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HomeMy WebLinkAbout01. VLMDAC August Meeting PresentationVLMDAC BOARD MEETING AUGUST 18, 2022 Agenda I. MONTHLY FINANCIAL REPORT (5 minutes), Carlie Smith, Town of Vail II. APPROVALS ●2022 Winter Marketing (20 minutes), Cactus and Town of Vail III. INFORMATION & DISCUSSION UPDATES ●2023 Draft Strategic Operating Plan & Budget (60 minutes), All Partners ●2022 Asset Acquisition Plan (10 minutes), Cactus/SITE ●Town of Vail Updates (5 minutes), Mia Vlaar & Jeremy Gross, Town of Vail ●Other Business ●RFP Presentations (45 minutes) ●Adjournment ●Appendix ○2022 Campaign Performance Updates, Cactus ○Social Updates Whitney Brofos VLMDAC Executive Session pursuant to: 1) C.R.S. §24-6-402(4) (e) - to determine positions, develop a strategy and instruct negotiators, Re: 2022 VLMD Budget (30 minutes) MONTHLY FINANCIAL REPORT 2022 WINTER MARKETING Winter Goals OWNED CHANNEL YEAR ROUND GOALS -Provide robust, timely year-round content on owned channels including web, social and CRM -Ensure content on owned channels delivers to brand promise -Complement Vail.com, do not compete with paid media, specifically in winter NEW WINTER GOALS -Enhance and create new winter lodging packages to support need time periods -Budget paid media to promote lodging offers during need time periods Current Winter Efforts Item Detail Winter Budget % of line Item Budget Email/Web Content minimal winter content for a few winter emails and year round sustainability columns $8,600 33% CRM Owned channel = year round support $155,598 44% Website Owned channel = year round support, including lodging $73,950 27% Social Owned channel = year round support Small % because social influencer is such a large line item compared to social management fee $4,000 4% Group Sales non-ski focus but some benefit to early/late winter $33,343 16% Professional Fees lodging liaison $24,000 50% TOTAL WINTER 7% Early Winter Lodging Trigger Campaign Detail Board Approval Needed Budget Approach Creative Media Planning Aug. 18 $25,000 From Contingency Trigger Go/No-Go: Approval to make the call go to market plan if occupancy between Early Nov – Early Dec is at or below 10% decrease in year-over-year occupancy trends OR Vail occupancy is pacing at or below industry average. Aug. 18 N/A Media Spend and Plan Execution Anticipated Need Period - 11/11 to 12/19 Media Flight to Support Bookings - 10/17 - 11/30 (approx. 6 weeks) Sept. 15 $111,588 from Contingency 2022 Winter Media Occupancy is down in early winter leading to a need to drive demand. Cactus is proposing the following media tactics, primarily targeting Front Range High Net Worth skiers, to drive interest and lodging reservations. Display ads targeting skiers & snowboards in the Front Range Efforts will also include Retargeting to promote lodging offers to those showing interest in Vail Search ads targeting broad “vail” and “vail lodging” searchers in an effort to promote an early/late season lodging offer to drive bookings Paid Social ads targeting those in the Front Range with ski-related interests, such as Vail Mountain, Epic Pass, etc. Retargeting will also be implemented here. 2022 Winter Media ●For all flights, budget would be spread across display, paid social, and paid search ●Display and Paid Social budgets are projected to achieve 9M to 15M impressions and between 10x to 15x frequency across platforms. SEM was budgeted based on projected search volume. ●These are digital tactics, so all budget is fluid and can be scaled up or down pending data on # of room nights needed to fill for each subseason. 2023 DRAFT OPERATING PLAN & BUDGET Operating Plan Timeline & Discussion -8/19: Board to give approval to move forward with 2023 operating plan with in-meeting feedback on requested changes -9/1: Board to receive updated operating plan for review via email -9/8: Board provide final feedback and change requests to plan -9/15 Board Meeting: Board to review Operating Plan as will be presented to Town Council. Minor changes can be made. -9/20 Council Meeting: Present Operating Plan for approval from VLMD 2023 Goals Final Goals being added in and republished by Aug. 16 2023 Proposed Budget 2023 Revenue Projection $ 4,700,000 ●2023 Lodging Tax collections projected conservatively ●$4.7M is a 10% increase from 2021 Actuals and a 6% decrease from 2022 Forecast ●Revenue forecast will continue to be monitored and adjusted through budget process Total VLMD Budget for 2023 $6,100,000 ●Annual Marketing Budget: $4,450,000 ●Contingency: $250,000 ●$1.4M use of Reserves. Funds not managed by the VLMDAC ○~$1.2M One-time transfer for event funding ○~$200K contribution for Steward Vail outcomes 2023 Proposed Budget 35%57% 2023 Budget proposes to utilize reserves of $1.4M towards events ($1.2M) and Steward Vail ($200K) BUDGET BREAKOUT BY CONSUMER JOURNEY Other Guest Trad Media Digital / Social PR / Influencer Website Intl Assets / Content Hotel Booking Book Direct Hotel Booking Direct Group SalesWelcome Center Events Town-ow ned Exp Lodging Retail / Rest. Mt / VR WOM Social Survey Email Database Loyalty BookingIn-Market Dreaming / Considering Traditional Media Digital / Social Website PR / Influencer International Assets / Content Hotel – BookDirect Hotel – Direct with property Group Sales Welcome Center Events Town-owned Experience Lodging Retail / Restaurants Mountain / VR 1:1 Direct Marketing Database Loyalty Email Post Trip / Sharing Survey Social Word of Mouth Consumer Journey 2022 vs. 2023 Budget Breakout by Consumer Journey 2022 2023 2023 Total % Budget By Guest Journey Destination: 100% Front Range: 19% Destination: 81% Dreaming/ Considering 63% Booking 8% In-Market 3% Post Trip/ Sharing 4% 1:1 Direct 11% Other 10% Traditional Media Digital / Social Website PR / Influencer International Assets / Content Welcome Center Events Town-owned Experience Lodging Group Sales Survey Social Database Loyalty Email Admin Contingency SHIFTS IN CONSUMER JOURNEY INITIATIVES Discontinued Item Description Action Research Cactus in depth consumer interviews SMARI Stewardship and International surveys One time projects Travel Classics In-market support and hosting of Travel Classics Removed due to one time opportunity Test and Learn Budget set aside to dedicate test and learn. Media is constantly iterating and adjusting and separate budget is not needed Removed Brand Campaign Community Brand Kick-off, Education and Incentivization to embrace New campaign Campaign launched and repurposing for 2023 In Resort Installation AIPP have long lead plans for funded efforts. A non-permanent solution was put in place in 2022. Removed 2023 funding to allow for other more concrete tactics The following 2022 initiatives will be discontinued with funding shifted to new initiatives New Initiatives: Winter Need Period Item KPI Metric / Goal Budget Winter asset (photo/video) acquisition Winter web/social film production/distribution Ensure content on owned channels delivers to brand promise $100,000 Winter website enhanced content and SEO Ramp-up SEO to support winter. Adding net-new SEO baseline. $10,750 Late season (April) and early season (Nov-Dec) paid media and creative Benchmark performance or above. Increased paid media to promote lodging offers during need time periods. $221,000 2023 winter initiatives for winter need time period support lodging. Not inclusive of ongoing initiatives (owned channels and year-round support) New Initiatives Item KPI Metric / Goal Budget New York in-market media visit Stories generated and quality of placement, bringing back a successful pre-COVID strategy $15,000 Mexico Spring in-market event/activation Stories generated and quality of placement, bringing back a successful pre-COVID strategy $25,000 Group Travel/Trade show attendance Increase top of funnel awareness of Vail as a group marketing during non-ski season.National presence for Vail brand at key industry shows & travel trade events $30,000 Social Audit Deliverable of plan and implementation with social is the next owned channel area of focus. $40,000 Purpose: A social audit will showcase the biggest opportunity on social channels and help uncover the types of content that our audience loves and is most likely to engage with – leading to a stronger brand relationship. Deliverables: -Social Situation Audit - Analysis of current social media channels including competitive + category audit. -Audience Profiles and “Right Space” - Provides analysis of existing audiences and outlines recommendations for future social media audiences, and defines the role our brand should play for consumers and culture in social. -Integrated Social Strategy - Social media playbook including editorial authority, channel plan and measurement frameworks. Social Audit + Strategy Improve/Enhance Item Description Action Mexico Press trips Stories generated No. and quality of attendees $10,500 CVENT and Group Marketing Efforts Develop Village Wide messaging and generate group leads for Vail with focus on non-ski months and winter shoulder seasons via industry marketing tools, video retargeting, and increased consideration. Increase group market share and push mid-week and spring/fall occupancy $30,000 2024 Campaign In preparation of 2024, increase creative and production costs for the evolution of LIBAD. $218,000 Operating Plan Discussion -8/19: Board to give approval to move forward with 2023 operating plan with in-meeting feedback on requested changes -9/1: Board to receive updated operating plan for review via email -9/8: Board provide final feedback and change requests to plan -9/15 Board Meeting: Board to review Operating Plan as will be presented to Town Council. Minor changes can be made. -9/20 Council Meeting: Present Operating Plan for approval from VLMD TIER 2-3 ASSET ACQUISITION PLAN Photo Asset Priorities Shot List/Production Details/Timeline *will update early next week before Thursday. TOWN OF VAIL UPDATES OTHER BUSINESS MINUTES APPROVAL RFP PRESENTATIONS RFP Presentations Lodging Liaison -Vail Valley Partnership (15 min Q&A with Board) In-Resort Project Manager -Site Marketing (15 min Q&A with Board) -HyFyve (15 min Q&A with Board) * Reference packet materials for submitted RFPs Executive Session VLMDAC Executive Session pursuant to: 1) C.R.S. §24-6-402(4) (e) - to determine positions, develop a strategy and instruct negotiators, Re: 2022 VLMD Budget APPENDIX CAMPAIGN PERFORMANCE UPDATES Paid Media Summary (4/1-7/31) Net Digital Spend Impressions Clicks Cost-Per-Click $524K 38M 351K $1.33 +64% YOY +43% YOY 148% YOY -42% YOY While budget has decreased YOY, shifts in our strategic approach continue to yield increases in clicks, driven primarily by paid search & social 68% of Total Budget Spent (Digital & Traditional) $1,010,000 Budget Channel Breakdown Clicks by Channel Cost-Per-Click YOY Click-Through-Rate YOY ●SEM and Paid Social continue to drive the highest volume of clicks to DiscoverVail.com. ●Video performance has increased month-over-month, now representing 7% of total clicks (up from 4% in June) ●Overall, CPC continues to be significantly lower YOY across channels, while CTR continues to increase Epsilon Test Performance In late June, we launched display tests with 3 travel data partners, using their proprietary data to drive interest in visiting Vail. Those partners are Epsilon, Trip Advisor, and Adara. To-date, Adara has been the strongest performer in all key metrics ●To-date, Adara data has been the most successful in driving efficient clicks and hotel bookings. Adara’s top performing segments include Competitive Searchers (those looking for travel to other summer mountain destinations) and Mid-Week Travelers (those who have shown the propensity to travel Mid-Week). Media has been optimized to serve more to these segments ●Trip Advisor has seen low engagement rates, but has reached a quality audience with a CPA of $34. Trip Advisor is using its data to reach Luxury Travelers and those in-market for travel to Colorado ●Epsilon has seen strong engagement rates, particularly across display (0.15% CTR), but CPA has been high ($136), as this data comes at a premium CPM. Epsilon’s top performing segment has been past Vail Visitors Adara Impact Reporting (April-July) Through July, digital media has driven over 148K hotel searches & $3.2M in hotel revenue, resulting in an ROI of $11 for every $1 spent Retargeting website visitors has been the most efficient tactic in driving hotel bookings, followed by video. While Native has not been as efficient of a driver of bookings, it has been impactful in generating interest/hotel searches *Digital media spend used to calculate ROI includes the channels that Adara Impact is able to track back to hotel searches and bookings (Display, Video, Native, SEM) Cost-Per-Hotel Booking Cost-Per-Hotel Search Adara Impact Reporting (April-July) Bookings reported in Adara are primarily coming from those between ages 40-49, and those with an income from $125K - $200K. However, those with a HHI of under $100K have accounted for 20% of bookings The top 6 markets that bookings are originating from are those we are targeting with high funnel media, demonstrating the impact of VLMD’s messaging: Denver, Dallas, NYC, Chicago, Houston and Washington D.C. Age Distribution HHI Distribution What’s New? ●Fall creative launched on 8/15! ●Optimizations made to drive mid-funnel: ○Budget added to non-brand SEM ○Budget added to Adara display ○Epsilon optimized to focus on past Vail Visitor segment ●Events added to Paid Social to optimize towards higher quality visits and decrease bounce rates SOCIAL MEDIA UPDATES Performance Overview YOY JANUARY 1, 2022 - JUNE 30, 2022 Impressions 6,405,000 + 11% Engagements 156,873 + 2.2% Post Link Clicks 79,178 75.8% Instagram | Organic Social Impressions 289,771 -68.3% Engagements 6,394 -9% Followers 9,772 +18.6% Engagement Rate 2.2% +29.1% YOY JANUARY 1, 2022 - JUNE 30, 2022 Instagram | Reels JAN 13 VIEWS- 19,908 LIKES- 533 COMMENTS- 33 SHARES- 357 SAVES- 76 MARCH 30 VIEWS- 7,142 LIKES- 203 COMMENTS- 9 SHARES- 80 SAVES- 23 Talk about a unique dining experience! Have you heard of the private Fondue Raclett Gondola experience at @alpenrose_vail? Save this post and don’t forget to book an intimate dinner during your next stay! Some things truly can only be experienced in Vail, like this world famous signature haut chocolat by the @fsvail Flame restaurant ☕ Instagram | Reels JULY 2 VIEWS- 7,183 LIKES- 372 COMMENTS- 13 SHARES- 74 SAVES- 38 MAY 18 VIEWS- 7,002 LIKES- 129 COMMENTS- 5 SHARES- 60 SAVES- 30 Welcome to Piney Lake, one of the Vail Valley’s most beautiful places for several outdoor activities. Reel by @siegtheworld Mark your calendar for Vail's lineup of summer events! With incredible live music concerts, internationally recognized art and cultural events, unique culinary experiences and more, there’s always something happening in the Valley! Instagram | Reels JUNE 21 VIEWS- 6,987 LIKES- 150 COMMENTS- 0 SHARES- 8 SAVES- 4 APRIL 15 VIEWS- 4,202 LIKES- 71 COMMENTS- 3 SHARES- 20 SAVES- 4 Summer scenes from atop @vailmtn 🏔 If you’re not feeling the summer itch yet? Let this inspire you to begin dreaming of all the fun things you can do during your visit to Vail this summer ☀ Instagram | Top Posts JANUARY 1, 2022 - JUNE 30, 2022 Instagram | Demos Facebook | Organic Social Impressions 6,115,229 +26% Engagements 150,479 9.1% Post Link Clicks 79,178 75.8% Page Likes 1,623 +11.4% Video Performance 454,600 Engagement Rate 2.5% YOY JANUARY 1, 2022 - JUNE 30, 2022 Facebook | Top Posts JANUARY 1, 2022 - JUNE 30, 2022 Facebook | Demos Organic Social | Insights ●More frequent posting, audience engagement, curating engaging captions and using strategic hashtags lead to improved engagement ○Will continue to research and use relevant hashtags ○Reshare Discover Vail posts as Social Posts (Articles Meg rights) ○Will continue to use engaging captions ○Continually posting to FB, want to explore with posting the optimized photo ratios separately ○Incorporate brand campaign more frequently ●HIGH PERFORMERS ○Reel content ○Informative posts (i.e. “The top ____”, “Best hike/bike trails” etc) ○Will continue to balance scenic, event and town content with a slight increase in scenic ‘dreamy’ content ●REELS ○Reels have gained traction through IG and is believed to have helped with growth ○Will prioritize posting Reels 1-2 times per week ○Using ‘trending’ audio + knowledge sharing helps boost visibility DATA-DRIVEN ROADMAP UPDATE Organizational Collaboration Defining ownership of CRM and ensuring staffing and defined responsibilities to deliver on goals Marketing Data Evolving information on customers to leverage as a foundation for all data-driven efforts Analytics / Insights Understanding and leveraging performance and motivations at a customer level Marketing Strategy Align with VLMD goals and provide north star for all data-driven investments Automation / Execution Develop capabilities to execute on the vision across all marketing channels Building Blocks for Data-Driven Marketing Data-Driven Marketing Roadmap Marketing Goals circa 11/2022 Data-Driven Progress to Date Marketing/Partner Group Collaboration -Using insightful and accurate data to inform our decisions is now the standard of all of our marketing work: across all touchpoints, disciplines, and partners -Steering committee guides and counsels, and teams work through common processes together -Where gaps in existing roles/experience were restricting our path, they have been filled and operationalized Marketing Data -The transition to cleaning, expanding, and deepening the data capture of our prospects and guests began with 20,790 unkempt guest data records across disparate databases (circa 9/2020) -Our current centralized marketing database hub contains over 149k well mannered guest records - 110k of which contain home geography and 70k of which contain deep demographic and psychographic data -We effectively capture all inbound and outbound engagements with known and unknown prospects across all of our owned and paid digital channels Analytics / Insights -Dedicated analytics to drive and measure targeted marketing -Dashboard stuff -SEO and content improvement -CRM needs - Data-Driven Progress to Date Marketing Strategy -CRM -SEO -Segmentation Automation / Execution -Seamless wifi -scale/volume -CRM journeys Data-Driven Marketing Roadmap Roadmap Goals as of Q4 2020 Future Focus 2023 Focus -Increase segmentation and analytics to drive personalization (Lifecycle, Lifetime Value, etc.) -Implement manual journeys to test effectiveness of cross-channel communication -Evolve everything we do today in CRM/Analytics and automate where it makes sense -Update roadmap for next 3 years. DASHBOARD Dashboard Dashboard Dashboard Dashboard Dashboard Dreaming / Consideration Start / New KPI Metric / Goal Budget Justification Improve / Enhance KPI Metric Ongoing SEO Services Organic traffic increase Improvement in rankings of identified keywords Above the fold organic placement for top keywords $39,000 Initial increase over 500% in organic traffic #1 or #2 in many critical keywords, improvement across the board 4 blogs per month Ongoing Web Content Engagement and asset quantity $30,000 Dreaming / Consideration Improve / Enhance KPI Metric Budget Justification Paid Media hard costs Various. Meet or exceed 2022 benchmarks $1,019,000 Paid media to drive new prospects into funnel Dream Campaign Execution - FY23 assets (OOH, digital, native, social, print, production hard costs) Completion of deliverable, media performance $185,000 Build on the brand expression in concepts and assets Dream Campaign Concepting - for use in FY24 (concepting, execution, production hard costs) Completion of deliverable, media performance $255,000 Build on the brand expression in concepts and assets Dream Campaign Seasonal Guidelines Completion of deliverable $10,000 Provide tools for the community to help deliver on the “Dream” campaign Website (strategy, UX, development, maintenance, reporting) Time on site >2:00; Pages visited >2 $137,000 Website will continue to evolve Dreaming / Consideration - Domestic Public Relations Start / New KPI Metric / Goal Budget Justification New York in-market media tour No. of appointments w/target outlets Stories generated $15,000 Cornerstone of PR program. Cancelled since COVID Development of Dream Experiences No. of partners who develop Dream Experiences No. of placements ??Message extension of Dream campaign Improve / Enhance KPI Metric Enhance targeting and measurement of PR effort - media outreach, press trips Exploring linkage KPI with 20North Direct measuremen t & supports SEO Influencer Program Strategy TBD based on outcome of Mega vs. Macro. $?? Dreaming / Consideration - Influencer Program Start / New KPI Metric / Goal Budget Justification Influencer Program Strategy TBD based on outcome of Mega vs. Macro. $?? Improve / Enhance KPI Metric Hotel co-op program No one took advantage of this, I don’t know if we should do this again. Not sure how to improve other than leverage the hotel liaison more. TOTAL $73,000 Flat to 2022 Booking / Pre Arrival Start / New KPI Metric / Goal Budget Justification Group Travel/Tradeshow attendance Increase top of funnel awareness of Vail as a group marketing during non-ski season. $30,000 National presence for Vail brand at key industry shows & travel trade events Improve / Enhance KPI Metric Loyalty Strategy Support Generate Behavior+Incentive ideas to drive visitation and engagement. Execute test ideas with clear, quantifiable results of effectiveness. $25,000 Tests will be executed in late 2022, no results yet. CVENT and Group Marketing Efforts Develop Village Wide messaging and generate group leads for Vail with focus on non-ski months and winter shoulder seasons via industry marketing tools, video retargeting, and increased consideration $30,000 Increase group market share and push mid-week and spring/fall occupancy Book Direct, Add other Booking Contracts Lodging presence needed on DV.com Lodging Liaison Increase relationships between lodging community and lodging offers $49,000 In-Market 2022 Content Partner Group to Update Start / New KPI Metric / Goal Budget Justification 2022 results or why we recommend Improve / Enhance KPI Metric Post Trip / Sharing 2022 Content Partner Group to Update Start / New KPI Metric / Goal Budget Justification Social Audit Deliverable of plan and implementation 40,000 Social is the next area of focus as we build our owned channels Improve / Enhance KPI Metric TOTAL 1:1 Direct Marketing 2022 Content Partner Group to Update Start / New KPI Metric / Goal Budget Justification 2022 results or why we recommend Improve / Enhance KPI Metric CRM Strategy and Email Marketing Execution ●Reduced opt-out rate ●Increased open-to-click rate ●Increase # of email campaigns and segments executed $140,000 Newsletter opt-out rate: 1.36 -> .72% Open to click rate: 13 -> 46% CRM email campaigns: 24 -> 86 Content: 1 -> 3 newsletters / month Ongoing Newsletter Content Creation Engagement and asset quantity $27,000 1:1 Direct Marketing Start / New KPI Metric / Goal Budget Justification 2022 results or why we recommend Improve / Enhance KPI Metric Continuation of Data-Driven Roadmap Delivery (Increase segmentation, analytics and direct marketing capabilities to continue improving engagement.) Updated multi-year plan in place to continue evolving data-driven marketing capabilities and support the evolution of our marketing strategy. Deliver continued value by driving growth against plan. $129,000 See Roadmap slide in appendix (e.g. progress and value made since inception) Third Party Data Appends (applied to guests new to CRM database and ongoing refresh of existing CRM database guests) Depth of database (records with demographic/additional data attached) to enable demographic and psychographic segmentation at the individual level $17,250 56k records matched with Epsilon data (over ⅓ of DB) Segmentation testing is ongoing Customer and Database Analytics Support ●Dashboards available to understand effectiveness of ongoing marketing efforts ●Analytics-driven segmentation for marketing to improve engagement $92,000 Understand and act on the effectiveness of all of our outbound digital marketing campaigns