Australia Fiscal Year Advertising ROI Report. January 2017

Transcription

1 Australia Fiscal Year Advertising ROI Report January 2017

2 Contents Section Page Background & Objectives 3 Australia Methodology 4 Insights 5 Advertising Campaign 7 Advertising Recall & Creative Ratings 8 ROI Wave Detailed Findings 15 Trip Specifics 24 Appendix: Rental Cars 33 Appendix: Incremental Travel & ROI Methodology 35 Appendix: Questionnaire 37 2

3 Background & Objectives In fiscal year (winter/spring 2015/2016), Visit California (VCA) expanded its global brand presence by reinstating Australia as a target market with refreshed advertising. Australia was not targeted in calendar year The Australia advertising includes the Board Shorts and Kids Unplugged TV/OTV campaigns, the Dream365TV, Dreamers, Dream Eater, and Come True Foundational online campaigns, and an out-of-home campaign. VCA invested almost $2.2 million in the Australia advertising, which marks an increase compared to the previous (2014) investment of $1.8 million. VCA partners with Strategic Marketing & Research Insights to conduct research that measures the level of California travel attributable to the advertising and calculates return on the investment. The research also explores travel behavior and gathers information to assist Visit California in refining future marketing efforts. 3

4 Australia Methodology The survey was conducted online, with actual advertising shown to measure advertising recall. The interviews were collected from January 11 th to January 17 th, In total, 1,508 surveys were completed in Australia. Respondents qualified by being at least 18 years old, have ever taken a leisure trip outside of Australia, have taken a leisure trip to the U.S. in the past 2 years or are likely to visit in the next 2 years, and are involved in the travel decision-making process in their household. 256 respondents had visited California in the past year. 464 respondents were categorized as the family target (have kids at home). 372 respondents were categorized as the culinary target (participate in food-related activities while traveling). Completed Surveys Sydney 506 Melbourne 500 Brisbane 502 Total Australia 1,508 4

5 Insights: Overall The fiscal year Australia advertising campaign returned $98 in California visitor spending for each $1 invested an increase from the $74 ROI generated in calendar year Compared to the fiscal year advertising in other countries, the Australia advertising was aimed at a relatively small audience. This focused approach led to a more expensive cost per aware household in Australia, but it also generated a relatively strong travel increment (level of ad-influenced travel). The Australia increment was 7.0%, compared to a total global increment of 4.1%. Still, the Australia advertising generated a lower ROI than the other country campaigns. The total global ROI is $289, compared to the $98 Australia ROI. But given the relative expense of placing media in Australia, the ultimate result is positive. The Board Shorts brand TV/OTV campaign is the primary awareness generator, but the support of the more targeted digital campaigns is needed to generate California travel. This is evident in the impact of the Dream Eater and Kids Unplugged advertising among their target audiences, and in the notable boost in impact realized when consumers see three or more campaigns. Top motivators for Australian visitors include amusement parks, scenery, Hollywood, outlet shopping, scenic drives, urban sightseeing, historical sites, nightlife, parks, and museums. Top niche motivators include luxury shopping, zoos/aquariums, sporting events, hiking, live music, performing arts, and skiing/snowboarding. 5

6 Insights: ROI Calculation Calendar Year 2014 Fiscal Year Total Qualified HHs 1,501,757 1,786,423 Ad Recall 54% 57% Ad-Aware HHs 816,450 1,020,048 Insights The incidence of U.S. travel among Australians was higher in fiscal year , resulting in a larger household base from which we assess advertising impact. VCA increased advertising spending in Australia in fiscal year , leading to more awareness and about a 25% increase in ad-aware households. Travel Increment (Ad-Influenced Travel) Incremental Trips (Ad-Influenced Trips) Average California Trip Expenditures 5.8% 7.0% 47,467 71,555 $2,760 $2,951 The fiscal year ads had a greater impact than the calendar year 2014 ads on California travel. In fact, the 7.0% travel increment generated in Australia is the highest of any country measured in the fiscal year ROI research. The fiscal year advertising generated almost 72,000 California trips from Australia a 50% increase over the quantity of trips generated by the calendar year 2014 advertising. Ad-aware visitors spent $2,951 on average during their fiscal year California trips. Only UK and China visitors spent more on average. Australian visitor spending increased, despite some weakening of the Australian dollar and some general weakening of the Australian economy since Ad-Influenced Visitor Spending $131,000,000 $211,139,862 More ad-aware households, more impactful ads, and higher average visitor spending led to a 60% increase in ad-influenced visitor spending and a 50% increase in adinfluenced Ad-Influenced Tax Revenue $9,000,000 $13,386,267 tax revenue (a lower tax rate wave used in fiscal year ). Media Expenditures $1,770,186 $2,159,339 VCA spent $2.16 million on the fiscal year advertising. ROI (Total Visitor Spending ROI) $74 $98 Ultimately, the fiscal year Australia advertising retuned $98 in visitor spending and $6 in tax revenue for each $1 invested. These figures mark notable improvements over the calendar year 2014 results. The $98 ROI is lower than the same figure for other countries targeted in fiscal year , but the Australia General Fund ROI (Tax ROI) $5 $6 campaign is very focused, and aimed at a relatively small number of households in just three cities. These focused efforts led to a strong level of ad-influenced travel and an ROI on par with that realized in the UK. 6

7 Advertising Campaign In total, VCA spent $2,159,339 on the fiscal year Australia advertising. This is the media expenditure figure that will be used to calculate ROI. VCA spent 22% more in fiscal year than in calendar year The Board Shorts brand TV/OTV spot received about half of the fiscal year investment. Winter/ Spring 2015/2016 Spending Winter/ Spring 2015/2016 Impressions Board Shorts TV $1,026, ,883,100 Board Shorts OTV $101,623 2,208,474 Kids Unplugged OTV $43,091 1,063,206 Dream365TV Digital $94, ,897,260 CA Dreamers Digital $83,252 10,398,286 Dream Eater Digital $136,422 85,360,438 Come True Foundational Digital $319,758 61,154,159 Out-of-Home $354,653 46,000,000 Total $2,159, ,964,923 Calendar Year 2014 Fiscal Year % Change TV/OTV $1,171,140 Digital $633,546 Out-of-Home $354,653 Total $1,770,186 $2,159,339 22% 7

8 Advertising Recall & Creative Ratings

9 Advertising Recall: TV, Digital, Out of Home Fiscal Year Awareness by Media 50% 57% 28% 9% TV/OTV Digital Out-of-Home Any The TV/OTV campaigns, which received about half of the ad dollars, were the awareness drivers in Australia. There is a great deal of overlap among the three media, as total awareness is just seven percentage points higher than TV/OTV awareness. 9

10 Advertising Recall: Trending Any Ad Recall Calendar Year 2012 Calendar Year 2013 Calendar Year 2014 Fiscal Year % 57% Households 978,890 1,028,411 1,501,757 1,786,423 40% 41% Any Ad Recall 40% 41% 54% 57% Calendar Year 2012 Calendar Year 2013 Calendar Year 2014 Fiscal Year HHs with Ad Recall 389, , ,450 1,020,048 VCA increased the advertising investment in fiscal year compared to calendar year 2014 ($2.16 million vs. $1.77 million) and the result is a slight increase in the overall ad awareness percentage. The result is about 200,000 more ad-aware households in fiscal year compared to calendar year

11 Advertising Recall: Campaigns Fiscal Year Recall by Campaign 49% 23% 10% 9% 14% 8% 9% Board Shorts TV/OTV Kids Unplugged OTV Dream365TV Digital CA Dreamers Digital Deam Eater Digital Come True Foundational Digital Out-of-Home The Board Shorts campaign is clearly the awareness generator. Of the other campaigns, the Come True Foundational digital ads have the highest awareness. 11

12 Ad Sentiment: Brand & Family TV/OTV Board Shorts TV/OTV Sentiment Kids Unplugged OTV Sentiment 100% 90% 80% 70% 4% 4% 4% 22% 27% 16% 100% 90% 80% 70% 5% 3% 5% 2% 12% 22% 30% 32% 60% 50% 40% 30% 20% 74% 69% 80% Negative Neutral Positive 60% 50% 40% 30% 20% 66% 75% 63% 86% Negative Neutral Positive 10% 10% 0% Overall Unaware of Ads Aware of Ads 0% Overall Family Target Unaware of Ads Aware of Ads Overall, Board Shorts and Kids Unplugged receive mostly positive reactions, and an even greater proportion of positive reactions among those who had seen the ads before the survey. 12

13 Ad Sentiment: Dream365TV & Dreamers Dream365TV Sentiment Dreamers Sentiment 100% 90% 80% 70% 4% 4% 3% 48% 52% 20% 100% 90% 80% 70% 5% 5% 3% 10% 45% 48% 60% 50% 40% 30% 20% 48% 45% 77% Negative Neutral Positive 60% 50% 40% 30% 20% 50% 47% 87% Negative Neutral Positive 10% 10% 0% Overall Unaware of Ads Aware of Ads 0% Overall Unaware of Ads Aware of Ads Most consumers aware of the Dream365TV and Dreamers digital campaigns have a positive reaction to the ads. 13

14 Ad Sentiment: Dream Eater & Come True Dream Eater Sentiment Come True Sentiment 100% 90% 80% 70% 60% 50% 40% 30% 20% 19% 18% 20% 33% 30% 48% 52% 34% 46% 11% 16% 74% Negative Neutral Positive 100% 90% 80% 70% 60% 50% 40% 30% 20% 3% 3% 2% 41% 56% 46% 51% 17% 81% Negative Neutral Positive 10% 10% 0% Overall Culinary Target Unaware of Ads Aware of Ads 0% Overall Unaware of Ads Aware of Ads Just half of the culinary target audience gives the Dream Eater ads a positive rating, but three-quarters of those who had seen the ads before the survey do so. A similar result is seen for the Come True ads, as those with prior exposure are the most positive. 14

15 ROI Wave Detailed Findings

16 Fiscal Year Incremental Travel & Influenced Spending Sydney Melbourne Brisbane Total Australia Total Qualified HHs 737, , ,274 1,786,423 Ad Recall 54% 59% 59% 57% Ad-Aware HHs 401, , ,478 1,020,048 Travel Increment (Ad-Influenced Travel) 7.1% 6.5% 7.7% 7.0% Incremental Trips (Ad-Influenced Trips) 28,577 26,687 16,291 71,555 Average California Trip Expenditures $2,951 $2,951 $2,951 $2,951 Ad-Influenced Visitor Spending $84.3 million $78.7 million $48.1 million $211.1 million Overall, the fiscal year , Australia advertising generated a 7.0% travel increment. This is the highest level of incremental travel generated in any of the seven target countries. The Australia campaign was focused, targeting fewer households than other country campaigns, which resulted in the relatively strong ad impact. The travel increment translates to just under 72,000 ad-influenced trips. Using a 12-month average exchange rate, the ad-aware Australia visitors spent $2,951 on their California trips which equates to a total of about $211 million in ad-influenced visitor spending. 16

17 ROI Compared to Prior Year The fiscal year VCA advertising in Australia ultimately returned $98 in visitor spending and $6 in tax revenue for each $1 invested. Compared to the calendar year 2014 measurement, higher ad awareness and a stronger travel increment in fiscal year led to more ad-influenced trips. Average visitor spending also increased, leading to a notable increase in adinfluenced visitor spending. VCA increased Australia media spending, which paid off in the form of a greater ROI and tax ROI. It should be noted a slightly lower tax rate was used this year (6.34% vs. 6.4%). Calendar Year 2014 Fiscal Year Total Qualified HHs 1,501,757 1,786,423 Ad Recall 54% 57% Ad-Aware HHs 816,450 1,020,048 Travel Increment (Ad-Influenced Travel) Incremental Trips (Ad-Influenced Trips) 5.8% 7.0% 47,467 71,555 Average California Trip Expenditures $2,760 $2,951 Ad-Influenced Visitor Spending $131.0 million $211.1 million Ad-Influenced Tax Revenue $9.0 million $13.4 million Media Expenditures $1,770,186 $2,159,339 ROI (Total Visitor Spending ROI) $74 $98 General Fund ROI (Tax ROI) $5 $6 17

18 Ad-Influenced Spending by Region $71.5 Los Angeles County Total Ad-Influenced Spending Allocation Across Regions (millions) $46.9 San Francisco Bay $25.6 Orange County $16.0 $14.6 San Diego County Central Coast Total ad-influenced spending = $211 million $8.4 $6.4 $4.9 $4.9 $4.7 $4.7 Central Valley High Sierra Gold Country North Coast Inland Empire Desert $2.5 Shasta Cascade Region Ad-Influenced Spending Los Angeles County $71,499,039 San Francisco Bay $46,935,998 Orange County $25,625,298 San Diego County $16,025,647 Central Coast $14,556,848 Central Valley $8,380,023 High Sierra $6,425,996 Gold Country $4,904,740 North Coast $4,852,283 Inland Empire $4,747,368 Desert $4,694,911 Shasta Cascade $2,491,713 Total $211,139,862 Los Angeles and San Francisco have the highest rates of visitation, so naturally they also have relatively large pieces of the ad-influenced travel revenue pie. Orange County, San Diego, and the Central Coast make up the second tier regions in terms of ad-influenced visitor spending. 18

19 Ad-Influenced Spending by Industry Category Homeshare, $5.2 Inn/B&B, $7.2 Total Ad-Influenced Spending Allocation Across Industries (millions) $68.0 Total Accommodations Total ad-influenced spending = $211 million Industry Category Accommodations - Hotel/Motel Ad-Influenced Spending $55,556,794 Shopping $34,527,817 Meals/food/groceries $33,659,184 Attractions $32,403,309 Car Rental $22,781,660 Hotel/Motel, $55.6 $34.5 $33.7 $32.4 $22.8 $11.7 $8.1 Accommodations Shopping Meals/food Attractions Car Rental Entertainment In-State Travel (other than rental car) Entertainment $11,659,428 In-State Travel (other than rental car) Accommodations - Inn/B&B Accommodations - Homeshare $8,146,187 $7,222,186 $5,183,298 Total $211,139,862 Accommodations account for the largest portion of ad-influenced travel revenue, followed by shopping, food, and attractions. The accommodation type spending is estimated based on the percentage of nights spent in each. 19

20 Impact by TV/OTV Campaign With seven total campaigns (two TV/OTV, four digital, and out-of-home), it is not possible to isolate the impact of each. We can evaluate the impact of the TV/OTV ads separate from each other, but this does not account for digital ad awareness. For instance, someone aware of just Board Shorts could also be aware of one or more digital campaign. That said, the chart at right does suggest that the Board Shorts spot, which is designed to be the brand builder, has a lesser/less immediate impact on California travel than the Kids Unplugged spot, which is designed to spur more immediate impact among families. But the greatest impact results from the synergy created by the combination of these campaigns. 13% Unaware Visited California by TV/OTV Campaign Awareness Combinations 17% Aware of Board Shorts only 22% Aware of Kids Unplugged only 34% Aware of both 20

21 Impact by Digital Campaign Visited California by Awareness of Digital Campaigns 30% 30% 32% 27% 13% Unaware Aware of Dream365TV Aware of CA Dreamers Aware of Dream Eater Aware of Come True With four digital campaigns, there are 15 possible awareness combinations, so the groups shown in this chart are not mutually exclusive. But this does give some idea of the relative impact of these campaigns. All of the digital campaigns clearly have a positive impact on California travel. The most highly targeted campaign, Dream Eater, has the strongest, most immediate influence. 21

22 Impact by Target Consumers Culinary Target California Travel 36% 30% 25% Family Target California Travel 22% 36% 14% Unaware Aware, but not of Dream Eater Aware of Dream Eater Unaware Aware, but not of Kids Unplugged Aware of Kids Unplugged VCA has two specific target groups: culinary (those who often or always participate in culinary activities while traveling) and families (those with kids under age 18 at home). The advertising has a much greater impact on these groups when they see the campaign designed for and aimed at them. This underscores the importance of implementing these types of targeted campaigns when a goal is to influence travel among niche traveler groups. 22

23 Campaign Overlap Impact Advertising impact increases notably when Australian consumers see three or more of the campaigns. But just 15% of consumers are aware of at least three campaigns. The challenge for VCA is to balance the use of mass media (TV) to generate reach with the more targeted efforts that generate impact. % Visited California by Number of Campaigns Seen 30% 35% 17% Aware of 1 campaign 32% Aware of 2 campaigns 9% 8% 13% 12% Unaware 43% Aware of 3 campaigns 6% Aware of 4 or more campaigns 9% 15% aware of 3 or more campaigns Unaware Unaware Aware of 1 campaign Aware of 2 campaigns Aware of 3 campaigns Aware of 4 or more campaigns 23

24 Trip Specifics

25 Trip Specifics: Trip Planning Considered 1 st When Planning CA Trip Ad Impact on 1 st Consideration 55% 21% 20% Started with a desired destination in mind Started with the idea of a certain type of vacation experience (family, vacation, romance, socializing with friends, Started by considering specific activities you wanted to do such as shop, hike, golf, visit an amusement park, etc. Considered another destination first Don t know/not sure 1% 3% 0% 4% 22% 19% 20% 19% Aware Unaware 56% 55% Someone else planned this trip 1% 0% Australian visitors are most likely to start planning their California trip with the destination in mind. But type of trip and trip activities also lead to California trips. The ad-aware visitors are more likely to start by considering a certain type of vacation experience which suggests that the ads are communicating the types of experiences available in a California vacation. 25

26 Trip Specifics: Length of Stay & Lodging 8.8 Ad Impact on Length of Stay % 96% 94% Ad Impact on Paid Accommodations & Type 88% 21% 12% 13% 14% 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 Australian visitors stay in California for a long time (almost nine days on average), and almost all use paid accommodations. Because their trips are generally lengthy, the advertising has just a slight impact on trip length. Those who saw the ads are more likely to discover and use less traditional lodging like an inn or B&B. 26

27 Trip Specifics: Regions Visited % Australian Travelers who Visited Each Region 10% 3% 9% # regions visited Mean Total 2.8 Aware 3.0 Unaware 2.6 Nights in Paid Accommodations (among visitors to each region) Average # Share Los Angeles County % San Francisco Bay % Orange County % Central Coast 2.3 7% 55% of Australians nights in paid lodging are in L.A. and San Francisco 55% 13% 16% 30% 70% 31% 26% 14% 7% San Diego County 2.3 7% Desert 3.7 6% Central Valley 1.7 3% High Sierra 2.1 3% Inland Empire 3.1 2% North Coast 1.9 2% Gold Country 2.0 2% Shasta Cascade 2.4 1% 27

28 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). Australia FY Top Motivating Activities Participated Motivated by (of participants) Shopping at an outlet mall 54% 29% Urban sightseeing 50% 30% Viewing and enjoying natural scenery such as beaches, oceans, mountains, etc. 48% 44% Hollywood/celebrity sightings 44% 41% Visiting historical sites 42% 33% Visiting a theme or amusement park 38% 72% Driving on scenic byways or roads 38% 42% Visiting state or national parks 36% 33% Night life 34% 38% Visiting museums, science centers or exploratoriums 30% 26% 28

29 Niche Motivating Activities: Good options for highly targeted advertising Niche motivators have relatively low participation rates, but relatively strong motivation. AUSTRALIA FY Niche Motivating Activities Participated Motivated by (of participants) Luxury shopping 21% 29% Visiting a zoo or aquarium 19% 27% Attending a live sporting event 17% 39% Attending a live music event, concert or festival 16% 27% Attending performing arts events (theater, dance, etc.) 13% 25% Hiking or camping 12% 43% Snow sports activities such as skiing or snowboarding 5% 38% 29

30 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 by (of participants) Shopping at a mall 64% 18% Going to the beach 46% 22% Dining at a unique local restaurant(s) 43% 14% Exploring neighborhoods or small towns 39% 15% Shopping at a unique local shop 36% 4% Going to a farmers market 30% 6% Visiting museums and other visual arts venues 30% 8% Visiting a winery or wine regions 21% 13% Dining at a celebrity/notable chef's restaurant 18% 18% Taking kids to the beach 16% 22% Visiting a high-end resort 15% 18% Gambling 14% 14% Participating in a VIP tour or experience 14% 20% Exploring farm tours or farm trails 13% 12% Visiting a microbrewery 12% 10% Attending a culinary festival or event 10% 8% Water sports activities such as surfing, paddleboarding or boating 9% 21% Adventure activities such as whitewater rafting or rock climbing 9% 17% Road/trail sports activities such as biking, cycling or running 9% 23% Visiting a spa or wellness center 9% 18% Golfing 4% 18% # Activities on CA trip 9.2 Unaware 10.1 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. 30

31 Trip Specifics: Trip Rating Top 2 Box Trip Rating Top 2 Box Trip Rating 89% 81% 80% 79% 78% 69% 89% 89% 84% 77% 80% 81% 78% 79% 80% 74% 69% 69% Unaware Aware Overall, California visitors from Australia are satisfied with their trips. Those aware of the ads are more satisfied with lodging and dining. We saw that those aware of the ads are more likely to stay at an inn or B&B, suggesting that the ads prompted lodging information gathering, leading to more informed and unique choices and ultimately a better experience. 31

32 Trip Specifics: Social Sharing & Advocacy Ad-aware visitors have more active, satisfying trips. They are also more likely to be advocates on social media and in general. 78% Impact of Ads on Social Sharing & Other Advocacy Measures 61% 66% 64% 45% 45% 42% 24% 27% 33% 13% 9% 12% 16% 2% 6% Any social sharing Facebook Instagram Twitter YouTube Blogs Very likely to return to CA Likelihood to recommend Shared on Unaware Aware (Top 3 box) 32

33 Appendix: Rental Cars

34 Rental Cars Among Ad-Aware Visitors Boat/ship 1% Uber/Lyft/other 5.0% Limousine/ private car 1.9% Primary Mode of Transportation Subway/ underground train Other 1% Train 6% Personal car/truck, 6% Rental car, 30% Airplane 16% Public bus, 11% Taxi, Private bus/ 9% tour bus, 10% 48% Rental Car Usage 30% Car Rented was Car Primary on Trip Mode of Transportation on Tr The advertising influenced $22.8 million in rental car fees. # Days Rented Car in California 7 days, 15% 5-6 days, 15% 8+ days, 50% 3-4 days, 13% 1 day 1% 2 days 5% $465 Transportation within California (minus fuel) Spending among Those Who Rented Car $260 Gas/fuel $726 *Total Transportation *Sum of Transportation (minus fuel) and Gas/fuel **Amount of total transportation costs spent on rental car $606 **Rental Car Hertz Budget Enterprise Fox Payless TravCar Other 5% 4% 4% 3% 3% 1% 5% Rental Car Brand Used 9% 9% 19% 24% 34 35%

35 Appendix: Incremental Travel & ROI Methodology

36 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 36

37 Appendix: Questionnaire

38 Questionnaire 38

39 Questionnaire 39

40 Questionnaire 40

41 Questionnaire 41

42 Questionnaire 42

43 Questionnaire 43

44 Questionnaire 44