California Travel & Tourism Commission Advertising Committee Wednesday, May 2, 2007

1. California Travel & Tourism CommissionAdvertising CommitteeWednesday, May 2, 2007

2. Today’s Agenda • 2007 Qualitative Research Debrief • In-the-Moment Interviews • Focus Groups • Strategic Implications • FY07-08 Domestic Brand Advertising • Creative Strategy • Preliminary Media Plan • FY07-08 International Overview +

3. Overview • With an increased budget beginning in FY07-08, CTTC’s ad program will: • Provide CONTINUITY - build on California’s brand foundation. • Provide DEPTH – leverage market intelligence and brand insights to develop new programs with deeper resonance. • Provide EXTENSION – reach more consumers, domestic and international, year-round. +

4. 2007 Qualitative Research Review In-the-Moment Interviews & Focus Group Findings Presented by: +

5. Domestic Brand Advertising +

6. Brand Advertising Objectives • Facilitate top-of-mind awareness of California as a premiere travel destination – seed the consideration process that leads to visitation. • Generate acceptance of and preference for California – connect the State’s emotional benefits with would-be travelers. • Drive traffic to the website – encourage consumers to take action. • Inspire repeat visitation – give consumers new reasons to become California brand evangelists. +

7. Brand Advertising Strategies • Continue to brand the California experience to competitively differentiate the State and create desire. • Evolve to a year-round approach that aligns with California’s year-round travel patterns. • Reconnect with ‘brand familiars’ – consumers who are familiar with the California brand to offer new reasons to visit. • Leverage food and wine as a driver for destination choice. • Develop strategic alliances with like-minded brands to elevate California’s brand cachet and extend reach and influence. +

8. California 2.0 – Positioning the State • ‘Abundance’ – California has not only the most (diversity), but also the best of what life has to offer. • Consumers see California’s abundance as superlative in every way: • People, lifestyle, food/wine, entertainment, culture, geography, topography, scenic beauty, climate, etc. • California has it all and it is better than anyplace else. +

9. Psychographic Target • Experiential … they want new experiences and things beyond the norm • Indulgers … they want the ultimate in culinary, luxury and pampering • Aspirational … they want to experience the good life • Curious … they need to see it to believe it • Confident … they are leaders and trendsetters +

10. Campaign Overview • In order to drill down into the California experience and give consumers new reasons to consider the State for leisure travel throughout the year, three creative strategies will be employed: • “California Attitude” (brand umbrella) • “California Insider” • “Culinary California” +

11. “California Attitude” (brand umbrella) • Capitalize on leisure travelers’ fascination with California/Californians through the “California Attitude” – the notion that we put pleasure first and live life to the fullest. CALIFORNIA BRAND CHARACTER Hedonistic, youthful, fun, individualistic, laid-back, welcoming/accepting, and open-minded, with an anything goes mentality +

12. “California Insider” • Protect and maintain share from Primary Domestic markets through “California Insider” – messaging that gets beneath the surface and provides ‘brand familiars’ new motivation to visit the State. BRAND FAMILIARS Leisure travelers who have frequently been exposed to and experienced the California brand. +

13. “Culinary California” • Capitalize on the food and wine lifestyle as a driver of destination choice – more than a vacation activity food and wine is a part of California’s aspirational lifestyle. CULINARY TRAVELERS More affluent, educated, experiential and adventurous – they do more when they travel than the total leisure travel population. +

14. Campaign Elements • Television • “California Attitude” (brand umbrella) • Spring/Summer • Fall/Winter • Print • “California Insider” • “Culinary California” • Internet • “California Attitude” (brand umbrella) • “California Insider” • “Culinary California” • Co-op Support +

15. Media Objectives • Target non-resident leisure travelers with the greatest propensity to visit California – drive travel volume from those who stay longer and spend more. • Broaden the media mix to capitalize on opportunistic segments and extend reach – capitalize on new platforms with the ability to generate incremental travel. • Expand media support to drive visitation during peak and off-peak seasons. • Leverage the budget through partnerships, added-value promotion and co-op. +

16. Media Target • “California Attitude” • Affluent leisure travelers w/ HHI of $75K+ • Profile of California travelers • Ages 25-54 (74%), married (74%), with average of 1.9 children living in HH • “California Insider” • Affluent leisure travelers w/ HHI of $75K+ • Reside in Primary Domestic markets • “Culinary California” • Affluent leisure travelers w/ HHI of $150K+ • Profile of Culinary travelers • More affluent and active; tend to travel with spouse, significant other or friends, without children +

17. Geographic Target Title Seattle • TBD Chicago St. Louis Phoenix Houston CTTC National Broadcast/Cable TV Culinary California Magazine Coverage San Antonio California Insider Magazine Coverage SWA TV +

18. Media Timing Reach consumers in the early, critical phases of the trip planning process. +

19. Media Mix • Television (80% of budget) • National broadcast/cable networks • Spot TV with Southwest Airlines • Print (11% of budget) • National magazine ads • Brand and co-op • Western region magazine inserts • Brand and co-op • Internet (9% of budget) • Key word search (SEM) • Banner advertising • Email campaigns +

20. Title • TBD +

21. Fiscal Year 2007-08 Cost & Delivery • $16.5 million media budget breakdown: • Television: $13.2 million • Print: $1.8 million • Internet: $1.5 million • Est. target impressions = 1,076,782,192 • 30% increase over last fiscal year • Est. reach = 75.5% • Est. frequency = 8x (nationally) • Over half (53%) will be exposed 3+ times +

22. Co-op Initiatives • In conjunction with CTTC’s new funding and ability to develop long-term strategic plans, co-op efforts will exist to accomplish the following: • Extend the reach of the brand platform. • Provide California travel industry partnership when significant fundraising has occurred. • Provide industry support. +

23. FY07-08 Domestic Brand Advertising Co-ops • Develop three preprinted magazine inserts with Internet/email overlays. • Fall/Winter: “The Inside Scoop on California’s Good Life” • CMG/American Express program with placement in Food & Wine, T&L, NG Traveler • Spring: “Craving California” • Program with epicurean publication such as Food & Wine, Gourmet or Bon Appetit • Summer: “3 Golden Days in California” • Program with Sunset +

24. International Overview +

25. Canada – Country Goals • Facilitate top-of-mind awareness of California as a premiere travel destination. • Generate acceptance of and preference for California. • Drive traffic to the website. +

26. Canada Strategies • Mirror the US brand advertising program, selling the California lifestyle/attitude. • Target Canadian leisure travelers with the greatest propensity to visit California – 84% of Canadian travel to California comes from British Columbia, Ontario and Alberta. • British Columbia CMA: Vancouver • Ontario CMA: Toronto • Alberta CMAs: Calgary, Edmonton +

27. Canadian Strategies (cont.) • Concentrate efforts to promote travel in 4th and 1st quarters when volume it is the highest from these province. • BC: 55% travel in 4th and 1st quarters • Ontario: 58% travel in 4th and 1st quarters • Alberta: 64% travel in 4th and 1st quarters • Flight media based on length of travel planning times. • Closer proximity provinces are akin to US Primary Domestic markets; longer haul provinces are akin to US National Opportunity markets • Expand the media mix to use a combination of television and Internet (SEM). +

28. Canada Media Plan - preliminary +

29. Other International Markets • Plans are in development for the United Kingdom, Germany, Japan, Australia/ New Zealand and Mexico. +