International Seminar on KPIs for Destination Marketing

Case Study:Ireland

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IrelandMeasuring the Return on Marketing Investment ‘RoMI’

Peter NashTourism Ireland

Ireland – the island of unique character and characters

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Overview

� Context

� Issue

� Approach

� Methodology

3

� Logistics

� Findings

� Insights

� Actions arising and results achieved

6,000

7,000

8,000

9,000

10,000

(00

0)

Context

Visitors

4

-

1,000

2,000

3,000

4,000

5,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Holidaymakers

Context

78

68

60

65

70

75

80

Tourism Ireland Budget (€m)

3.8

3

4

5

GB Advertising Budget (€m)

Category SOV down from 48% to 22%

5

40

45

50

55

60

2006 2010

1.8

0

1

2

2006 2010

Issue

� How to justify continuation of high levels of state support against competing agencies who could demonstrate a granular return on investment?

� Government stakeholders

6

� How to guide our own internal marketing investment decisions?

� Internal stakeholders

We are competing with other state agencies for funds

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Irish tourism – A historical success story

7,000

8,000

9,000

10,000

EU tourism

funding

Deregulation EU

Air transport

Gulf

war

Good Friday agreement

Sept 11th, Foot

& mouth

SARS, Gulf War, Special Olympics

Strong access

growth

Ryder

Cup

Global financial

crises, Swine Flu ,

access cuts, Currency

fluctuations negative

VFM perceptions in

Ireland. ASH cloud

Eurovision Success,

Riverdance,

Start of the Celtic

Tiger?

8

0

1,000

2,000

3,000

4,000

5,000

6,000

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

war

Issue

0 1 2 3 4 5 6 7 8 9 10

% +/- vs.2010- +

It’s safe and secure

When you’re there, it offers good all round value for money

It is a place that leaves me feelingrelaxed and refreshed

Its people are friendly and welcoming

There’s lots of beautiful scenery

You can easily fill a holiday with things

9

Northern Ireland Ireland France Scotland Wales

You can easily fill a holiday with thingsto see and do

It is a fun place for a holiday/vacation

It’s somewhere you can engage withlocal culture and people

You’ll have a unique holiday / vacation experience you cannot get elsewhere

It’s easy to get there

Issue

Actual Visited

Active Planning

21%

49%

4%

(1184)

19%

(5140)

14

39

14

Spontaneous

Prompted

Ireland

Non

Advertising

(i.e. Articles)

‘GB Purchase Funnel’ ‘GB Awareness ’

10

Intent

Interest

Non Rejecters

49%

59%

71%

39%

(10780)

66%

(18170)

93%

(25390)

72

66

12

22

Prompted Any

Advertising

Any TI TV

Any TI Radio

Any Word of

Mouth

Approach

� Bottom-up

� Consumer-based

� Align with existing statistics and metrics

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� Stakeholder-sensitive

ApproachAn innovative modular research design, with fieldwork spanning Republic of Ireland, Northern Ireland and Great Britain

� The research encompassed two surveys utilising a similar questionnaire:

Visitor Surveys

� GB visitors to ROI & NI

� ROI: sample 441

� NI: sample 377

� Sample comprised Promotable Visitors and VFRs(Visiting Friends & Relations).

Visitor Surveys

� GB visitors to ROI & NI

� ROI: sample 441

� NI: sample 377

� Sample comprised Promotable Visitors and VFRs(Visiting Friends & Relations).

GB Omnibus Survey

� Nationally representative GB sample of 2,043

� Provides population estimates for those who

visited Ireland in relevant period.

� Omnibus survey provides the unique source of

GB Omnibus Survey

� Nationally representative GB sample of 2,043

� Provides population estimates for those who

visited Ireland in relevant period.

� Omnibus survey provides the unique source of

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(Visiting Friends & Relations).

� All had spent 1+ nights in Ireland and were within 1-2 days at end of visit.

� Visitor surveys established levels of advertising awareness and influence.

� In addition, average adult holiday expenditure for visitors influenced by advertising is estimated.

� Visitorr surveys conducted August-September 2011.

� Visitor survey data has been weighted in line with official estimates for Primary Reason for Visit.

(Visiting Friends & Relations).

� All had spent 1+ nights in Ireland and were within 1-2 days at end of visit.

� Visitor surveys established levels of advertising awareness and influence.

� In addition, average adult holiday expenditure for visitors influenced by advertising is estimated.

� Visitorr surveys conducted August-September 2011.

� Visitor survey data has been weighted in line with official estimates for Primary Reason for Visit.

� Omnibus survey provides the unique source of

data on INTENDED visits (element booked)

� Omnibus survey conducted in September 2011

� Omnibus survey provides the unique source of

data on INTENDED visits (element booked)

� Omnibus survey conducted in September 2011

All surveys conducted via CAPI to allow full presentation

of all advertising communications

MethodologyEstimating Tourism Revenues Generated by Tourism Ireland Advertising

ACTUAL VISITS

AWARE OF TOURISMIRELAND

ADVERTISING

INFLUENCED BY TOURISMIRELAND

ADVERTISING

AVERAGE ‘INFLUENCED’ EXPENDITURE (PER ADULT)

TOTAL VALUE OF

EXPENDITURE INFLUENCED BY TOURISM IRELAND

ADVERTISING

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A TRUE MEASURE OFRETURNON

INVESTMENT

Methodology: TV Advertising

Giants Causeway TV Ad

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SkelligTV Ad

Ads were played in full to respondents.

Logistics – A Partnership Approach, leveraging the resources of a range of stakeholders

Tourism Ireland, and its considerable in-house research expertise.

Behaviour & Attitudes, and its many years tourism research experience in Ireland and overseas

Northern Ireland Tourism Board , by wayof official tourism numbers and general support

Dublin Airport Authority, and its help andpatience in arranging security clearancefor B&A surveyors, and detailed GB flightscheduling information

Belfast Airport, for the efforts taken to facilitate RoMI surveying alongside official Northern Ireland Statistics and Research Agency fieldwork.

The National Trust in Northern Ireland, for granting fieldwork access to a range of visitor attractions.

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Fáilte Ireland, for its permission to utilise learnings from its Behaviour &Attitudes St. Patrick’s Festival VisitorEstimates survey

The Central Statistics Office, for the provision of up-to-date visitor estimates for survey weighting purposes

In drawing upon the resources and expertise of a range of bodies, the research process in itself came to represent a combined effort to produce reliable data of use in maximising state support for tourism

advertising, with the ultimate goal of boosting tourism revenues to the island of Ireland.

Findings – The Effect of Tourism Ireland on Actual BehaviourBase: All aware of advertising

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18

10

Made a mental note to find out more later

Made me consider visiting Ireland for a holiday/short break

Looked up the internet about holiday breaks in Ireland

Decided to take a holiday break

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7

7

Any TV Advertising

%

Any Online Advertising

%

13

22

1

Any Radio Advertising

%

The design of a meaningful and actionable call to action metric has been critical to gaining acceptance of findings

16

6

3

2

3

49

Decided to take a holiday break in Ireland

Booked a holiday break in Ireland

Checked the newspaper for deals

Asked a friend/colleague/family member for holiday advice on …

Any action

7

10

0

2

54

31%Advertising Influence: Total Any action (TV/Online/Radio) (of all visitors) ROI: 37% NI: 24%

2

2

2

5

44

Q.10

You mentioned that you had previously seen/heard the advertising just shown/played to you. Which, if any, of the following actions did you subsequently take as a result of having seen/ heard the TV advertising; online/ internet advertising; radio advertising?

Findings – Linking Influenced Visitor Numbers to Population EstimatesTourism Ireland RoMI Model: Population Estimates

ACTUAL VISITS

INFLUENCED BY ADVERTISING(ANY ACTION

TAKEN)

Total Pop 500,340

ROI 363,950NI 136,390

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INTENDED VISITS (BOOKED)

INFLUENCED BY ADVERTISING (ANY ACTION

TAKEN)

Total Pop 50,000

ROI 25,000NI 25,000

The relatively low level of “intended” visitors, the corresponding expense of conducting omnibus research in overseas markets, and concerns over the individual’s capacity to

fully predict their own future behaviour lead us to query the inclusion of intended visits from RoMI

Findings – Linking Influenced Visitor Numbers to Population EstimatesIreland RoMI Model: Value of Advertising Influence

ACTUAL VISITS

INFLUENCED BY ADVERTISING(ANY ACTION

TAKEN)

INFLUENCED BY

Total Pop 500,340

ROI 363,950NI 136,390

Total Pop 50,000

€289

€248€371

€289

Average Adult Expenditure

€

€

€144,598,260

€92,654,790€51,943,470

€14,450,000

Total ‘Influenced’ Expenditure

€

€

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INTENDED VISITS

(BOOKED)

INFLUENCED BY ADVERTISING (ANY ACTION

TAKEN)

Total Pop 50,000

ROI 25,000NI 25,000

Total €159,048,260 (Promotables €84,122,820)

For ROI €98,444,130 (Promotables €51,146,990)

For NI €60,604,130 (Promotables €32,975,830)

Total GB£138,371,986; ROI GB£85,646,394; NI GB£52,725,592

€289

€248€371

€14,450,000

€5,789,340€8,660,660

Straight away, we see that VFR’s are just as open to the influence of marcoms activity as the “promotables”, leading to a re-assessment of the definition of precisely who is promotable!

Destination/NTO RoMI Ratio

Tourism Ireland (2011) 20:1

NITB (2009) 14:1

Findings – the value of advertising influence

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Australia (2009) 13.5:1

Britain (2004) 30:1

So, we can estimate that for every Euro spent on marketing activity by Tourism Ireland, €20 in tourism revenue is subsequently generated

Insights

� The responsiveness of the VFR cohort to a ‘holiday-maker’ call-to-action

� The discriminating power of the ‘influence metric’

� The ‘over-estimation’ of peoples intention to visit and the need to focus on

real visitors

� The importance of identifying and measuring the VIA’s (ROI via NI and vice-

versa) cohort

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versa) cohort

Actions taken

� Shift of media spend in GB to TV from digital in late 2011

� Shift of spend from other markets to GB in 2012

� Broaden RoMI work to include top four markets in 2012

� Re-calibrate our approach to ‘intent’ versus ‘actual’ visitation

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� Re-calibrate our approach to ‘intent’ versus ‘actual’ visitation

� A fundamental Tourism Ireland reappraisal of VFR’s, and a

realisation that they too represent a valid target market.

Results achieved

� Use of RoMI results to secure 2012 budget (Government stakeholders)

� Shift from ‘outputs’ (SoV) to ‘outcomes’ (RoMI) (internal stakeholders)

� Commitment to television in top four markets in 2012 and beyond

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Conclusions

� ‘Outcomes’ not ‘outputs’ gets peoples attention

� We have a model which combines rigour with ease of understanding for

stakeholders

� A smaller number of key KPIs is desirable, in terms of both task and

communication

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Thank you!

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