THE MARKETOUR

A MARKETING GUIDE FROM THE 

WISCONSIN DEPARTMENT OF TOURISM

October-November, 2001

Selecting an advertising agency

Many small businesses consider contracting with an outside vendor for marketing communication services. While this "outsourcing" often involves fairly common advertising services such as ad creation, media planning/ placement or production of collateral materials, it can also include more highly specialized needs such as Web site development, e-marketing, event management and public relations.

If your organization is grappling with the decision of whether to secure outside help, you should ask yourself several questions, beginning with what role your agency will play. For many companies, help with simple graphic design and production may suffice. In other cases, an agency may need to become a strategic marketing partner, helping to define strategies and markets long before any logos, taglines or ads are created.

Since few agencies will assume this role if they aren’t compensated accordingly, such a relationship may not be feasible given budget constraints. However, if it is, take a long look at prospective agencies before hiring one. Ideally, you’ll want to interview several, using a written document called a Request for Proposal (RFP). Among the questions this RFP should address are the following:

1. How does the agency bill for its services?

Until the 1990s, most agencies worked on a commission basis, taking a 15 percent mark-up on all media purchases and not billing for staff time. In the past two decades, factors including the proliferation of "boutique" agencies and specialized services (which may not involve media buying) have led clients and agencies to change to a time-based compensation system, either on a project-by-project or monthly retainer basis. This trend shows no sign of abating. According to a recent study done by the Association of National Advertisers (ANA), commission-based compensation continues to decline, falling to 21 percent of advertisers in 2000, down from 35 percent in 1997 and 61 percent in 1994. Not surprisingly, Internet, direct marketing, promotion and event marketing services were most likely to be compensated through time-based agreements.

The ANA study also noted a slight increase in incentive compensation agreements (up to 35 percent in 2000 from 31 percent in 1997). Of the advertisers who offer an upside earning potential, 38 percent cap the possible increase at 10 to 14 percent over base compensation, while one in five allow an additional increase of 25 percent or more. The study also noted that more advertisers are paying for production expenses "at net" (without mark-up) since the agency’s production hours are covered by a time-based agreement. Among advertisers who use commission-based compensation, half pay ten percent or less for mark-up on production costs.

2. Do they know our industry?

You may find several agencies with outstanding credentials and broad-ranging client experience. However, if they haven’t been directly involved in tourism, hospitality or restaurant marketing, you may find yourself paying for their learning curve – something many smaller businesses want to avoid. Before you hire anyone, find out how much they know about your industry so that you don’t have to pay for someone else’s education.

3. Is this agency the right size for me?

No one wants to be the small fish in a big pond. If you want to ensure prompt service, find out how many of the prospective agency’s clients have annual billings similar to yours. If most of the agency’s clients are significantly larger, you may not get the staff’s full attention. You’ll also want to find out specifically who will comprise your account team. Agencies generally use senior executives for presentations; however, once the account has been awarded, your day-to-day contacts may be junior personnel.

4. How is the chemistry?

Even if an agency meets other criteria, you should do a compatibility check before making a decision. Chemistry can’t be quantified by any formula. Rather, your marketing personnel must ask themselves how comfortable they will be working with the agency’s specified account team. While chemistry may not be crucial for limited-scope assignments, it is for longer-term, agency-of-record relationships. Any questions about how well the team (including both internal and agency personnel) will mesh should be addressed immediately. If these concerns aren’t resolved, the agency should be removed from consideration.

For more information on how to pick an agency and related issues, contact Sarah Klavas at 608/266-3750 or via e-mail at sklavas@travelwisconsin.com.

Test your web site:

Tips to make it more valuable & user-friendly

Improving your Web site means making it as valuable and easy-to-use as possible. This might seem obvious – but do you really know what your site visitors find easy to do on your site and where they encounter difficulties? Do you know what changes they’d like to see made? Testing your site with typical users can provide some wonderful insights into how to improve it.

With this in mind, the Department of Tourism worked with both a Web site consulting firm and a market research firm this past spring to conduct testing of travelwisconsin.com. The project’s goal was to evaluate how well the site met visitors’ needs by having actual users perform specific tasks on the site. Eight users, chosen by a Web site consulting firm to reflect the Department’s target market and to include people with an average level of Web experience, were given a list of five tasks to complete using www.travelwisconsin.com  Their ability to complete the tasks, how long it took them and the verbal feedback they offered during a focus-group session held immediately after their site experience were all recorded as results.

As a result of the testing, various recommendations were made on how to improve the site and Depart-ment staff began to make changes. Here are a few things to look for on your Web site:

• If you use a keyword search box, make sure you have a robust search engine that provides reasonable results. Getting no results or hundreds of unranked results frustrates the user.

• Make clickable images and graphics appear clickable. One way to do this is to give them a 3-D look. At the same time, don’t underline text that is not linked to anything. Underlining makes the text appear clickable.

• Make interactive components of your site as easy as possible. People tend to only skim Web pages and do not take time to read instructions. So make the process as easy as possible. The Department made its publication ordering much easier after it realized users were having difficulty.

• Make your main navigation or menu items obvious by putting them on a left or top navigation bar that is easy to see.

The Department continues to make changes to travelwisconsin.com based on the study suggestions. The Department also solicits site feedback by offering an e-mail address on its’ Web site. Later this year, the Department will be conducting an online survey that will also help measure the site’s effectiveness.

Whether you conduct a Web usability study or just give your Web customers the ability to e-mail you site feedback, it is important to make sure your Web site is meeting customer expectations.

For more information about the Web site usability study conducted for travelwisconsin.com, contact Julia Hertel at 608/266-9974 or via e-mail at jhertel@travelwisconsin.com.

Web tips:

Travel web sites-not just for visitors anymore

Travel and destination Web sites have always been a great source of information for visitors looking for that perfect escape. But as more and more members of the media begin to log into the digital world, it is important not to miss the opportunity to connect with them.

Originally found on only the largest of corporate Web sites, online press rooms are becoming a staple in today’s electronic world. Electronic press rooms provide an easy and quick avenue for the media to get information on demand, 24-hours a day, from anywhere in the world.

So where do you start? Start off simple and target the information the media is looking for the most. Online press rooms should be built as an extension of an existing Web site, with a clear link marked "Media Information" or something similar on the page. Function should be a greater concern then fashion in this endeavor, so keep the environment crisp, clean and easy to navigate. This is not the place to try out the latest jumping frog icons.

One of the first pieces of information that should be included on the Web site is the contact information for the individual property or organization, located in a consistent spot on every page. A few other things to consider including on your online press room include:

• Press releases archived in an easy to search format.

• Electronic files of your most updated press kits.

• Electronic photography that can be downloaded in low (72 d.p.i.) and high (300 d.p.i.) resolution.

All online press rooms should also provide an easy way to get in touch with a person trained to deal with the media directly. Include phone numbers and an e-mail link, but be sure that the e-mail is checked and responded to on a daily basis. Check out the Department’s Press Room at pr.travelwisconsin.com.

Quick Tips: Media Leads

Traveling tailored for women is taking center stage with writers from across the country this month. A new member of the Golf Digest Companies, Golf for Women magazine, is looking for golf related information for the growing number of women golfers in the United States. Travel ideas can be sent to lifestyle editor Debra Witt at 1120 Avenue of Americas, New York, NY 10023.

Heart & Soul, one of the leading health & beauty magazines for African-American women is looking for travel leads including sports, learning and health vacations for its audience. Information can be sent to Corynne Corbett at Vanguarde Media, 315 Park Avenue South, New York, NY 10010 or via e-mail at corynne.corbett@vanguarde.com.

PR’S Greatest Hits

The media just can’t seem to get enough of Wisconsin’s great outdoor adventure opportunities.

Wisconsin’s top notch biking terrain was placed center stage in an article in the September issue of Mountain Biking magazine titled "Wisconsin. More than Just Cheese!" Wisconsin biking destinations from across the state were highlighted including the Elroy-Sparta State Trail, Glacial Drumlin State Trail, Pines & Mines Trail and the Ahnapee State Trail.

Writers from Boating World took visitors off the trails and into the waters across Wisconsin. Wisconsin Dells was named as one of the 20 best boating destinations for adults and children in the September article "Kids on Board." Also in the September issue, Hayward Lakes was spotlighted in an article called "Going the Distance" highlighting the best destinations for trailer boating in the United States.

10-Second Writing Clinic:

Correct Usage of Their, They’re & There

Their is a possessive pronoun that means "belonging to them."

They’re is a contraction for they are.

There is an adverb that indicates direction.

Correct: Our friends plan to bring their binoculars when they go to Wisconsin. They’re looking forward to seeing the eagles that winter there.

For More Information

The Marketour is a marketing guide from the Wisconsin Department of Tourism and Advertising, Boelter & Lincoln.

For more information, contact Andy Larsen at AB&L, 135 W. Wells, Milwaukee, WI 53203; via fax, 414/271-1436; or by e-mail, alarsen@milw.advbl.com. For more information about industry services and opportunities, visit the state’s tourism industry site (travelwisconsin.com/agency).