Prepared by September 2008. 2 Preface Beginning this year the Lake of the Ozarks CVB/Tri-County Lodging Association have chosen to measure their marketing.

Prepared by

September 2008

2

Preface• Beginning this year the Lake of the Ozarks CVB/Tri-County Lodging

Association have chosen to measure their marketing performance using an ad effectiveness study, similar to the way the Missouri Division of Tourism measures their ad performance. This study replaces the traditional inquiry conversion study.

• Ad effectiveness studies are superior to conversion studies in several different ways because they measure:

– ALL VISITORS, instead of the just the handful (3% to 5%) of visitors who request additional information and leave their addresses.

– ALL MARKETING CHANNELS including mass media and internet website visits, and are not just limited to media channels such as print ads that generate inquiries.

– NET INCREMENTAL SPENDING generated as a direct result of the ads, as opposed to assuming everyone who inquired and visited, did so because they saw an advertisement.

3

Purpose

• The purpose of this study is to measure the degree to which the Lake of the Ozarks CVB/ Tri-County Lodging Association’s 2008 advertising

campaign resonated with prospects and generated visitation for the Lake of the Ozarks area.

• Awareness ● Appeal ● Interest ● Effectiveness ● ROI

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Methodology• The Lake of the Ozarks CVB/ Tri-County Lodging Association’s Advertising

Effectiveness Study was conducted online among residents of the St. Louis, Kansas City, Des Moines, Omaha, DMAs and the Springfield, IL MSA using an online panel professionally managed by Survey Sampling Inc.

• The use of such a panel is necessary to ensure that a random selection of visitors and non-visitors representative of the key target markets is secured.

• House-list email addresses were also sent the same online questionnaire for the purpose of “oversampling” visitors (if necessary), and to compare and contrast house list responses to those from residents in the third-party email panel. The hope was that the results from the two studies would be comparable—so that future studies might be able to implement only the house file names, and save money on the rental of the third-party panel.

• (As it it turned out, however, “oversampling” was not necessary because a representative number of visitors and non-visitors were identified in the email panel, and the results of the two list sources produced substantially different results.)

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Methodology• The questionnaire consisted of a variety of closed-ended and open-ended

questions which took the average respondent approximately 10 minutes to complete when it was launched during the second week of September 2008.

• A total of 536 respondents completed the online panel survey providing for a maximum margin of error of +/- 4.2% at a 95% confidence interval. The house list generated another 188 responses (from the same five markets). However, because the two lists included inherently different pools of travelers, the two sources were not combined. Rather relevant comparisons are made on occasion through this presentation.

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Lake of the Ozarks advertising gets results

Lake of the Ozarks generated $283.09 in net incremental visitor revenue for every

$1.00 invested in advertising—and, in fact, generated $63.59 for every dollar spent in the entire marketing budget.

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Executive Summary

• Over 90% of the residents in Lake of the Ozarks five target markets are familiar with the destination.

• More than four in ten (43.5%) have previously seen Lake of the Ozark’s travel advertisements this year.

• Lake of the Ozark’s print advertisements were very well received among respondents.

• The ads greatly improved intent-to-visit (+46%)• They greatly improved respondents’ perception of Lake of the Ozarks

(+36%)• And the print ads effectively captured respondents’ attention (+62%)• Overall, 6% of respondents had visited Lake of the Ozarks this past

summer which equates to 838,302 total visitors and $95.4 million in gross spending.

• But, advertising did not attract them all. Aware visitors who had previously seen the Lake of the Ozarks print ads accounted for 538,578 visitors who spent $64.9 million on their travels.

8

1awareness

Over 90% of respondents across the five target markets are familiar with Lake of the Ozarks, and 44% had previously seen Lake of the Ozark’s ads this year.

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Familiarity with Lake of the Ozarks

Not familiar5.1%

Not sure3.2%

Familiar with Lake of the

Ozarks91.7%

Over nine in ten residents in the target markets are familiar with Lake of the Ozarks as a destination.

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% Familiar with Lake of the Ozarks by Market

82.4% 81.3%

95.0%

81.7%

96.7%

91.7%

70%

75%

80%

85%

90%

95%

100%

Spfd, IL DesMoines

KansasCity

Omaha St. Louis Overall

As would likely be expected, the markets closer to Lake of the Ozarks are more likely to be familiar with the destination than those from further distances.

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Unaided Awareness

Did not mention LOTO99.9%

Mentioned Lake of the Ozarks

0.1%

With over 746 responses to an open-ended question about what destination’s ads they recall seeing, only 1 mention of Lake of the Ozarks was made. Similarly, of 706

mentions of PR recall, Lake of the Ozarks was only mentioned twice.

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Aided Awareness of PR and Advertisements

Yes, both18.1%

No, neither43.5%

Yes, news story only9.0%

Yes, travel ad

only29.4%

Yes, news story only

15.6%

Yes, travel ad

only26.3%

Yes, both41.3%

No, neither16.8%

Email Panel House List

Over half of email panel respondents (56%) said they had heard/seen some type of advertisement or PR for Lake of the Ozarks recently. Among house-list respondents

awareness jumped to 83%.

Prior to showing actual ads

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Where Recall Seeing/Hearing PR or Advertisement?

0.6%

1.6%

2.2%

2.8%

6.7%

13.5%

14.3%

16.5%

20.9%

22.1%

23.9%

53.5%

0% 10% 20% 30% 40% 50% 60%

Sporting event

Other

Sign on building

Don't know

Direct mail

Radio

Billboard

Brochure/Flyer

Internet

Newspaper

Magazine

Television

Most email panel respondents recalled hearing/seeing the PR/Ad on television, newspaper or in a magazine.

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Recall of Lake of the Ozarks PRsampling of verbatim comments

• All the fun things to do and shopping opportunities and shows and entertainment in the area to see and do.

• Beautiful lake and on the bank they have cottages• Boat races - hotel specials• Boating accidents• Close to Saint Louis• Deaths from drowning• Drunk people having fun. a fatal helicopter crash.• Ecoli in the water - people getting very ill• Great hiking, fishing, camping• Hotels/ lake activities/ eating establishments• Just that it was a nice place to visit with lots of activities for the whole family.• Party cove• That it is a family destination• The Lake itself, Tan-Tara Resort, Golf courses,• Water sports and relaxing in lake shore cabins

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Recall of Lake of the Ozarks Advertisementssampling of verbatim comments

• About the fishing and sightseeing• About the lake resort• Advertising Branson and what a great place Lake of the Ozarks is.• Boating• Enjoy the scenery• I recall the beautiful lake picture in the photo.• It's in Missouri, has a water park close by, has boating and fishing• Leisure weekends on the lake• Lots of water activities• Outlet malls• Received a brochure in the mail.• Shopping mall• Shopping, boating• Silver Dollar City park, various music and comedy shows• Tan-Tar-A• The image of the Lake of Ozarks.• There is shopping and golf.• Visit the lake of the Ozarks. It is a great family destination vacation spot

Note that several people confused the difference between Branson & Lake of

the Ozarks.

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Actual Awareness of Advertisements

Yes43.5%No

56.5%

Yes84.2%

No15.8%

Email Panel House List

Once shown the actual collage of advertisements, 44% of email panel respondents and 84% of those from the house file reported they had actually seen these ads before.

After showing actual ads

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% Actual Awareness of LOTO Advertisementsby Market

60.6%

38.0%45.5%

35.7%

45.4% 43.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Spfd, IL DesMoines

KansasCity

Omaha St. Louis Overall

Lake of the Ozarks highest ad awareness levels came in Springfield, IL, Kansas City and St. Louis.

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2perceived impact

Lake of the Ozark’s advertisements had a significant impact on intent-to-visit (+46%), improved perception of the market (+36%), and effectiveness of grabbing attention (+62%).

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Ad’s Impact on Intent-to-Visit Lake of the Ozarks

Neutral52.7%

Somewhat less likely to visit

1.2%

Much more likely to visit9.9%

Somewhat more likely to visit

35.7%

Much less likely to visit0.5%

46% of respondents said the advertisement made them more likely to visit Lake of the Ozarks. Nearly two-thirds of house-list respondents said the ad made them more likely

to visit.

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Impact of Ad on Intent-to-Visit

47.1%

38.0%

49.5% 47.9%44.4% 45.6%

0%

10%

20%

30%

40%

50%

60%

Spfd, IL DesMoines

KansasCity

Omaha St. Louis Overall

The impact of the advertisements were perceived to be somewhat more effective in Kansas City and Omaha than some of the other markets.

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Ad’s Impact on Perception of Lake of the Ozarks

No change63.2%

Somewhat worse0.7%

Much better8.0%

Somewhat better27.8%

Much worse0.3%

Over one-third (36%) indicated the ad helped improve their perception of Lake of the Ozarks. House list responses were similar at 37%.

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Impact of Ad’s Influence on Perception

41.2%

36.7% 38.4%35.2%

33.2%35.7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Spfd, IL DesMoines

KansasCity

Omaha St. Louis Overall

The net impact of the ad’s influence on perception was fairly consistent across markets.

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Ad’s Effectiveness at Getting Attention

Poor Job5.3%

Neither31.9%

Very poor job1.0%

Good job49.7%

Excellent job12.0%

Nearly two-thirds of respondents (and 75% of house list respondents) felt the ad did a good/excellent job of grabbing their attention.

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Impact of Ad’s Effectiveness at Grabbing Attention

67.6%

64.6% 64.3%

60.0%58.9%

61.7%

54%

56%

58%

60%

62%

64%

66%

68%

70%

Spfd, IL DesMoines

KansasCity

Omaha St. Louis Overall

Respondents from Spfd, IL, Des Moines and Kansas City felt the ads did the best job of grabbing their attention.

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3market penetration

This section evaluates Lake of the Ozark’s incidence of visitation by market, otherwise known as market penetration.

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Incidence: Ever Visited Lake of the Ozarks?

Non-Visitor34.4%

Visitor65.6%

Nearly two-thirds of the panel respondents nationwide have visited Lake of the Ozarks at some point in the past. Nearly all (95%) of house list respondents have visited.

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Incidence by Market

55.9%

40.0%

78.2%

42.3%

73.5%65.6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Spfd, IL DesMoines

KansasCity

Omaha St. Louis Overall

Incidence by market is highest in the Kansas City and St. Louis markets where more than 7 in 10 residents have visited Lake of the Ozarks at some point in the past.

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Last Visit and Seasonality

2 yrs ago11.9%

3+ yrs ago

60.9%

Earlier this year

14.1%

Last year13.1%

Winter3.9% Spring

15.8%

Summer62.6%

Fall15.3%

Holidays2.4%

Last Visit 2008 Seasonality

However, over 14% of those who have previously visited did so in 2008---and only 63% of those visited this past summer.

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Incidence: Visited Lake of the Ozarks this past Summer

Non-Visitor94.0%

Summer 2008 visitor6.0%

Overall, 6% of the respondents from Lake of the Ozarks target markets reported visiting the destination this past summer.

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Summer Visitation by Market

8.0%

2.2%

7.2%

2.5%

7.6%

6.0%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

Spfd, IL DesMoines

KansasCity

Omaha St. Louis Overall

Spfd, IL, St. Louis and Kansas City generated the highest ratios of summer market penetration for Lake of the Ozarks.

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4ad effectiveness

This section examines the degree to which Lake of the Ozark’s advertisements generated incremental visitation and gross spending.

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This gray box represents all of the residents who live in

Lake of the Ozark’s five target feeder markets.

Residents of Feeder Markets

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aware of ads unaware of ads

Residents of Feeder Markets

43.5% of residents in Lake of the

Ozarks target markets were familiar with the

destination’s ads

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Total Visitors & Visitor Spending

43.5% aware of ads 56.5% unaware of ads

Residents of Feeder Markets

838,302 travelers from these markets spent $95.4 million in Lake of the Ozarks this past summer.

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aware of ads unaware of ads

Residents of Feeder Markets

unaware visitor spending

aware visitor

spending

538,578 or $64.9

million299,725 or $30.5 million

Total visitors & visitor spending

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Direct Spending/ROI Calculations

Aware Unaware TotalHouseholds 1,358,257 1,762,298 3,120,555

Incidence (Summer 2008) 8.7% 3.9% 6.0%

Visiting Households 118,259 69,527 187,527

Household Size 4.55 4.33 4.47

Visitors 538,578 299,725 838,302

Spending/Person $120.42 $101.81 $113.77

Direct Spending $64.9M $30.5M $95.4M

Gross Impact of Advertising $64.9M

Lake of the Ozarks Investment $146,012

ROI (Gross Spending: Ad Investment) $444.17

*net impact = aware spending LESS unaware spending. This reflects the incremental net spending that was generated solely as a result of the

advertisements.

email panel

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Net Impact Calculations

Aware Without Ads*

Net Impact

Households 1,358,257 1,358,257 -

Incidence (Summer 2008) 8.7% 3.9% 4.8%

Visiting Households 118,259 53,387 64,872

Household Size 4.55 4.33 4.74

Visitors 538,578 231,007 307,570

Spending/Person $120.42 $101.81 $134.39

Direct Spending $64.9M $23.5M $41.3M

NET IMPACT* of Advertising $41.3M

Lake of the Ozarks Investment $146,012

ROI (Gross Spending: Ad Investment) $283.09

email panel

*Illustrates visitation & spending from “aware visitors” had no advertisements ran.

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• In fact, even if the entire $650,000 marketing budget were weighed against the $41.3 million net

incremental revenue generated, the return on investment would still be

$63.59.

• Bottom line, Lake of the Ozarks marketing investment is driving business and generating incremental revenue for the

community.

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5respondent profile

Respondents in this study reflected the general population in the census

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Ages in Household

Under 1829%

18-3428%

35-5435%

55+8%

The average respondent was 39.2 years old.

House list respondents

averaged 41.5 years of age.

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Party Composition

Families with

Children41%

Adults Only59%

Four in ten respondents had children under 18 years of age in their household.

43% of house list respondents were

families with children.

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Education

Less than high school

graduate2%

High school graduate

13%

Some college or technical

school35%

College graduate

34%

Graduate work/advanced

degree16%

Nearly half of respondents have a college degree or better.

47% of house list respondents have

a college education or

better.

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Household Income

Under $50,00044%

$50,000 to $99,999

44%

$100,000 & above12%

The average income of email panel respondents was $63,100

The average household income

from house list respondents was

$89,000

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Summary Metrics

Panel Respondent

House List

Familiarity with destination 91.7% 95.7%

Aware of advertisements 43.5% 84.2%

Summer market penetration 6.0% 49.9%

Spending per person $113.77 $197.68

Estimated gross revenue $95.4 million $1,621.7 million

Aware-gross revenue $64.9 million $1,356.1 million

NET incremental revenue $41.3 million $554.9 million

Advertising investment $146,012 $146,012

Return on investment $283.09 $3,800.37

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6appendixDetails of the calculations from the house file list.

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Direct Spending/ROI Calculations

Aware Unaware TotalHouseholds 2,628,728 491,827 3,120,555

Incidence (2008) 54.4% 34.5% 51.3%

Visiting Households 1,430,392 169,595 1,599,987

Household Size 5.16 4.81 5.13

Visitors 7,387,092 816,570 8,203,662

Spending/Person $183.57 $325.29 $197.68

Direct Spending $1,356.1M $265.6M $1,621.7M

Gross Impact of Advertising $1,356.1M

Lake of the Ozarks Investment $446,012

ROI (Gross Spending: Ad Investment) $3,800.37

*net impact = aware spending LESS unaware spending

house list