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iStrategy Conference 17 – 18 May, 2011

Presentation by Nick Baker

Executive General Manager Marketing, Tourism Australia

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Strategic Annual Plan - Foundation

The foundation of TA’s 2011/12 Strategic Annual Plan is the 2020 Tourism Industry Potential….this will drive all that we do

The 2020 Potential sets a 10 year vision for the Tourism Industry to focus on improved competitiveness and increased returns from the tourism industry.

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What is the 2020 Potential?

The Australian Tourism Industry Potential is an estimate of the value of overnight expenditure the Australian tourism industry will achieve with improved performance.

By 2020 the Potential is estimated to be between $115 billion and $140 billion in overnight expenditure.*

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* $135-$160 billion including day trips

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What does the Potential mean for the supply side?

Achievement of the 2020 Potential has implications for investment, labour and skills, accommodation and aviation

• Labour and skills are predicted to be the greatest supply side challenge (not just for achievement of the Potential but for business as usual) – from almost 500,000 workers to around 600,000 workers

• Accommodation will need to grow – around 50,000 additional rooms at better occupancy and yields

• Aviation capacity will need to grow – 40-50% for international aviation capacity and 25% for domestic aviation capacity. (Airport Master Plans and BITRE forecasts are higher than these estimates)

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What does the Potential mean for TA?

• Focus on the consumerA global consumer that is predisposed to Australia and spends more

• Industry developmentUsing customer understanding to inform investment and quality (NTAF)

• Aviation PartnershipsHelping to grow sustainable and competitive capacity

• A Continued Global Markets StrategyRecognising the need for a strong mix of eastern and western markets, leisure, business events and TA’s role in domestic

• Stronger Industry Partnerships Including States/Territories, distribution players and Australian industry

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11/12 Strategies - How TA will achieve the 2020 Potential

Our customer and how TA will differentiate

• TA’s Target Customer = The Global Leisure and Business Events Consumer

• TA is a customer focused organisation

TA will focus more resources on markets and talking directly to the customer

TA will differentiate Australia’s product and experience through competitive communications, distribution and access

TA will share consumer insights to help build more appealing Australian product and facilitate investment and informed development of supply to better meet the needs of the target customer

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11/12 Strategies: How TA will achieve the 2020 Potential

High Impact Events

Market high impact events and festivals that:

• Target ‘passion points’ for the customer, promoting immediate reasons to visit Australia

• Provide platforms to partner with brands that can increase TA’s reach and frequency in the marketplace

Driving the consumer message through various PR platforms will be vital

Customer focused – Build partnerships to engage customers

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11/12 Strategies: How TA will achieve the 2020 Potential

Countries where our Target Customer lives Customer focused – know the customer

CriticalWorth $3 billion and over $5 billion by 2020

CoreWorth between $1.5 billion and $3 billion by 2020

Rest of World

Worth over $5 billion by 2020 • Singapore

• Middle East

• Malaysia

• Germany

• Indonesia

• Hong Kong

• India

• Canada

• France

Fast emerging

• Brazil• Vietnam

• China

• USA

• UK High priority

Worth over $3 billion by 2020 • Italy

• New Zealand

• Japan

• South Korea

All other markets

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11/12 Strategies - How TA will achieve the 2020 Potential

Right message, right channel, digital focus

Customer focused – Deliver effective marketing communications

• Continue to adapt to the target customer’s needs, ensuring Australia is competitive

• Integrate advertising, TA owned and operated assets and social media channels to ensure effective leverage of our marketing investment globally

• Embed and deepen There’s Nothing Like Australia campaign

• Commence the next phase of development of the campaign

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11/12 Strategies: How TA will achieve the 2020 Potential

Media

• Partner with traditional and non-traditional media partners (media owners, social media networks, digital channels and brands) that have the ability to reach the target audience and directly engage with the target customer

• Ensure TA is at the forefront of trends and insights on the target customer’s media usage

Customer focused – Build partnerships to engage customers

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The world travels to experience difference. As a destination, Australia is

different. Accentuating this will create more travel to and through our country.

Australians are the experts on what makes Australia unlike anywhere else.

And they want to help promote it. Research by Tourism Australia shows 8 in

10 Australians say they know what makes their country unlike any other. And

8 in 10 say they’d help promote Australia to people overseas.

Insight

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Tourism Australia’s new campaign lets international travellers find out

about the best places and experiences in Australia straight from the

experts –Australians.

The campaign combines the insight of Tourism Australia’s forty years of

experience in knowing what international visitors want, and the Australian

peoples’ knowledge of what makes Australia special.

Campaign Idea

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1. Universally understood

2. Simple

3. Translatable

4. Authentic and true to Australia

5. Not polarising

6. Engender a sense of pride amongst Australians

7. Not colloquial

8. Work across both markets and segments

9. A rallying point for the industry

Challenge for campaign line

10. Something the organisation can believe in and live everyday

11. A thought that is both rational and emotional

12. An idea that can live for a long time and that lives everywhere

13. An already strong line that will get stronger over time

14. A line that is defensible and that won’t attract negative commentary before we have had a chance to properly launch it

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InvitePRE-LAUNCH

• Invite Aussies - ask them what makes Australia unique

• National consumer promotion

• Website to share experiences

• Invite the industry

InspireLAUNCH

EngageIN-MARKET

• Video (broadcast focussed on digital distribution, TV & cinema)

• Print

• PR

• Direct mail

• Travellers from around the world sharing their special places in Australia

• Localised campaign in region

• Roll out of co-op materials

• Delivery of tactical materials for partners

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nothinglikeaustralia.com

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Australians play a role

• Campaign website live • Almost 30,000 entries from Australians over 28 days

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Flexible multi destination ads

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International implementation30 countries in 6 months in 15 languages

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Of the 57 infotainment/lifestyle - travel programs in FY10/11 Tourism Australia produced the top 5 rating episodes.

– 6 of the top 8 infotainment/lifestyle – travel programs in last 12 months were made by TA including NL,NL. So we ‘get’ this space…

– NL,NL held share in series II whilst other shows suffered decline e.g. Getaway

– NL,NL outperformed a number of key programs including:

– Getaway Summer Series– Getaway on Saturdays– Sydney Weekender– QLD weekender– Postcards– The Great Outdoors (repeats)

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Social Networking

Facebook

• Australia – 1.4 million+ fans

Twitter

• SeeAustralia on Twitter – 12,000 followers   

www.facebook.com/Australia

http://twitter.com/seeAustralia

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Visiting Opinion Leader Program Highlights

Scott Schuman, aka The Sartorialist (New York) – May 2009 (and now Nov ‘09 and May ‘10 of his own accord)• Rated 20th most powerful blog in the world (The Observer)• 3 million unique visitors per month

Garance Doré (Paris) – May 2009, May 2010• Generates almost 13 million hits on site annually• Touted by other opinion leaders including Justin Timberlake

Yibo FAN or ‘The Colourful Map’ (China) – June 2009•One of China’s top travel and youth bloggers•Nominated as ‘Power Blog 2007, 2008 & 2009’ by Sina.com

Lesmads.de (Germany) – May 2009•Lifestyle, fashion, design and photography •Generates more than 3 million hits on site annually

Chubby Hubby (Singapore) – October 2009•Influential husband and wife food bloggers from Singapore

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Why Oprah

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“Let me just tell you – this is the truth: it is immeasurable what four hours of a love fest about your country, broadcast in 145 countries around the world, can do”.

“What I know for sure is that what will happen is that people, who had never even thought about Australia, didn’t know where it was ... will have the seed planted in their hearts”.

Oprah Winfrey, 14 December 2010

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Oprah’s Ultimate Australian Adventure Overview• Audience members:

– 302 people – 242 women and 60 men, including 48 couples, aged 18-75

– From 38 US States, 13 from Canada and 1 from Jamaica

• Crew– Almost 200 people from Harpo Studios, Harpo Productions and

Event Architects– Executives, producers, camera and sound crew, editors, staging,

ticketing, audience, public relations and event management

• Audience arrived in Australia on 8 December and visited all States and Territories

– 25 locations– 250 operators– 3,000 approaches from Australian businesses and Australians to be

involved

• Audience converged in Sydney for taping of two shows at Sydney Oprah House on 14 December

• 700 hours of footage filmed around Australia

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Oprah’s Ultimate Australian Adventure top line results – the shows

• Approximately 170 minutes of airtime delivered on prime time television during six episodes of The Oprah Winfrey Show

– Premiere Episode (13 /09/10)– “Australia, Get Ready” episode (29/11/10)– 4 x 1 hour Oprah’s Ultimate Australian Adventure

episodes airing in the US 18-21 January. These episodes included:

– All shows will screen on networks across 145 countries– Around 41m reached in the US, Canada, Australia and

New Zealand

• Two x 1 hour additional shows: Behind the Scenes– Created for the new Discovery Channel, OWN TV

(The Oprah Winfrey Network)– Around 80m audience

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Oprah’s Ultimate Australian Adventure top line results - publicity

• 86,700 articles delivered– 83,100 - Australia– 3,040 - USA

• Reach : 7.6bn– 3bn – USA– 2.3bn – China– 1.2bn – Australia

• EAV: $368m– $182m – Australia– $182m – USA

• 103,000 social media conversations generated

• Australian editorial generated via The Oprah Winfrey Show.com delivered to 18m people (Sept-March). Of this editorial, Australia was focus of four dedicated issues of The Oprah Winfrey Show.com electronic magazines with a reach of 5.6m

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Oprah’s Ultimate Australian Adventure top line results - change of perception - audience and crew

Before visiting Australia:• 50% of audience and crew surveyed said that they would NOT consider

Australia as a holiday destination• 38% said they would consider Australia as one of many holiday destinations

After visiting Australia:• 98% stated that they would consider visiting Australia again• 95% are very likely to recommend Australia as a holiday destination to friends

and family• 93% are likely to return to Australia for a holiday

Brand Australia key message alignment

After visiting Australia audience and crew cited:• 95% strongly agree Australia is a welcoming holiday destination• 93% strongly agree that Australia offers involving experiences in the natural

environment• 91% strongly agree that Australia offers a unique holiday experience• 87% strongly agree Australia is an adventure holiday destination• 80% strong agree that holidays in Australia are about participating in life, not

observing it

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Oprah’s Ultimate Australian Adventure top line results - change of perception - consumers (US)

• Repucom International (March 2011) cites that:– 52% of Oprah viewers place a high importance on Oprah product

recommendations– 61% of Oprah viewers have made a past product purchase based on an

Oprah recommendation– 76% were aware of Oprah’s Ultimate Australian Adventure– 27% of non-Oprah viewers were also aware of Oprah’s Ultimate

Australian Adventure– Of those people aware of Oprah’s Ultimate Australian Adventure

– 74% agreed that Australia is “worth travelling to”– “Beautify” was the word most utilized to describe Oprah’s

Ultimate Australian Adventure, ahead of “entertaining”, “fun” and “exciting”

– 61% took action in exploring Australian holiday options further post the event coverage

– 50% more likely to book a vacation than those unaware of the event– 47% state a likelihood to book an Australian vacation in the future

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Oprah’s Ultimate Australian Adventure top line results - increased sales

• A poll in the US found that 3% of those interviewed had already booked a trip to Australia as a result of Oprah’s Ultimate Australian Adventure

• This equates to a return on investment to date in the US of $664m*

* Repucom Research, March 2011, based on:

• 4.17m on average watch The Oprah Winfrey Show • 3% of this = 137,610• The average spend in Australia is $4829 per person

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When I say I love Australia, I mean what I say...

I LOVE AUSTRALIA - it was one of the most life changing,

mind expanding, once in a lifetime extraordinary experiences for all

of us. I have so many great memories. The Reef was

breathtaking, Sydney was spectacular, and

I was mesmerized by Uluru and so glad I went there.

I was overwhelmed by the response of the people of

Melbourne and was honoured to meet the Prime Minister, Julia

Gillard, and to feel the welcoming energy of 10,000 people in

Federation Square. My visit to Australia was the trip of a

lifetime for me, my staff and our 302 guests that travelled to your

beautiful country. We will never forget it.

And I can‘t wait to come back.

Oprah Winfrey 31 March 2011

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Making Tracks

• The project objective was to showcase Australia in unique and inspiring ways, to promote and generate interest and buzz around the event and encourage the audience to visit Australia.

• In February 2011, Tourism Australia invited 4 members of the YouTube Symphony Orchestra to Australia for a unique musical experiment. Each member was partnered with a contemporary Australian musician and sent to two states of Australia. Together they were challenged to collaborate and create a piece of music inspired by Australia.

• Their journey was documented on film and produced into videos that were broadcast live at the event and through Tourism Australia’s digital platforms.

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Making Tracks 1

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Global Leveraging Program

• Journalist and bloggers from US, Korea, NZ, France and Taiwan covering the event as part of IMHP and VOLP

• Editorial spreads with a domestic focus in the Age and Sydney Morning Herald as well as Timeout online

• Buyout of home page of popular US online website, Pandora to promote Making Tracks including personalised skin, pre roll and banner

• Regular social media communication via Facebook and Twitter• Advertorial on UK radio stations Jazz FM and Classic FM• Profiling of Making Tracks on stuff.co.nz• Global media relations push both domestically and internationally• Making Tracks media and stakeholder event, March 18, 2011

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Broadcast media

• Showcase of episode 4 (Stu and Sam) on the big screen at Time Square, New York on Tuesday March 22

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Digital - YouTube channel

Making Tracks

• Views 2, 613, 572• Comments1,198• Likes 4, 605• Dislikes 153

(combined Australia and Symphony channel)

• 673 new Australia channel subscriptions since launch of Making Tracks videos

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YouTube Honors for Making Tracks

Australia

 

#1 - Most Viewed (This Month) - Travel & Events - Australia

#1 - Most Discussed (This Month) - Travel & Events - Australia

#1 - Top Rated (This Month) - Travel & Events - Australia

#1 - Top Favourite (This Month) - Travel & Events - Australia

#25 - Most Viewed (All Time) - Travel & Events - Australia

Worldwide

 

#7 - Most Viewed (This Month) - Travel & Events

#43 - Top Favourite (This Month) - Travel & Events