Brand USA Updates and Ways to Partner Together

Travel Oregon

Governor’s Conference on Tourism

April 28, 2014

new jobs supported 53,181

Accomplishments in Brief

billion in visitor spending

$3.4 million visitors 1.1

received in partner contributions

from the private sector

million $130 Over

contributions from FY12

doubled More than

97% partner retention rate 33%

Partnerships

up by

● Brazil

May-Jun,

Sept-Oct ’14

& May ‘15

● China

& Taiwan

Jun-Oct ’14,

Jan-Mar & May ’15

● France

Nov-Dec ‘15

Consumer Market Plan

● United Kingdom

May-Jun ’14

& Sept-Feb ‘15

● Canada

May-Jun ’14

& Nov-Mar ‘15

● Japan

Apr-May, Sept-Oct ’14

& Apr ’15

● Mexico

Apr & May-Jun ’14, Oct-Nov & May ’15

● Australia

Apr, Aug-Sept ’14

& Jan ‘15

● Germany

Nov-Jan & Apr ’15

● South Korea

May-Jul ’14 & Oct ‘15

2015:

● Chile

● France

● Southeast Asia

● Russia

● Middle East

● Scandinavian

Countries

Brand USA Market Representation

Current:

● United Kingdom

● Japan

● Canada

● Mexico

● Brazil

● China

● Taiwan

● Hong Kong

● South Korea

● Germany

● Australia & New Zealand

● India

Markets Will Reach Over 90% of In-Bound Travel to the USA

USA Arrivals

0

5

10

15

20

25

2000 2005 2010 2015 2020

Australia

Belgium

Brazil

Canada

China

France

Germany

Hong Kong

Italy

Japan

Netherlands

Russia

Singapore

UK

Korea

India

Mexico (total)

Colombia

Venezuela

Argentina

CO+AR+VZ

Source: Brand USA proprietary research, OTTI, Tourism Economics

Millions

USA Arrivals

0

1

2

3

4

5

6

7

2000 2005 2010 2015 2020

Australia

Belgium

Brazil

China

France

Germany

Hong Kong

Italy

Japan

Netherlands

Russia

Singapore

UK

Korea

India

Colombia

Venezuela

Argentina

CO+AR+VZ

Source: Brand USA proprietary research, OTTI, Tourism Economics

Millions

USA Arrivals

0

1

2

3

4

5

6

7

2000 2005 2010 2015 2020

Brazil

China

Germany

Japan

UK

CO+AR+VZ

Source: Brand USA proprietary research, OTTI, Tourism Economics

Millions

-50%

0%

50%

100%

150%

200%

250%

300%

350%

400%

0% 20% 40% 60% 80% 100% 120%

Canada

Mexico*

United Kingdom

Japan

Germany

Brazil

China

France

South Korea*

Australia

Nordic/Benelux*

Russia

India*

USA Arrivals

Russia

India

Brazil

Canada Mexico

China

Source: Brand USA proprietary research, OTTI, Tourism Economics

Long Haul Market Share (CA, MX Total Share)

2012/2021 USA Arrivals Growth

(Inner circles represent 2012 arrival volume; grey outer circles represent forecasted 2021 arrivals)

-50%

0%

50%

100%

150%

200%

250%

300%

350%

400%

-20% 0% 20% 40% 60% 80% 100% 120%

Canada

Mexico*

United Kingdom

Japan

Germany

Brazil

China

France

Australia

Russia

India*

Total Foreign Departures

Russia

India

Brazil

Canada Mexico

China

Source: Brand USA proprietary research, OTTI, Tourism Economics

2012/2021 USA Arrivals Growth

(Inner circles represent 2012 total foreign departures; grey outer circles represent forecasted 2021 foreign departures)

Long Haul Market Share (CA, MX Total Share)

Mexico – 21%

Russia – 21%

Japan – 30%

Canada – 31%

France – 34%

India – 37%

Germany – 41%

Australia – 42%

United Kingdom – 45%

Brazil – 50%

South Korea – 52%

China – 60%

USA Wish List Share

* International travelers in Canada and Mexico Source: Brand USA Global Intelligence Program and PhoCusWright, Inc.

Percentage of intercontinental travelers* who list USA on their destination wish list

Intent to Visit USA

* International travelers in Canada and Mexico Source: Brand USA Global Intelligence Program and PhoCusWright, Inc.

Percentage of intercontinental travelers* who are likely to visit in next 12 months

Russia – 15%

France – 17%

Australia – 18%

Germany – 19%

South Korea – 26%

United Kingdom – 27%

Japan – 36%

India – 45%

Brazil – 57%

China – 59%

Canada – 66%

Mexico – 73%

Canada

Mexico

United Kingdom

South Korea

Brazil

Japan

Australia

Germany

France

India

Russia

China

DREAM CONSIDER ACTIVATE TRAVEL SHARE

Target Travel Cycle Phase

Travel Life Cycle

Dream Travel Share Consider Activate

Land of

dreams,

TV ads

DREAM

Search,

display ads

CONSIDER

OTA/tour

operator

promotions

ACTIVATE

Arrival

video

TRAVEL

Social

channels

SHARE

Image Testing

Anthem: Current Spot 8 Core + 7 Test Scenes

MX/BR 0.920

DE/JP 0.896

MX/CA 0.893

DE/CA 0.890

CA/BR 0.886

JP/CA 0.874

DE/MX 0.856

JP/MX 0.831

DE/BR 0.826

JP/BR 0.807

CN/BR 0.762

MX/CN 0.755

CA/CN 0.727

DE/CN 0.716

JP/CN 0.711

Correlation

Learnings

HYPOTHESIS

Established markets

should be shown

different things than

emerging markets

LEARNING

INCORRECT

There are important

differences across

markets, but no one

way to separate them

Learnings

OLD ASSUMPTION

Landmarks

are cliché

HYPOTHESIS

Landmarks provide

recognition; people

want to see them

LEARNING

CORRECT

Across all markets,

travelers like to see

familiar icons most

Learnings

OLD ASSUMPTION

Featuring people

will add warmth

and improve

effectiveness

LEARNING

INCORRECT

People are important

for context for activities, but

all shots centering on people

did not perform well

Learnings

HYPOTHESIS

Travelers are experiential and therefore will like

to see food

LEARNING

INCORRECT

Every shot relating to food/dining

was disliked. Advertising and

content strategies are different

Overall Most Appealing

Emotional Branding Framework

Receptiveness Familiarity Joy

Curiosity Trust Passion

Relationship Pride

Admiration Identity

Pleasure

NO EMOTION INTEREST AFFECTION DESIRE

Growth Markets:

● Germany

● Mexico

● Japan

● India

● South Korea

● Australia & New Zealand

● China, Hong Kong, Taiwan

● Brazil

Established and Growth Markets

Established Markets:

● UK

● Canada

Partner Commitment

● Deliver compelling content versus “advertising”

● Leverage scale for efficiency

● Foster partnership and collaboration

● Create unique opportunities

Three Paths to Value

Brand USA Originals

Affinity Programs

Market Specific

Co-op Marketing Programs Brand USA Originals

Partner Driven Co-ops The Travel Channel

Broadcast in 147 Countries

FAM 1

FAM 2

FAM 3

FAM 4

FAM 5

FAM 6

FAM 7 FAM

8

British Airways MegaFam 2013 Seven Itineraries, One Iconic Country

Brand USA Originals

November 2013

May 2014

MegaFam Trips FY14

May 2014

October 2014

Brand USA Originals

● 23 destinations

● 22 million global visitors monthly

● 16 million advertising impressions

● Appearing in markets such as UK, Australia, Brazil, Canada, France, Germany, India, Mexico, Russia, South Korea, and Taiwan

● Runs 7 months – lives on National Geographic and Brand USA channels

National Geographic Road Trip

USA Discovery Program

● Live in the UK

– 2,500 agents

● Connect to your training program

● Build custom module

● Launching

– Australia

– India

– China

– Brazil

Co-op Program Highlights

● 550,000 copies were produced

in 10 languages

● Digital Impressions

Estimated: 10 million Actual: 135 million

2014 Inspiration Guide

Brand USA Originals

● 25 states

● 137 cities

In-Language Content

● 510 videos

● 4,300 photos

● 18 languages

Magazine-Style Print: 280,000 – 850,000 per market

Digital: 6 weeks – 10-12 million impressions

E-mail: 6 weeks – 300,000-500,000

Activation Partners:

Brand USA Originals

Markets:

● Brazil

● Canada

● UK

● China

● Germany

● Japan

● Mexico

Multi-Channel Programs

● In-Language video

● Additional themed platforms

– Shopping

– Ski

– Golf

– Great outdoors

– The local perspective

● Distribution platforms

– Brand USA – True View and others

– Facebook

Brand USA Originals

Digital Growth Supports Partners

● Growing Digital Presence

– 10 localized digital and social communities

– 4.6 million visits

– 173% growth in website traffic

● GoUSA.cn & GoUSA.tw

– Launched in August 2013 with 2+ million visits

– 1 million-strong social community

● Engaged International Social Community

– 3.5+ million Facebook fans

– Social community increased from 450,000 to 3.6 million

– 8.1 million engagements on Facebook

– 7.6 million video views on YouTube

– 89% positive sentiment

DiscoverAmerica.com

Brand USA Originals

● The Great American Road Trip

– 10+ road trips covering 39+ states

• 10 key travel influencers

• 1 million impressions in organic reach

• More road trips to come in 2015

● The Great Outdoors – Spring

● Travel Like a Local – Fall

Social Digital Content Campaigns

Premium Programs

● Deeper Content

● Video

● Translation

● Google Mapping

Brand USA Originals

● Integrated Google Maps

● Comprehensive trip planning and sharing features

● Instagram overlay onto a map of the USA

DiscoverAmerica.com

Brand USA Originals Instagram Premium Programs

● Global Mapping

● Takeover Brand USA site on Instagram for a week

● Host an Influencer for the Brand USA Instagram Channel

Brand USA Originals Calendar of Events

Brand USA Originals

● Distributed in 11 markets and 6 languages

● Discover America content for the consumer

● Content media push

Culinary Guide

®

Brand USA Affinity Programs

Market Specific Programs

Co-op Marketing Programs

● Dominate the Canadian market for 2-4 weeks with a multi-platform program

● Network comprised of 6 retail/OTA brands and 13 tour operator wholesale brands

● State programs include digital advertising, TV, in-store travel agencies, e-newsletters and social media

Brand USA Market Specific – Canada Travel Brands State Takeover

Brand USA Market Specific

● Telegraph

● Conde Nast Traveler

● Guardian

● The Stylist

● Additional Programs

– Taxis At WTM

– NFL in the UK

– Ski Program

– Thomas Cook - Phase 2

– BBC International

Missions

Hong Kong Mission November 2014

China Mission October 2014

India Mission September 2014

Brand USA’s Film Concept:

“America’s Great Outdoors”

● Focus on National Parks and the upcoming

centennial celebration of the National Park

Service

● Film release August 2015

– First trailers at IPW in June 2015

In-Kind Support

● Advertising space

● International research

● Content, images and video

● Inclusion of Brand USA logo in international marketing materials

Partners contributed $98 Million in In-kind in 2013

Discussion

Thank you!