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State shifts tourism ad dollars to TV, Internet

Published March 14, 2007 at midnight

The state's tourism office will spend $6.9 million on a spring and summer marketing campaign to lure more visitors from large urban areas such as New York, San Francisco and Boston.

The blitz, which will consume almost one-third of the state's $19 million promotional budget, marks a major shift for the Colorado Tourism Office's strategy. The strategy relies more heavily on Internet and television advertising than before.

"We are reaching out to new audience segments using new media categories," said Clayton Reid, president of MMG Worldwide, the state's new marketing agency.

Roughly one-third of the spring and summer campaign budget will be spent online, while 27 percent will go toward broadcast, 26 percent to magazines, 7 percent to newspapers, 6 percent to direct marketing and 2 percent to search engine marketing.

The strategy reflects both the state's ability to spend more on pricier broadcast media as well as the recognition that many travelers plan and book trips online.

"The traditional media still plays a significant role, but the online piece has definitely got to be in the media mix today," said Eugene Dilbeck, director of the University of Denver's Center for Travel and Tourism. "You can reach niche markets so much better over the Internet."

Dilbeck, who once headed Denver's visitors bureau and served at the helm of New Jersey's tourism office, noted that TV markets such as New York require huge amounts of cash.

"Only the big guys can play," Dilbeck said. "Television ad rates are all based on the population reached. TV in those large markets is very, very expensive."

When the legislature approved more money for state tourism coffers, Colorado zoomed up the ranks to the top 10 in terms of its tourism ad budget.

Even before it got the extra money, the state managed to draw a record 25.9 million visitors in 2005. But MMG hopes to boost that tally to 30 million people with the extra promotional money.

The ad campaign, dubbed "Let's Talk Colorado," will focus on a variety of audiences including families, affluent travelers and couples, and mature and active travelers.

It will target markets including Minneapolis, San Diego, Washington, D.C., and Phoenix.

Where the money goes

Colorado's tourism budget swelled to $19 million this year after lawmakers agreed to earmark more money for advertising the state to visitors. Here's how the money has been divvied up for the fiscal year ending July 31:

$14.1 MILLION

About 70 percent pays for marketing, advertising, public relations campaigns aimed at U.S. travelers, and agency fees. Half the money will be spent on the marketing blitz for spring and summer, the season that draws the most travelers to the state.

About $4 million paid for a fall and winter campaign.

$1.6 MILLION

International programs to entice visitors from overseas.

$1.5 MILLION

State vacation guides distributed through 1-800-Colorado number and Web site Colorado.com.

$500,000

Research including Longwoods International study, an economic impact analysis and data gathering from regional airports.

$430,000

Matching grant program for marketing by tourism entities around the state.

$360,000

Administrative costs of state tourism office, including salaries, office expenses.

$200,000

Heritage tourism marketing to bring visitors to cultural and historical sites. Two grants worth an extra $500,000-plus also support this effort.

$160,000

Colorado Welcome Centers get this money from the tourism office budget, plus about $576,000 from the state's general fund.

$140,000

Special projects to educate tourism industry.

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