spring/summer 2019 roi/economic impact … 2019 roi...strategic marketing & research insights...

Spring/Summer 2019 ROI/Economic Impact

Research ReportJanuary 2020

Background and Objectives

• The primary objective of this research is to provide estimates of the volume and value of travel influenced by Explore Minnesota Tourism (EMT) spring/summer 2019 paid marketing efforts. To be accountable for the dollars invested in its marketing, EMT contracted with Strategic Marketing & Research Insights (SMARInsights) to conduct research that quantifies the impact of its advertising.

• This research was designed to measure the effectiveness of Minnesota’s 2019 spring/summer advertising campaign and to provide insight into the aspects of the campaign that were successful, as well as identify opportunities for refinement. In 2019, EMT introduced new creative, and there is interest in comparing the impacts of the new ads to the prior campaign. The creative itself was evaluated in a prior research project. This report includes:

• Evaluation of the media reach;

• Volume of incremental trips generated by the advertising;

• Effectiveness of the marketing at reaching travelers in the traditional markets and nationally among the niche audience;

• The impact of exposure to multiple elements of the campaign;

• Information about Minnesota trips, including spending;

• The resultant economic impact and return on investment of the 2019 campaign; and

• Recommendations for refining the marketing effort.

• The above research goals were conducted with the following additional considerations in mind:

There should be continuity of trending with prior research

Analysis should be transparent and explainable

There is interest in synergistic integration of this analysis with other EMT research efforts

Strategic Marketing & Research Insights Spring/Summer 2019 ROI/Economic Impact Research Report 2

Methodology

• The advertising effectiveness methodology requires respondents to view the actual ads in order to gauge awareness, so SMARInsights developed and programmed an online survey. National sample vendors provided a link to the survey to potential respondents across the country. Surveys were completed among the populations shown in the table.

• In order to qualify for the survey, respondents had to be 21 and older, travelers who regularly take leisure trips, and are leisure travel decision-makers for their households. SMARInsights evaluates leisure travel by household, rather than by individual, because this is how consumers typically travel and make travel decisions. Therefore, our ROI methodology also makes use of traveling households, rather than individual travelers.

• Overall, 4,038 interviews were completed in October 2019 after consumers exposed to the advertising would have had a chance to visit Minnesota. From among these surveys, data were gathered on 1,554 Minnesota trips. The National markets general population travelers (shown in grey in the table below) are those who engage in niche activities but have no Minnesota affinity. They will be explored from a strategy standpoint.

• The following report summarizes the results of the survey. Results are presented at +/-3% at the 95% confidence interval. A copy of the questionnaire used for data collection appears in the Appendix to this report.


Completed surveysGeneral population

travelers Niche

travelersTotal

Traditional/Brand markets 1,473 542 2,015

National/Niche markets 1,230 793 2,023

Total 2,703 1,335 4,038

Traditional/Brand markets

• Geographic markets within and around Minnesota where EMT has run leisure advertising in recent years.

• Brand advertising focused in these “traditional” markets

• Niche travelers within and outside of these markets were identified via responses to survey questions (covered on the next page).

• For this study, traditional/brand markets refer to non-niche traditional markets (niche households in these geographies are not included in the traditional/brand market results).

• Traditional markets include 10.5 million non-niche households.

• Data were weighted to the population of these states to be representative of the traveling population.


TRADITIONAL/BRAND MARKETS: 10.5M NON-NICHE HH

States: DMAs:

Minnesota Winnipeg CMA

Wisconsin Chicago

Iowa Rockford

North Dakota Davenport

South Dakota Peoria-Bloomington

Colorado Omaha

Nebraska Kansas City

St. Joseph

Topeka

* Winnipeg

Lighter shade of orange indicates ads served to only part of these states.

National/Niche markets

• EMT also served niche creative to four targeted audiences based on leisure activity participation and having a Minnesota affinity, as established by responses to survey questions.

• Minnesota affinity includes in-state residence (current or former), having close friends or family who reside in Minnesota, having attended college in the state or having friends who did, having visited the state multiple times in recent years, and/or being a fan of a Minnesota-based sports team.

• For this study, national markets include niche-qualified travelers, regardless of geography .

• In total, there are 10.8M niche households in the national markets, representing 13% of all traveling households, and 1.7M niche households in the traditional markets, for a total of 12.5M national/niche households.


Niche (not mutually exclusive)

Activity/ies often or always participated in on leisure trips

Hiking Hiking Biking Mountain biking/fat biking

Paved trail/road bikingGolf Playing golfArts + Culture (must be “always” to at least one)

Going to art museumsGoing to history museums or historical sitesAttending plays/theatre/performing artsLearning about local cultureAttending parades or cultural festivals

Traditional/Brand markets

Non-niche travelers

10.5M HH

National markets

Niche travelers

12.5M HH

Competitive landscapeSpring/Summer 2019 ROI/Economic Impact Research Report

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Familiarity – traditional/brand markets

• Before reviewing the performance of the advertising, it is important to understand the competitive landscape. The competitive set or consideration set is the group of other state leisure destinations travelers might consider alongside Minnesota for a similar trip type.

• Among travelers in the traditional/brand markets, Minnesota is in the middle in terms of familiarity with what it has to offer as a leisure destination. These geographies are most familiar with Illinois’ leisure product, followed by Wisconsin and Colorado. Some of this is due to in-state travelers who are more familiar with what their home-state has to offer, whereas this data does not include Michigan travelers, for instance.

• These results do not align directly with state leisure travel marketing budgets, and that is because each state has a different market mix. In other words, not all these destinations run advertising in Minnesota’s traditional/brand markets.


37% 32% 25% 19% 15% 11% 11%

29% 34%35%

37%33% 34% 32%

20% 19% 25% 26%30% 32% 31%

14% 15% 15% 17% 22% 23% 26%

Illinois Wisconsin Colorado Minnesota Missouri Michigan SouthDakota

Traditional/brand markets’ familiarity

Not at all familiar

Not very familiar

Somewhat familiar

Very familiar

Rating as a place for a leisure trip –traditional/brand markets• In addition to familiarity, respondents were asked to rate each of these states as a place to visit for a leisure trip.

• There is an inverse relationship between high ratings and unfamiliarity (indicated by the share of “Don’t know” responses). Thisunderscores the importance of marketing – showing and telling consumers what the state offers generates more positive ratings.

• Colorado leads in this metric, followed by Wisconsin. Minnesota is third in share of excellent ratings.


38%

20% 16% 13% 12% 11% 10%

30%

27%26% 26% 25% 23% 23%

18%

29%32%

32% 31% 31% 32%

5%11% 13% 14%

13% 16% 15%

0% 3% 2% 5%3% 3% 4%

8% 10% 11% 10% 15% 15% 16%

Colorado Wisconsin Minnesota Illinois Michigan South Dakota Missouri

Rating of states as a leisure destination

Don’t know

Poor

Fair

Good

Very good

Excellent

Recent visitation – traditional/brand markets

• Looking at the same competitive set by recent visitation, the states line up in a different order still. Minnesota is still third with nearly a quarter of consumers in the traditional/brand markets having visited in the past year. Wisconsin and Illinois lead with more than one third of travelers in these markets having visited recently. As with familiarity, this is likely due to in-state traveler responses, whereas Michigan, for example, was not surveyed.


38%

34%

24%22%

19%

15%

9%

Wisconsin Illinois Minnesota Colorado Missouri Michigan South Dakota

Have visited for a leisure trip in the past year

Likely visitation – traditional/brand markets

• Looking ahead to likelihood to visit these places in the coming year, the results closely mirror recent visitation: Wisconsin and Illinois lead, with Colorado and Minnesota following.

• While the traditional/brand markets are geographically closer to Minnesota and therefore more familiar and their responses more expected, the national/niche audience is new to EMT this year, so this measure is a baseline of national/niche travelers’ experience with and views of the state and its competitive set. We will look next at these markets.


9% 7% 6% 6% 4% 3% 2%

26%24% 21% 18%

12% 11% 8%

21%23%

23% 23%

22% 23%21%

24% 24% 31%29%

32% 35%36%

20% 23% 20% 24% 29% 29% 33%

Wisconsin Illinois Colorado Minnesota Missouri Michigan South Dakota

Brand markets’ intent to visit

Not at all likely

Not very likely

Somewhat likely

Very likely

Already planning a trip

Familiarity – national/niche travelers

• Among niche travelers, Minnesota leads the competitive set for familiarity (this is the same competitive set used in the traditional/brand markets). Given that the niche definition includes an affinity for Minnesota, this is not surprising.

• This helps underscore the benefits of the niche-targeting strategy – while geographically distant, this population has a connection to the state. This connection and the associated familiarity with Minnesota represent a competitive advantage.


44% 36% 35% 34% 30% 23% 21%

42%43% 39% 37% 37%

38% 39%

11%17% 19% 21% 23% 26% 26%

2% 4% 7% 7% 9% 13% 14%

Minnesota Colorado Illinois Wisconsin Michigan Missouri SouthDakota

Niche traveler familiarity

Not at all familiar

Not very familiar

Somewhat familiar

Very familiar

Rating as a place for a leisure trip –national/niche travelers• While Minnesota leads in familiarity among national/niche travelers, Colorado has the highest share of excellent ratings for its leisure

product. Minnesota and Colorado together represent a top tier in this regard among the competitive set, with the other five destinations falling considerably behind.


55%42%

28% 27% 25% 22% 20%

28%

33%

31% 32% 30% 30%26%

11%19%

25% 27%26%

25%28%

2% 3%

9% 9% 12%12% 14%

0% 0%1% 1% 2%

2% 2%

3% 2% 7% 5% 5% 8% 9%

Colorado Minnesota Michigan Wisconsin Illinois South Dakota Missouri

Rating of states as a leisure destination

Don’t know

Poor

Fair

Good

Very good

Excellent

Recent visitation – national/niche travelers

• Half of niche travelers have visited Minnesota in the past year. Again, this is not surprising given that a Minnesota affinity – which could include having visited recently – is part of the definition of this population.

• In terms of recent visitation, Minnesota leads the competitive set by a wide margin, with Illinois, Colorado, and Wisconsin following at about a third each.


50%

35% 35%32%

25%

20%16%

Minnesota Illinois Colorado Wisconsin Michigan Missouri South Dakota

Have visited for a leisure trip in the past year

Likely visitation – national/niche travelers

• As we saw with the traditional/brand markets, likely visitation lines up with recent visitation in terms of how the competitor destinations perform. Minnesota leads, followed by Colorado, Illinois, and Wisconsin.

• Now that there is an understanding of the underlying landscapes in which EMT’s 2019 spring/summer advertising campaign performed, we can look at the specific metrics used to evaluate its effectiveness.


16% 12% 8% 9% 8% 6% 5%

37%33%

30% 29% 27% 21% 21%

28%31%

29% 29% 28%28% 29%

15% 17%23% 23% 27%

29% 32%

5% 7% 10% 10% 11% 15% 14%

Minnesota Colorado Illinois Wisconsin Michigan Missouri South Dakota

Niche traveler intent to visit

Not at all likely

Not very likely

Somewhat likely

Very likely


Campaign awarenessSpring/Summer 2019 ROI/Economic Impact Research Report

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Overall awareness

• The spring/summer 2019 ad campaign reached nearly half of travelers, with an ad reach of 46%. This is down from 2018’s advertising reach of 57%.

• Reasons for the decline in percentage awareness include:

• The introduction of new creative in spring/summer 2019 – it takes time for new creative to wear in and reach the level of awareness of a campaign that has run for some time

• Lower spending in the traditional/brand markets this year; EMT spent just $2.5M in these markets in 2019 versus $4.1M in 2018

• Additionally, the traditional/brand market’s 36% awareness is exclusive of niche travelers; niche travelers are more aware of EMT ads, having been served both brand and niche advertising. These travelers would have been included in the 2018 awareness measure.

• Furthermore, as we will see when we apply these percentages to traveling households to arrive at volume of aware households, the percentages can be misleading. A larger percentage of a smaller population – which may be the case with the 2018 figure –generates fewer aware households.


36%

55%

Traditional/brand markets National/niche markets

Campaign awareness – overall: 46%

Cost per aware household

• In total, EMT’s spring/summer 2019 advertising reached 10.6 million traveling households. Two-thirds of these ad-aware households are national/niche, while only a third of ad spending is aimed at national/niche. This generates a highly efficient effort: the national/niche campaign cost EMT just 20 cents to reach each household.

• This is more efficient than the average $0.34 it costs other DMOs to reach travelers. With the higher ad spending aimed at non-niche traditional/brand markets, that element of the campaign is less efficient than average. The campaign as a whole, with a cost per aware household of $0.37, is less efficient than average. Lower efficiency is to be expected when introducing new creative; as ads continue to run and wear in with consumers, awareness typically increases, thereby generating better efficiency.

• Cost per aware household is a measure of a campaign’s efficiency. A more efficient campaign costs less to reach an aware household than a less efficient campaign. Efficiency is an important part of the advertising effectiveness measure as it allows the destination marketing organization to compare its performance to others through SMARInsights’ benchmarks. However, it should also be noted that efficiency alone is not an adequate measure of the success of a campaign.


2019Traditional/brand

marketsNational/niche

marketsTotal campaign

Households 10,490,068 12,536,395 23,026,463 Awareness 36% 55% 46%Aware HH 3,749,971 6,877,397 10,627,367 Ad spending $2,529,487 $1,406,852 $3,936,339CPAH $0.67 $0.20 $0.37

Campaign awareness

• EMT ran two types of creative this year: brand and niche. We typically see larger impacts with exposures to messaging in multiple forms, so the high level of overlap among national/niche markets is a positive result.

• In traditional/brand markets, the brand campaign has the strongest reach and there is little overlap with niche executions. This makes sense, given that the niche ads were narrowly targeted to those whose travel behaviors and Minnesota affinity fit the target profile.

• High level of “both” awareness in the national/niche markets is due to the niche travelers in the traditional markets. They have higher awareness of brand and niche content. This is likely due to the creative itself – there is a cohesive look and feel to the campaign; niche activities (especially hiking) are featured in some of the brand executions.

• Plus, high awareness is a function of creative that resonates with an audience.

Strategic Marketing & Research Insights 18Spring/Summer 2019 ROI/Economic Impact Research Report

5%

43%

0.4%

6%

30%

6%

Traditional/brand National/niche

Campaign overlap (of those aware of any EMT advertising)

Brand ad aware only

Niche ad aware only

Aware both

Reach of the niche campaigns

• The niche campaign was not a single campaign, but a series of four campaigns focused on promoting Minnesota’s assets to four groups of travelers, those interested in the four activity types shown in the graph below.

• Advertising aimed at each of the four niche audiences reached about half of each audience. It should be noted that the audiences are not mutually exclusive; there is overlap across audiences, since consumers can and do engage in a variety of activities on leisure trips.


50%55% 52% 50%

Hiking Biking Golf Arts + culture

Niche campaign awareness by niche audience

Creative evaluationSpring/Summer 2019 ROI/Economic Impact Research Report

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Creative evaluation – traditional/brand • SMARInsights conducted creative evaluation research for EMT to gauge the strength of the creative at communicating desired messaging

and motivating visit interest and visit planning behaviors. The benchmarks shown below are from the hundreds of destination advertising campaigns SMARInsights has evaluated.

• Traditional market travelers give the spring/summer 2019 creative above average ratings for communicating desired messaging. The ads receive top 25% ratings for showing the state as a great place for outdoor adventures.

Strategic Marketing & Research Insights 21

3.96

3.97

3.96

3.95

4.07

Show authentic experiences in Minnesota

Make Minnesota seem welcoming

Give me a positive opinion of Minnesota

Show a place for a family leisure trip

Make Minnesota look like a great place foroutdoor adventures

These brand ads... Average Good(top 25%)

Spring/Summer 2019 ROI/Economic Impact Research Report

Benchmarks:

Ratings are averages across media.

Creative evaluation – national/niche• Niche travelers rate the creative in the top 10-25% for communicating desired messaging. So this group of consumers is even more positive

about the spring/summer 2019 campaign than traditional/brand market travelers.

• Creative that is stronger at communicating desired messaging is typically more impactful in terms of generating visit interest and actual visitation. We will look next at the impact of the advertising.


4.14

4.15

4.16

4.18

4.25

Give me a positive opinion of Minnesota

Make Minnesota seem welcoming

Make me think Minnesota is a great place for anadult vacation

Show authentic experiences in Minnesota

Make Minnesota look like a great place for outdooradventures

These niche ads... Average Good(top 25%)

Excellent(top 10%)

Benchmarks:

Ratings are averages across media.

Impact of the advertisingSpring/Summer 2019 ROI/Economic Impact Research Report

23

Impact of the advertising on familiarity

• The ads shift consumers from being less familiar with MN’s leisure product toward higher familiarity.

• Among both market groups, those aware of the ads report higher familiarity with the state. And among niche travelers, half of those aware of the campaign report being very familiar with what Minnesota offers as a place for a leisure trip.

• This is notable because familiarity is a precursor to visitation. Advertising fills an information void, and thereby plays an important role in moving consumers from a place of limited familiarity to a position where they can accurately evaluate and choose Minnesota.


13%31% 36%

50%37%

38%45%

40%30%

19%

15%9%

20% 12%3% 2%

Unaware Aware Unaware Aware

Traditional/Brand National/Niche

How familiar are you with what MN has to offer as a leisure destination?

Not at all familiar

Not very familiar

Somewhat familiar

Very familiar

Impact of the advertising on visit intent

• The ads also shift consumers along the consideration funnel to actual trip planning.

• Those aware of the ads report being more likely to visit, and more of them are already planning Minnesota trips.

• As with familiarity, we see the lift in visit intent among both market groups.


4% 9% 10%20%12%

30% 31%

42%

22%

25%32%

24%

33%

21%

19%11%

28%16%

8% 3%



How likely are you to visit Minnesota for a leisure trip in the coming year?

Not at all likely

Not very likely

Somewhat likely

Very likely


Impact on visit intent relative to the competitive set• In terms of intent to visit these states in the next year, the ads move Minnesota from the middle of the competitive set to the top

destination among traditional/brand markets, and from below Colorado to the top destination in national/niche markets.


12%

16%

18%

18%

27%

30%

34%

37%

South Dakota

Michigan

Missouri

Minnesota - unaware

Colorado

Illinois

Wisconsin

Minnesota - aware

Traditional/brand

Figures shown are 100% of those already planning a trip + 80% of those very likely and 20% of those somewhat likely to visit

27%

29%

35%

38%

38%

41%

45%

58%

South Dakota

Missouri

Michigan

Illinois

Wisconsin

Minnesota -unaware

Colorado

Minnesota -aware

National/niche

Intent to visit MN in the next year• The difference in visit intent levels between the two types of markets is likely due to the Minnesota affinity that national/niche travelers have. By definition, they have ties to Minnesota, whereas traditional/brand travelers merely live in adjacent states. That helps explain why national/niche has a much higher unaware level of visit intent, even though some of these consumers are geographically quite far removed.

• Typically, when visit intent is already high, as it is among unaware national/niche travelers, increasing it further can be a challenge. However, the 2019 spring/summer advertising boosted visit intent among national/niche travelers another 17 points. This is just shy of the 19-point boost the ads generated in the traditional/brand markets.

• Visit intent looks at ad impact on likely future travel. Next we will look at influenced trips that have already happened.

6%

18%17%

23%


Incremental travel

Unaware Aware

Impact of the advertising on visitation

• The ads also positively impacted actual Minnesota visitation, and this is the basis for the ROI calculation. The incremental trips are household trips, rather than individuals.

27

Goal: positive travel increment (means the

ads influenced additional visits)

11 pts

5 pts

1. Unaware travel is the baseline, or the level of visitation that would have occurred without the advertising.

2. This is the share of ad-aware households that visited Minnesota.

3. The difference between the 2 levels of visitation is the travel increment. This is the % of travel influenced by the advertising.

Incremental trips: 401,462 319,648

Spring/Summer 2019 ROI/Economic Impact Research ReportStrategic Marketing & Research Insights

Influenced visits

• A total of 10.6 million households recall EMT’s 2019 spring/summer campaign.

• Ad-aware consumers visited the state at a higher rate than those unaware of the campaign. The difference between the rate at which unaware and aware travelers visited is called the increment.

• Applying this increment to the ad-aware households gives us the volume of incremental trips influenced by the campaign:

• More than 400,000 Minnesota leisure trips were influenced by the advertising.

• Nearly 320,000 trips from among national/niche markets were influenced by the advertising.

• In total, more than 720,000 Minnesota trips would not have occurred without the 2019 spring/summer campaign.


Traditional/brand National/niche TOTAL

Households 10,490,068 12,536,395 23,026,463

Awareness 36% 55% 46%

Aware HH 3,749,971 6,877,397 10,627,367

Increment (day + overnight together)

11% 5% 7%

Incremental trips 401,462 319,648 721,110

Ad impact by niche

Ad impact on # activities during MN trip

Unaware Aware

Hiking 2.5 4.8

Biking 3.3 5.1

Golf 2.9 5.4

Arts & Culture 2.8 5.2


34%

41%38%

36%

46%50%

54%

49%

Hiking Biking Golf Arts/Culture

Ad impact on MN visitation by niche

Unaware Aware

“Aware” on this page indicates awareness of the specific niche ad content that corresponds to the niche category.

Trip spending Unaware Aware Lift

Hiking $885 $991 12%

Biking $1,081 $1,213 12%

Golf $1,282 $1,292 1%

Arts & Culture $1,052 $1,121 7%

• The ads impact individual niches in different ways. For example, while golf niche trip spending did not increase significantly, visitation and activities did. This may also be because golf itself is a pricey pursuit, so these travelers are already spending considerably more than other travelers on their leisure trips.

• It is important to keep in mind that there is overlap between the niche categories, as these are activity based.

Trip specificsSpring/Summer 2019 ROI/Economic Impact Research Report

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Trip planning horizon

• Half of traditional/brand travelers plan their Minnesota trips in less than a month. This is a function of distance and familiarity. More familiar travelers typically take less time to plan their trips as they already know where they want to go and what they want to do.

• Niche travelers take longer to plan their Minnesota trips; two-thirds began planning more than a month ahead of their visit.


47%34%

30%

37%

11%19%

11% 11%


How far in advance did you begin to plan this trip?

5 months+

3 to 4 months

1 to 2 months

Under a month

Travel party and length of stay


• Those aware of EMT’s 2019 spring/summer advertising tend to stay longer in the state and travel with more people. This is true of both traditional/brand and national/niche travelers.

• Ad-aware travel parties are also more likely to include children.

• Often, destination ad campaigns lead consumers to the DMO website, which then exposes them to the breadth of things to do and see, places to eat and stay offered by the destination. This generates a more engaged visitor and, as we will see next, higher visit spending. Another way advertising generates larger travel parties and longer stays is by featuring activities that interest travelers of all ages, and this helps explain why ad-aware travelers are more likely to bring children.

Ad impact on trip metrics



Length of stay (nights) 2.4 2.5 3.4 3.6

People on trip 2.9 3.4 2.9 3.1

Kids on trip 36% 41% 36% 47%

Ad impact on visitor spending in Minnesota

• Ad-aware visitors also spend more on their Minnesota trips.

• This is true in both the traditional/brand and national/niche markets.

• Among traditional/brand markets, the largest impact is on spending on arts and culture activities.

• Among national/niche, the largest ad-influenced impact is on spending for recreational fees.

• In calculating the ROI, we use the ad-aware (impacted) spending figures.

Strategic Marketing & Research Insights 33



Lodging $175 $199 $275 $418

Food and beverage $160 $160 $229 $284

Arts & culture such as museums, historic sites, etc. $14 $23 $51 $76

Recreational fees, rentals, equipment, etc. $13 $17 $46 $71

Sporting events $22 $15 $44 $59

Other events, entertainment and attractions $36 $65 $61 $91

Shopping – tourist $38 $49 $82 $125

Shopping – general $77 $64 $92 $107

Transportation within Minnesota $42 $60 $102 $135

Other $3 $5 $13 $26

TOTAL $580 $657 $995 $1,392

Spring/Summer 2019 ROI/Economic Impact Research Report

Return on investmentSpring/Summer 2019 ROI/Economic Impact Research Report

34

Return on investment – household trips

• For each dollar EMT invested in the spring/summer 2019 advertising campaign, visitors spent $180 in the state.

• SMARInsights’ benchmark is $198 for a state spot-market campaign. This means that overall, EMT’s 2019 campaign underperformed in terms of ROI. However, the national/niche initiative performed better than average with a return of $316.

• The tax ROI in the brand/traditional markets is $10, as it was in 2018. The $18 overall tax ROI, which is high compared to prior measures, results from the additional tax boost from niche travelers. This is the increase due to the new niche strategy in the national markets.

• SMARInsights’ methodology evaluates ad impacts on travelers by household, since that is the way leisure travel and travel decisions are typically made. The following slide shows the same results expressed as person-trips, as has been reported previously.


Spring/summer 2019 Traditional/Brand National/Niche TOTAL

Incremental trips (HH) 401,462 319,648 721,110

Ad-aware visitor spending (by travel party)

$657 $1,392 $983

Incremental visitor spending $263,688,753 $444,901,205 $708,589,958

Media expenditures $2,529,487 $1,406,852 $3,936,339

ROI $104 $316 $180

Incremental tax generated $25,841,498 $43,600,318 $69,441,816

Tax ROI $10 $31 $18

Incremental visitor spending is derived from the incremental trips times ad-aware visitor spending. And the ROI is this figure divided by media expenditures. Tax ROI is Minnesota’s tax rate (9.8%) applied to incremental visitor spending, divided by media expenditures.

Return on investment –person-trips

• Influenced trips from the traditional/brand markets tend to have slightly larger travel parties (3.4 people) than those from national/niche markets (3.1 people).

• National/niche market travelers tend to spend more on their trips, and this is due to generally longer stays, with a higher share in paid lodging.


Spring/summer 2019 Traditional/Brand National/Niche TOTAL

Incremental person-trips 1,377,238 980,738 2,357,976

Ad-aware visitor spending (per person)

$191 $454 $301

Incremental visitor spending $263,688,753 $444,901,205 $708,589,958

Media expenditures $2,529,487 $1,406,852 $3,936,339

ROI $104 $316 $180

Incremental tax generated $25,841,498 $43,600,318 $69,441,816

Tax ROI $10 $31 $18

Incremental visitor spending is derived from the incremental person-trips times ad-aware visitor spending per person. And the ROI is this figure divided by media expenditures. Tax ROI is Minnesota’s tax rate (9.8%) applied to incremental visitor spending, divided by media expenditures.

ROI by day trip/overnight

• Looking at influenced trips within the traditional markets, we can also view these results by day and overnight visits. The figures below apply only to the traditional/brand markets; national/niche markets – being farther away – do not generate day trips.

• Overnight trips bring more spending into the state than day trips do, and there are more incremental overnights.

• Prior research pointed to 40% of incremental trips being day trips, but that is not SMARInsights’ experience. Day trips are typically nearby people who are coming anyway.


Traditional markets (niche and non) Overnight Day trips

Increment 9.4% 5.0%

Incremental trips 375,931 49,991

Visitor spending $729 $170

Incremental visitor spending $274,054,026 $8,498,483

Media expenditures $2,878,719

ROI $95 $3

While travelers from national markets are excluded here, niche travelers in the traditional/brand markets ARE included here, and thus so is their spending. Media spending in this table is higher because it includes spending aimed at both niche and non travelers in the traditional markets.

Barriers to visitationSpring/Summer 2019 ROI/Economic Impact Research Report

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Why didn’t you visit Minnesota?

• Travel decisions are unlike retail decisions. Consumers do not typically decide between two distinct destinations for the same trip. Rather, people tend to consider a number of places to go for a variety of trip types. Therefore, asking consumers why they did not visit a place typically results in them saying something along the lines of because I wanted to go somewhere else. In other words, they don’t choose NOT to go to place A; they simply choose instead to visit place B.

• That is also the case here. Half of non-visitors said they wanted to visit other places.

• Most of the “other” reasons given were non-travel related (illness, for instance) or that the state is close and there is no reason to visit. For the latter group, tactical messaging that gives a particular reason or event to visit could be effective.


11%

1%

19%

13%

11%

12%

19%

14%

42%

12%

2%

7%

7%

11%

17%

18%

20%

48%

Other

I don’t feel welcome in Minnesota

There’s not anything of interest for me to visit in Minnesota

Nothing unique that I don’t have closer to home

I have been there before so I don’t feel a desire to go back

I wanted to go to a specific event being held elsewhere

Too far to travel

Concerns over weather

I wanted to visit other states/destinations first

National/niche

Traditional/brand

Responses are multi-select, so add to more than 100%.

Website + social evaluationSpring/Summer 2019 ROI/Economic Impact Research Report

40

Website visits by market and visitor type

• 10% of travelers in the brand markets recall having seen EMT’s website, the same rate as was reported in 2018. Roughly two-thirds of traditional/brand market website users visited the website while considering a trip to the state.

• Among national/niche travelers, three times as many have visited the site. And more than half viewed the site while considering a Minnesota trip and while planning their trip. So these travelers are much more engaged with the site and using it for multiple purposes.



67%

36%

7%

64%

60%

5%

While considering Minnesota/a location within Minnesota as atravel destination

To research my planned Minnesota trip

Other

While considering Minnesota/a location within Minnesota as atravel destination

To research my planned Minnesota trip

Other

Trad

itio

nal

/ b

ran

dN

atio

nal

/ n

ich

e

At what point in your trip-planning process did you visit ExploreMinnesota.com?

10%

32%


Do you recall having visited the website?

Website visit volume

• Traditional/brand travelers were more likely to have been to EMT’s website 1 or 2 times, and this is fairly consistent year to year.

• National/niche travelers tend to visit the site more frequently. This makes sense, given that national/niche travelers report using the site both as a decision and a planning tool.


38%

35%

7%

15%

20%

31%

15%

33%

1

2

3

4+

How many times did you visit the website since April?

Traditional/brand

National/niche

Purpose for visiting the website

• Most travelers in both market groups use the site to find things to do in the state and to look for general Minnesota travel information.

• Interestingly, national/niche travelers are more likely than traditional/brand travelers to use the site to research events, look for travel deals, and search for dining and lodging. Again, this is consistent with these travelers using the site to plan trips.


5%

17%

35%

22%

42%

55%

50%

9%

27%

43%

33%

52%

56%

58%

To enter a sweepstakes

To find lodging

To look for travel deals

To find information on dining

To seek information on Minnesota festivals and events

To look for general information on travel opportunities inMinnesota

To find things to do while traveling in Minnesota

What did you use the website for?

National/niche

Traditional/brand


Sources of website visits

• As research has shown previously, internet search and social media are the leading ways that consumers learn about the website.

• Advertising is also a fairly strong method of driving people to the site, and particularly so among national/niche travelers.

• It is important to note that consumers are not especially good at remembering where they learn about websites, and domestic consumers in particular typically under-report the influence of advertising.


9%

19%

25%

17%

25%

31%

36%

48%

48%

2%

6%

12%

16%

18%

21%

22%

36%

38%

Travel agent

Newspaper/magazine articles and TV programs

Travel brochures/Guides

Link from another website

Advertisement/commercials about Minnesota

Internet advertising

Family/friends

Internet search engine (e.g. Google, Yahoo, Bing, etc.)

Social Media (e.g. Facebook, Twitter, Instagram)

How did you learn about the website?

Traditional/brand

National/niche

How did you use internet search to reach this website? • Of those who used internet search to reach EMT’s website, most typed the state name in the search field.

• National/niche travelers were more likely than traditional/brand travelers to type the exact url into the address bar of their browser.


5%

24%

72%

10%

8%

83%

Don’t recall

Typed ExploreMinnesota.com in the browser’s address bar

Typed “Minnesota” or Minnesota travel-related term or phrase in the search field

Traditional/brand

National/niche

Evaluation of the website

• Response to the website is overwhelmingly positive.

• National/niche travelers are even more so, with 7 in 10 calling it “very useful.”


54%

70%

44%

29%

1% 1%1% 0%


How useful was the ExploreMinnesota.com website?

Not at all useful

Not very useful

Somewhat useful

Very useful

Response to social media

• As they are with the website, national/niche travelers are more responsive to EMT’s social media posts, taking all the listed actions at a higher rate than traditional/brand travelers. This audience is more engaged with and interested in the state, which reinforces the wisdom of the strategy to target these consumers.


29%

12%

14%

22%

22%

27%

36%

42%

66%

4%

4%

5%

9%

10%

16%

19%

Did not respond to any social media post

Posted my own photos, videos orcomments using #OnlyinMN

Subscribed to the EMT YouTube channel

Liked or commented on at least oneYouTube video

Followed the EMT Instagram page

Liked or commented on at least onephoto post from the EMT Instagram

page

Liked the Facebook fan page

Liked, shared or commented on at leastone Facebook post

What action did you take after seeing EMT social media post(s)?

Traditional/brand

National/niche

Of those who recall at list one social media post.

Social media influence

• Of those aware of EMT’s social media campaign who also visited the state, national/niche travelers are much more likely to report being somewhat or greatly influenced by the campaign.


6%

28%

38%

46%

31%

17%

24%

9%


How much was your travel to or in Minnesota since April 1, 2019 influenced by posts of Minnesota travel photos, videos or

comments on social media?

Not at all influenced

Hardly influenced

Somewhat influenced

Greatly influenced

Potential audienceSpring/Summer 2019 ROI/Economic Impact Research Report

49

National market potential

• EMT’s spring/summer 2019 campaign layered onto its traditional/brand markets a whole new target audience for the state: niche travelers. This audience is defined by:

1) travel behaviors: participation in four activity types on typical leisure trips (hiking, biking, golf, and/or arts and culture), and

2) an affinity for Minnesota either through having lived or studied there, having close personal ties, and/or a sports team affinity

• The rationale for this was that it would be unrealistic to expect ads to influence travelers outside the traditional markets to visit the state unless there was a compelling reason for Minnesota to be in their consideration set.

• An important reason to pursue this evaluation is the size of the non-affinity niche audience in these markets. The currently targeted audience is over 10 million households. But niche travelers without a Minnesota affinity is a population nearly twice that size. So if EMT’s ads could reach and influence visits from this larger audience using the same ad investment that is currently focused on the niche/affinity group, the benefit to the state would be substantial.

• In addition to surveying niche travelers, the advertising effectiveness research gathered data from 1,230 travelers in the national markets who do not have an affinity for (no prior connection to) Minnesota. While the 2019 advertising did not target these travelers, we can estimate how the campaign would perform among them, since we did expose them to the advertising and gauge its impact on their visit interest.

• Because EMT already serves ads to the total traveling population in the traditional/brand markets – including niche and non-niche, and both with and without a Minnesota affinity – this section of the analysis will focus exclusively on the national markets (geographies beyond the markets where EMT has run leisure advertising in recent years).


Niche households in national markets

With MN affinity 10.8 M

Without MN affinity 20.3 M

Total niche HH in national markets 31.1 M

Views of Minnesota

• Those without a connection to the state lack information but they are still generally positive about Minnesota as a place to go for a leisure trip. Not as positive as the niche target, of course. However, this more moderate view of the state offers more opportunity for the ads to generate positive gains among those with no Minnesota affinity.


8%

39%

20%

33%

28%

20%

18%

4%

5%

0%

21%

3%

No MN affinity

National/niche

Rate MN as a place for a leisure trip

Excellent Very good Good Fair Poor Don’t know

Reach of the current campaign

• Although a Minnesota affinity was part of the media targeting strategy, the 2019 spring/summer campaign still reached travelers who do not have a connection to the state. This is not unusual; broadcast media is particularly effective at reaching a wide swath of the traveling population, while digital and social media enable more precise targeting. EMT’s campaign incorporates both types of media.

• While half of national/niche travelers in these markets recall the advertising, the campaign reached nearly a third of niche travelers without a Minnesota affinity. Due to the size of this non-targeted group, the volume of ad-aware non-affinity travelers is as high as the target, even with a lower percent awareness.

• The current high reach of the campaign is the result of focused targeting on travelers with an affinity to the state. With less of this targeting, there is a chance that awareness among the targeted national/niche would fall. We would expect, given the incidental reach and impact among the non-targeted non-MN-affinity population already, that the gains among this latter audience would more than make up for any losses among the affinity group.

• So with no additional spending, including the non-affinity group doubles the reach of the campaign in these markets, increasing its efficiency. The campaign in these markets is already more efficient than the $0.37 average cost per aware household, and the additional reach further lowers the cost.

• However, efficiency alone is not the goal of the advertising. So next we will look at impacts of the advertising.


National/niche No MN affinityTotal niche in

national markets

HH 10,798,941 20,286,168 31,085,109


Aware HH 5,746,725 6,234,286 11,981,011

Media spending $1,057,620

Cost per aware HH $0.18 $0.17 $0.09

Likelihood to visit Minnesota• As shown in the left graph below, the ads have a positive impact on likelihood to visit among the national/niche audience. Twice as many

ad-aware travelers are already planning a Minnesota trip.

• The graph below right shows likelihood to visit among those with no connection to the state. Among those unaware of the ads, none are already planning a trip. But among ad-aware, 2% are planning a Minnesota visit. This audience is receptive to EMT’s ad messaging, and with a much lower baseline visitation than national/niche, there is significant opportunity to grow interest and visitation among this audience.


0% 2%5%

13%18%

27%

39%

31%

38%

26%

Unaware Aware

Likelihood to visit MN – No MN affinity

Not at all likely

Not very likely

Somewhat likely

Very likely


7%17%

28%

40%

34%

27%

22%

14%9%

3%

Unaware Aware

Likelihood to visit MN - National/niche

Not at all likely

Not very likely

Somewhat likely

Very likely


Likelihood to visit Minnesota

• One way to evaluate whether it makes sense to broaden the targeting of EMT’s advertising to include those without a Minnesota affinity is to calculate the current impact in terms of influenced trips.

• Among the national/niche audience, a 10-point lift in planned future Minnesota trips applied to 5.7M ad-aware households points to 564,000 planned trips attributable to the spring/summer 2019 campaign.


7%

0%

17%

2%

National/niche No MN affinity

Already planning a MN trip

Unaware Aware

National/niche No MN affinityTotal in national

markets

HH 10.8 M 20.3 M 31.1 M


Aware HH 5.7 M 6.2 M 11.9 M

Planned trip increment

10% 2% 6%

Incremental planned future trips

564,131 133,801 697,932

10-pt lift 2-pt lift

• Among the no-affinity group, the ads generated a much more modest 2-point lift on planned trips. But applied to the 6.2M ad-aware households in this population, we can attribute nearly 134,000 planned Minnesota visits to the advertising. Thus the bleed over of the advertising to this additional population extended the impact of the campaign on planned future trips by 24%.

AppendixSpring/Summer 2019 ROI/Economic Impact Research Report

55

Appendix: Incidence

• When evaluating target audiences, it is important to understand the size of the population.

• In EMT’s case, four activity targets were defined. And together, these niche travelers represent 12.5 million households.

• There is considerable overlap across the four niche groups. So the household counts across the four niches are not additive.

• The hiking niche is the largest at more than 8 million traveling households.

• Biking comprises more than 6 million households.


Incidence among

travelers

HH (total is not additive

due to overlap)

Any hiking 9% 8,785,966

Any biking 6% 6,100,738

Any arts/culture 5% 4,444,142

Any golf 4% 3,655,593

Any niche 13% 12,536,395

Hiking niche – Minnesota trip details

• n=934

• 8.8M niche hiking households (in traditional and national markets)


Activities on MN visitsShopping 48%Sightseeing 39%Dining at unique locally owned restaurants (non-chain)

39%

Friends or relatives 38%Scenic drives 38%Nature walks 37%Viewing fall colors 36%Mall of America 36%Hiking/backpacking 28%State/national parks 28%Historical attractions 24%Museums and galleries 20%Swimming 20%Fishing 18%Driving on designated scenic byways 17%Camping 17%Fairs/festivals/events 16%Arts and cultural activities 16%Zoos 15%Wineries/breweries/distilleries 14%

MN visit motivators

Friends or relatives 31%

Viewing fall colors 23%

Mall of America 22%

Shopping 18%

Sightseeing 18%

Nature walks 18%

State/national parks 16%

Scenic drives 16%

Hiking/backpacking 14%

Fishing 10%

Ad impact on trip spending Unaware Aware

Accommodations $275 $295

Food and beverages $207 $206

Arts & culture $44 $61

Recreation $39 $55

Sporting events $36 $46

Entertainment and attractions

$53 $67

Shopping – tourist $71 $95

Shopping – general $72 $80

Transportation in Minnesota $97 $97

Other $11 $18

TOTAL $905 $1,021

34%

46%

Unaware Aware

12-pt lift in MN visitation


Unaware Aware

2.5 4.8


Unaware Aware

# MN trips in 2019 2.4 3.0

Length of stay 3.2 3.5

Travel party size 2.9 3.2

Activities on MN visits

Shopping 49%

Sightseeing 41%

Dining at unique locally owned restaurants (non-chain)

40%

Mall of America 39%

Nature walks 36%

Scenic drives 36%





Historical attractions 26%

Fishing 23%

Museums and galleries 22%

Amusement parks/carnivals 19%

Swimming 18%

Wineries/breweries/distilleries 18%

Paved trail/road biking 18%

Nightlife, concerts and entertainment

17%

Camping 17%

Arts and cultural activities 17%

Biking niche – Minnesota trip details

• n=594

• 6.1M niche biking households (in traditional and national markets)


MN visit motivators


Mall of America 24%


Sightseeing 21%

Shopping 21%

Nature walks 21%


Scenic drives 17%

Amusement parks/carnivals

12%

Fishing 12%





Recreation $53 $81



$71 $76




Other $14 $28

TOTAL $1,114 $1,249

41%

50%

Unaware Aware



Unaware Aware

3.3 5.1


Unaware Aware

# MN trips in 2019 2.8 2.8



Arts & Culture niche – Minnesota trip details

• n=413

• 4.4M niche arts & culture households (in traditional and national markets)


MN visit motivators

Shopping 28%


Mall of America 26%


Scenic drives 17%

Sightseeing 16%


Nature walks 14%

Arts and cultural activities

12%

Fishing 11%





Recreation $42 $69



$83 $81




Other $13 $34

TOTAL $1,079 $1,152

36%

49%

Unaware Aware



Unaware Aware

2.8 5.2


Unaware Aware

# MN trips in 2019 2.6 3.2



Activities on MN visitsShopping 52%Mall of America 39%Dining at unique locally owned restaurants (non-chain)

39%

Historical attractions 38%Sightseeing 37%Scenic drives 36%Friends or relatives 33%Nature walks 30%State/national parks 24%Arts and cultural activities 24%Museums and galleries 23%Driving on designated scenic byways 19%Amusement parks/carnivals 18%Fishing 18%Hiking/backpacking 18%Zoos 18%Camping 18%Nightlife, concerts and entertainment

16%

Swimming 16%Parades and cultural events 15%Fairs/festivals/events 15%

Activities on MN visits

Shopping 49%

Sightseeing 41%

Dining at unique locally owned restaurants (non-chain)

40%

Mall of America 39%

Nature walks 36%

Scenic drives 36%






Fishing 23%

Museums and galleries 22%

Amusement parks/carnivals 19%

Swimming 18%

Wineries/breweries/distilleries 18%

Paved trail/road biking 18%

Nightlife, concerts and entertainment

17%

Camping 17%

Arts and cultural activities 17%

Golf niche – Minnesota trip details

• n=339

• 3.7M niche golf households (in traditional and national markets)


MN visit motivators


Mall of America 25%

Shopping 20%

Sightseeing 20%

Golfing 19%

Nature walks 16%

Scenic drives 16%

Fishing 13%


Amusement parks/carnivals

11%





Recreation $78 $87



$73 $84




Other $25 $28

TOTAL $1,305 $1,324

38%

54%

Unaware Aware



Unaware Aware

2.9 5.4


Unaware Aware

# MN trips in 2019 2.8 2.9



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