destination marketing and economic development: creating a …€¦ · measurement of economic...
TRANSCRIPT
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Destination Marketing and Economic Development:
Creating a SingularPlace Brand
George Zimmermann & Bill Siegel
September, 2015
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Today’s Presentation
2/ Halo MagicResearch demonstrates strong lift from destination promotion on both tourism AND economic development image.
1/ Case StudyDeveloping a singular brand for tourism and economic development.
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Pure Michigan Case Study
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Not here to tell you what may or may
not work for you.
Here to share how Pure Michigan happened and its results.
Was not a straight line.
Pure Michigan Case Study
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Four Keys to Pure Michigan
A powerful brand that inspires confidence and produces results.
ROI data that proves effectiveness.
Industry leadership and unity behind the data and the brand.
Sufficient budget to promote the brand.
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Pre-Pure Michigan Budget Declines
$8.0$7.4
$6.4
$5.7 $5.7
3
4
5
6
7
8
9
2001 2002 2003 2004 2005
Mill
ions
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2005: Rock Bottom
Doing less every year, due to budget cuts.
Demoralized, fragmented private sector.
Business declines in middle of decade-long Michigan recession.
Ranked 50th in hotel occupancy rate.
One bright spot: got first advertising return on investment results for 2004 (Longwoods).
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First ROI Data (2004)
MI spent $3.5 million on advertising.
Generated 990,000 trips to state.
Those visitors spent $164 million.
And paid $11.5 million in state taxes.
MI got $3.27 in taxes for each ad dollar spent.
Source: Longwoods International
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2006: Budget Increased to $13.2 Million
We created a new brandfor the state:
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“Sunrise”
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Consistent Award-Winning Campaign
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Ten Best Tourism Campaigns Ever
1. Las Vegas (“what happens here, stays here”)2. Incredible India3. New Zealand4. Australia (Paul Hogan, 1980s)5. Jamaica6. Pure Michigan7. Alaska (B4UDIE billboards, 2005)8. Canada9. Oregon10. Virginia (is for Lovers)
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Industry Rallies for Pure Michigan
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Pure Michigan Budgets
$5.7
$13.2 13.20
$17.5
$28.0
$17.0
25.00 $25.0 25.00
$29.0 29.00
$0
$5
$10
$15
$20
$25
$30
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Mill
ions
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Impact of Pure Michigan Campaign onTourism Image
Image lift goes well beyond messages communicated by
creative
Positive impact across many brand attributes
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The Halo Effect: 2014 Tourism Campaign Impact on Michigan's National Tourism Image
0 10 20 30 40 50
ExcitingFamily DestinationAdult Atmosphere
UniqueSightseeing
EntertainmentPopular
AffordableWorry Free
Sports & Recreation
Percent Who Strongly Agree
Aware* Unaware
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Pure Michigan Results 2006 – 2014
Generated 22.4 million out-of-state trips to Michigan.
Those visitors spent $6.6 billion at Michigan businesses.
They paid $459 million in state taxes on those trips, primarily sales tax.
Cumulative Pure Michigan ROI is $4.81.
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2010 Michigan Governor’s Race
MichaelFinney
Republican Rick Snyder makes Pure Michigan a campaign issue.
He calls for consistent funding at $25 million per year.
For a campaign created during the previous DEMOCRATadministration!
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Snyder Team Cancels “Upper Hand” Campaign
Michael Finney
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Michigan 2010 Upper Hand Commercial
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Michigan’s Marketing Brand
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Michigan’s Marketing Brand
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Pure Michigan: Off to the Races
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Water
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Coke
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Beer
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Detroit Tigers
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Agriculture
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Kroger
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Non-Profits
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New Standard License Plate
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Michigan = Pure Michigan
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Tourism Partners Join the Parade
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2014 Pure Michigan Advertising Partners
44 advertising partners in 2014. Invested $5.7 million in
Pure Michigan ads.
$20,000 to $500,000 per partner.
Started with 2 partners @ $230k in 2002.
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Traverse City Partner TV Ad
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“A surge in tourism from visitors outside of Michigan is helping increase demand for vacation
houses in the region, where the median home price is about a quarter of that in the Hamptons.”
Bloomberg, Sept. 14, 2012
It’s About More Than Tourism
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The Bottom Line
Brings in many visitors regionally and nationally.
Creates jobs in a difficult economy.
Generates incremental dollars to a state treasury struggling with solvency.
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The Bottom Line
Now the SINGULAR BRAND for MICHIGAN:
Tourism Economic
Development. Many marketing
partners.
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Impact of Destination Campaigns on Economic
Development
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Now a Topical Issue
Demonstrates a strong relationship between destination marketing
and economic development through
econometric modeling.
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Strong Support from DMAI
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The Next Step:Direct Measurement
Measurement of economic development impact of tourism campaigns for multiple DMO’s through large-scale advertising effectiveness studies.
Paint a picture of HOW and WHYdestination marketing creates synergy with economic development.
Awareness and image enhancement.
Positive impact of visiting the destination.
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Method
Recent large-scale online surveys of a representative sample of adults 18+ in advertising markets for seven U.S. states and two CVBs.
Non-residents only included for analysis.
Focus on image lift created by:
A. Tourism ad awareness.
B. Visiting the destination.
SampleNorth Dakota 893Wisconsin 1,336Ohio 1,006North Carolina 1,601New Mexico 6,032Minnesota 1,698Michigan 4,022
Portland OR 997Lake Erie Shores & Islands OH
1,053
TOTAL 18,638
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Method
Respondents shown client ads across media channels to measure awareness.
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Impact of Michigan’s 2014 Tourism Campaign on State’s Economic Development Image
0 10 20 30 40 50 60
A good place to live
A good place to start a career
A good place to start a…
A good place to attend college
A good place to purchase a…
A good place to retire
Percent Who Strongly Agree
Aware Unaware
Base: National Out-of-State Residents
+81%
+59%
+50%
+41%
+100%
+79%
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Impact of North Dakota 2014 Tourism Campaign on State’s Economic Development Image
0 10 20 30 40 50 60
A good place to live
A good place to start a career
A good place to start a business
A good place to attend college
A good place to purchase avacation home
A good place to retire
Aware Unaware
+41%
+100%
+75%
+87%
+89%
+75%
Base: Out-of-State Residents
Percent Who Strongly Agree
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Impact of Wisconsin 2014 Tourism Campaign on State’s Economic Development Image
0 20 40 60
A good place to live
A good place to start a career
A good place to start a business
A good place to attend college
A good place to purchase avacation home
A good place to retire
Percent Who Strongly Agree
Aware Unaware
Base: Out-of-State Residents
+47%
+57%
+57%
+29%
+41%
+37%
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Impact of Ohio 2014 Tourism Campaign onState’s Economic Development Image
0 10 20 30 40 50 60
A good place to live
A good place to start a career
A good place to start a business
A good place to attend college
A good place to purchase avacation home
A good place to retire
Percent Who Strongly Agree
Aware Unaware
Base: Out-of-State Residents
+81%
+59%
+50%
+41%
+100%
+79%
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Impact of North Carolina 2014 Tourism Campaign on State’s Economic Development Image
0 20 40 60
A good place to live
A good place to start a career
A good place to start a business
A good place to attend college
A good place to purchase a vacationhome
A good place to retire
Percent Who Strongly Agree
Aware Unaware
Base: Out-of-State Residents
+20%
+41%
+35%
+15%
+32%
+19%
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Impact of Minnesota’s 2014 Tourism Campaign on State’s Economic Development Image
0 10 20 30 40 50 60
A good place to live
A good place to start a career
A good place to start a business
A good place to attend college
A good place to purchase avacation home
A good place to retire
Percent Who Strongly Agree
Aware Unaware
Base: Out-of-State Residents
+47%
+57%
+82%
+63%
+83%
+90%
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Impact of New Mexico 2014 Tourism Campaign on State’s Economic Development Image
0 10 20 30 40 50 60
A good place to live
A good place to start a career
A good place to start a business
A good place to attend college
A good place to purchase a vacationhome
A good place to retire
Percent Who Strongly Agree
Aware Unaware
Base: Out-of-State Residents
+84%
+154%
+133%
+141%
+107%
+76%
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Impact of Portland 2014/2015 Tourism Campaign onCity’s Economic Development Image
0 10 20 30 40 50 60
A good place to live
A good place to start a career
A good place to start a business
A good place to attend college
A good place to purchase avacation home
A good place to retire
Percent Who Strongly Agree
Aware Unaware
Base: Advertising Markets
+63%
+72%
+100%
+69%
+129%
+115%
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Impact of Lake Erie Shores & Islands 2014 Tourism Campaign on Region’s Economic Development Image
0 10 20 30 40 50 60
A good place to live
A good place to start a career
A good place to start a business
A good place to attend college
A good place to purchase avacation home
A good place to retire
Percent Who Strongly Agree
Aware Unaware
Base: Advertising Markets
+132%
+169%
+161%
+104%
+152%
+160%
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Impact of Visitation on Economic Development Image
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Impact of Visitation on Michigan Economic Development Image
0 20 40 60 80
A good place to live
A good place to start a career
A good place to start a business
A good place to attend college
A good place to purchase avacation home
A good place to retire
Percent Who Strongly Agree
Past 2 Yrs Never
Base: National Out-of-State Residents
+100%
+100%
+139%
+56%
+109%
+147%
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Impact of Visitation on North DakotaEconomic Development Image
0 20 40 60 80
A good place to live
A good place to start a career
A good place to start a business
A good place to attend college
A good place to purchase avacation home
A good place to retire
Percent Who Strongly Agree
Past 2 Yrs Never
Base: Out-of-State Residents
+56%
+53%
+78%
+67%
-6%
+47%
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Impact of Visitation on WisconsinEconomic Development Image
0 20 40 60 80
A good place to live
A good place to start a career
A good place to start a business
A good place to attend college
A good place to purchase avacation home
A good place to retire
Percent Who Strongly Agree
Past 2 Yrs Never
Base: Out-of-State Residents
+47%
+15%
+39%
+73%
+104%
+20%
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Impact of Visitation on OhioEconomic Development Image
0 20 40 60 80
A good place to live
A good place to start a career
A good place to start a business
A good place to attend college
A good place to purchase avacation home
A good place to retire
Percent Who Strongly Agree
Past 2 Yrs Never
Base: Out-of-State Residents
+90%
+41%
+67%
+32%
+62%
+45%
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Impact of Visitation on MinnesotaEconomic Development Image
0 25 50 75
A good place to live
A good place to start a career
A good place to start a business
A good place to attend college
A good place to purchase a vacationhome
A good place to retire
Percent Who Strongly Agree
Visited Past Year Not Visited
Base: Out-of-State Residents
+119%
+142%
+179%
+136%
+117%
+100%
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Impact of Visitation on North CarolinaEconomic Development Image
0 20 40 60 80
A good place to live
A good place to start a career
A good place to start a business
A good place to attend college
A good place to purchase avacation home
A good place to retire
Percent Who Strongly Agree
Past 2 Yrs Never
Base: Out-of-State Residents
+35%
+52%
+15%
+35%
+19%
+21%
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Impact of Visitation on New MexicoEconomic Development Image
0 20 40 60 80
A good place to live
A good place to start a career
A good place to start a business
A good place to attend college
A good place to purchase a vacationhome
A good place to retire
Percent Who Strongly Agree
Visited Past Year Not Visited
Base: Out-of-State Residents
+90%
+175%
+168%
+151%
+119%
+86%
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Impact of Visitation on PortlandEconomic Development Image
0 20 40 60 80
A good place to live
A good place to start a career
A good place to start a business
A good place to attend college
A good place to purchase avacation home
A good place to retire
Percent Who Strongly Agree
Visited Did Not Visit
Base: Advertising Markets
+42%
+43%
+72%
+54%
+142%
+72%
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Impact of Visitation on Lake Erie Shores & Islands Economic Development Image
0 20 40 60 80
A good place to live
A good place to start a career
A good place to start a business
A good place to attend college
A good place to purchase a vacation…
A good place to retire
Percent Who Strongly Agree
Visited Past Year Not Visited
Base: Advertising Markets
+71%
+94%
+150%
+141%
+120%
+93%
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In Summary
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“A Good Place to Live”
65
70
146
0 50 100 150 200 250
Advertising
Visitation
Advertising Plus Visitation
Percent
% Image Lift Across Nine DMOs
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“A Good Place to Start a Career”
79
77
163
0 50 100 150 200 250
Advertising
Visitation
Advertising Plus Visitation
Percent
% Image Lift Across 9 DMOs
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“A Good Place to Start a Business”
79
96
194
0 50 100 150 200 250
Advertising
Visitation
Advertising Plus Visitation
Percent
% Image Lift Across Nine DMOs
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“A Good Place to Attend College”
66
80
143
0 50 100 150 200 250
Advertising
Visitation
Advertising Plus Visitation
Percent
% Image Lift Across Nine DMOs
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“A Good Place to Purchasea Vacation Home”
90
86
201
0 50 100 150 200 250
Advertising
Visitation
Advertising Plus Visitation
Percent
% Image Lift Across Nine DMOs
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“A Good Place to Retire”
79
69
164
0 50 100 150 200 250
Advertising
Visitation
Advertising Plus Visitation
Percent
% Image Lift Across Nine DMOs
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Andy Levine
“… while tourism marketing has been shown to generate significant economic impact by driving visitation, these results demonstrate the potential long-term benefits for broader economic development.”
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Bill Geist, Zeitgeist Consulting
“The jury is in. The verdict is crystal.
The visitor-focused advertising of DMOs has a pronounced impact on measures that many community leaders have long said are more important than “tourism.”
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Bill Geist, Zeitgeist Consulting
“Destination Marketing is crucial to showcasing our communities to far more than visitors but, indeed, to future residents and investors.
And, now, no community leader can honestly argue with that.”
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Scott Walker, Wisconsin Governor
“Investing in tourism promotion and marketing at the national, state, and local level is not only an effective way to attract visitors and grow the economy, it also enhances the image of the state as a place to live and do business.”
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The Halo Effect in Psychology
Edward L. Thorndike1874 - 1949
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The Halo Effect in Marketing
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The Halo Effect in Destination Marketing
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Destination Marketing and Economic Development:
Creating a SingularPlace Brand
George Zimmermann & Bill Siegel
longwoods-intl.com
September, 2015