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CC 2017-05-23_09c AGTBID Annual Report and Reso of Intent MEMORANDUM TO: CITY COUNCIL FROM: JIM BERGMAN, CITY MANAGER BY: DEBBIE MALICOAT, ADMINISTRATIVE SERVICES DIRECTOR SUBJECT: CONSIDERATION OF ANNUAL REPORT AND ADOPTION OF RESOLUTION OF INTENTION FOR LEVY OF ANNUAL ASSESSMENT FOR ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT DATE: MAY 23, 2017 RECOMMENDATION: It is recommended the City Council: 1) receive and approve the annual report of the Arroyo Grande Tourism Business Improvement District (AGTBID) Advisory Board; 2) adopt a Resolution of Intention to levy and collect assessments within the AGTBID area for Fiscal Year 2017-18 at the same rate as in Fiscal Year 2016-17; and 3) set the date for the public hearing for June 27, 2017. FINANCIAL IMPACT: Based on the anticipated year-end results for 2016-17, the total assessment expected to be collected totals approximately $195,000. The AGTBID budget provides $3,000 to the City to cover the City’s administrative costs associated with collecting and disbursing the assessment. The City has also budgeted $5,000 to contribute toward the tourism efforts. Therefore, it results in a net cost of $2,000 to the City. BACKGROUND: In May 2013, the City Council adopted an Ordinance establishing the Arroyo Grande Tourism Business Improvement District. The District was formed under the Parking and Business Improvement Law of 1989, Sections 36500 et seq. of the Streets and Highways Code and incorporated into the Arroyo Grande Municipal Code (AGMC) in Title 3, Chapter 3.46. The purpose of forming the District was to provide revenue to defray the costs of services, activities and programs promoting lodging businesses in the District Item 9.c. - Page 1 CITY COUNCIL CONSIDERATION OF ANNUAL REPORT AND ADOPTION OF RESOLUTION OF INTENTION FOR LEVY OF ANNUAL ASSESSMENT FOR ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT MAY 23, 2017 PAGE 2 through the promotion of scenic, recreational, cultural and other attractions in the District as a tourist destination. An assessment is levied on all lodging businesses within the AGTBID boundaries and is based upon two percent of the rent charged by the operator per occupied room per night for all transient occupancies. In December 2014, the City Council adopted an Ordinance amending Chapter 3.46 of the Arroyo Grande Municipal Code to provide that the same exemptions that apply to the Transient Occupancy Tax apply to Arroyo Grande Tourism Business Improvement District (AGTBID) assessments and amended the definition of "lodging" to include vacation rentals and homestays. In accordance with the provisions in the Streets and Highways Code and AGMC Section 3.46.100, the City Council appointed an Advisory Board. Pursuant to Streets and Highways Code Section 36533, the Advisory Board is to prepare an annual report, which is to be submitted to the City Council for its review and approval. Accordingly, the AGTBID Advisory Board has submitted the attached annual report. AGMC Section 3.46.060 also provides that the assessments for the AGTBID are to be reviewed annually by the City Council based upon the annual report of the Advisory Board, and after approval of the annual report, the City Council is to follow the hearing process outlined in Streets and Highways Code Section 36535 for the annual assessment for the upcoming fiscal year. Section 36534 provides for the adoption of a Resolution of Intention to levy an annual assessment for that fiscal year. The Resolution also sets a public hearing in order to receive any written or oral protests against the continuation of the District as required by the applicable statute. ANALYSIS OF ISSUES: The AGTBID has been in effect for almost four years and has been very successful. A tourism website and other marketing efforts have been developed and implemented. The efforts are coordinated by a Chamber of Commerce Tourism Committee and approved by the AGTBID Advisory Board. The Chamber of Commerce administers the program; therefore minimal staff time has been required by the City. The AGTBID Advisory Board recommends extending the assessment and continuing the program. After the City Council approves the AGTBID Advisory Board’s annual report and adopts the Resolution of Intention, a public hearing will be noticed for June 27, 2017. The public hearing will allow lodging businesses subject to the assessment to submit comments, voice concerns, and protest the assessment. As set forth in Item 9.c. - Page 2 CITY COUNCIL CONSIDERATION OF ANNUAL REPORT AND ADOPTION OF RESOLUTION OF INTENTION FOR LEVY OF ANNUAL ASSESSMENT FOR ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT MAY 23, 2017 PAGE 3 Sections 36524 and 36525 of the California Streets and Highways Code, the City Council has the ability to continue the proposed citywide AGTBID at this public hearing, unless written protests are received from lodging businesses that pay 50% or more of the proposed assessments. In that event, the Council cannot consider continuation of the AGTBID for at least one year. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Approve staff’s recommendations; 2. Request changes or clarification to the Annual Report; 3. Do not approve staff’s recommendations; or 4. Provide staff other direction. ADVANTAGES: The recommendations will enable the City to extend the AGTBID, which provides a mechanism to generate funding to promote hotel stays and tourism in the City, which increases transient occupancy tax revenue and supports local businesses. DISADVANTAGES: No disadvantages with the recommended actions are identified. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Attachment: 1. Annual Report Item 9.c. - Page 3 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DECLARING ITS INTENTION TO CONTINUE THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT, TO CONTINUE THE BASIS FOR AND TO LEVY THE ASSESSMENT FOR THE DISTRICT, AND TO SET A DATE FOR THE PUBLIC HEARING ON THE DISTRICT AND THE ASSSESSMENT FOR THE 2017-18 FISCAL YEAR WHEREAS, the Parking and Business Improvement Area Law of 1989 (“PBIAL”), sections 36500 et seq. of the Streets and Highways Code, authorizes cities to establish business improvement districts for several purposes, one of which is promotion of tourism; and WHEREAS, the Arroyo Grande Tourism Business Improvement District was established in May, 2013 and incorporated into the Arroyo Grande Municipal Code (“AGMC”) under Chapter 3.46; and WHEREAS, in accordance with the requirements of Health and Safety Code Section 36530 and AGMC Section 3.46.100, the City Council appointed an Advisory Board to provide oversight, guidance, and recommendations regarding the use of the assessment funds; and WHEREAS, the AGMC and the PBIAL requires the Advisory Board to prepare and submit an annual report (“Annual Report”) stating proposed changes, improvements and activities for the fiscal year; and WHEREAS, on April 24, 2017, the Advisory Board approved the Annual Report; and WHEREAS, the Advisory Board Annual Report was filed and approved by the Arroyo Grande City Council on May 23, 2017. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: Section 1. The City Council proposes to continue the Arroyo Grande Tourism Business Improvement District (“District”) in accordance with AGMC Chapter 3.46 and Streets and Highways Code Sections 36500 et seq. and levy assessments for fiscal year 2017-18. Section 2. The Annual Report is on file with the City Clerk and contains a full and detailed description of the improvements and activities to be provided for fiscal year 2017-18. No changes to the District boundaries are proposed, and the report includes the estimated cost of providing improvements and activities for fiscal year 2017-18. The assessment is not proposed to be increased. Item 9.c. - Page 4 RESOLUTION NO. PAGE 2 Section 3. The boundaries of the District are the boundaries of the City of Arroyo Grande. Section 4. The assessment levied by the District shall be used for activities and programs promoting lodging businesses in the District through the promotion of scenic, recreational, cultural and other attractions in the District as a tourist destination, and as further set forth in AGMC Section 3.46.030. Section 5. The assessment is proposed to be levied on all “lodging” businesses in the District, as that term is defined in AGMC section 3.46.020, and allocated by the City of Arroyo Grande. Section 6. The assessment shall be based upon two percent of the rent charged by the operator per occupied room per night for all transient occupancies and shall be collected quarterly. Section 7. New lodging businesses shall not be exempt from immediate assessment. Section 8. A public hearing, held pursuant to AGMC Chapter 3.46 and Streets and Highways Code Section 36535, to allow for comments and to receive written and oral protests on the District and proposed assessment, is hereby set for 6:00 p.m., Tuesday June 27, 2017, before the City Council of the City of Arroyo Grande at the City Council Chambers at 215 E. Branch St., Arroyo Grande, CA. Section 9. At the public hearing, the testimony of all interested persons for or against the continuation of the District, the boundaries of the District, or the furnishing of specified types of improvements or activities will be heard. A protest may be made orally or in writing by any interested person. However, only written protests will be considered in determining if there is a majority protest. The form and manner of protests shall comply with Streets and Highways Code Sections 36524 and 36525. Section 10. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and clearly state the irregularity or defect to which objection is made. Written protests must be received by the City Clerk of the City of Arroyo Grande before the close of the public hearing scheduled herein and may be delivered or mailed to the City Clerk, City of Arroyo Grande, 300 East Branch Street, Arroyo Grande, CA 93420. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Item 9.c. - Page 5 RESOLUTION NO. PAGE 3 Each written protest shall contain a written description of the business in which the person signing the protest is interested sufficient to identify the business. If the person signing the protest is not shown on the official records of the City of Arroyo Grande as the owner of the business, then the protest shall contain or be accompanied by written evidence that the person is the owner of the business. Section 11. If at the conclusion of the public hearing, there are of record, written protests by the owners of lodging businesses within the District that will pay fifty percent (50%) or more of the total assessments of the entire District, no further proceedings to continue the District shall occur. New proceedings to continue the District shall not be undertaken again for a period of at least one (1) year from the date of the finding. If the majority of written protests are only as to an improvement or activity proposed, then that type of improvement or activity shall not be included in the District. Section 12. The City Clerk is instructed to provide notice as required by AGMC Chapter 3.46 and Streets and Highways Code Section 36534. The City Clerk shall give notice of the public hearing by causing this Resolution of Intention to be published once in a newspaper of general circulation in the City no less than seven days before the public hearing. On motion of Council Member _______, seconded by Council Member _______, and by the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this 23rd day of May 2017. Item 9.c. - Page 6 RESOLUTION NO. PAGE 4 ___________________________________ JIM HILL, MAYOR ATTEST: ___ KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: ___________________________________ JAMES A. BERGMAN, CITY MANAGER APPROVED AS TO FORM: ___________________________________ HEATHER WHITHAM, CITY ATTORNEY Item 9.c. - Page 7 ATTACHMENT 1 Item 9.c. - Page 8 1 | P a g e Table of Contents Overview ....................................................................................................................................................... 2 1. AGTBID 2016–17 Highlights .................................................................................................................. 2 Visit Arroyo Grande Draws Crowds at the Bay Area and Los Angeles Travel Shows ................................ 2 Using Virtual Reality Videos to Capture Audience Attention ................................................................... 3 New Visit Arroyo Grande Tourism Videos ................................................................................................ 4 Get on the Road and Visit Arroyo Grande ................................................................................................ 5 Extra! Extra! Read All About It! – Arroyo Grande in Bakersfield Magazine .............................................. 6 Visit Arroyo Grande in USA TODAY—Summer Edition ............................................................................. 7 2. Visitor Profile – Who is viewing Visitarroyogrande.org? ...................................................................... 7 Gender ...................................................................................................................................................... 8 Interests .................................................................................................................................................... 8 Where are the visitors from? .................................................................................................................... 8 Most Viewed Accommodation Pages ....................................................................................................... 8 3. Performance and Results ...................................................................................................................... 2 Targeting Customers in Each of the 5 Travel Buying Cycles ..................................................................... 2 Stage 1: Dream ...................................................................................................................................... 2 Stage 2: Plan .......................................................................................................................................... 2 Stage 3: Buy ........................................................................................................................................... 3 Stage 4: Experience ............................................................................................................................... 3 Stage 5: Share ....................................................................................................................................... 4 4. Cost Efficient Online Paid Advertising ................................................................................................... 5 Google AdWords ....................................................................................................................................... 5 Facebook Advertising ................................................................................................................................ 6 5. Website ................................................................................................................................................. 6 SEO ............................................................................................................................................................ 6 Newsletter................................................................................................................................................. 6 Ongoing Website Maintenance ................................................................................................................ 7 Website UI Redesign ................................................................................................................................. 7 Item 9.c. - Page 9 2 | P a g e Overview The RG Pacific website and marketing team continued its efforts to position the City of Arroyo Grande as a premier tourist destination in the Central Coast. We conveyed this brand message through social media, search engine optimization, paid advertising on Google and Facebook as well as by improving the website’s design and content. Additionally, we extended our marketing efforts beyond the internet with the City’s first marketing booth at the Travel and Adventure Show in Los Angeles and the Bay Area. We did so by representing Arroyo Grande at the Expos and introducing a new marketing method—Virtual Reality Videos. The Virtual Reality (VR) videos attracted hundreds of people to the City’s booth and piqued their interest of visiting Arroyo Grande. We used both website and social media analytics data to reevaluate how we broadcast our message to the Visit Arroyo Grande target audience. Our team found that video was the ideal marketing tool to convey our message because research shows that after watching a video, 64% of users are more likely to buy online and increases conversions, like filling out forms, by a staggering 80%. The use of videos on Visit Arroyo Grande social networks and the Travel Show strengthen our message and extended our reach to more potential tourists. 1. AGTBID 2016–17 Highlights Visit Arroyo Grande Draws Crowds at the Bay Area and Los Angeles Travel Shows Visit Arroyo Grande attended two Travel Shows in California this year. The booth in Los Angeles was located near other Central Coast cities, and the Bay Area booth was in the California Section next to the Ventura County booth. However, the Visit Arroyo Grande booth had bigger crowds than any of its surrounding booths. Visit Arroyo Grande booth representatives achieved this by engaging travel enthusiasts with VR Videos and fun giveaways. Over 1,000 people signed up at the Trade Shows to receive more information about the City and enter the Escape to AG giveaway. Booth and Online Giveaways: • Escape to AG o One grand prize winner receives a getaway for two with a free 2-night stay in Arroyo Grande, one wine tasting voucher, and one $100 gift card for dining and shopping. • Spin to Win o Lucky contestants entered to win customized Visit Arroyo Grande VR glasses, which no other city in California offered to its booth visitors; therefore, attracting hundreds of visitors each day. o Wine bottle openers with the Visit Arroyo Grande logo Item 9.c. - Page 10 3 | P a g e Using Virtual Reality Videos to Capture Audience Attention Virtual Reality videos are being labeled by news and media outlets as the “next big thing.” The technology is available now most mobile phones. According to research firm KZero, this means that approximately 171 million people could be using VR hardware and software worldwide by 2018. Our team filmed the Annual Arroyo Grande Strawberry Festival in VR during the 2016 Memorial Day weekend, so Visit Arroyo Grande could have a head start on this trend. The VR videos created by the RG Pacific team included popular performers, ensembles, and point-of- interests. Then the videos were made available to Travel Show attendees at the CA Travel and Adventure Expo’s in Los Angeles and Bay Area. Visit Arroyo Grande was one of two booth destinations showcasing their destination in Virtual Reality—the other booth offering VR was the Fiji Islands. Booth visitors who were unable to experience the VR videos at the Travel Shows were directed to the VisitArroyoGrande.org website by scanning the QR code on the custom VR headsets. Once on the website, they could visit the Strawberry Festival page that allows users to view the videos on their desktops, laptops or any Virtual Reality headset with sound for an immersive 360° experience. Item 9.c. - Page 11 4 | P a g e New Visit Arroyo Grande Tourism Videos RG Pacific produced two promotional videos for the city that highlighted wine tasting in Arroyo Grande and the weekly Farmer’s Market. The video locations and concepts were based on analytics data collected from the top visited pages on the website as well as top search engine keywords. • The Farmers Market Experience video highlights the tranquil and classic California ambiance of Arroyo Grande, with two girlfriends enjoying the fresh fruit and people of the AG farmers market. • The Wine Tasting Experience video takes the viewer on a Girlfriends weekend getaway at Laetitia Winery. The video shows the women enjoying fine wine tasting experience with the scenic backdrop that only Arroyo Grande can offer. Item 9.c. - Page 12 5 | P a g e Video Collaboration with Visit SLOC – Matador Network Visit San Luis Obispo County (SLOC) announced a new co-op program with the Matador Network in 2017 that promotes the county’s various destinations. Matador developed a 1:30 minute video of Arroyo Grande for SLOC. Visit Arroyo Grande will be able to reuse the promotional video (as long as Matador is given credit). • Guaranteed 250,000 views per video within one month • Video is socially optimized with text overlay to engage and inform • Content will be hosted on Matador Network’s page indefinitely, extending the reach of the content via social shares Get on the Road and Visit Arroyo Grande Item 9.c. - Page 13 6 | P a g e The RG Pacific design team worked with Silverado Stages to produce the first ever Visit Arroyo Grande Bus Wrap. The Motor Coach has driven throughout the entire state of California and surrounding states. The bus wrap features some of the amazing images taken by Vivian Krug in a collage. These photos capture classic California and some of the best that the City has to offer. The bus wrap also includes a link back to the website where potential visitors can learn more. Extra! Extra! Read All About It! – Arroyo Grande in Bakersfield Magazine Bakersfield Magazine has a “Great Getaways” section in both their website and print edition that features tourist destination and attractions for their readers. We used our public relations outreach to get Arroyo Grande featured in the October 2016 issue of Bakersfield Magazine as a Great Getaway for fine-dining and wine tasting. We connected with their editor to include lifestyle photos of people as well as popular places in the City. Additionally, the article highlights key city events like the Annual Strawberry Festival, Harvest Festival, Heritage Square Park, Lightning Joe’s Guitar Heaven and many other local favorites. Item 9.c. - Page 14 7 | P a g e Visit Arroyo Grande in USA TODAY— Summer Edition Visit Arroyo Grande will have an ad placed inside the USA TODAY glossy, perfectly bound magazine and will be distributed both print and digitally https://www.usatoday.com/travel/ • The website targets tourists that area looking for great deals and travel tips. • USA TODAY Reaches readers across multiple devices. • Many USA TODAY print edition reaches 3.2 million people nationwide. • USA TODAY is the country’s #1 most circulated news source that keeps you in- step with the nation, and the world. • The USA TODAY sites had nearly 88.3 million unique visitors and 870MM page views last summer. 2. Visitor Profile – Who is viewing Visitarroyogrande.org? The information below reflects the data acquired from April 2016 – April 2017 Gender: 64.9% Female 35.1% Male Age: Majority 55-64 (22.77%) Interests: Movie Lovers, News Junkies, TV Lovers, Travel Buffs, Arts & Entertainment Geo: Nearly 15k in California Item 9.c. - Page 15 8 | P a g e Pages viewed: Majority of most visited pages remains for hotel accommodations, which are our ideal target pages. Gender This past year, the audience has shifted from majority women to majority men, although we equally target both. Our research shows this is a result of growing interest from three big metropolitan areas- Los Angeles County, San Francisco County, and San Jose. This shows us that our reach is growing due to 2 main areas- increase interest in activities in Arroyo Grande, and an increase in searches for popular terms like “microbreweries” and “restaurants in the central coast”. A great tidbit with our online marketing efforts- the AG favorite “Ember” is now a top eating destination in the Central Coast according to Eater.com http://la.eater.com/maps/best-restaurants-central-coast-california Interests Interests of users still include movie lovers and travelers, but in addition there are users who also enjoy Art & Entertainment. This could be a result of many of our social media posts involving events at the Clark Center for Performing Arts in 2017. Because fo this, aside from the home page, the most viewed page on the website is the Event page. We have focused on posting and spreading the word via social media about events that reflect the interests of our audience and position Arroyo Grande as the destination for relaxed fun and entertainment. Where are the visitors from? Targeted Locations: ● Bakersfield ● Fresno ● Los Angeles ● San Francisco ● San Jose ● Santa Barbara ● Sacramento ● San Diego Top Cities in CA (Website): ● Los Angeles (20.45%) ● San Francisco (10.6%) ● Arroyo Grande (6.1%) ● Bakersfield (4.4%) * ● San Luis Obispo (3.7%) ● San Jose (3.1%) * Social Media ● Arroyo Grande ● Bakersfield ● Los Angeles ● Ventura County ● San Luis Obispo * There was an increase in website visitors from the San Jose and Bakersfield compared to the previous period. This increase is because of our increased marketing efforts in these locations. Most Viewed Accommodation Pages The Best Western Casa Grande Inn, Hampton Inn, and the Grieb Farmhouse Inn Bed & Breakfast pages are among the top most visited accommodations pages. They are also in the top 15 most visited pages during the 2016-17 year. Item 9.c. - Page 16 1 | P a g e Item 9.c. - Page 17 2 | P a g e 3. Performance and Results Targeting Customers in Each of the 5 Travel Buying Cycles We have continued our promotion strategy to “turn heads into beds” through social media, online offers, online giveaways, and paid advertising on Google. The updates reflect our marketing efforts during this 2016-17 period for each of these stages. Stage 1: Dream • Connect with travel enthusiasts at the Travel and Adventure Show in our target geo-location— Los Angeles and the Bay Area. The Visit Arroyo Grande booth reached over 1,000 individuals and families as well as thousands more who attended the expos both weekends. • Well-time Email Campaigns—Newsletter subscribers are sent reminders of upcoming events, and giveaway notifications to keep people engaged. The e-mail that is sent also encourages people to book their stay and make reservations with time. • The promotional videos play a major role during the dream stage. This is because research states that 49% of leisure travelers reported researching online after viewing an ad. Stage 2: Plan • By understanding the way website visitors navigate through pages we were able to create new content that makes it easier for them to plan their trip to Arroyo Grande. • Analytics data shows that the new intuitive website navigation improved bounce rates and exits by 47%. This means that website visitors found what they were looking for on the website and stayed longer than visitors the previous year. • Los Angeles/ San Francisco Directions pages specifically target Los Angeles and San Francisco in the planning stages by giving directions from those major cities. Below are results from the past Item 9.c. - Page 18 3 | P a g e year Page Pageviews Unique Views AVG Time on Page Entrances Bounce Rate Exit General Directions Page 571 164 00:00:15 39 0.00% 17.51% Directions from LA 812 251 00:00:21 44 2.27% 16.38% Directions form SF 418 127 00:00:17 27 0.00% 17.70% Stage 3: Buy • One way that our team tracks conversions is by analyzing Google AdWords data, newsletter response, as well as Facebook paid advertising conversions on a call-to-action. o Google—Our Google AdWords campaign account for the majority of accommodation searches in the city of Arroyo Grande and surrounding areas. The top hotel related terms that produced conversions were: ▪ Hotel deals in Arroyo Grande ▪ Hotels Arroyo Grande o E-mail—Increased visits to the website and “Stay” pages occur after an e-mail is sent to Visit Arroyo Grande subscribers. ▪ One of the most popular campaigns last year was the e-mail that contained information on the Arroyo Grande Valley Car Sho Stage 4: Experience • Our giveaway efforts are often coordinated with hotel managers to ensure that booking for winners is smooth. This makes the transition from Visit Arroyo Grande online marketing consumers to offline consistent. • Many of our social media posts are dedicated to events and destinations in Arroyo Grande that followers may be interested in sharing. o Example: Item 9.c. - Page 19 4 | P a g e Stage 5: Share • Spreading the word and creating awareness is the name of the game when it comes to tourism marketing. And the word is spreading! Arroyo Grande was featured in many media outlets this year, including: o Bakersfield Magazine o USA Today o LA Eater • We are telling them where to share! o On Facebook—our most important marketing tool online—our post and engagement reached 456,000 in 12 months, a 36% increase over the same period last year. This is due to more targeted content in posts that are ideal for our target audience. o Over the last 30 days, when we have shared the new promotional videos, over 15,000 people viewed them—with 7,800 people viewing them more than once. Item 9.c. - Page 20 5 | P a g e o Additionally, people often share their love for Arroyo Grande on our posts, and they will tag family and friends on posts to express interest in visiting. 4. Cost Efficient Online Paid Advertising Google AdWords There was an increase of consumers reached via paid Google ads for planning a trip to Arroyo Grande. You can see the increase in impressions in the table below: Ad Copy Impressions 2016 - 2017 Impressions 2015 -2016 Visit Arroyo Grande – Discover and Plan Your Next Getaway Book Online and Save on Lodging 87,781 79,697 Visit Arroyo Grande – Plan Your Trip to Arroyo Grande for Wine Tours, Hiking, and More 121,478 94,778 • Over 219,000 people have seen an Ad for Arroyo Grande this past year that leads to the website and accommodation pages. • The advertising campaigns are monitored daily to optimize results and reach the target demographic—tourists. • Google Advertising accounts for 11.2% of traffic to the site this year compared to 15.7% the previous year. This is because more people are exposed to the website through other marketing vehicles—YouTube, Silverado Tours Bus Wrap, Travel Show, VR Googles with QR code to the website, and more. Item 9.c. - Page 21 6 | P a g e Facebook Advertising Paid boosts and Like Campaigns our most coveted vehicle for reaching our target audience aside from posts and organic marketing efforts on Facebook. • Facebook Ads reached over 246,000 people in our target demographic during the year. • There were 19,478 conversions from Facebook ad actions were recorded on the website via Facebook ad tracking. 5. Website The Arroyo Grande website is how we track both online and offline progress. For example, we ventured into new marketing efforts during the 2016-17 year; such as the two Travel and Adventure shows, Immersive Virtual Reality videos, and short video commercials for social media. Each method leads content consumers to the website where we can offer more information about Arroyo Grande. This year, we focused on enhancing the website and its tools to convert as many “heads into beds” as possible. Highlights include: SEO During the past two years, we have focused on increasing the visibility of the Visit Arroyo Grande website organically through strategic marketing posts, pages, optimized content, and press releases. • We reduced the amount of errors that appeared in the site index to improve search engine ranking. • Improved content discoverability by adding more links to the footer, added drop-down tabs, link to internal pages, and direct links to pages on social media. • Ended event posts with links to related content or ticket purchasing. • Feature past events for people to research events throughout the year, and index more content • Use a permalink structure with easy to remember URLs. For example, “visitarroyogrande.com/giveaway” is one of the top 5 pages visited this year. Newsletter Our team continues to build contact lists via contact forms, e-mail sign ups and giveaways. We were able Item 9.c. - Page 22 7 | P a g e to add over 1,000 new subscribers to our list thanks to the giveaway offer at the two trade shows. We have been sending seasonal newsletters every time there is a giveaway or special Arroyo Grande event such as the Strawberry Festival. Our most recent newsletter announcing the end of the Travel and Adventure Show Giveaway and providing Virtual Reality Videos from the Strawberry festival received a 45% open rate which is high compared to the industry average of 16%. Ongoing Website Maintenance Our goal is to always keep the website as fresh and current as possible, especially since repeat visitors has increased 28% this year. Pages like Events, To Do, Places to go, and our Blog are updated regularly. Other tasks that were done routinely include: • Weekly site backups and safety checks or malware and firewall breaches • Updated website pages; such as: Clark Center and Events pages to maintain new content and archive past events • New Giveaways and Graphics • The homepage banner is updated to reflect upcoming events and/or current giveaway promotions • Maintain an up to date site index Website UI Redesign RG Pacific has worked with the TBID board throughout the 2016-17 year to update the website user interface for a more modern and visual experience. We placed content that is important and useful to website visitors in key locations to make it easier to navigate. The most modern feature on the website is full width page style layout that is mobile and tablet friendly, which means that the banner images adjust based on the size of the user’s device. The layout also features wood panel menu and footer, reminiscent of a wine cellars. The main image now features and wide screen photo of individuals enjoying wine, with overlaying copy promoting the many local wineries in Arroyo Grande. We wanted to bring more attention to this and remind visitors that Arroyo Grande is an ideal destination for a wine tasting getaway. The new wooden layout also reflects ‘Vintage California’ Arroyo Grande. The “Stay, Dine, Play, and Sip” sections were moved to the top menu only, and the upcoming events appear along the bottom of the home page. Social Media integration is key to increasing engagement, so it is highlighted on the main navigation bar. Item 9.c. - Page 23 8 | P a g e Item 9.c. - Page 24 9 | P a g e Plans for July 2017 through June 2018 1. With the renewal of the TBID, continuing initiatives proposed for FY 2017-2018 include: a. Continue the Silverado Bus wrap marketing campaign. The bus travels throughout the United States, acting as a moving billboard. b. Continue to develop marketing strategies and creative campaigns that leverage the strength of traditional and non-traditional media. As more travelers’ access information on mobile devices, marketing will continue to migrate toward the online experience. Expanding the use of integrated marketing and utilizing targeted advertising strategies on social channels will reflect this shift to mobile devices. Traditional advertising that includes print and electronic media will continue to be a part of the integrated marketing approach. c. Participate in special events and trade shows that specifically target hotel stays in Arroyo Grande. d. Market Arroyo Grande through participation with Destination Marketing Organizations (DMOs) including but not limited to Visit California, the Central FY 2016-17 ACTIVITY ACTUAL AS OF 4/30/17 BUDGET VARIANCE % COLLECTED TBID Assessments 133,551$ 195,000$ 61,449$ 68% Interest - - - 0% Chamber contribution 5,000 5,000 - 100% City contribution 4,170 5,000 830 83% TOTAL REVENUE 142,721$ 205,000$ 62,279$ 70% ACTUAL AS OF 4/30/17 BUDGET VARIANCE % USED Advertising 114,894$ 150,000$ 35,106$ 77% Services & Supplies 21,401 50,500 29,099 42% Membership & Subscriptions - 5,500 5,500 0% Public Relations - 45,000 45,000 0% TOTAL EXPENDITURES 136,295$ 251,000$ 114,705$ 54% Beginning Fund Balance 147,215$ Budgeted Revenues 205,000 Budgeted Expenditures 251,000 Budgeted Ending Fund Balance 101,215$ REVENUES EXPENDITURES Item 9.c. - Page 25 10 | P a g e Coast Tourism Council, the SLO Wine Association and Visit San Luis Obispo County. e. Sponsor events that bring visitors to the area for multiple-night stays. FY 2017-18 BUDGET Revenue Source Amount TBID Assessments 202,000$ Chamber contribution 5,000 City contribution 5,000 Total Revenue 212,000$ Activity Amount Amount Advertising 67,000$ Consultant Services 32,000 500$ Miscellaneous 10,000 5,000 Sub-total Advertising 109,000$ 5,500$ Services & Supplies Website Maintenance 7,000$ 55,000$ City - administrative 3,000 10,000 Chamber - Contract admin.17,000 65,000$ Misc. contractual services 13,000 Supplies 2,500 Sub-total Services & Supplies 42,500$ 222,000$ Total Expenditures Misc Sub-total Public Relations Events Sponsorships Public Relations Sub-total Membership & Subs. Membership & Subscriptions Activity EXPENDITURES CCTC REVENUES Item 9.c. - Page 26