Tennessee’s value for the investment made in promoting the state’s “The Soundtrack of America. Made in Tennessee” tourism brand increased in the latest study commissioned by the Department of Tourist Development.
Tourism Commissioner Kevin Triplett today announced the results of a return on investment study of the state’s “The Soundtrack of America. Made in Tennessee” brand, indicating a 19 to 1 ROI – an increase from the last study completed two years ago and significantly higher than the national benchmark. Triplett made the announcement during his keynote speech to members of the tourism industry attending Tennessee Hospitality & Tourism Association’s annual Blizzard seminar in Clarksville.
The study shows Tennessee is collecting 19 tax dollars for every $1 spent on advertising for the department’s brand campaign, from $18 to $1 in March of 2016. Strategic Marketing and Research Insights, an independent third party, conducted the research. The national benchmark used by SMARI for tax revenue collected is 11 tax dollars for every 1 dollar, meaning Tennessee’s results are $8 above the national average.
“The return to Tennessee on the investment made in tourism marketing and promotion is confirmed by the latest SMARI Report,” Commissioner Triplett said. “It validates that The Soundtrack of America. Made in Tennessee brand campaign inspires visitation to Tennessee and continues to be a good investment for our state’s second largest industry. The music, history, culture, beautiful scenery, experiences, family destinations, authenticity and Southern hospitality provided by our communities and partners allow guests to create memories and motivate them to return. This report shows the benefit to Tennessee, which receives $19 back for every dollar spent on showcasing what we have to offer.”
The study demonstrates the economic boost this campaign is to the state, bringing $1.3 billion in influenced spending and more than $100 million in tax collection. The report also shows a community benefit of $251 for every dollar invested in advertising – meaning that travelers spent over $250 within the state for each dollar the Department spent on the campaign. The national benchmark is $179. Additional data indicates Tennessee spent less than the average state destination marketing organization with only $0.39 spent per traveling household against a national benchmark of $0.67 per household.
According to the study, travelers in the target markets took nearly 1 million trips to Tennessee that would not have occurred without the advertising for “The Soundtrack of America. Made in Tennessee” campaign.