% 61% 45% 67% Aware HHs 9,177,181 3,454,195 10,621,208 7,835,074 11,647,412 Media Spending $3,393,681 $300,000 $678,697 $366,057 $152,038 Cost per Aware HH $0.37 $0.09 $0.06 $0.05 $0.01 SMARInsights benchmark: $0.48 per aware household 17

18 Dreamers Brand TV/OTV Recall Source of Brand TV/OTV Recall Most of those aware of the brand TV/OTV ad recall seeing it online. Cinema advertising was added this wave and 9% recall seeing the ad here. Online 80% TV 33% Mobile 19% Cinema 9% Multiple platforms 7% Do not recall 2% Number of Times Seen Brand TV/OTV Ad And most indicate that they saw it multiple times. Seven or more times 11% Once 18% Two or three times 52% Four to six times 19% 18

19 Sun Nan Awareness Aware of any Sun Nan content = 59% Dream365TV Digital Ads Dreamer Social Media Videos 54% 52% 47% 46% 50% 34% 29% 23% 22% 16% Either Sun Nan digital ad General Dream365TV Trailer VCA Sun Nan Trailer Sun Nan Foundational Banner Sun Nan Rainbows at Night Floating Ramp Sarah Dreamland Mavericks Shawn White Twigitecture Ricardo Metal Sculptures VCA invested heavily in the Sun Nan ads/videos (he was paid a hefty sum) and positively, this content reached 59% of Chinese consumers. The Sun Nan Dream365TV digital ads reached 54% of consumers, while the Dreamer Social Media video, Rainbows at Night, reached exactly half of consumers. The Sun Nan Rainbows at Night social media video has notably higher awareness than the other social media videos, but this could be because this content also ran as digital advertising. 19

20 Recall by Initiative by Market China Dreamers Brand TV/OTV Refresh 53% 53% 56% 49% 48% There are no significant differences in awareness of the initiatives across markets. Wanda Cinema Brand USA Co op China Dream365TV Digital Video & Banners Out of Home Dream365TV Video 18% 26% 19% 19% 18% 64% 62% 56% 62% 65% 45% 47% 44% 42% 49% Beijing Guangzhou Shanghai Chengdu Shenzhen Social (KOL posts & Youku Video links Dreamers, Dream Eater, Always in Season) 69% 69% 62% 68% 71% 20

21 Recall by Initiative by Targets China Dreamers Brand TV/OTV Refresh 50% 58% Affluent consumers are more likely than the other consumers to recall all of the individual initiatives. Wanda Cinema Brand USA Co op China Dream365TV Digital Video & Banners 18% 23% 58% 66% Affluent Other Out of Home Dream365TV Video 43% 48% Social (KOL posts & Youku Video links Dreamers, Dream Eater, Always in Season) 64% 72% 21

22 Recall by Initiative by Age 53% China Dreamers Brand TV/OTV Refresh 52% The younger consumers are more likely than the older consumers to recall the Dream365TV digital advertising, the OOH advertising, and the social content. Wanda Cinema Brand USA Co op China Dream365TV Digital Video & Banners Out of Home Dream365TV Video Social (KOL posts & Youku Video links Dreamers, Dream Eater, Always in Season) 21% 19% 18% 33% 53% 66% 57% 50% 48% 44% 74% 61% 60%

23 Initiative Overlap Nearly 40% of Chinese consumers recall seeing four or all five of the campaign initiatives. The impact of initiative overlap is reviewed later in this report. Number of Campaign Initiatives Seen Five 14% Unaware 23% Initiatives China Dreamers Brand TV/OTV Refresh Four 23% One 11% Wanda Cinema Brand USA Co op China Dream365TV Digital Video & Banners Three 15% Two 14% Out of Home Dream365TV Video Social (KOL posts & Youku Video links Dreamers, Dream Eater, Always in Season) 23

24 Creative Ratings 24

25 Brand TV/OTV The overall reaction to the 2016 brand TV spot is slightly more positive than the reaction to the 2015 brand TV spot despite the fact that there was little room for improvement. The ad is also able to effectively communicate key messages. The Affluent consumers are more positive about the ad, as are those who had seen the ad before taking the survey. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 86% 85% 89% 94% Overall Reaction 1% 1% 14% 14% 10% 5% 1% 1% 2% 1% 12% 7% 20% Affluent Others No Recall Recall 87% 79% 92% Negative Neutral Positive How much do you agree this ad shows Overall Affluent Others No Recall Recall California is a place full of possibilities California is a place that inspires you to try new things California s abundance provides endless experiences point scale. Top 10% or Excellent rating = 4.1 or higher. 25

26 Dream365TV OOH & Digital Reaction The Dream365TV initiatives receive a positive overall reaction and rate well for communicating key messages. Like the brand initiatives, the Affluent consumers and those aware of the ads are more positive. Overall Reaction 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0% 12% 7% 1% 1% 1% 15% 8% 26% 87% 92% 84% 91% 74% Overall Affluent Others No Recall Recall Negative Neutral Positive How much do you agree this ad shows Overall Affluent Others No Recall Recall California is a place full of possibilities California is a place that inspires you to try new things California s abundance provides endless experiences point scale. Top 10% or Excellent rating = 4.1 or higher. 26

27 Dreamers Sun Nan Reaction Given its large production costs, the Sun Nan Dreamers ad was tested in isolation. This ad receives a good overall reaction, although a slightly lower percentage gives the ad a positive rating (82%). This is likely due to the niche appeal of snowboarding/skiing. Overall Reaction 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2% 2% 3% 2% 16% 12% 18% 11% 31% 82% 86% 80% 87% 66% Overall Affluent Others No Recall Recall Negative Neutral Positive How much do you agree this ad shows Overall Affluent Others No Recall Recall This video showcases California s unique attitude and vibe People who dream big and do things differently make the California experience unlike anyplace else This video positively influences my perception of California point scale. Top 10% or Excellent rating = 4.1 or higher. 27

28 Dreamers Total Reaction Eight out of 10 consumers react positively to the Dreamers video series. Again we see that the Affluent consumers and those aware of the videos are more positive. Like the other initiatives, these videos receive strong ratings for communicating key messages. Overall Reaction 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 16% 1% 2% 3% 2% 12% 11% 18% 33% 82% 87% 80% 88% 65% Overall Affluent Others No Recall Recall Negative Neutral Positive How much do you agree this ad shows Overall Affluent Others No Recall Recall The California Dreamers series is a good way to showcase California's unique attitude and vibe People who dream big and do things differently make the California experience unlike anyplace else The California Dreamers series positively influences my perception of California point scale. Top 10% or Excellent rating = 4.1 or higher. 28

29 Dream Eater Reaction The Dream Eater videos get a positive overall reaction, which was not necessarily the case in other countries where these videos proved to have more niche appeal. The overall ratings for communicating key messages do fall short of the top 10% benchmark level, making this China initiative different from the others. Overall Reaction 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1% 1% 1% 1% 16% 10% 12% 20% 31% 83% 89% 87% 79% 68% Overall Affluent Others No Recall Recall Negative Neutral Positive How much do you agree this ad shows Overall Affluent Others No Recall Recall The Dream Eater series is a good way to learn about California restaurants and their unique offerings, from the iconic to the lesser known The Dream Eater series positively influences my perception of California s local culinary experiences point scale. Top 10% or Excellent rating = 4.1 or higher. 29

30 Always in Season Reaction When considering the overall reaction and the mean communication ratings, the Always in Season initiative is stronger than the Dream Eater initiative. Overall Reaction 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0% 1% 2% 0% 15% 11% 17% 11% 29% 85% 89% 82% 89% 70% Overall Affluent Others No Recall Recall Negative Neutral Positive How much do you agree this ad shows Overall Affluent Others No Recall Recall The Always in Season series is a good way to learn about California grown agriculture The Always in Season series shows how much natural food is available in California The Always in Season series positively influences my perception of California's local culinary experiences point scale. Top 10% or Excellent rating = 4.1 or higher. 30

31 Impact of the Marketing 31

32 Overall Impact Preferred Destination Impact of Ad Recall The spring 2016 China advertising has a positive impact on California as a preferred destination and on likelihood to visit California % 35% 42% 51% Recall No Recall Interestingly, overall likelihood to visit California is lower this year compared to the prior two years, likely because we are starting to see the impact of a struggling economy *Likelihood to Visit Impact of Ad Recall 40% 28% 32% 19% 26% 16% Recall No Recall *Likelihood %=80% of those already planning a trip and 40% very likely used to adjust for overly positive responses 32

33 Overall Impact The advertising works to build the key California brand attributes and spurs information gathering especially website visits and Weibo follows. Brand Attributes No Recall Recall Diff. California is a place full of possibilities California is a place that inspires you to try new things California s abundance provides endless experiences Information Gathering No Recall Recall Diff. Visited the state's website, 15% 64% 49% Followed state on Weibo 14% 58% 43% Ordered a visitor's guide 19% 41% 22% Called state travel office by phone 6% 15% 9% Gathered any information 39% 88% 49% 33

34 Affluent Target Impact Preferred Destination *Likelihood to Visit The advertising impact is greater among the affluent consumers, except on the brand attributes, where the Affluent consumers have a much higher baseline (and thus less opportunity for impact). Affluent Other 37% 46% 52% 60% Recall No Recall Affluent Affluent Other Affluent Brand Attribute Impact No Recall Recall Diff. No Recall Recall Diff. California is a place full of possibilities California is a place that inspires you to try new things California s abundance provides endless experiences Affluent Other Affluent Information Gathering No Recall Recall Diff. No Recall Recall Diff. Visited the state's website, 15% 70% 55% 15% 61% 45% Followed state on Weibo 13% 61% 48% 15% 56% 41% Ordered a visitor's guide 22% 40% 18% 18% 41% 23% Called state travel office by phone 8% 17% 9% 5% 14% 9% Gathered any information 47% 90% 43% 35% 86% 51% Other 17% 15% 23% 31% Recall No Recall *Likelihood %=80% of those already planning a trip and 40% very likely used to adjust for overly positive responses 34

35 Impact by Initiative There is a great deal of overlap between initiatives, so the bars in these charts are not mutually exclusive. What these charts do say is that all of the initiatives have a positive impact on preference and likelihood to visit. 42% Unaware 16% Unaware 56% 55% 52% 54% 51% China Dreamers Brand TV/OTV Refresh 29% China Dreamers Brand TV/OTV Refresh Preferred Destination Wanda Cinema Brand USA Co op China Dream365TV Digital Video & Banners Likelihood to Visit 34% Wanda Cinema Brand USA Co op 28% China Dream365TV Digital Video & Banners Out of Home Dream365TV Video 31% Out of Home Dream365TV Video Social (KOL posts & Youku Video links Dreamers, Dream Eater, Always in Season) 28% Social (KOL posts & Youku Video links Dreamers, Dream Eater, Always in Season) 35

36 Impact by Initiative Unaware California is a place full of possibilities As seen for the measures of preference and likelihood to visit, all of the China initiatives also have a positive impact on perceptions of California. California is a place that inspires you to try new things China Dreamers Brand TV/OTV Refresh Wanda Cinema Brand USA Co op China Dream365TV Digital Video & Banners California s abundance provides endless experiences Out of Home Dream365TV Video

37 Initiative Overlap Impact The advertising impact increases as the Chinese consumers are exposed to more initiatives. In fact, there is minimal impact when only one initiative is recalled. It is clearly important to reach consumers with multiple messages and multiple media. Preferred Destination 57% 47% 50% 42% 43% 54% California Brand Attributes (5 point scale) Unaware One Two Three Four Five Number of Initiatives Seen California is a place full of possibilities California is a place that inspires you to try new things Unaware One Two Three Four 16% 16% *Likelihood to Visit 21% 20% 31% 37% California s abundance provides endless experiences Five Unaware One Two Three Four Five Number of Initiatives Seen *Likelihood %=80% of those already planning a trip and 40% very likely used to adjust for overly positive responses 37

38 Methodology SMARInsights has developed a research methodology based on how consumers make their travel decisions. The methodology evaluates the effectiveness of a destination s marketing efforts at each point in the decision making process. The awareness wave of research evaluates the media reach, strength of the creative, and the impact on brand perceptions, information gathering, and intent to travel. A total of 1,500 interviews were conducted online in July 2016, with surveying by geographic area. Participants were screened to be the travel decision makers who have traveled to the U.S. in the past 2 years or have some likelihood to visit in the next 2 years. A quota was established for Visit California s defined audience of Affluent consumers. Upon completion of data collection, the data were weighted to be representative of population. Market Completed Interviews Beijing 336 Guangzhou 309 Shanghai 385 Chengdu 187 Shenzhen 283 Total 1,500 Affluent Consumers = 526 completed surveys 38