DATE: June 12, 2018
SUBJECT:
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INFORMATIONAL PRESENTATION ON THE DESTINATION MARKETING CAMPAIGN
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EXECUTIVE SUMMARY:
In the fall of 2017, the District launched a comprehensive destination marketing strategy to bring visitors and locals alike to enjoy the vast amenities of our dynamic waterfront. The campaign encompasses one overarching macro-campaign and seven individual micro-campaigns that are connected together to promote the waterfront as a whole. The campaign was implemented with Harbor Island as the first area of focus.
The Marketing & Communications Department worked with the Real Estate Department to bring together the Harbor Island tenants including hotels, restaurants, and recreation providers to participate in the campaign. Additionally, the campaign promotes public amenities like art installations, fishing and viewing piers and public parks. By gathering all this information and delivering it to potential visitors, the effort invites more people to explore the experiences offered. The first round of results are included below, which shows an average 7 to 1 return on investment (ROI) and a range of 13% to 40% increase in specific revenue categories specifically promoted as part of the marketing campaign.
RECOMMENDATION:
Recommendation
Receive a presentation by the Marketing & Communications Department regarding the Destination Marketing Campaign: Discover Your Wonderfront, with no further action needed at this time.
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FISCAL IMPACT:
This agenda item has no fiscal impact.
Compass Strategic Goals:
This agenda item supports the following Strategic Goal(s).
• A Port that the public understands and trusts.
• A thriving and modern maritime seaport.
• A vibrant waterfront destination where residents and visitors converge.
• A financially sustainable Port that drives job creation and regional economic vitality.
DISCUSSION:
I. Background
As directed in the Board/ELG Strategy Map, #UID12 - Develop Annual Marketing Plan to Grow Concession Revenue, the Marketing & Communications Department developed a comprehensive destination marketing campaign titled Discover Your Wonderfront.
Campaign Objectives
• Build the Port of San Diego’s identity as a destination and demand for the destination among potential visitors
• Drive traffic to defined areas, increasing visitation to both tenant businesses and public realm amenities
• Increase spending at tenant locations, and corresponding concession revenue for the Port
• Explore co-marketing opportunities with Port tenants to provide synergies with existing tenant efforts and objectives
II. Process: Campaign Development Plan
III. Research & Development:
The process began with an intensive research and development phase to ensure a data-driven approach to the campaign, based on current market research, industry trends, and historical data.
Current User Research/Intercept Survey
The team contracted with True North Research to conduct a minimum of 200 on-location intercept surveys in each of the seven sub-areas for a total of 1,400+ intercepts to quantify how individual users are interacting with the location, why they choose to visit, what they enjoy most, and how they make decisions about how to visit. The intercept surveys also collected traditional household demographic information in order to help create audience profiles specific to each area and identify commonalities among all waterfront visitors.
Travel Market Research/Online Survey
Additionally, the team worked with Luth Research, Inc. on a wider study that included all of San Diego County as well as our primary travel markets of Southern California and Arizona to determine the biggest tourism draws and barriers for visitors, and their nexus with each of the seven sub-areas. The 1,000+ online surveys also provided digital profiles for likely visitors to inform the Port’s critical digital media buying strategy.
Historical Tenant Concession Research
The Real Estate Department provided the top five revenue generators per tenant by concession type, and then aggregated the top five revenue generators by concession type per area over the past two years in order to get a clear indication of what has been performing well and where there is room to grow. This data, along with the survey data, helped create Unique Selling Propositions (USP) for each area in order to promote the locations.
Campaign Concept Development
The team worked with local marketing agency The Mth Degree to develop the macro-campaign concept and initial creative look, as well as the seven unique micro-campaign creative looks that work together to create a system of marketing materials that leverage each other. The research from each of the studies was used in the campaign development to ensure the location’s USP is conveyed in all materials.
Profile Sheet
Thousands of surveys and years’ worth of data were then condensed and compiled into a single profile sheet that outlined the USP, primary and secondary audiences, micro-campaign goals, key audience insights and media usage habits. This guiding document is used in the creative development of all campaign materials, guides all media placement and ensures each micro-campaign is tailored to its own specific audience. (See Attachment A: Destination Marketing Profile Sheet)
IV. Creative Development & Media Execution
Once the creative concept was selected, the campaign was brought in-house for the production team within the Marketing & Communications Department to develop. The team selected one micro-campaign, Harbor Island, based on size and potential as the first area to promote, and began a collaborative effort to shoot video and photography on-site utilizing the businesses, parks and activities in the area. The resulting campaign is a comprehensive, localized effort, executed entirely in-house.
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Overall Positioning Piece: Discover the San Diego Wonderfront, where you can fulfill your heart's desires with the unique sights, sounds and flavors across 34 miles of the Port of San Diego's dynamic waterfront. Enjoy epic events and intimate concerts. Indulge in world-class restaurants and traveling food trucks. Explore stunning coastal views and vibrant parks. Experience high-powered jet skis and tranquil sailboats. Relax in four-star hotels or camping under the stars. The Wonderfront is the start of your new adventure at the water’s edge. |
The media and marketing plan was strategically designed around the media usage habits of the target audience defined in the profile sheet. The plan is focused on finding new ways to reach out to target audiences beyond traditional media outlets. By conducting careful research and defining the primary audience for each of the locations, the Port is able to tailor the media plans to reach the demographic, psychographic, and geographic audience with unprecedented precision using new technology and targeting techniques.
V. Outcomes & Evaluation
The first two waves of the selected premiere micro-campaign launched in November 2017 and January 2018 respectively, covering a total of four months. Initial results of the campaign have been extremely promising; amassing nearly 30 million impressions and generating over 4,000 unique monthly hits to the Wonderfront website landing page. Overall, the campaign has been effective at delivering on the campaign’s goal of building awareness for the Port of San Diego as a destination.
Additionally, the campaign has been successful in driving traffic to the website where the interactive map and directory are hosted. With only four months of being active, the page receives an average of over 4,000 hits visits per month. For context, the homepage is the Port’s most visited page with approximately 10,000 visits per month, and the cruise pages come in second with approximately 5,600 visits per month. The fourth most visited section is cargo with 2,500 visits per month. The page has the highest average time spent on page of the top ten pages within the Port’s website. (See Attachment B: Destination Marketing Campaign Analytics)
The first 15-second Wonderfront video posted on the Port’s YouTube channel became the most viewed video on the Port’s channel of all-time with over 50,000 views in just one month, beating out a video that had been posted for seven years and has 40,000 views. (See Attachment B: Destination Marketing Campaign Analytics)
Revenue Increases
Focusing on outcomes, the campaign also had a positive impact with regards to increasing visitation and subsequent spending at tenant locations. With the exception of hotel revenue, which was down across the city due to the loss of some major convention business, all other categories of revenue reported for Harbor Island were up over the previous year for the same period. Every $1 spent on the campaign generated an estimated $6.88 in revenue for businesses within the micro-campaign district, resulting in a 7:1 ROI for Wave 1. Additionally, specific activities promoted within the campaign materials showed significant lifts (13%-40%) in sales versus the previous year.
Specific category breakdowns are listed below for the promotional timeframe:
Harbor Island Tenants Difference in Reported Sales
November 2017 thru February 2018 (over previous year sales November 2016 thru February 2017)
• Food Sales: ↑13.22%
• Beverage Sales: ↑14.96%
• Recreation / Rental Sales: ↑40.77%
• Charters: ↑32.45%
• Boat Rentals: ↑34.42%
Additionally, the above year-over-year growth percentages are well above what we saw in last year’s growth, or lack thereof. Comparing the November 2016 thru February 2017 sales to November 2015 thru February 2016, every category averaged negative year-over-year reported sales growth.
• Food Sales: -2.91%
• Beverage Sales: -12.05%
• Recreation / Rental Sales: -16.17%
• Charters: -7.4%
• Boat Rentals: -1.35%
Prior to launching additional location micro-campaigns, the Marketing & Communications team is evaluating the creative elements via a short-term online community in order to gain quantitative and qualitative feedback directly from the target audience in order to identify what is working as well and how the campaign can be optimized in the future. Additionally, tenant feedback, revenue reports, and media performance analytics are all being evaluated in order to inform the development of future micro-campaigns.
General Counsel’s Comments:
The Office of the General Counsel has reviewed the issues set forth in this agenda and found no legal concerns as presented.
Environmental Review:
The Board direction or action, including without limitation, an informational presentation on a marketing campaign, does not constitute an “approval” or a “project” under the definitions set forth in California Environmental Quality Act (CEQA) Guidelines Sections 15352 and 15378 because no direct or indirect changes to the physical environment would occur. CEQA requires that the District adequately assess the environmental impacts of projects and reasonably foreseeable activities that may result from projects prior to the approval of the same. Any project developed as a result of Board’s action or direction that requires the District or the Board’s discretionary approval resulting in a physical change to the environment will be analyzed in accordance with CEQA prior to such approval. CEQA review may result in the District, in its sole and absolute discretion, requiring implementation of mitigation measures, adopting an alternative, including without limitation, a “no project alternative” or adopting a Statement of Overriding Consideration, if required. The current Board direction in no way limits the exercise of this discretion. Therefore, no further CEQA review is required.
In addition, the proposed Board direction or action complies with Section 35 of the Port Act, which allows the Board to do all acts necessary and convenient for the exercise of its powers. The Port Act was enacted by the California Legislature and is consistent with the Public Trust Doctrine. Consequently, the proposed Board direction or action is consistent with the Public Trust Doctrine.
The proposed Board direction or action does not allow for “development,” as defined in Section 30106 of the California Coastal Act, or “new development,” pursuant to Section 1.a. of the District’s Coastal Development Permit (CDP) Regulations because they will not result in, without limitation, a physical change, change in use or increase the intensity of uses. Therefore, issuance of a Coastal Development Permit or exclusion is not required. However, development within the District requires processing under the District’s CDP Regulations. Future development, as defined in Section 30106 of the Coastal Act, will remain subject to its own independent review pursuant to the District’s certified CDP Regulations, PMP, and Chapters 3 and 8 of the Coastal Act. The Board’s direction or action in no way limits the exercise of the District’s discretion under the District’s CDP Regulations. Therefore, issuance of a CDP or exclusion is not required at this time.
Equal Opportunity Program:
Not applicable.
PREPARED BY:
Revekka Balancier
Manager, Marketing & Communications
Attachment(s):
Attachment A: Destination Marketing Profile Sheet
Attachment B: Destination Marketing Campaign Analytics