Media Strategy Discussion. March 19, 2015

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1 Media Strategy Discussion March 19, 2015

2 Shifts in Media Budgeting and Planning Approach

3 Major Media Considerations for 2016 Broadcast Budgets: Need to strategically plan for market exposure growth in the face of inflation and election year costs Media Strategy and Tactical Shifts Broadcast & Digital: Screen fragmentation and its impact on buying strategy Consumer Travel Trends: Increasing interest in online video and relevant content throughout travel cycle

4 Shifts in Media Budgeting and Planning Approach: Broadcast Budgets

5 Consideration: Broadcast Budgets Situation: Current broadcast budgets are stretched across nine TV markets, with weeks of coverage supporting spring and fall travel seasons Annual media inflation requires budget adjustments in order to simply maintain current media weight The 2016 elections are poised to have a major impact on media inventory and rates Presidential candidates and their backers are projected to spend a record $5 billion in advertising 65-85% of that spend typically goes to local spot TV, with the remaining spend allocated within digital, radio and, to a lesser degree, local newspapers Key implication is that local TV costs can rise up to +30% during a political window, creating a challenge for non-political advertisers to maintain exposure levels Sources: TheHill.com, Kantar Media s Campaign Analysis Group

6 Consideration: Broadcast Budgets Recommended Planning Approach: Continue to leverage the branding power of the well-produced :30 TV spot Focus :30 rotation during campaign kick offs, with heavier rotation in key development market(s) Consider shifting dayparts and local news/cable mix in 2H FY16 to avoid political ad-driven rate increases

7 Consideration: Broadcast Budgets Approach, continued: Strategically integrate :15 spots to extend message while building in cost savings :15 are roughly 80% as effective in terms of recall and likeability as a :30 spot Suited for modern attention spans while being long enough to be noticed even in fast-forward mode Allows Asheville to maintain baseline presence during heavier election build up in 2H of FY16 Source: Journal of Advertising Research, March 2010

8 Consideration: Broadcast Budgets Same audience, fewer dollars

9 Shifts in Media Budgeting and Planning Approach: Screen Fragmentation

10 Consideration: Screen Fragmentation Situation: Consumers continue to tune in to their favorite programming, but are now accustomed to doing so on their own time, via various sources 62% of pay TV households using a DVR TV Everywhere services are becoming increasingly prevalent Streaming services like CBS All Access, HBO Go Subscription models like Netflix and Hulu Plus Not to mention online video hubs like YouTube Source: emarketer, US DVR Penetration, 2009 & 2014 Image Source: Think With Google, Evolution of TV: Reaching Audiences Across Screens

11 Consideration: Screen Fragmentation Source: Think With Google, 2014 Traveler s Road to Decision

12 Consideration: Screen Fragmentation Situation, continued: Ad budgets are shifting to align with media consumption patterns as well as performance measurement and optimization opportunities Source: Think With Google, Evolution of TV: Reaching Audiences Across Screens

13 Consideration: Screen Fragmentation Recommended Approach: Start to break down the typical media silos and move towards holistic campaign planning and management that places the consumer s media habits front and center Seek out opportunities to effectively target potential travelers across desktop, smartphone and tablet, keeping in mind the different ways that travelers utilize each device when developing messaging strategies for each device Source: Think with Google, 2014 Travelers Road to Decision

14 Consideration: Screen Fragmentation Approach, continued: Continue to have discussions with online video partners regarding connected TV opportunities and buying logistics as that market grows; consider testing as we move through FY16 Keep a close eye on growth within programmatic TV, which combines the targeting of digital with the premium inventory and large-screen viewing environment of TV

15 Shifts in Media Budgeting and Planning Approach: Travel Content Consumption

16 Consideration: Travel Content Consumption Situation: Travelers continue to rely on various forms of online content throughout the travel cycle, with an increasing focus on video and native distribution Source: Think with Google, 2014 Travelers Road to Decision

17 Consideration: Travel Content Consumption Proposed Approach: Build off of 2H FY15 YouTube and Hulu buys, building in additional performance measurement tracking options o o o Going into 2H FY15, we were able to generate an incremental testing budget from broadcast negotiations We will be using that budget to test various media mix scenarios in our core markets, with mix determined based on several market factors including Demographics Propensity to travel Market awareness TV and video usage Distance to Asheville We will be relying on online metrics, such as changes in site visitation by market, to measure the impact of each market s media mix

18 Consideration: Travel Content Consumption o 2H FY15 Broadcast/Video Mix Allocation: High Awareness Moderate Awareness Opportunity Market Greensboro Raleigh Charlotte Charleston Columbia Knoxville Cincinnati Nashville Base TV Hulu YouTube True View

19 Consideration: Travel Content Consumption Proposed Approach: Consider increasing investment with historical video distribution partners, focusing incremental dollars on testing long form video creative executions Continue to build off of FY15 Native successes, looking for areas to further align content related to the various Asheville attributes as they relate to specific target audiences Native Media Partners

20 Consideration: Travel Content Consumption Proposed Approach: In addition to digital, create a well-rounded media plan that incorporates curated partnerships with premier print publications Potential partners:

21 Market Discussion

22 Market Discussion To refine our market strategies, PAM utilized past research and market performance indicators aimed at the following Possibly realigning core and expansion market within current budget levels Adjusting timing by market based on seasonality, likelihood to visit, look to book windows, etc. Consider messaging differentiators by market Prioritize expansion markets at current and future budget levels Key data points Market sizes & compositions Travel times/distances Awareness and intent to visit Historical performance Media costs Data sources used 2013 SMARI Study 2012 TNS Google Analytics & Sizmek Market expansion data conducted for 2014 & 2015 campaign

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28 Market Discussion

29 Market Discussion Tentative Strategies Atlanta Develop unique market strategy based on size and potential Brand awareness is good but not as high as core markets Atlanta has lots of travel options and we must remain top of mind Considered top market for Asheville but we aren t in their top 25 destinations We recommend launching our campaigns with :30 TV and an event to take place in Atlanta To save funds and extend weeks we recommend moving to :15 TV spots and utilizing more digital placements (including online video) Currently we are only live 10 weeks out of the year in TV Savings from other markets could also be reinvested in Atlanta

30 Market Discussion Tentative Strategies Core Markets (Charlotte, Columbia, Greensboro, Knoxville, Raleigh) High awareness and currently high visitation numbers Strategy is to remain top of mind and have a longer in-market presence By tweaking GRPs each week, buying more :15 TV spots and adding digital video units we increase weeks in market, remain top of mind and provide a greater halo effect Digital executions should be more event or promotional in nature to inspire more frequent trips

31 Market Discussion Tentative Strategies Mixed Bag Nashville Lower awareness, yet relatively solid visitation Continue efforts and maintain :30 presence as affordable Increase TV weeks if possible Market could use additional funds if available via other adjustments or budget increases Charleston Despite high awareness, currently low visitation numbers Since Charleston is a small market you could justify moving funds to a higher priority market without losing much visitation Conversely, if Charleston stays we recommend shifting from :30 to :15 and buying more digital video

32 Market Discussion Tentative Strategies Investment Markets (Cincinnati and DC) Cincinnati Low awareness and visitation probably due to travel time Recently added as a test market, closer test markets (Knox/Nash) seemed to have a stronger response If we continue with Cincinnati, support for 2-3 years with brand trackers in place to measure effectiveness Washington DC Not currently supported with media Low awareness and visitation but huge potential Definitely next big market if additional budgets are available Other markets considered: Chicago and So. Florida

33 Brand Launch

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35 Eclectic doers who relish discovery and collection of experiences USER Asheville opens wide your sense of discovery and enriches your life. A unique array of man-made and earth-shaped experiences BRAND OPPORTUNITY CULTURE More than ever before, opportunities for discovery and enrichment begin long before the trip and extend indefinitely

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40 Appendix

41 Media & Marketing: a decade of changes #1 TV show as Desperate Housewives 21 million viewers #1 Show is NCSI 17 million viewers 30-40% of watch on demand House of Cards premiers on Netflix Netflix consumes 45% of all bandwidth online Consumers ignite social media with reviews, spoiler alerts and memes 682,000 illegal downloads in 24 hr. period

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