Brand USA Newsletter - September 2019

Brand USA’s board of directors, an 11-member governing group that includes designated members who have expertise in an array of sectors in the travel industry, met in August for the final session of this fiscal year.

A meeting of the board’s Marketing Committee also convened, on Aug. 6, the day before the full board met. And, a few weeks later, on Aug. 20, the Audit Committee met.

Here is a sampling of items that board members discussed at these meetings:

IPW 2019

Held this past June in Anaheim, California, IPW generates $5.5 billion in future business for the U.S. travel industry. It is the single-largest producer of sales for this sector. More than 1,300 international and domestic travel buyers come from 70 countries to participate. IPW is also a venue where 1,000 U.S. travel organizations come.

The sheer size and scope of IPW provides Brand USA with its “biggest stage, brightest lights.” Brand USA holds more meetings with top-level, international travel buyers at IPW than any other global trade event. It also initiates, advances or finalizes 80 percent of partner relationships and contributions. And, Brand USA announces the launch and expansion of its high-profile consumer campaigns at IPW.

The 2019 edition of IPW garnered 44 pieces of coverage in a variety of publications and media outlets, including: Skift, Forbes, Travelweek, Mercado y Eventos, BrasilTuris, Travel Weekly UK, Travel Pulse, DPA, El Tiempo, and Xinmedia.

Collectively, Brand USA attained 76 million earned-media impressions and $7 million in ad equivalency.

Brand USA stated at IPW that it will continue in its role as a premier sponsor of the yearly event. U.S. Travel Association is the hosting organization of IPW.

Brand USA Travel Week Europe 2019

The first-ever Brand USA Travel Week runs Sept. 9-13 in London. It provides a venue for 161 delegates representing 99 organizations (mostly destinations) from the U.S. tourism industry.

Delegates will meet with top European hosted buyers – tour operators from 20 countries across the European continent – during pre-scheduled appointments over the course of three days.

The event highlights the diverse range of U.S. travel experiences available to international visitors. In addition to the B2B meetings, Travel Week also offers a variety of educational sessions and networking opportunities for attendees.

As a single, combined entity, Europe is the third-largest source market for inbound travel to the United States. During 2018, 14 million travelers arrived in the USA. Canada (21.2 million) and Mexico (18.5 million) continue to be the top-two markets. Additionally, Europe offers direct air service to 43 U.S. cities.

On the spending side, visitors from Europe spent more on their U.S. travel than any other group. The Europeans, in 2017, spent $53.3 billion. Chinese travelers were next, spending $35.3 billion. Travelers from Canada and Mexico ranked third and fourth.

Brand USA, in conjunction with its promotion of Travel Week, has developed four editorial supplements for The Telegraph, which feature the U.S. destinations participating in travel Week. The Telegraph, published in London, is distributed across the UK and Europe.

Also, “United Stories” will have a presence in London just prior to the opening of Travel Week this month. A classic American car will explore the neighborhoods of London, as content creators capture video footage of the city. The video will then be shown at the event.

Integrated-marketing update

Brand USA marketing has evolved dramatically. In 2012, the objective was to target consumers in five markets – Brazil, Canada, Japan, South Korean, and the U.K. The tagline was: “Discover this land like never before.”

The media mix included broadcast/online TV; print, digital banner ads; and social-media posts (Facebook).

Since then, these factors have impacted Brand USA’s consumer marketing:

• Number of target markets has increased from five to 14.
• Video and storytelling have become prime methods for media consumption.
• Social media has become a real-time way to deliver travel inspiration.
• One-size-fits-all messaging has become obsolete.

To counter these issues, Brand USA has made the following changes to its marketing approach:

• Embraced entertainment for storytelling.
• Shifted to video storytelling as primary medium.
• Focused on engagement measures
• Re-structured community management to optimize in-country relevance.
• Created way to capture content at the speed of consumption.

Moreover, Brand USA has invigorated its marketing presence with these consumer-facing platforms:

• Giant-screen films: “National Parks Adventure” (2016); “America’s Musical Journey” (2018); and “Into America’s Wild” (2020). The first two films, released through global distribution, have prompted travelers around the world to consider visits to the USA. The films have also spawned allied promotional campaigns, such as “Hear the Music, Experience the USA,” which have become cornerstones of Brand USA marketing.

• GoUSA TV network: The platform has grown into a multi-channel content distribution system with significant revenue opportunities. Demand for content has been strong, with growth at 15 percent, month over month, since last December. The primary objective has been to have “more people watch more content for more minutes.”

In-kind contributions have included best-in-class documentary content for global distribution on GoUSA TV, featuring Anthony Bourdain’s “No Reservations,” Andrew Zimmern’s “Bizarre Foods America,” and “America the Beautiful.” Additionally, original content development is ongoing with a goal of joint distribution on Brand USA platforms (GoUSA TV) and the Discovery Channel.

• ‘United Stories:’ At the beginning of 2019, Brand USA launched this storytelling-style campaign. A mobile, content-creation lab (in the form of a branded car, camper, or boat) travels along designated U.S. routes to capture stories and images from local perspectives. By using accomplished content creators, storytellers, and influencers during these trips, the campaign aims to inspire international travelers to visit the destinations covered, and experience places that are often not included in travel brochures.

Euronews

This month, GoUSA TV airs the 10 episodes of “Notes From the USA.” The video series, hosted by Foy Vance, an Irish musician, and Laetitia Sheriff, a French singer-songwriter, spotlights the music, food, and culture of 10 U.S. cities. It runs on Euronews broadcast and digital networks in nine languages. Euronews is a pay-tv news channel that has become one of Brand USA’s largest in-kind contributing partners.

Brand USA content performed 57 percent better than other content that aired on Euronews’ digital channels in its six primary markets. Nearly half, or 47 percent, of the traffic went to non-English versions of the content.

The U.S. destinations in the series are: Cleveland (Ohio); Detroit (Michigan); Seattle (Washington); Santa Fe (New Mexico); Muscle Shoals (Alabama); Boston (Massachusetts); Minneapolis (Minnesota); Bronx (New York City, New York); Asheville (North Carolina); and Philadelphia (Pennsylvania).

Video storytelling

With its emphasis on using video storytelling, Brand USA is in synch with current investigations that show how consumers rely on video content for their research. Consumers tend to readily shift between research and watching videos during a process that precedes purchasing decisions.

According to Google studies, 55 percent of consumers search for a product on Google, then go to YouTube before they buy. And, 80 percent say they typically go between online searching and video while conducting research of a product.

In addition to seeing a product before they buy it and seeing how others have used it, consumers can use video to learn more about the product and see legitimate, authentic reviews.

Audit of operations

Year-to-date financial results have shown that Brand USA met its match goal through a mix of cash and in-kind contributions from a number of donors. Brand USA’s actual submission was $103.9 million for Fiscal Year 2019 (FY2019).

Fess from ESTA, or the Electronic System for Travel Authorization, come from international travelers who arrive in the United States under the Visa Waiver Program.

Funding for Brand USA’s marketing programs comes solely from partner contributions and matching ESTA fees. No taxpayer funds are used. 

Brand USA’s board of directors revealed these additional results at its Audit Committee meeting, Aug. 20:

• $24.6 million in partner cash contributions, $2.1 million more than the amount called for in the FY2019 budget.
• $29 million in in-kind contributions, $9 million more (year-to-date) than anticipated in the FY2019 budget.
• $3.4 million in sponsorship revenue for partner programs, was $2.4 million less (year-to-date) than amount in FY2019 budget.
• $1.8 million less in expenses for FY2019 budget (year-to-date) because of a shift of strategy and timing differences in marketing allocations.
• Brand USA is in a strong cash position at 60 percent above its cash reserve requirements.