Las Vegas made $110m in tourism revenue from digital ads and Pandora
The Las Vegas Convention and Visitors Authority (LVCVA) is capitalizing on the city’s destination status for electronic music. The board teamed up with advertising agency R&R Partners and Pandora to target seven markets where Las Vegas is a popular destination — Chicago, San Diego, Los Angeles, Phoenix, Dallas, Houston, and San Francisco — between October 2014 and September 2015. The ads were aimed at audiences between the ages of 25 and 54.
“Music is one of our most prominent verticals when we come to promoting the entire destination,” commented Caroline Coyle, VP of Brand Strategy at LVCVA in a statement. “Everything we do at LVCVA is rooted in research. We have just created a new component to our marketing division, and it’s the Las Vegas Research Center. So, we’re going to put greater emphasis on research and analytics in general.”
The team ran audio promos on Pandora in conjunction with a branded radio station featuring music of frequent Vegas acts like Calvin Harris and Krewella. Ads on both stations linked to LasVegas.com. On average, users listened to Pandora for 34 minutes. Pandora cross-referenced the users currently logged into the internet radio station with users of the mobile app Placed, who agree to have there current location recorded by the app in exchange for cash, donations, or free in-app content.
“We’re getting the data directly from the device,” stated David Shim, founder and CEO of Placed. “We see over 1,000 locations per user per day, all directly sourced from the device, which allows us to know with a 100 percent confidence [whether] they were in Las Vegas or not. When you think about the average trip to Las Vegas, we’re talking about thousands of locations that we can directly measure.”
Placed and Pandora estimate that the targeted ads boosted travel to Las Vegas 6%, which translates to roughly 152,462 visitors. The LVCVA estimates an typical visitor spends $724 in Sin City, bringing the calculated additional revenue to $110 million. The campaign’s cost has not been reported. Lizzie Widhelm, SVP of Ad Product Sales and Strategy at Pandora, said that offline attribution- measuring if a digital ad drove an in-store sale- is a focus for the radio service this year.
“The offline attribution is a place where we’re definitely trying to work harder with all of our partners,” Widhelm explained. “This campaign was heavily focused on mobile attribution and helping marketers understand the value of spending on mobile, where we all know the consumer is, but how do we quantify ROI there when it’s a cookieless environment?”