2005 North Dakota Tourism Advertising Campaign Yields $88 Million
The North Dakota tourism industry hits $3.4 billion in economic activity, according to NDSU.
A $1.08-million investment in North Dakota tourism advertising brought $88 million to the state in 2005, according to research by Longwoods International, a leading travel industry market research company.
Each dollar spent on paid media in 2005 brought in more than $81 in visitor spending. This is a nearly 50 percent increase in return on investment from 2004, when each dollar created $55 in visitor spending.
"We're aggressively marketing North Dakota as a great place to live, work, play and conduct business," said Gov. John Hoeven. "Across the state, businesses are seeing real benefits from our efforts to establish North Dakota as a premier travel destination. Tourism now accounts for over $3 billion in economic activity each year."
The Longwoods research showed that the costs of advertising per visitor trip, or "cost per trip," in the U.S. and Canada were $1.75 and $1.03, respectively. The overall average cost per trip was $1.68. According to Longwoods International, a cost per trip of less than $2 is considered excellent for a rural state like North Dakota.
"Tourism is North Dakota's second-largest industry and one of our department's five targeted industries," said Department of Commerce Commissioner Shane Goettle. "The ultimate goal of our investment in tourism advertising is to increase the impact of tourism on our state's economy in order to improve the economic well-being of our citizens. This research demonstrates that we're accomplishing our goal."
Other 2005 travel indicators tracked by the Tourism Division also support the research findings. The cumulative lodging tax collected locally was up 11 percent and the state one-percent lodging tax was up by 8 percent. Airport boardings were up 4 percent statewide. The number of inquiries received by the Tourism Division was up 23 percent and the number of visitors to www.ndtourism.com was up 15 percent. Visitation to our four national parks was up 15 percent. Only the number of visitors to state parks and attractions lagged behind last year's numbers, down 5 and 6 percent, respectively.
The 2006 advertising campaign in support of North Dakota's tourism industry is now under way, according to North Dakota Tourism Division Director Sara Otte Coleman.
"The 2005 research showed that our 'Legendary' campaign continues to be very effective. The 2006 campaign will continue to focus on North Dakota's culture and history, beautiful scenery, and events and attractions. In addition, a study of out-of-state visitors to North Dakota conducted by Longwoods International shows people who live close to our borders are interested in coming here for a weekend getaway of shopping, dining, and special events. We expanded our 2006 'Legendary' campaign to target that potential market as well," Otte Coleman said.
The 2006 advertising plan includes television, magazine, newspaper inserts, radio and online (keyword marketing) advertising targeting Minnesota, South Dakota, Wisconsin, Manitoba and Saskatchewan. The plan targets potential travelers age 35 to 64 within a 1,000-mile radius of North Dakota. The Longwoods visitor research was also used to refine the strategic direction for the 2006 media plan.
Highlights of this year's advertising plan are a dramatic increase in Canadian advertising with the addition of Canadian television, the use of national direct response cable television advertising, the addition of Wisconsin to Tourism's targeted markets, birding, mountain biking and golf niche markets and a new "city experience" border strategy. A summary of the 2006 North Dakota Department of Commerce Tourism Division advertising plan is attached.
The North Dakota Department of Commerce Tourism Division unveiled the 2006 'Legendary' marketing materials and the new print ads in January press availability. A new direct response television was presented at the March 14 press conference in Fargo.
For more information, contact
Sara Otte Coleman, Director, Tourism Division
North Dakota Department of Commerce
701-328-2525