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Tourism Ads Bring in $328.3 Million
Post Date: Mar 09 2017

By The Bismarck Tribune
North Dakota Tourism advertising brought in $104 in non-resident spending for every $1 invested in 2016.

“This research answers the question — ‘Does marketing the state get results?’ And also shows the 2016 campaign has delivered a strong return on investment both by motivating new trips and visitor spending,” North Dakota Department of Commerce Tourism Division Director Sara Otte Coleman said in a statement.

There was also $5.90 in taxes returned to the state for every $1 spent on paid media, according to results from the department’s Strategic Marketing and Research Insights study evaluating the effectiveness of the campaign.

Otte Coleman said the campaign featuring Josh Duhamel showcased a variety of amenities revolving around state history, outdoors and city attractions.

North Dakota invested $3.17 million in advertising to out-of-state markets in 2016, resulting in 354,000 non-resident trips and visitor spending of $328.3 million through incremental and repeat trips. Non-resident visitors contributed $18.7 million to North Dakota’s tax base. Tourism Department Spokeswoman Kim Schmidt said comparing return on investment with other state tourism efforts is tricky, as markets, advertising spending, campaign-timing and duration all differ.

But data from a 2015 Minnesota tourism study of the state’s Explore Minnesota campaign showed a return on investment of $75 in visitor spending and $7 in tax revenue for every $1 spent. The campaign brought in 3.2 million incremental trips that would not otherwise have taken place, resulting in a total of $337 million in incremental visitor spending and $31 million in state and local taxes. Minnesota spent $4.5 million on advertising.

A similar study of South Dakota’s 2016 Explore South Dakota campaign showed a return on investment of $51 in visitor spending and $4 in tax revenue per $1 spent on advertising. It also brought in 1.3 million incremental trips that would not otherwise have taken place, resulting in $166.7 million in incremental visitor spending and $11.9 million in state and local taxes. The state spent $3.2 million on advertising.

In 2015, Wyoming spent $5.8 million on tourism ads for a return of $202 for every $1 invested.

Tourism Ads Bring in $328.3 Million - The Bismarck Tribune
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