Presented by Dan McConnell

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DESTINATION TRENDSAND THE ROLE OF FESTIVALS AND
EVENTS

• Presented by Dan McConnell
• Managing Director, DDB Worldwide
• HTA, May 13-16, 2008

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Its a wild world out there now!

• What do we know.
• What dont we know.
• Where consumers find festivals and events.
• Where Alternative Media fits into the mix.
• How festivals and events make your marketing
  dollars go farther.
• Lets plan for the future.

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What do we know.

• The economy, fuel prices and the war in Iraq are
  dramatically affecting consumer attitudes.
• Industry surveys say that consumers are still
  placing great value on their leisure time.
• Vacation travel within 200 miles of home is
  declining because of gasoline prices.
• Long distance vacation travel by air is holding
  its own in spite of rising ticket prices.

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What dont we know.

• Obama or Clintonwho cares?
• The real questions are can we control inflation
  can we find an answer to the fuel crisis can we
  end the war in Iraq?
• How long will this situation last?
• Can we move on with our lives?
• All this puts a damper on consumer spending in
  the leisure travel category.

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What does the travel industry tell us?

• Economic factors are changing consumer travel
  habits.
• Energy prices are the primary influence of
  travel.
• The Internet is becoming the most influential
  method of promoting travel.

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Whats happening now?

• Local Culture is the primary purpose for over
  half of leisure travel.
• Outside the Mainland, Beach/Resort Destinations,
  the Caribbean and Europe are the most popular
  destinations by far.
• As household income goes up, the number of
  vacations and destinations increasein spite of
  the economy.

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How about the airlines?

• Most travelers make their own arrangementsonline.
  
• Most travelers, including high income, are price
  sensitive.
• Consumers are still flying but dont always enjoy
  it.
• Flight delays, mishandled bags and consumer
  complaints in general are up.

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And hotels and resorts?

• Advertising is more important than ever.
• Reservations have moved to the web (over 40).
• Hotels are increasing their share of Internet
  reservations. Hotel-branded sites account for
  well over 80 of Internet Reservations.
• Perks like cable and Internet are very important
  to 25-to-44-year-old category (60).

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What draws consumers to festivals and events?

• Information
• Entertainment
• Food
• Sweepstakes and prizes
• Valuemore fun for your money
• Outdoor venues come first.

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View Festivals Events as media.

• You can touch your audience directly.
• The audience qualifies itself.
• Time Spent Viewing is over 3 hours.
• The consumer gets all they bargain for and more.
• The audience grows annually.

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Alternative media is in the lead...just what is
Alternative Media?

• Digital Media
• Aerial/Inflatable
• Airport
• Bus Bench/Shelter
• College/High School
• Event Marketing
• Hotel
• In-Flight
• In-Store/Convenience Store/Indoor

• Leisure Facility/Sports Fitness
• Mobile
• Movie/Theatre
• Shopping Mall
• Stadium/Arena
• Telephone Kiosk
• Transit/Taxi
• Truck/Truck Stop
• Vehicle Wraps

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Alternative Media is hot

• Among all alternative media, teens and young
  adults were more likely to report interest in
  nontraditional forms of advertising than any
  other source.

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Digital Media is the fastest growing medium,
based on advertising revenue

• Over 51 million homes have broadband connections
• 70 of online users simultaneously watch TV
  while online.
• Internet spend increased over 18 from 06 to 07

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Top Alternative Media Choices

• Stadium and arena venues are holding on to 1
• But events are in a virtual dead heat
• Specific media like airports, taxis and movie
  theaters make up the rest

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What can we learn from traditional advertising
sources?

• For the first time since 2001, advertising
  revenues have decreased year-to-year in 06 and
  07.
• Ad revenue was over 152 billion at the end of
  2007.
• Event and venue sponsorship has reached 10 of
  that total.

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Trends in traditional advertising

• National TV spot advertising decreased in 2007
  but is making large strides in 2008 due to
  Olympics and political advertising
• Newspaper ad revenues continue precipitous
  decline

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Wheres the good news in traditional advertising?

• Magazine circulation is on the rise and 07 ad
  revenues outpaced 06.
• Outdoor is the million dollar baby.
• Outdoor spending is increasing and revenues
  continue to grow.
• Of nontraditional forms of advertising, consumers
  like ads on outdoor signage best.
• Even without billboards here, this tells us that
  outdoor signage is a very effective way to
  communicate.

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Whats ahead for Alternative Media?

• Almost half of the spending activity is in events
  and venues
• Alternative media is now in the marketing mix of
  more than 70 of the major advertisers
• Targeted events offer more controlled consumer
  contact for the advertiser than ever before

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What does it take to be successful?

• A Plan
• Advertising
• Publicity
• Vendor participation
• Industry and community partnerships

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A well-known computer companys festival
sponsorship plan

• Looking for community sponsorships
• Reaching Males/Females 18-54
• Receiving branding, advertising, PR and sales
  promotion
• Running from summer through the fall

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The answer isarts festivals

• More than 3000 arts festivals in the US
• Attracting more than 116 million consumers
• Having deep ties to civic and business leaders
• Supporting community programs

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The result is

• 100 select-market arts festivals
• 5,000,000 attendees
• Educated, upper-income information seekers
• Strong branding
• Solid community recognition
• Bold consideration of products

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Top Ten Reasons to use Alternative Media

• 10. Clear market definition
• 9. Reaches demographic directly
• 8. Aligns with geographic reach
• 7. Provides immediate feedback
• 6. Quantifiable results

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Top Ten Reasons to use Alternative Media

• 5. Product Sampling/Demo
• 4. Consumer research
• 3. Establish new markets
• 2. Develop cross promotions
• 1. Increases value of ad dollars

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Whats next for the Islands?

• Be local, think global.
• Concentrate on the Internet.
• Ethnic is good.
• Food is good.
• Arts are good.
• Travelers want to be a part of your community.
• Dont stop selling.

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Questions?
Thank You!