Tourism Vancouver Island Destination Advertising Evaluation & ROI BC and Alberta Market: Post Campaign Research Flight #2 (Wave 4 of 4): Final Report February, 2017

For more information, contact: David Thexton President +1 416 481-6963 ext.231 davidt@insigniaresearch.com Lune Yee Vice President +1 416 481-6963 ext.234 lunay@insigniaresearch.com Insignia Marketing Research Inc. www.insigniaresearch.com The findings reported herein are provided on a confidential basis to Tourism Vancouver Island. Tourism Vancouver Island is free to use the findings in whatever manner it chooses, including releasing them to their travel and tourism industry stakeholders and partners and/or media. Insignia Marketing Research Inc. subscribes to the standards of the World Association of Opinion and Marketing Research Professionals (ESOMAR). ESOMAR sets minimum disclosure standards for studies that are released to the public or the media. The purpose is to maintain the integrity of market research by avoiding misleading interpretations. If you are considering the dissemination of the findings, please consult with us regarding the form and content of publication. ESOMAR standards require us to correct any misinterpretation. February, 2017

Background The Campaign Tourism Vancouver Island has been running an advertising campaign in Alberta and British Columbia called “FindYourElement.ca”. The campaign attempts to engage prospective visitors by drawing them into the FindYourElement.ca website where the prospects can build their elements (activities) and learn more about each activity. Supportive media includes TV and online. Tourism Vancouver Island engaged Insignia Marketing Research Inc. to conduct an independent assessment of its 2016 campaign in the Alberta and BC market. The results in the Wave 3 report aim to provide Tourism Vancouver Island with insight into the overall effectiveness of the program as well as strategic advice for improving and better leveraging future campaigns. An assessment of the return on investment is provided in this Wave 4 report.

Social media via Facebook, Google Background, cont’d The Tourism Vancouver Island’s FindYourElement advertising campaign ran in two flights: Flight #1: from April 18 to June 12, 2016 Flight #2: from August 15 to October 16, 2016 The campaign elements in both flights included: TV advertising on Global TV and US spill networks such as A&E, TLC, CNN, AMC Social media via Facebook, Google Online (Google display, Google search, Google remarketing, Facebook display)

2016 Vancouver Island Campaign ROI Summary—Fall Flight The 2016 Fall campaign converted an estimated 24,570 prospects to visitors. With an average spend of $171 on the island and a campaign cost of $57,860, the Return On Investment for the Spring flight was 73:1. In other words, for every dollar invested in the campaign, a return of $73 was realized. This score is above average for most medium/short haul markets. The lift from the 53:1 spring campaign ROI could be a result of a building effect of the advertising over the year. All of the converted travellers are “Positive Influence”. “Advertising Critical” results are appended. 2016 TVI Campaign Spring Fall A. Alberta and British Columbia leisure travellers age 45+ with income $75K+1 2,730,000 B. Conversion rate (converted as percentage of AB & BC leisure travellers)2 0.60% 0.90% C. Estimated converted travellers (A x B) 16,300 24,570 D. Average spend per trip per traveller3 $171 Estimated converted travellers x average spend per trip per traveller = estimated incremental revenue  E. Estimated incremental revenue (C x D) $2,798,000 $4,201,470 F. Campaign expenditure4 $52,765 $57,860 Estimated incremental revenue ÷ campaign expenditure = ROI  G. Projected Campaign ROI (conservative) 53:1 73:1 Conversion Model Conversion Conditions Advertising Critical Positive Influence Exposed To Creative Saw TVI ads Trips Plans For Vancouver Island Prior To Seeing Ads No, not planning Yes, considering it Claimed Influence Of Ads Much more likely to visit after seeing ads Converted Trips taken/booked 1 StatsCan, survey incidence. 2 Based on Insignia ROI Model qualifications for converted travellers. 3 Average spend per trip of leisure travellers to Vancouver Island from Alberta and British Columbia (weighted to market size proportion). Provided by Tourism Vancouver Island - http://www.destinationbc.ca/getattachment/Research/Research-by-Market/North-America/Alberta_2015_FINAL.pdf.aspx, http://www.destinationbc.ca/getattachment/Research/Research-by-Market/North-America/BC_2015_FINAL.pdf.aspx 4 Tourism Vancouver Island.

Technical Notes On ROI Spring Fall The ROI is derived from a series of questions. A cross section of travellers in Alberta and B.C. were asked: Do they recall the campaign (proven recall via showing images) Claimed they had not been definitely planning a trip to Vancouver Island already prior to seeing the advertisement and, hence, were not presold. They were either considering a trip only or not at all. Claimed that the advertisements made them much more likely to visit Vancouver Island. Subsequently took or booked a trip in the 3 months following the campaign. In total, 1,000 AB/BC travellers were interviewed and asked these questions resulting in: Spring Fall Total Sample 1,001 1,000 The 9 respondents who answered all the questions including the callback survey generate a conversion rate of 73:1 with an accuracy of better than +/- 1%. This represents the conservative approach to measuring ROI. It assumes that the non-responders of the callbacks were not converted. Recalled Campaign 336 334 Positively Influence/ called back in 3 months 34 31 Responded to callback 18 18 Converted 6 9 Projected ROI from all positively influenced 53:1 73:1

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ROI Summary -- Advertising Critical Here is the more conservative model for ROI. Advertising Critical are individuals who met all the criteria (i.e. Proven recall of the campaign, had not been planning or even considering a trip to Vancouver Island prior to seeing the ads, were much more likely to visit Vancouver Island after seeing them, took or booked a trip to Vancouver Island since seeing the ads. There was no Advertising Critical respondents converted in the spring campaign. 2016 TVI Campaign Fall A.C. A. Alberta and British Columbia leisure travellers age 45+ with income $75K+1 2,730,000 B. Conversion rate (converted as percentage of AB & BC leisure travellers)2 0.20% C. Estimated converted travellers (A x B) 5,460 D. Average spend per trip per traveller3 $171 Estimated converted travellers x average spend per trip per traveller = estimated incremental revenue    E. Estimated incremental revenue (C x D) $933,660 F. Campaign expenditure4 $57,860 Estimated incremental revenue ÷ campaign expenditure = ROI  G. Projected Campaign ROI (conservative) 16:1 1 StatsCan, survey incidence. 2 Based on Insignia ROI Model qualifications for converted travellers. 3 Average spend per trip of leisure travellers to Vancouver Island from Alberta and British Columbia (weighted to market size proportion). Provided by Tourism Vancouver Island - http://www.destinationbc.ca/getattachment/Research/Research-by-Market/North-America/Alberta_2015_FINAL.pdf.aspx, http://www.destinationbc.ca/getattachment/Research/Research-by-Market/North-America/BC_2015_FINAL.pdf.aspx 4 Tourism Vancouver Island.

Research Objectives The overall objective of this research is to measure the effectiveness of the campaign and to provide Tourism Vancouver Island with suggestions on how to improve the campaign moving forward, as well as to provide benchmark data for future waves. The research provides answers to the following questions: Has the campaign had a positive impact on the market in terms of generating both short term travel and future travel intent? Which media have been most effective? Which elements of the campaign have been most effective? What is the extent to which the campaign has moved prospects down the Path to Purchase? What is the ROI of the campaign? How can the campaign improve moving forward? The research is being conducted in 4 waves. FindYourElement.ca Fight#1 Campaign Flight #1 Research: Post-wave Ad Recall Summer Travel Season Flight#1 Research: Conversion FindYourElement.ca Flight#2 Campaign Flight#2 Research: Post-wave Ad Recall Fall Travel Season Flight#2 Research: Conversion

Methodology The post campaign follow up survey (wave 4) was conducted via a national online panel operated by Research Now approximately three months after the post wave survey, from January 23 to February 3, 2017. The follow-up survey targeted the 31 individual identified in the wave 3 survey as being ‘Positively Influenced’ who met the following sample criteria outlined below, They recalled at least one proven advertisement (i.e., Yes to any of: Q6, 7, 8a, 9a, 10a) They were not definitely planning a trip to Vancouver Island prior to seeing the advertisement (i.e., Q12 ≠1) They said the advertisements made them much more likely to visit Vancouver Island (i.e., much more likely at Q13) A total of n=19 interviews were collected.

Methodology – How Best-Practice Destination Advertising ROI Measurement Works Follow up survey 3 months later of those respondents who recalled the campaign, were not definitely planning a trip to Vancouver Island prior to seeing the campaign and said the campaign made them much more likely to visit Vancouver Island Determine if they subsequently booked a trip/travelled to Vancouver Island; then project up to the total travelling population Quantitative survey of a representative sample of identified travel consumers Tourism Vancouver Island Campaign Spend Average Trip Expenditure

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