2015 Marketing & Media Effectiveness Studytri-countylodging.com/lake-of the ozarks-fy-2015... · 2015. However, the print campaign provides the best contextual comparison because

2015 Marketing & Media Effectiveness StudyPrepared by

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PURPOSE

The purpose of this study was to measure the incremental impact Tri-County Lodging Association’s Marketing Campaign had upon area visitation and spending, as well as to calculate the campaign’s ROI. H2R Market Research conducted this research using an online survey and a professionally managed third-party email panel of the general population which was screened for travelers and decision makers.

TARGET AUDIENCE

The Tri-County Lodging Association’s 2015 Marketing & Media Effectiveness Study was conducted among leisure travelers living in Kansas City, St. Louis, Des Moines, Columbia, Springfield, Omaha, and Central/Southern Illinois. The research was conducted in October (the same as in the past) to provide an accurate and contextual measurement of the marketing ROI.

SAMPLE

A total of 1,204 respondents were interviewed in this study. This sample size provides for a maximum margin of error of +/-2.8% at a 95% confidence interval overall.

Project Overview

Contents

+ Aided Paid Media Awareness

+ Marketing & Media Reach

+ Marketing Efficiency

+ Cost Per Household

+ Incremental Travel

+ Incremental Trips

+ Incremental Travel Spending

+ Incremental Impact of Ad Campaign

+ Return on Investment (ROI)

+ Incremental Room Nights

+ Ratings of Creative Appeal

+ Impact on Consumer Behavior

+ Marketing Messages’ Impact on Intent to Visit

+ Sources Subscribed to in Past 3 Months

+ Top of Mind Awareness

+ Activity Participation & Functional Drivers

+ Overnight Visitation

+ Visitor Satisfaction

+ Net Promoter Score

+ Visitors’ Demographic Profile

+ Opinion of Destinations

+ Intent to Visit Destinations

+ Destination Differentiators

+ Other Advertising & PR Awareness

Incremental ImpactMarketing Efficiency Advertising Evaluation

Lake of the Ozarks Traveler Profile

Competitive Landscape

02 03 04 0501

Pages 12-20 Pages 21-27 Pages 28-36 Pages 37-46 Pages 47-52

EXECUTIVE SUMMARYPages 4-11

3

Executive Summary

5

▪ Overall awareness of the Tri-County Lodging Association’s 2015 Marketing Campaign was strong at 40% overall, and 34% for print media alone. Awareness for print media held steady with 2014, and overall awareness was much better than the H2R Industry Norm* (29%).

▪ Extrapolated across the population of traveler households, overall awareness reached approximately 1.3 million aware traveler households in the target markets, 1.1 million of which had seen only the print advertising.

▪ The Tri-County Lodging Association invested $289k in the traditional media evaluated in this study (Print, Radio, Television, Vacation Planner and Billboard Advertising). Given the total market reach of 1.3 million, the average cost per aware traveler household was excellent at $0.21—considered very efficient by industry standards. Print media also generated a cost per aware household of $0.12—similar to 2014.

Marketing Efficiency

*Paid Media Norm for destinations with marketing budgets <$500,000. 5

6

▪ The 2015 marketing campaign produced incremental visitation of 4.1%, on par with the H2R Industry Norm of 4.7% incremental visitation for similar destinations.

▪ Extrapolated across aware households, incremental visitation accounted for more than 46k additional trips to the area, resulting in more than $36 million in incremental travel revenue that would not have been generated for Lake of the Ozarks this year had the campaign not occurred.

▪ Given direct ad expenditures totaling more than $289k, Tri-County Lodging Association’s (TCLA) 2015 marketing campaign generated an ROI of $198. Print media by itself generated an ROI of $267, up slightly over last year’s $252 ROI.

▪ TCLA commissioned this study because of their desire to make research-based marketing decisions. This is no longer a MDT requirement. However, had it been, MDT’s adjusted ROI* would have been projected at $121.

Incremental Impact

6*See appendix

7

▪ Travelers found the Tri-County Lodging Association’s advertisements appealing with 64% of overall respondents rating the ads positively. Additionally, two-thirds (66%) of travelers felt the advertisements made Lake of the Ozarks seem more appealing. Both of these metrics were 9 points higher than the H2R Industry Norm.

▪ The primary messages taken away from the advertisements were that they make the area seem like a great outdoors destination (83%) and a great place to relax and unwind (82%).

▪ The ads also inspired action. They encouraged 56% of travelers to search online for information and 53% to visit the official Lake of the Ozarks website—both increases over 2014 levels. Most importantly, the ads generated a positive lift in intent to visit the area in the next 12 months (+8%)—higher than the H2R Industry Norm for lift (+6%).

Advertising Evaluation

7

8

▪ The top activities that Lake of the Ozarks’ visitors indicated they visited or participated in this year were shopping (49%) and outdoor activities such as boating (41%), fishing (27%) and visiting a state park (23%).

▪ The area’s primary functional drivers (activities that motivated the visit) continue to be the activities most participated in and used in Lake of the Ozarks’ ads. Shopping (30%), Boating (22%) and Fishing (17%) dominate the top 3 spots.

▪ Most of Lake of the Ozarks’ satisfaction metrics stayed on par with 2014; however, slight declines drove overall satisfaction down slighlty (-0.09). The variety of outdoor activities earned the highest satisfaction ratings overall (4.20).

▪ After dipping slightly in 2014, the Net Promoter Score for Lake of the Ozarks rebounded in 2015 to 46%. An increase of Promoters gained from the neutral category fueled this increase. Very few (3%) of those who indicated they would not promote the area indicated they would actually detract from it.

Lake of the Ozarks Visitors

8

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Key Takeaways

▪ Print advertising continues to be a primary driver of visitation for Lake of the Ozarks.However, all traditional media as a whole was successful. The new digital billboards in the Kansas City market generated a 27% awareness in their first year—comparable to the H2R Industry Norm of 29% awareness for any one ad. While it takes time to generate traction, this year’s performance indicates this medium may have promise.

▪ Additionally, the messages and images in the advertising resonated with travelers. The activities featured in the ads are the ones that drive most travelers to visit the area. Continuing to market to this same audience helps to not only drive visitation, but also appears to strengthen Lake of the Ozarks’ brand.

▪ Finally, visitors are more likely than ever to promote the Lake of the Ozarks area to their friends and family. Leveraging visitors who promote Lake of the Ozarks organically is important in growing visitation in the future. According to Stan Phelps* customers generated through word of mouth have lifetime values worth four times more than customers generated through any other type of advertising. Lake of the Ozarks should consider ways to proactively identify brand promoters and provide them with the information and resources necessary to help them promote others to visit (e.g., insider info for Facebook Fans and newsletter subscribers, etc.).

*Author of Find Your Purple Goldfish 9

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Key PerformanceIndicator

2015 2014 2013LOTO

Historical Average*

Travel Households 3.4M 4.2M 4.2M 3.9M

Aided Awareness 34% 34% 26% 31%

Aware Households 1.1M 1.4M 1.1M 1.2M

Increment +4.1% +3.8% +3.7% +3.9%

Incremental Trips 46.9k 54.3k 40.9k 47.4k

Incremental Revenue $36.6M $44.9M $35.3M $38.9M

Media Investment $137k $199k $176k $164k

Cost/Aware Household $0.12 $0.12 $0.16 $0.14

Return on Investment $267 $252 $201 $240

Tri-County Lodging Association’s 2015 Print Marketing Campaign generated an ROI of $267, a 6% increase in return over 2014.

Several mediums were used in the Tri-County Lodging Association’s marketing campaign in 2015. However, the print campaign provides the best contextual comparison because it has been the only medium measured over time—which is why we have focused on it here.

Please note that the cost per aware travel household for the print media has continued to decrease in recent years.

Tri-County Lodging Association’s 2015 PRINT Marketing Campaign Key Performance Indicator Trends

*The Historical Average for Lake of the Ozarks has been developed from Marketing & Media Effectiveness Studies conducted for the Tri-County Lodging Association over the past 3 years.

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2015 Key PerformanceIndicator

PrintOnly

TraditionalMedia*

H2RNorm**

Travel Households 3.4M 3.4M n/a

Aided Awareness 34% 40% 29%

Aware Households 1.1M 1.3M n/a

Increment +4.1% +5.5% +4.7%

Incremental Trips 46.9k 73.7k n/a

Incremental Revenue $36.6M $57.3M n/a

Media Investment $137k $289k n/a

Cost/Aware Household $0.12 $0.21 $0.32

Return on Investment $267 $198 $87

In 2015, other media channels were added to the print evaluation and coined, “Traditional Media.” It includes print, radio, TV, billboards and more. Adding these channels increased the number of aware households to 1.4M and incremental spending to $57.3M.

Tri-County Lodging Association’s marketing campaign generated an increase of 5.5% in incremental visitation (or nearly 74k household trips) that would not have occurred otherwise.

Tri-County Lodging Association’s 2015 TRADITIONAL MEDIAKey Performance Indicator Trends

*Traditional media includes Print, Radio, Television, Vacation Planner and Billboard Advertising**The H2R Industry Norm consists of all U.S. destinations’ results with budgets are marketing similar to the Tri-County Lodging Association

Marketing Efficiency

+ Aided Paid Media Awareness

+ Marketing & Media Reach

+ Marketing Efficiency

+ Cost Per Household 01

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40% of travelerssaw or heard an

advertisement for Lake of the Ozarks

Lake of the Ozarks’2015 Marketing

Campaign reached 1.3 million households

The cost per aware household

averaged $0.21

Lake of the Ozarks

invested $289k in advertising for the

2015 Campaign

MARKETING EFFICIENCY KPIs

KPI = Key Performance Indicator

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35%

30%

37%34%

42% 41%39% 40%

Kansas City St. Louis & Des Moines Other Markets* Overall

Print Only Traditional Media

Overall Marketing & Media Awareness: By Market

Print advertising generated 34% awareness in Lake of the Ozark’s target markets. However, with the addition of other traditional media sources awareness was pushed upward to 40% in these same advertised markets.

Q32-36: Have you seen this advertisement in the past 12 months?*Other Markets include: Columbia, Springfield, Omaha, Des Moines and Central/Southern Illinois RESPONDENT BASE: ALL RESPONDENTS | N=1,204

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Awareness by Individual Advertisement/Channel

34%

27%

16% 16%

Print Collection (All Markets) Billboard Collection (Kansas CityDMA)

Radio Collection (All markets) Television Ad (Kansas City, St.Louis & Des Moines)

Print advertising continues to drive ad awareness for the Lake of the Ozarks area; however, the new digital billboards in Kansas City earned a respectable level of awareness as well. As we have seen in the past, individual ad awareness was considerably lower than overall awareness, indicating there was a fair amount of crossover between channels.

Q32-36: Have you seen this advertisement in the past 12 months?

40%Overall Awareness

RESPONDENT BASE: ALL RESPONDENTS | N=1,204

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Appeal of Digital Billboards

36%

24%

45%

20%

12%10%

Relax & Unwind Remember when… It's Your Turn to Relax Rush Hour Drive Time Girls Getaway

Travelers found the “It’s Your Turn to Relax” billboard to be the most appealing, followed by the “Relax & Unwind” billboard.

Q34: Which of these digital billboard ads do you find most appealing? Please choose your favorite 2.


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Tri-County Lodging Association’s 2015 Marketing Campaign (traditional media) generated a gross market reach of 1.3 million traveler households, or 40% of travelers in these target markets.

The print campaign alone reached 1.1M travel households in these same target markets, or 34% of travelers in the target.

Market Reach (Aware Traveler Households)

MarketTotal Ad

AwarenessTotal Market

Reach

Kansas City 41.5% 279k

St. Louis & Des Moines 40.7% 512k

Other 39.1% 557k

Total Market 40.2% 1,348k

Print Only Total Market 33.9% 1,137k

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Print Advertising is Lake of the Ozarks’ Primary Reach Vehicle

When extrapolated across the travel household population, the print advertising collection reached more individual households than all other sources combined.

While the radio ads had a smaller percentage of awareness, they reached the next highest number of travel households because of the larger target audience. Billboards and television ads reached fewer households, but were targeted at a much narrower target audience.

It is worth noting that the total number of aware travel households in the table to the right does not equal the sum of the individual media’s aware households. This is due to the fact that duplication occurs in media overlap. That is, some respondents were aware of multiple forms of media.

Channel% Aware

of AdsTotal Market

Reach

Print Collection 33.9% 1,137k

Billboard Collection 27.3% 184k

Radio Collection 15.5% 520k

Television Ad 15.9% 306k



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The Tri-County Lodging Association’s 2015 Marketing Campaign (traditional media) efficiently reached travelers in these target markets.

Tri-County Lodging Associations’ investment of $289k in 2015 divided by each market’s total reach averaged a cost of $0.21 per traveler household, considered very efficient by industry standards.

Typically, anything below $0.50 per aware household is considered good.

Marketing Efficiency (Cost per Aware Household)

MarketMarketing Investment

Total Market Reach

Cost/Aware HH

Kansas City $85,088 280k $0.30

St. Louis & Des Moines $107,700 512k $0.21

Other $96,269 557k $0.17

Total Market $289,057 1,348k $0.21

Print Only Total Market $136,646 1,137k $0.12

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Media Overlap

A marketing campaign generally performs better when those in the target market can be reached multiple times or through multiple channels. This is true for Lake of the Ozarks as the more ads travelers were exposed to, the more likely they were to visit in the past 12 months.

72

115

191

Saw No Ads

Saw 1 Ad

Saw 2-4 Ads

Lake of the Ozarks Visitation Indexed



Saw 1 Ad65%

Saw 2-4 Ads35%

Average incidence of visitation across all

visitors = 100

Incremental Impact

+ Incremental Travel

+ Incremental Trips

+ Incremental Travel Spending

+ Incremental Impact of Ad Campaign

+ Return on Investment (ROI)

+ Incremental Room Nights

02

22

Tri-County Lodging Association's 2015 Marketing Campaign resulted in 74k

incremental trips

$57 million in incremental travel spending

MARKETING RETURN KPIs

Incremental room nights totaled 218k

Tri-County Lodging Associationinvested $289k in marketing

expendituresROI was $198

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12.3%

10.1% 10.4%

18.5%

16.1%15.0%

Kansas City St. Louis & Des Moines Other Markets

Unaware of Ads Aware of Ads

Visitation to Lake of the Ozarks by Market

Q12: Did you visit Lake of the Ozarks in the past 12 months?

Tri-County Lodging Associations’ 2015 Marketing Campaign (traditional media) generated incremental visitation in all three of the geographic markets evaluated. Kansas City generated the largest incremental visitation (+6.2%), followed by St. Louis & Des Moines (+6.0%).

RESPONDENT BASE: EVER VISITED LAKE OF THE OZARKS | N=686

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Overall, the 2015 Marketing Campaign generated 73.7k incremental household trips that would not have occurred without the 2015 Marketing Campaign.

Incremental visitation was strongest among those living in the Kansas City market; however, the larger number of available travel households in St. Louis & Des Moines produced more household trips overall.

Each of the three geographic target markets produced an increase in incremental performance.

Incremental Visitation

MarketTotal Market

ReachIncremental

TravelIncremental

HH Trips

Kansas City 280k 6.2% 17.4k

St. Louis & Des Moines 512k 6.0% 30.7k

Other 557k 4.6% 25.5k

Total Market 1,348k 5.5% 73.7k

Print Only Total Market 1,137k 4.1% 46.9k

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Tri-County Lodging Associations’ 2015 Marketing Campaign produced incremental spending from visitors across all advertised markets.

Incremental spending totaled more than $57 million for the traditional media campaign--$36.6 million of which was generated by the print advertising efforts.

Incremental Traveler Spending

Market

Incremental HH Trips

Travel Spending Per Party

Incremental Spending

Kansas City 17.4k $822 $14.3M

St. Louis & Des Moines 30.7k $756 $23.2M

Other 25.5k $775 $19.7M

Total Market 73.7k $778 $57.3M

Print Only Total Market 46.9k $779 $36.6M

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$198 Return on Investment

$289k

Ad Investment

$57.3M Incremental Revenue*

73.7k Incremental

Trips

Party Trip Spending

$778

Tri-County Lodging Association's 2015 Marketing Campaign generated

an ROI of $198 for every dollar invested.

*Incremental revenue is the revenue generated that, without advertising, would not have occurred.

$137k Print Ad Investment | $267 Print ROI

RESPONDENT BASE: VISITED LAKE OF THE OZARKS IN THE PAST 12 MONTHS | N=319

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Incremental Room Nights

The 2015 Marketing Campaign generated more than 218k incremental room nights for those staying overnight in the Lake of the Ozarks’ hotels, motels, bed & breakfasts, condos, campgrounds and resorts that would not have occurred otherwise.

Incremental room nights are up more than 18k rooms over 2014. Extrapolated across the number of rooms/units purchased and length of stay of those staying in paid accommodations, it is estimated that the 2015 Marketing Campaign generated more than 17% of the total room nights utilized by travelers in the greater Lake of the Ozarks area during this timeframe.

218kIncremental Room Nights

Across Lodging Categories

RESPONDENT BASE: OVERNIGHT VISITORS | N=560

Advertising Evaluation

+ Ratings of Creative Appeal

+ Impact on Consumer Behavior

+ Marketing Messages’ Impact on Intent to Visit

+ Sources Subscribed to in Past 3 Months 03

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Likeability of Advertisements

63%61%

67%64%

Kansas City St. Louis & Des Moines Other Markets Overall

% Rated 4 or 5 on 5 Point Scale for Appeal

Q36: Using the scale provided, please rate how much you like this collection of advertisements for Lake of the Ozarks.

Overall, the ads earned a 64% top-2 box rating for likability, 9 points higher than H2R’s Industry Norm (55%). Travelers living in the other markets found the ads most appealing, but all target markets received the ads well.


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Impact on Appeal of Lake of the Ozarks

Q37: Using the scale provided, please rate how much you agree that these ads make Lake of the Ozarks seem…

Two-thirds (66%) of travelers felt the advertisements made Lake of the Ozarks seem more appealing. This is also 9 points higher than the H2R Industry Norm.

61% 62%

71%

66%

Kansas City St. Louis & Des Moines Other Markets Overall

% Makes Lake of the Ozarks Seem Somewhat/Much More Appealing


31Q32: Using the scale provided, please rate how relevant the points made in these advertisements are to you:Q33: Using the scale provided, please rate how well this advertisement fits with what you think about Lake of the Ozarks: Q34: Using the scale provided, please indicate how different this advertisement is from other advertising you've seen for destinations:

The overall ad campaign fit the Lake of the Ozarks brand very well and was relevant to travelers’ needs, and both exceed H2R Industry Norms. Differentiation from other destinations’ advertising is lower, but is on par with H2R’s Industry Norm (42%).

Relevance, Brand Fit and Differentiation

% Somewhat/Very Relevant Advertisements

% Fits Somewhat/Very Well With Lake of the Ozarks Brand

% Pretty/Much Different than Other Advertising

65%

41%

90%

% Top 2 Box Scores


32Q41: Based upon the message you took away from the advertisements you just reviewed, please indicate the degree to which you agree that these ads:

Traveler Takeaways from the Advertising Message

83%

82%

80%

78%

59%

56%

Make Lake of the Ozarks seem like a great outdoors destination

Make Lake of the Ozarks seem like a great place to relax andunwind

Makes Lake of the Ozarks seem like an easy place to visit for aquick getaway

Make Lake of the Ozarks seem like a great destination to creatememories with family and friends

Show me interesting new things to do that I'd like to explore

Make Lake of the Ozarks seem like a unique destination that isdifferent than other places I visit

% Agree/Strongly Agree with Statements

Travelers agree that Tri-County Lodging Associations’ marketing campaign makes the area seem like a great outdoors destination and a great place to relax and unwind.


33Q42: After reviewing these ads, how likely would you be to take each of the following actions?

The actions that travelers are most likely to take after being exposed to these ads are to search online for information regarding the area and visit the Lake of the Ozarks website.

Post-Ad Exposure Traveler Intentions

Request additional information

Search online for information

Find out more about planning a trip to Lake of the Ozarks

Visit the Lake of the Ozarks website

Read travel reviews online about Lake of the Ozarks

Sign up to receive updates from Lake of the Ozarks

56%

53%

48%

43%

38%

28%

% Probably/Definitely Would…

Follow Lake of the Ozarks on Social Media 26%

H2R Industry Norm

(49%)

(41%)

(n/a)

(33%)

(36%)

(n/a)

(23%)


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51%

39%33%

39%

56%

42%46% 47%

Kasas City St. Louis & Des Moines Other Markets Overall

Intent to Visit in the Next 12 Months% Definitely/Probably Will

Pre-Ad Post-Ad

Intent to Visit: Pre- and Post-Ad Exposure

Q10: Using the scale provided, please indicate how likely you are to visit each of the following destinations in the next 12 months:Q43: Now that you have reviewed these advertisements for the Lake of the Ozarks area, how likely are you to visit this area in the next 12 months:

Not only did traveler takeaways and post-ad intentions exceed the H2R Industry Norm for destinations, the ads also increased intent to visit the area in the future. Overall intent increased by 8%, higher than the H2R Industry Norm of 6% after having seen the ads.


35

Magazines/Publications Seen in Past 3 Months

27%

23%

21%

16%

14%

12%

10%

8%

7%

7%

5%

5%

4%

3%

2%

2%

2%

Better Homes & Gardens

People Magazine

Good House Keeping

Family Circle

Midwest Living

AAA

Reader's Digest

Redbook

Official Missouri Vacation Guide

AAA Midwest Traveler

Ladies Home Journal

Missouri Vacation Planner

Rural Missouri

AAA Home & Away

AAA Living

RV Travel & Campground Guide

AAA Tour Book

Please note that 39% of respondents had not

seen any of these publications in the past

3 months.

Q5: Which of the following magazines or publications have you read/subscribed to in the past 3 months:


Better Homes & Gardens, People Magazine and Good Housekeeping are the most popular publications read among area travelers—identical to the most read publications from 2013 and 2014.

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Magazines Ranked

Publication % of Travelers % of LOTO Visitors INDEX % Read Most Often

Better Homes & Gardens 27% 29% 120 61%

People Magazine 23% 23% 126 65%

Good House Keeping 21% 23% 111 46%

Family Circle 16% 18% 141 45%

Midwest Living 14% 16% 110 48%

AAA 12% 11% 118 51%

Reader's Digest 10% 12% 139 48%

Redbook 8% 9% 138 31%

Official Missouri Vacation Guide 7% 8% 154 36%

AAA Midwest Traveler 7% 8% 111 52%

Ladies Home Journal 5% 5% 136 34%

Missouri Vacation Planner 5% 6% 207 42%

Rural Missouri 4% 6% 245 44%

AAA Home & Away 3% 3% 125 58%

AAA Living 2% 2% 92 51%

RV Travel & Campground Guide 2% 3% 201 38%

AAA Tour Book 2% 2% 135 6%

Visitors to Lake of the Ozarks in the past 12 months are much more likely to subscribe to Rural Missouri, RV Travel & Campground and Missouri Vacation Planner than the average traveler in the target market.

Q5: Which of the following magazines or publications have you read/subscribed to in the past 3 months:Q6: Of those magazines you have read/subscribed to in the past 3 months, which would you say you read most often? (You may choose up to 3 choices) RESPONDENT BASE: ALL RESPONDENTS | N=1,204

Lake of the Ozarks Traveler Profile

+ Top of Mind Awareness

+ Activity Participation & Functional Drivers

+ Overnight Visitation

+ Visitor Satisfaction

+ Net Promoter Score

+ Visitors’ Demographic Profile

04

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Top of Mind Awareness

Destinations such as Branson, St. Louis and Kansas City are among the top of travelers’ consideration sets. However, Lake of the Ozarks is top-of-mind for more than 4% in the target market—nearly double the awareness of 2014.

Destination Any Mention

Branson, MO 11.6%

St. Louis, MO 11.6%

Kansas City, MO 8.8%

Chicago, IL 8.5%

Lake of the Ozarks, MO 4.3%

Omaha, NE 1.8%

Indianapolis, IN 1.4%

Eureka Springs, AR 1.4%

Des Moines, IA 1.4%

Denver, CO 1.1%

Q7: When you think of places you have, or would, enjoy visiting for leisure that are located in your region, which destinations first come to mind?


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Area Activity Participation52%

46%

35%

27%

n/a

21%

n/a

11%

6%

15%

13%

18%

5%

8%

9%

5%

5%

49%

41%

27%

23%

22%

16%

14%

12%

11%

11%

11%

11%

8%

8%

8%

5%

5%

Shopping

Boating on the lake

Fishing on the lake

Visited a State park

Lake of the Ozarks State Park

Played mini-golf

Rented a boat or personal watercraft

Visited a show cave

Ha Ha Tonka State Park

Rode go-carts

Outdoor or Indoor waterpark

Music show

Attended a meeting, reunion or convention

Attended a special event/festival

Fireworks

Golfing

Spa

2014

2015

Visitors to Lake of the Ozarks were, once again, most likely to go shopping, boating or fishing on the lake during their most recent visit.

However, area activity participation declined in general for many activities—with the exception of Ha Ha Tonka State Park, visiting a show cave and attending a meeting, reunion or convention.

Q16: Which of the following activities or experiences, if any, did you participate in on your most recent visit to the Lake of the Ozarks area?


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Functional Drivers of Visitation

Q17: Of these activities, please indicate if there were any that were a major influence when you decided to visit Lake of the Ozarks on this most recent trip.

Boating

30%Ranked 1st in 2014Ranked 1st in 2013

Fishing

17%Ranked 3rd in 2014Ranked 2nd in 2013

Shopping

22%Ranked 2nd in 2014Ranked 3rd in 2013

Activities that had the highest participation rates were also serious drivers of visitation, similar to last year.

Lake of the Ozarks State Park

12%Ranked 4th in 2014Ranked 4th in 2013


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Overnight Visitation

Yes84%

No16%

Stay Overnight

More than 8 in 10 visitors stayed overnight on their most recent trip to the Lake of the Ozarks this year—down from 92% in 2014. This drop is likely fueled by the addition of new advertising markets this year. Accommodations varied widely between hotels, friends/family, motels, resorts, condos and campgrounds.

Q19: How many nights did you spend in the area on this trip?Q20: Which of the following best describes the type of accommodations you used on your most recent trip?

2.7Nights in the Area

RESPONDENT BASE: OVERNIGHT VISITORS | N=560

30%

16%

13%

13%

12%

9%

4%

Hotel

Friends/Family

Resort

Condo/Home Rental

Motel

Campground/RV Park

Bed & Breakfast

Accommodations

3.9Party Size

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Satisfaction with the Area

Most metrics of satisfaction with Lake of the Ozarks stayed on par with 2014; however, slight declines drove overall satisfaction down a bit. The variety of outdoor activities earned the highest individual satisfaction rating overall.

n/a

4.29

4.22

4.13

4.14

4.03

4.06

4.08

3.99

3.99

3.91

4.20

4.20

4.18

4.11

4.07

4.01

4.00

3.99

3.96

3.95

3.90

Variety of outdoor activities

Overall satisfaction

Friendliness of the local people

Quality of lodging

Variety of things to do

Variety of attractions

Quality of attractions

Variety of lodging

Variety of shopping

Quality of shopping

Value for the dollar

2014

2015

Q22: Using the scale provided, please rate how satisfied you are with following characteristics of Lake of the Ozarks as a travel destination:


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Word of Mouth Index (WoMI)

The Word of Mouth Index takes the Net Promoter Score a step further by augmenting the “how likely are you to recommend?” approach with a second question: “How likely are you to discourage others from doing visiting this destination?” The WoMI then subtracts the percentage of 9 and 10 ratings from “likelihood to discourage” from the percentage of 9 and 10 ratings from “likelihood to recommend” to arrive at the balanced and accurate WoMI score.

*Source: ForeSee—wordofmouthindex.com

“How likely are you to recommend visiting Lake of the Ozarks to a friend or family member?”

“How likely are you to discourage friends and family from visiting Lake of the Ozarks?”

1 2 43 5 6 7 8 9 10TRUE PROMOTERS

0

101 2 43 5 6 7 8 9TRUE DETRACTORS

0

Non-Recommenders

WoMI

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Net Promoter Score & WoMI

57%

3%

32%

97%

11%Net

Promoter

NetDiscourager

Promoters (9-10) Neutrals (7-8) Detractors (0-6)

46%

Q25: How likely are you to recommend Lake of the Ozarks to a friend or family member?Q26: Using the scale provided, please indicate how likely you would be to discourage others from visiting Lake of the Ozarks?

Lake of the Ozarks has an excellent Net Promoter Score (46%) among recent visitors, significantly higher than the H2R Industry Norm of 29% for destinations. More importantly, very few Detractors would consider actively discouraging others from visiting, providing for a WoMI of 54%.

WoMI = 54%

57%

3%

True Detractors Neutral Detractors


45

NPS Trends

57% 54% 56%49%

32% 34%37%

34%

11% 12% 8%19%

2015 2014 2013 H2R NormPromoters (9 - 10) Neutrals (7 - 8) Detractors (0 - 6)

Net Promoter

Score

48%42% 29%

After dipping in 2014, the Net Promoter Score for Lake of the Ozarks increased in 2015 to 46%. An increase of Promoters gained from the neutral category fueled this increase.

Focusing on the Promoters and ensuring that these visitors continue to have a great experience will keep the NPS at a high level.

Q25: How likely are you to recommend Lake of the Ozarks to a friend or family member?

46%


46

Demographic Profile of Lake of the Ozarks Visitors

2015 Visitors

2014Visitors

2013 Visitors

Party Size 4.0 4.4 3.5

Children at home 56% 44% 41%

Adults Only 44% 56% 59%

Respondent Age 42 41 43

Under 12 years old 21% 17% 23%

12-17 year olds 9% 12% 10%

18-34 year olds 28% 38% 25%

35-54 year olds 24% 19% 27%

55+ year olds 19% 15% 20%

Male 25% 43% 45%

Female 75% 57% 55%

HH Income $66.2k $67.3k $73.5k

Distance 121 miles 162 miles 136 miles

The changes in visitor composition that were seen in 2014 continued into 2015. Visitors are more likely than ever to have children at home, live closer to the area and earn less than visitors have in the past.

Competitive Landscape

+ Opinion of Destinations

+ Intent to Visit Destinations

+ Destination Differentiators

+ Other Advertising & PR Awareness 05

48

Opinion of Destinations

83% 81%85%

67%

78%

Branson, MO Kansas City Lake of the Ozarks Springfield, MO St. Louis

% Somewhat/Very Positive Opinion

Q9: Using the scale provided, please indicate to what degree your opinion of these cities as getaway destinations is positive or negative.

Travelers in this study have a very positive opinion of Lake of the Ozarks, higher than other destinations in the competitive set.


79%Competitive

Average

49

Intent to Visit Destinations

Q10: Using the scale provided, please indicate how likely you are to visit each of the following destinations in the next 12 months.

Among travelers in the defined target market, intent to visit Lake of the Ozarks in the next 12 months is on par with Branson and runs higher than Springfield.


42%

51%

39%

32%

58%

Branson, MO Kansas City Lake of the Ozarks Springfield, MO St. Louis

% Probably/Definitely Will Visit

44%Competitive

Average

50

Differentiators

Branson, MO

Kansas City

Lake ofthe Ozarks

Springfield, MO

St. Louis

Lake and water activities 15% 6% 73% 2% 4%

Variety of things to do 32% 24% 9% 3% 33%

Friendly local people 38% 20% 16% 12% 14%

Value for the dollar 27% 23% 14% 15% 20%

Quality attractions 39% 22% 8% 3% 29%

Variety of attractions 42% 20% 6% 3% 30%

Quality lodging 29% 25% 15% 5% 26%

Variety of lodging 33% 24% 17% 4% 24%

Quality shopping 20% 35% 9% 4% 32%

Variety of shopping 21% 34% 8% 5% 33%

Special events and festivals 38% 23% 6% 5% 28%

State parks 18% 9% 50% 10% 12%

Outdoor activities 23% 10% 54% 4% 10%

Q11: In your opinion which of these destinations, if any, do you believe has the best…?

Lake of the Ozarks is most differentiated for its lake and water activities, state parks and outdoor activities.


51

USA Today Awareness

Yes16%

No84%

Aware of “Best Recreational Lake”

Q28: Were you aware that Lake of the Ozarks was named the Best Recreational Lake in the country by USA Today?Q29: How, if at all, does that impact your likelihood of visiting Lake of the Ozarks in the future?

Nearly one in six travelers were aware that Lake of the Ozarks was named the “Best Recreational Lake in the Country” by USA Today. And, more than half of those who recalled seeing the article said they are now more likely to visit.


55%

52%

56%

54%

Kansas City

St. Louis & Des Moines

Other Markets

Overall

% More Likely to Visit Lake of the Ozarks

52

PR/News Story Awareness

Q30: Please indicate which of the following places, if any, you saw or received information about Lake of the Ozarks over the past 12 months.Q31: What was featured in the news article or story about Lake of the Ozarks?

Most travelers recalled seeing information about Lake of the Ozarks through a travel/visitors guide. Those who saw news stories/articles recalled outdoor news stories and/or the USA Today story most often.


21%

17%

17%

14%

8%

8%

5%

3%

Travel Guide/Visitors Guide

Saw a TV commercial

Saw on Twitter, Facebookor other social media

Saw a news article or story

Received an emailpromotion

Heard an ad on the radio

Visited www.funlake.comwebsite

Saw a digital billboard

Information Received About Lake of the Ozarks

43%

25%

22%

20%

18%

14%

Outdoor stories

Lake of the Ozarks VotedBest Recreational Lake

Lake of the Ozarks Bikefest

Lake of the Ozarks Shootout

Big Bass Bash

AquaPalooza

News Article Stories Recalled

Appendix

+ MDT Key Performance Indicators

54

Adjusted ROI Using Fully Loaded Marketing Expenditures

▪ The Tri-County Lodging Association (TCLA) is not required by the Missouri Division of Tourism (MDT) to conduct a Market & Media Effectiveness study. Participation in the MDT co-op program is not contingent upon completing this research.

▪ This study was commissioned by the TCLA board for the sole purpose of gaining research-based insights that will continue to help the organization target the right audiences using the right media and the right content at the right time. This insightful approach has served TCLA well over the years and it has helped the organization deliver marketing results far above H2R Industry Norms.

▪ However, in an effort to help the MDT continue to remain abreast of its DMOs’ marketing performance, the TCLA elected to voluntarily make an ROI projection from this research that is commensurate with how the MDT had requested it in past years. That is, in addition to the traditional media evaluated in this study, an adjusted ROI has been provided for the MDT that examines the Net ROI when all total marketing costs are fully loaded. The MDT estimate of ROI includes all SEM, content, targeting and retargeting costs invested but not measured in this evaluation.

55

2015 Key PerformanceIndicator

PrintOnly

TraditionalMedia*

Traditional Media/ MDT**

H2RNorm***

Travel Households 3.4M 3.4M 3.4M n/a

Aided Awareness 34% 40% 40% 29%

Aware Households 1.1M 1.4M 1.4M n/a

Increment +4.1% +5.5% +5.5% +4.7%

Incremental Trips 46.9k 73.7k 73.7k n/a

Incremental Revenue $36.6M $57.3M $57.3M n/a

Media Investment $137k $289k $474k n/a

Cost/Aware Household $0.12 $0.21 $0.35 $0.32

Return on Investment $267 $198 $121 $87

When TCLA’s marketing campaign is fully loaded with digital expenditures (a channel not evaluated in the study) as has been requested by the MDT in the past, the resulting ROI is estimated at $121.

That is, when TCLA’s $57 million in incremental travel spending is divided by $474k instead of the $289k spent on the specific channels evaluated in this study, the ROI drops from $198 to $121.

To the best of our knowledge, however, this remains one of the better ROIs in the state.

Tri-County Lodging Association’s 2015 MDT’S VIEW ofKey Performance Indicator Trends

*Traditional media includes Print, Radio, Television, Vacation Planner and Billboard Advertising**Traditional Media/MDT includes the above with the addition of SEM, Content, Retargeting and Heartland investments***The H2R Industry Norm consists of all U.S. destinations’ results with budgets are marketing similar to the Tri-County Lodging Association

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2015 Marketing & Media Effectiveness Studytri-countylodging.com/lake-of the ozarks-fy-2015... · 2015. However, the print campaign provides the best contextual comparison because

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