John Edman Explore Minnesota Tourism Brainerd Lakes Annual Meeting 2013 Regional Tourism and Online Marketing Summit April 30, 2013
Agenda State of the Industry Explore Minnesota Marketing and Partnerships New Research and Insights From Consumers More to Explore Evolution Strategies and Tactics Funding and Market Share Tourism Awareness
State of INDUSTRY
Travelers Annual Number of Travelers in Minnesota: 71 Million More than 13 Times the Population of the State!
Tourism Sales 2011 Annual Leisure & Hospitality Gross Sales: $11.9 Billion Sales Grew 47% from 2000 to 2011 Increase of Sales of 4.9% for 2011
State and Local Taxes State Sales Tax Generated Annually: $769 Million This is 17% of All State Sales Tax Revenues. Up 5% from 2010
Employment Number of Jobs: 239,855 Total Payroll: $4 Billion Size of Employment: 11% of total private sector employment
Resorts Growth In Sales - $251 Million in 2011 State Sales Tax Up - $15.3 Million Number of Resorts Down 854 2011 Growth of 3.7% - Two Years Up North Central West Largest Region of Resort Sales
Minnesota Rank 30th in US in Tourism Spending 22nd in Expenditures 18th in Employment 9th in Travel Generated Taxes
Trends Lodging Continues to Strengthen Moderate Revenue/Occupancy Growth Smith Travel Outlook for Leisure and Business Up Travelers Seeking New/What s Next Desiring Longer More Frequent Vacations Looking For Sense of Authenticity Attitudes Towards Leisure Travel Has Improved Long Awaited Meetings Recovery Underway US Travel
Explore Minnesota Campaign Goals Brand Awareness Traffic and Lead Generation Content Engagement Partnerships Sales Revenue, Taxes, and Jobs
Campaign Platform Evolution: A WAY OF LIFE
Media Tactics Television -5 Midwest Markets Radio New and Unique Digital Evolution Social Public Relations Print Coop Advertising Spring/Summer BY SEASON 58% OUT: 65% 20% 22% BY MEDIUM DIGITAL SEM TV Fall DM/PARTNER IN-STATE VS. OUT-OF-STATE IN: 35% Winter RADIO
Spin To Win Evolution of Campaign Traditional Site and Social Media Minnesota Prizes Leads and Engagement
Partnerships Explore Minnesota Challenge Legacy Weekends Attraction Radio Partnerships Minnesota Monthly Museums Meetings and Sports Biking
TC Attractions Partnerships Radio Spot
Travel Trade Media and Trade Multi State Partnerships New Market Exploration Active America China Canada Sales Missions Minnesota Splash at ABA
Pedal Minnesota More People More Bikes More Often Agencies and Private Sector Partners Website Development Advertising and PR
PEDAL MINNESOTA HIGHLIGHT REEL
2012 Digital Mobile Web Improvements Mobile App Launch Adrian Award Foreign Language Translation Linear Listings
Continual Improvement New Industry Site New Analytics Tracking Extranet Improvements New Social Channels
Digital Always Changing Websites Never Done Extensive User Testing Industry and Consumers Foundation for Changes
Results Customers Served Website Visits 3,600,000 44% Travel Info Centers 2,700,000 13% Mail and Digital Inquiries 196,000 30% Telephone Inquiries 7,200 30% Website Requests 33,000 38% E-newsletter Subscribers 193,000 71%
Social Media Presence Facebook Fans tripled to 60,000. Facebook Is a Top Four Referring Website Over 6,700 Users on Twitter Nearly 1900 Photos Posted on Flickr Over 1/2 Million Video Views on You Tube Channel
Return on Investment 8 to 1 ROI on 2012 Advertising Generated $154 Million Additional Spending 1,850 Jobs $14.6 Million in State and Local Taxes Based on Longwood International and Tourism Economics Study on ROI of EMT s Spring Summer 2012 Advertising
Where Next Economy and Consumers Changing Where Do We Go From Here Who Are Our Customers What Do They Want How Do We Grow Tourism in Minnesota
More to Explore 3.0 Follow Research Results - IPSOS Visual Inspiration Contemporary Build on More but Humanize Show People and the State Represent All Regions and Segments
Build on More Theme Deliver in New Way Videos Supporting Core Segments Basis for Digital and TV TV Awareness Drives Search Need to Answer Why Minnesota
TARGET MEDIA USAGE + Audience Segments Consumer Media Across Multiple Touchpoints + A Guide For EMT Media Placement 80% 60% 40% 20% 0% Cable TV Magazines Newspaper Radio TV Prime TV All Day Internet Outdoor Media Quintiles
TELEVISION Use television to drive awareness Multiple markets to motivate current and prospective visitors Balance reach and targeting against primary segments Focus efforts in spring/summer season
15 SECOND MORE TV SPOTS
Markets and Reach Audience Segments Across Media Execute Against Psychographics Cable, Broadcast, Radio Robust Digital SEM, E-Mail, Banners, Social, Mobile Multiple Markets Five State Region + Manitoba Spring Summer Emphasis Buy
Television Buy Strategy: Broadcast and Cable Maximize Audience Similarities For Reach, Differences For Targeting Cultural Explorers Spontaneous Adventurers Estimate 90% Network 10% Cable Bookend Audiences
MARKET CONSIDERATIONS Two-tiered approach to address varying levels of competitive pressure Primary: Spot coverage Secondary: Regional coverage Promotional coverage
MAJOR LEAGUE BASEBALL + Expand to leverage audience behavior, coverage and frequency + Both key audience segments watch MLB during regular season, with indices of 200+ + Provides frequency and consistency + Local/state/regional pride + Seasonally relevant + Coverage includes Minnesota and four key border states + Estimated 6.5 average game rating in 2012 + Limited competitive pressure drives broadbased support + FSN televises 150 games + Full-state Wisconsin coverage + Successful 2011 and 2012 seasons driving high average game ratings + Fox Sports carries 150 games + Beneficial pairing with FSN
Marketing Partnerships Coop Advertising Including TV Resort and Destination Coop EMT Coop Program Motorcycle Byways Promotion Craft Brewers Guild
Digital Media Heavy Digital Buy Google, YouTube, Facebook Banner Advertising E-Mail Marketing Campaign Video Promotion
30 SECOND MORE TV SPOTS
Video Apps Custom Videos Based on Capture In-House Videos Sweepstakes Usage Viral Effect OPENING SCREEN Video opens on landing page, pausing for a few seconds t o give the viewer a chance to read the copy. Then, a curser moves and clicks MAKE A MIX.
VIDEO APP REEL
Website Evolution New Listing Pages New Destination Dining Pages Travel Expert Pages Music Pages New Micro Site Templates Other Redesigns
Tourism TODAY
How Are We Doing Ask Industry Every Two Years Results Positive Professional Staff Programs and Services Marketing Focus
How Are We Doing Industry Survey Results 3 12% Quality of Services Provided by EMT 4 (poor) 1% 1 (excellent) 35% Professionalism and Support Provided by EMT Staff 3 9% 4 (poor) 1% 1 (excellent) 50% 2 39% 2 53%
How Are We Doing Industry Survey Results EMT Marketing and Promotional Programs Rated Most Important* Raising awareness of the importance of tourism Electronic marketing (including www.exploreminnesota.com) Domestic marketing/advertising State tourism funding Research on economic impact, travel trends, etc. 75% 80% 85% 90% 95% 100% * Percent of respondents rating 1 or 2 on a 4-point scale where 1 is very important and 4 is not at all important ( Does not apply; or I m not aware of this responses not considered)
Winter 2012-13 Survey of Lodging Properties Expectations for Spring & Summer 2013 Occupancy, compared to 2012 Revenue, compared to 2012 Down 10% Down 11% Up 42% Up 47% Same 47% Same 43%
Ways to GROW Minnesota Being Outspent Tourism Brings a Positive ROI Contributes to the Economy Advertising Limited (UNTIL NOW) Governor and our Legislators Support Tourism Tourism Growth Coalition Industry Lead Effort Awareness of Leisure and Hospitality as Never Before!
Impact of Declining Budget Reduced Number of Advertising Markets Chicago and Sioux Falls Unable to Expand to Markets with Potential Kansas City, St. Louis, Omaha, and Denver Reduced Frequency of Broadcast Advertising Limited International Reach
Governor s Proposed FY 14/15 Budget $16 Million Annual Operating Budget Includes $500,000 Incentive Funding Also Includes $325,000 Film and TV Board $12,000 Upper Minnesota Film Office Includes Car Rental Tax Increase From 6.2% to 9.05% Car Rental Tax Not Dedicated
How Money Would Be Used Expand Marketing Beyond Region Strengthen Drive Markets Expand Partnerships Support International and New Emerging Markets Expand Niche Markets
What Do You Get Each Additional $1 Million in Funding: $84 Million Traveler Spending 1,000 Jobs $22 Million Income $8 Million New State and Local Taxes Based on Longwood International and Tourism Economics Study on ROI of EMT s Spring Summer 2012 Advertising
Legislative Update House Passed Omnibus Economic Development Bill Includes a $5.6 Million Increase in EMT Funding - $14 Million Annual Budget Senate Passed Similar Spending Bill Includes a $7.2 Million Increase - $15.8 Million Annual Budget House Tax Bill Includes Governors Car Rental Tax Proposal Senate Tax Bill Also Includes Tax Provision Proposed By Governor Conference Committee Negotiations To Be Determined
Conclusion Trends For Tourism Up 2012 Was A Good Year and 2013 Hoping to Improve Cautious Optimism For Leisure and Hospitality Evolving More To Explore Campaign Adjusting Tactics to Meet Consumer Behavior Poised to Reach New Markets and Be Competitive Working to Increase Tourism Awareness Tourism Works for Minnesota
TOURISM AWARENESS VIDEO
THANK YOU John F. Edman John.edman@state.mn.us 651-757-1844