CTC US campaign targets high yield consumers

(Originally published in TOURISM)

With US overnight visits to Canada declining 11% since 2002 (when Canada peaked even though US outbound was in steep decline post 9/11), these are challenging times for the US market, but the CTC is unrelenting in its efforts to feature Canada south of the border. Says US leisure marketing manager Ernst Flach: “The exchange rate, perceived border crossing hassles, WHTI and oil prices are all significant factors, but our biggest challenge from a marketing perspective is with the US traveller: Americans just don’t have Canada on the radar as a vacation destination; they like Canada as a whole, but don’t feel an urgent desire to visit.”

The CTC’s US leisure team wants to change that: “Our US program aims to make Canada a compelling place Americans will want to visit in the short term. Our program is driven by the objective of generating return on investment by targeting and converting highest yield travellers. This implies defining and targeting our best prospects, the ones who are most likely to overcome any barriers between them and Canada.”

These are the people who will spend more, stay longer and who will influence others to come as well, explains Flach. “We want them to think of Canada as a leisure destination of choice, lead them down the path to purchase with partners to close the deal. For this to happen we need to create brand relevancy," he explains. "The new Canada brand gives us an opportunity to leverage and integrate that platform not only within the CTC channels, but also by getting partners to come on board and collectively build a louder Canada voice in the marketplace as a result.”

As it stands, Flach goes on, Canada and all its partners, together, have an advertising share of voice of about 4% in the US. “So there is a lot of competition out there. Plus, consumers actively screen out advertising they deem irrelevant.”

“And looking ahead, we need to plant seeds that will generate marketing and business intelligence. This translates into pilot programs, innovative partnerships, e‑marketing leadership, and on‑going consumer research that will help us in the years to come – the desired outcome of all initiatives being increased tourism export revenues.”

The key word in the US strategy is “segmentation,” Flach points out, something which is rooted in a very research‑based approach inspired by the 2006 US Travel Study that was commissioned by the CTC: “Among other things, the study suggested we should target the US outbound traveller, a sector that is growing by about 5% a year. Outbound folks have passports; they are less sensitive to currency issues. They tend to fly, and the average people who fly spend $851, whereas people who drive spend about $379 per trip.”

Flach notes that previous visitors to Canada represent a 27% share of outbound travellers. Research indicates we should be targeting them, as “people who have been here before are easier to convert, and they have influence on people who haven’t been to Canada.”

The US Travel Study highlighted that the mid‑ to southern US states are the ones with the highest potential yield, because they are home to people who tend to fly, and there is a slight increase in passport ownership as one moves south. Add to this the fact New York, California and Massachusetts are states that are particularly rich in high yield travellers, apply the CTC’s Explorer Quotient (EQ) research, and you have quite the audience filtering tool, explains Flach: “The EQ stems from an in‑depth analysis which groups people in nine different segments based on their travel values and lifestyle motivations. In the US we will focus on three of these segments: the Authentic Experiencer, the Free Spirit, and the Cultural Explorer.”

Members of these three segments have higher passport ownership, tend to be travellers rather than tourists, and spend more: “The Authentic Experiencer is someone who wants to see or observe an authentic vacation moment. The Cultural Explorer is similar to the Authentic Experiencer, but he or she seeks more of a learning experience. The Free Spirit is just somebody who wants to have a great story when they get home, so they can brag about it and share it with their friends.”

This strategic platform will be integrated across all three marketing channels of Direct‑to‑Consumer, Media/PR, and Travel Trade/MCIT. It starts with a constant brand message that will be consistently leveraged in order to position Canada as the destination of choice.

With the direct‑to‑consumer tactics, the first step was determining where they can best be reached. “This means we will put emphasis on New York, LA and Boston. We looked at a number of counties, ranked them in terms of household income, and identified those where the foreign travel index is highest. We narrowed it down to six counties in New York, three in LA, and four in Boston. In a many instances, we drilled down to Zip Code level.

“Now that we know where the target is, the right consumer channels to reach them needed to be identified,” says Flach. “Outdoor advertising indexed high against all three of our segments. This means that in New York and Boston, commuter trains will play a role in our campaigns. In LA, where the target doesn’t really use public transit, it became clear to us that outdoor is a good brand building channel there. It generates a high number of impressions at a relatively low cost per thousand.”

Daily newspaper showed strong reach against adventurers and travellers in all three target markets, Flach comments:

“Newspapers rated high against our older and more affluent targets. For that reason, major dailies will play a role. In addition, Free Standing Inserts (FSIs) will be used again, as they are an important tactical tool for partners. This year, we will be a little more precise about where the inserts are being dropped, using Zip Codes where our targets live. Furthermore, our program is integrated from a media relations point of view, as we have a list of the writers and editors at each of those community papers where we are dropping inserts. We will be contacting them to generate content in the newspapers that will contain the Canada inserts.”

Magazines and e‑marketing will also be used. “We are spending significant amounts on national and targeted regional online buys," says Flach, "and we are in select national and city magazines, too. Of course, the much celebrated Pure Canada magazine is playing an important role in all this, as are niche‑oriented programs in gay and ski markets, while the high‑end fishing lodges campaign from last year has evolved into a luxury campaign.

“In all programs, we have made sure to create opportunities for partners to join the CTC. And the response has been terrific. “In terms of messaging, a new ad campaign we call “Intrigue” has been created. It portrays specific experiences within Canada in unusual, surprising ways which will provide inspiration for the curious traveller to learn more – and visit!” concludes Flach.

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