BOARD OF DIRECTORS MEETING November 29, 2017 11:00am 12:15pm - - PowerPoint PPT Presentation

November 29, 2017 11:00am – 12:15pm

BOARD OF DIRECTORS MEETING

Board of Directors Meeting Agenda §Opening Remarks §Approval of M inutes from the September 20, 2017 M eeting* §CEO Report §Finance Committee Report §Audit Committee Report §Governance & Nominating Committee Report §M arketing Committee Report §Strategy, Communications, and Public Policy Report §Business Plan Review §Discussion and Q & A §Closing Remarks

*Vote Required

Barbara Richardson

Chair, Board of Directors Brand USA

Opening Remarks

Brand USA Board of Directors

Barbara Richardson Chair J

• hn Edman

Vice Chair Arne Sorenson Treasurer Andrew Greenfield Secretary M aryann Ferenc Tom Klein Kyle Edmiston Daniel Halpern Thomas O’Toole Alice Norsworthy Rossi Ralenkotter

Executive and Senior Management

Anne M adison Chief Strategy & Communications Officer Don Richardson Chief Financial Officer Thomas Garzilli Chief M arketing Officer Chris Thompson President & CEO Karyn Gruenberg Senior Vice President Partner M arketing & Strategic Alliances Cathy Domanico Vice President Global Trade Development Tracy Lanza Vice President Integrated M arketing Carroll Rheem Vice President Research & Analytics Stanley M attos Vice President Operations Aaron Wodin-Schwartz Vice President Public Policy J ake Conte Director, In-House Counsel Brian Watkins Director, Information Technology

Barbara Richardson

Chair, Board of Directors Brand USA

Item 1:

Approval of Minutes

Chris Thompson

President & CEO Brand USA

Item 2: CEO Report

Barbara Richardson

• n behalf of

Arne Sorenson

Chair, Finance Committee Brand USA

Item 3: Finance Committee Report

Brand USA Finance Committee

Arne Sorenson Chair J

• hn Edman

Daniel Halpern Tom Klein Barbara Richardson

Donald Richardson

Chief Financial Officer Brand USA FY2017 Finance Presentation

Highlights

• Travel Promotion Fund

§ We have met our FY 2017 match goal of $100M and have already met $44.4M of the FY 2018 ESTA

match goal of $100M .

• Partner Revenue

We beat our total partner revenue goal by $2.2M for a total of $114.2M !

§ Partner Cash Contributions

• We received $53.1M in partner contributions ($1.9M less than FY 2017 Budget).

§ In-Kind Contributions

• We received $58.1M in in-kind contributions ($8.1M more than FY 2017 Budget).
• Partner Programs
• We generated $3M through Sponsorship revenue and Partner Programs ($4M less than FY 2017 Budget).
• Expenses

§ Expenses were $9.8M below budget for FY 2017, primarily due to a shift of strategy and timing

differences in M arketing expenses.

• Cash Flow

§ Cash flow remains strong and is 80% above the reserve requirement of $40M as of September 30,

2017.

Kyle Edmiston

Chair, Audit Committee Brand USA

Item 4: Audit Committee Report

Brand USA Audit Committee

Kyle Edmiston Chair Andrew Greenfield Tom Klein Alice Norsworthy Thomas O’Toole

Donald Richardson

Chief Financial Officer Brand USA FY2017 Audit Update

FY 2017 Financial Statement Audit Update

• KPM G has not raised any issues related to the audit.
• KPM G is scheduled to complete its final fieldwork on December 20, 2017.
• The draft audit report will be issued by January 31, 2018.

Andrew Greenfield

Chair, Governance & Nominating Committee Brand USA

Item 5: Governance & Nominating Committee Report

Brand USA Governance & Nominating Committee

Andrew Greenfield Chair Daniel Halpern M aryann Ferenc Thomas O’Toole

• The board chair and the committee members discussed leadership

elections and the vacancy of the M arketing Chair (with the election of Barbara Richardson to board chair).

• The discussion took into account public vs. private backgrounds and

potential vacancy/appointment issues.

• The committee recommends
• Andy Greenfield – Secretary
• Arne Sorenson – Treasurer
• John Edman – Vice Chair through the calendar year, and to be reappointed as vice chair should he

be selected for another term

• Kyle Edmiston – Vice Chair
• Alice Norsworthy – M arketing Chair

Committee Designations Recommended

Barbara Richardson

Chair, Marketing Committee Brand USA

Items 6-9 Marketing Committee Report

Brand USA Marketing Committee

Barbara Richardson Chair J

• hn Edman

Kyle Edmiston M aryann Ferenc Alice Norsworthy Rossi Ralenkotter

Tom Garzilli

Chief Marketing Officer Brand USA

Item 6: CMO Report

• Revenue/ Development:
• $637 million in contributions since 2012
• 7th consecutive year of earning 100% of matching contributions
• Highest average contribution per partner in FY2017: $670k per contributing partner
• M aintained 90+% Partner Retention
• Innovative M arketing
• National Parks Adventure and America’s M usical Journey giant-screen films
• New and exciting programs (e.g., BBC, Go USA TV)
• Expanding and enhancing global trade and international representation

Preliminary Year-End Results and Major Milestones

BREAKER TITLE IS ALL CAPS

Item 7: FY2018 Marketing Strategy

With over 3000 assets submitted from a wide variety of destinations, we are thrilled with the industry response to the One Big Welcome initiative. From home-towners to restaurateurs to governors, the stories our DM O and CVB partners shared are personal, diverse and truly show the warmth of the American people. Assets will be featured in paid, earned and owned media beginning in January/ February 2018.

One Big Welcome

Industry Recognition

Travel Weekly M agellan Awards

• Gold: Overall Destination / Family Destination
• Gold: Overall Destination / Adventure Destination

Web M arketing Awards

• Outstanding Achievement: Best General Interest Site

Improved Search & Site Performance

Improved SEM

40% CPC reduction 110% CTR rate 70% increase in traffic to site Higher Engagement Without Sacrificing Volume

Brand USA focuses on storytelling because we know the best way to

move people — both literally and emotionally — is by showcasing the exceptional, diverse and real experiences found in our destinations. From dreaming to consideration to booking to traveling and sharing their experiences with others, we reach consumers at every level of

the tourism cycle. But it all starts with inspiration…

Experience is Everything

"Video is growing and will only get bigger because people are visual by nature.”1

Some remarkable stats2…

• The number of hours people spend watching videos on

Y

• uTube is up 60% year-over-year
• China’s 450 million online video viewers watch 5.7 billion

hours of vids every month

• 100 million hours of Facebook videos are watched every day.
• Over half of video content is viewed on mobile.
• 92% of mobile video viewers share videos with others.
• Social video generates 1200% more shares than text and

images combined.

• Viewers retain 95% of a message when they watch it in a

video compared to 10% when reading it in text.

Show don’t tell

Source: 1. http://www.bbc.com/news/business-35767893; 2. http://www.wordstream.com/blog/ws/2017/03/08/video-marketing-statistics

2018 Screen Vision

2018 Screen Tactical Approach

Giant Screen

Immerses audiences in longer-form “mini- movies” (thematic)

Laptop/Desktop

Serves as a portal to trip planning with multimedia videos (info and itineraries)

Digital OOH

Connected media delivers engaging, experiential content in situ

Mobile

Thumb-stopping and snackable content is everything (inspiration)

Smart TV

Caters to “lean back and watch” behavior with personalized playlists

Though we’re embracing an evolved storytelling strategy, our media strategy continues to focus on awareness, consideration, booking support and engagement.

Our goal is to take advantage of the “ trackability” that digital platforms have over traditional outlets, and whenever possible to connect the dots across platforms to identify business impact.

2018 Communication Objectives

Channel and tactical selection will be based on market goals.

Binaural audio will help us immerse travelers in the sights and sounds of the USA.

Mobile: Co-Branded Initiative w/Expedia

Creative not final. Directional only.

Our Most Effective, Most Immersive, Most Enduring, and Highest-Value Marketing Platform

Giant-Screen Films

• Touches all of our strategic foundational

elements

• Create Innovative Marketing
• Market the Welcome
• Build & Maintain Trust
• Add & Create Value
• Drive Results
• Inspires and drives visitation

And we own the entire asset and its components in perpetuity

Globally, over 7 million people have watched the film (4 million in international markets)

• The trailer has generated over 100 million views
• China streaming (as of 6/ 17) has reached1.23 million views
• Highest grossing documentary film of 2016
• 2017 Brand Film Festival Award for Best Film by a Brand
• 100% on Rotten T
• matoes/ T
• matometer
• 81% of viewers more likely to visit the USA
• Currently showing in 46 international cities
• Global launch on Netflix February 1, 2018

National Parks Adventure Two-Year Review

National Parks Adventure: Two-year Review

FILM/TRAILER INTERNATIONAL VIEWERSHIP AND MEDIA VALUE TO DATE IN-KIND MEDIA VALUE GENERATED TOTAL ADVERTISING MEDIA VALUE

2017 (thru 12.31) 2020 (Cumulative) M edium Value Per View Viewership M edia Value Viewership M edia Value In-Theater Film $11.00 2,800,000 $30,800,000 4,500,000 $49,500,000 Trailer Advertising $0.28 55,000,000 $15,400,000 100,000,000 $28,000,000 Online Streaming $3.01 1,500,000 $4,515,000 5,000,000 $15,050,000 TOTAL 59,300,000 $50,715,000 109,500,000 $92,550,000 Source/ M edium M edia Value Expedia $5,000,000 Y

• uku

$1,600,000 Wanda $1,570,416 TOTAL $8,170,416

2017 2020 (est.)

$58,885,416 $100,720,416

World Premiere in Washington, D.C. February 15 & 16, 2018

Global roll-out to follow in the months and weeks afterward with majority

• f markets launching in the spring and summer.
• M arketing Support
• Sneak peek at Sundance Film Festival, January 20, 2018
• Premiere and experiential events in London, Sydney, Beijing,

T

• ronto and M exico City (markets tbd)
• Theatre co-op media to generate awareness for the film
• Global Take Over Program
• In key markets we will launch theatre takeovers to feature the film

1x/ week for multiple weeks

• These will include cities not currently scheduled to receive

distribution through traditional means (i.e., science centers, museums)

America’s Musical Journey

Creative not final. Directional only.

We live in a multi-screen, multi-platform world, where 1 in 3 consumers say they’ve never had cable or no longer do.

• By 2025, half of viewers under 32 will

not subscribe to a pay-TV service.

• 80% of TV sales are now for internet-

enabled, interactive TVs that support the increasing amount of consumers who consider themselves cord-cutters.

Connected TV

Source: https://www.thinkwithgoogle.com/consumer-insights/video-trends-where-audience-watching/

But while people may be watching less linearTV, time with digital video goes up In 2017, 40% of the 200-million unit global sales for the full year will occur during the winter holiday season.

16% 48% 24%

And, increasingly, consumers want their large- screen “living room devices” to have the same streaming capabilities as their hand held devices

In late-November 2017, Brand USA will launch a connected TV app called “Go USA” on Apple TV, Roku and Amazon Fire

Connected TV gives Brand USA the opportunity to deliver entertaining and engaging destination-based storytelling.

Go USA TV

Creative not final. Directional only.

154 million global* monthly views across the Fexy connected TV network

Connected TV

19% 35% 21% 25%

Food Entertainment Lifestyle Family

35 million annual views on travel channels located in the lifestyle category

Goal is to boost GoUSA TV into the top 10 travel channels within Year 1

• Cross-promotion plan across Fexy’s 120 travel

channels, family, food and other CTV channels

• CTV clickable overlay ads and optimized

banners on Fexy TV network

• Partner opportunities for playlist inclusion,

include featured videos with guaranteed views

*Not currently available in China

Introducing…

Go USA TV

Creative not final. Directional only.

The Store Poster is a smaller image users will see when browsing through the app store on Roku / Amazon Fire / Apple TV.

BREAKER TITLE IS ALL CAPS

Item 8: Global Trade Development Update

Global Trade Update

• September/ October 2017
• India Sales M ission
• Germany M egaFam
• India M egaFam
• ITB Asia
• USA Discovery Program
• November 2017
• European Representation
• World Travel M arket
• December 2017
• Travel Trade Website Launch

International Representation RFP Update

Completed and Contracted

• Brazil
• India
• The UK & Ireland
• Australia & New Zealand

Selecting and Negotiating Contracts

• M exico
• Canada
• Italy, Spain
• Germany, Austria, Switzerland
• France, Benelux

In Process

• China
• South Korea
• Japan
• Hong Kong
• Taiwan
• Singapore

BREAKER TITLE IS ALL CAPS

Item 9: Partner Programs Update

January 23-25, 2018 The Brand USA Marketing Roundtables consist of the CMO Roundtable, the Partner Programs Roundtable, and the Global Development Roundtable, have been established to enable partners to provide valuable input to Brand USA on strategic marketing initiatives. Participants include leaders from a cross-section of the industry.

Partner Roundtables

M eetings Focus:

§ M arketing Strategy for 2018 § M edia Efficiencies § Social M edia/ Influencer Integration § Co-op Partner Programs § Tradeshows and Road Shows § Working with the In-M arket Reps § T

• ur Operator Collaboration and Product Development

Item 10: FY2017 Dashboard

Balanced Score Card: 12 Key M etrics

Component M etric Trend

Travel Lifecycle Phase 1 Dream/Awareness

• 1. Consumer Destination Favorable/ Familiarity

Travel Lifecycle Phase 2 Consider/ Engagement

• 2. Website & Social Engagement
• 3. Intent to Visit the USA

Travel Lifecycle Phase 3 Activate/ Book

• 4. Attributable Increase in Visitation

Travel Lifecycle Phase 4 Travel (ROI)

• 5. Attributable Increase in Spend, Jobs
• 6. M arket Share

Travel Lifecycle Phase 5 Share

• 7. Consumer Net Promoter Score

Financial Partner Revenue

• 8. Percentage of Federal M atch
• 9. Ratio of Cash/ In-Kind Contributions

Partnership Value

• 10. Value Provided to Partners

Compliance & Process

• 11. Compliance
• 12. Cycle Time

Results Monitored Quarterly and Annually

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Australia Brazil Canada China Germany France India Japan South Korea Mexico U.K.

Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 March Week 1 March Week 3 April Week 1 April Week 3 May Week 4 July Week 3 Oct-17

Source: ORC custom study

Likely to Visit the US in the Next Two Years

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Australia Brazil Canada China Germany France India Japan South Korea Mexico U.K.

Aug-16 Oct-16 December Week 1 December Week 3 Feb-17 March Week 1 March Week 3 April Week 1 April Week 3 May Week 4 July Week 3 Oct-17

Source: ORC custom study

Political Climate as Reason for Not Visiting USA

Source: ORC custom study

0% 10% 20% 30% 40% 50% 60% 70% Total Australia Brazil Canada China Germany France India Japan South Korea Mexico U.K. Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 March Week 3 April Week 1 April Week 3 May Week 4 July Week 3 Oct-17

Net Promoter Would Bring Up to Recommend

FY2018 Initiatives:

• Dashboard Review/ Department Dashboards
• Best practices for engagement
• Expanding ROI Study
• Partnership opportunities to support NTTO and TTAB Initaitives

Item 11: FY2018 Research Strategy

4.7

• 6.1
• 6.3
• 0.7
• 1.5

19.0

• 2.6

0.9

• 15.1
• 4.0
• 11.2

6.1

• 14.4

6.1

• 7.6

1.1

• 3.7

2.2

• 0.9

2017 Arrivals Growth Jan-May

2016-May 2017 USA Arrivals Growth

• 20%
• 15%
• 10%
• 5%

0% 5% 10% 15% 20% JANUARY FEBRUARY M ARCH (Revised) APRIL (Revised) M AY JUNE JULY (Revised) AUGUST SEPTEM BER OCTOBER NOVEM BER DECEM BER JANUARY FEBRUARY M ARCH APRIL M AY 2016 2017 CANADA M EXICO OVERSEAS TOTAL

Source: NTTO

• Enhanced Corporate Communications
• M edia Outreach
• Stakeholder Communications
• Crisis Communications Strategy
• Scenario Planning and T

esting

• Disaster Recovery and Business Continuity
• Human Resources
• Talent Review (in process)
• Employee Development

Item 12: FY2018 Strategic Initiatives

Discussion and Q/A

Thank You!

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