Winter 2015 • Business Redmond Municipal Airport Marketing Assets Report Elizabeth Hjelm • Senior Instructor • Lundquist College of Business 2Acknowledgements This report was made possible with the immense support, feedback, and direction from the following City of Redmond staff: Heather Richards, Community Development Director, City of Redmond Heather Cassaro, Communications Manager, City of Redmond Zachary Bass, Business Manager, City of Redmond Municipal Airport Nettice Honn, Aviation Program Manager, City of Redmond Municipal Airport 3About SCI The Sustainable Cities Initiative (SCI) is a cross-disciplinary organization at the University of Oregon that promotes education, service, public outreach, and research on the design and development of sustainable cities. We are redefining higher education for the public good and catalyzing community change toward sustainability. Our work addresses sustainability at multiple scales and emerges from the conviction that creating the sustainable city cannot happen within any single discipline. SCI is grounded in cross-disciplinary engagement as the key strategy for improving community sustainability. Our work connects student energy, faculty experience, and community needs to produce innovative, tangible solutions for the creation of a sustainable society. About SCYP The Sustainable City Year Program (SCYP) is a year-long partnership between SCI and one city in Oregon, in which students and faculty in courses from across the university collaborate with the partner city on sustainability and livability projects. SCYP faculty and students work in collaboration with staff from the partner city through a variety of studio projects and service-learning courses to provide students with real-world projects to investigate. Students bring energy, enthusiasm, and innovative approaches to difficult, persistent problems. SCYP’s primary value derives from collaborations resulting in on-the-ground impact and expanded conversations for a community ready to transition to a more sustainable and livable future. SCI Directors and Staff Marc Schlossberg, SCI Co-Director, and Associate Professor of Planning, Public Policy, and Management, University of Oregon Nico Larco, SCI Co-Director, and Associate Professor of Architecture, University of Oregon Megan Banks, SCYP Program Manager, University of Oregon 4Redmond, located in Deschutes County on the eastern side of Oregon’s Cascade Range, has a population of 27,427 and is one of Oregon’s fastest growing cities. The City’s administration consists of an elected mayor and city council who appoint a City Manager. A number of Citizen Advisory Groups advise the City Manager, mayor, and city council. From its inception, Redmond has had its eyes set firmly on the future. Redmond was initially founded in 1905 in anticipation of a canal irrigation project and proposed railway line. Redmond is on the western side of the High Desert Plateau and on the eastern edge of the Cascade mountain range. Redmond lies in the geographic heart of Oregon. Redmond focuses on its natural beauty, reveling in the outdoor recreational opportunities (camping, hiking, skiing) offered by the Cascade mountain range, four seasons climate, and 300+ days of sunshine annually. Redmond has been focused on innovative, sustainable growth and revitalization while preserving the city’s unique history and culture. In 1995, the City of Redmond began to make critical investments in revitalizing its downtown core. The initial phase of renovations strove to balance growth, livability and historic preservation by rerouting Oregon State Highway 97, improving critical infrastructure, and improving the facades of over 100 buildings in the historic center. The City of Redmond has worked with local businesses to revitalize retail, job creation and housing. To facilitate private sector buy-in, Redmond offers innovative incentive programs such as the Façade Rehabilitation and Reimbursement Grant and the “Downtown Jumpstart” loan competition, as well as Design Assistance. Often referred to as “The Hub” of Central Oregon, Redmond is situated at the crossroads of US Highway 97 and US Highway 126. It is served by the Burlington Northern Sante Fe Railway, Cascades East Transit Regional Public Transportation Service, as well as a state of the art regional airport served by multiple commercial airlines and FedEx and UPS. In addition to its geographic location, Redmond is viewed as central to business growth in the region. In 2014, Central Oregon Community College opened a 34,300 square foot Technology Education Center to recruit new businesses and expand existing businesses in Central Oregon. Above all, Redmond prides itself on being a family-friendly city which was the motivation for the work presented in this report. About Redmond, Oregon 5Course Participants Beth Hjelm, Senior Instructor Lian Bossert, Undergraduate Business Administration Shannon Emmerson, Undergraduate Accounting Mike Holland, Undergraduate Business Administration Emily Martin, Undergraduate Business Administration Katie Wight, Undergraduate Business Administration                                                                                         Roberts Field Municipal Airport Redmond, Oregon Media Kit 2016                                                                                         Why Roberts Field? Roberts Field functions as the Municipal Airport for Redmond, OR, servicing the residents of Central Oregon. Roberts Field benefits from high tourism year-round in Central Oregon. Central Oregon includes Crook, Deschutes, and Jefferson Counties. Deschutes County was the 7th fastest growing county in the U.S. in 2015 and the city of Bend grew 47% between 2000 - 2010 Roberts Field services 47,227 passengers monthly with 14 flights operating out of the airport daily. Currently, RDM has four air carriers: Alaska, American, Delta, and United. RDM also serves air cargo and general aviation traffic, including corporate and business travel using charter planes.                                                                                         Traveler Demographics & Statistics # 1 Reason for travel Tourism 236K Enplanements Annually (2015) 60% Tri-County Population Ages 18 - 64 79% Tri-County Race White               Airline Destinations and Cities                                                                                         M ap o f R ob er ts F iel d M un ici pa l A irp or t Zo ne A Zo ne B Zo ne C Zo ne D Zo ne E                                                                                         Backlit Signage A backlit sign is a great way to capture traveler’s attention and increase awareness for your company with a guarantee to be read by the travelers waiting for their luggage. Zone E Large Backlit Signage – 24” x 46” (14 Available)                                                                                           Digital Displays As people pass the entry area of the airport, a loop of advertisements will captivate travelers attention as they look around. A 10 second loop of several advertisements give advertisers a variety of options to engage travelers. Zone E Digital Display – 36” Platform TVs (16 Available)                                                                                         Wall Space Roberts Field Municipal Airport has a variety of wall space throughout the airport where advertisers could capture traveler’s attention. Be creative! Zone B Wall Space – 60” x 80” (4 available) Zone C Wall Space Above Security – 60” x 80” (1 available) Above Gate E – 80” x 80” (1 available) Above Gate A – D – 36” x 80” (1 available) Stair Case Area – Ask for details   Zone D Wall Space – 12” x 36” (5 available) Zone E Walkway Wall Space – Ask for details                                                                                                                                                                                   Free Standing Displays & Pole Cover/Wraps Free Standing Displays and Pole Covers are a great way to capture the attention of passengers when walking through the airport, with various locations to choose from. Zone B, C, D, E Main Pole – Ask for details (1 available in Zone C) Free Standing – 24” x 96” (6 available in Zone C, D, E) Pole – Ask for details (8 available in Zone B, 3 in Zone D, 12 in Zone E)                                                                                         Additional Advertising Opportunities Other than the opportunities above, these are unusual places where passengers will look twice when they are looking around. Zone A Pole Banner (12 available) 16” x 60” Zone E Walkway Wall Space Ask about size, and possibilities   A nn ua l Zo ne A $3 ,0 46 Zo ne B $6 ,7 01 $3 ,8 07 Zo ne C W a ll S pa ce $3 ,0 63 $6 ,1 26 $4 ,5 94 $7 ,6 57 $3 ,0 63 $6 ,1 26 Zo ne D $2 ,6 80 $1 ,5 31 $1 ,9 14 Zo ne E $4 ,5 43 $3 ,7 86 $3 ,0 29 $1 ,8 93 $3 ,7 86 $5 10   D ec . 32 5 71 6 40 7 31 6 63 1 47 3 78 9 31 6 63 1 27 6 15 8 19 7 50 3 41 9 33 5 21 0 41 9 50   N ov . 29 5 64 9 36 9 29 9 59 8 44 9 74 8 29 9 59 8 26 2 15 0 18 7 48 6 36 3 29 0 18 2 36 3 50   O ct . 30 2 66 5 37 8 30 6 61 1 45 9 76 4 30 6 61 1 26 7 15 3 19 1 44 9 37 4 29 9 18 7 37 4 50   Se pt . 30 7 67 5 38 3 31 1 62 1 46 6 77 7 31 1 62 1 27 2 15 5 19 4 45 4 37 8 30 3 18 9 37 8 50   A ug . 35 8 78 8 44 8 36 5 73 1 54 8 91 3 36 5 73 1 32 0 18 3 22 8 52 6 43 9 35 1 21 9 43 9 50   Ju l. 36 4 80 1 45 5 35 8 71 7 53 7 89 6 35 8 71 7 31 4 17 9 22 4 55 5 46 3 37 0 23 1 46 3 50   Ju n. 32 5 71 6 40 7 32 6 65 3 48 9 81 6 32 6 65 3 28 6 16 3 20 4 48 6 40 5 32 4 20 3 40 5 50   M ay 27 6 60 7 34 5 27 3 54 7 41 0 68 3 27 3 54 7 23 9 13 7 17 1 41 8 34 8 27 8 17 4 34 8 50   A pr . 26 2 57 6 32 7 26 2 52 4 39 3 65 5 26 2 52 4 22 9 13 1 16 4 39 3 32 7 26 2 16 4 32 7 50   M ar . 28 0 61 5 35 0 28 0 56 1 42 1 70 1 28 0 56 1 24 5 14 0 17 5 41 9 34 9 27 9 17 4 34 9 50   Fe b. 24 0 52 8 30 0 24 2 48 3 36 2 60 4 24 2 48 3 21 1 12 1 15 1 35 8 29 8 23 9 14 9 29 8 50   Ja n. 24 9 54 7 31 1 26 5 53 0 39 7 66 2 26 5 53 0 23 2 13 2 16 6 34 9 29 1 23 3 14 5 29 1 50   Po le B an ne r W a ll S pa ce Po le s A bo ve Se cu rit y A bo ve G at e E A bo ve A -D St a irc a se A re a M ai n Po le Fr ee S ta nd in g D isp la y W a ll S pa ce Po le Fr ee S ta nd in g D isp la y W a lk w a y W a ll Sp a ce Ba ck lit Ba ck lit D isp la y D ig ita l D isp la y Po le s Fr ee S ta nd in g D isp la ys Br oc hu re s Ra te C ar d 20 16 -2 01 7 Contact Us Any questions about advertising in the Roberts Field Municipal Airport please contact Zach Bass. Zach Bass Airport Director 541-504-3499 RDM@flyrdm.com Tammy Rohach Office Assistant 541-504-3497 Roberts Field: Advertising & Asset Mix L. Bossert, S. Emmerson, M. Holland, E. Martin, K. Wight BA 453H | University of Oregon | Winter 2016 • Project Objectives and Approach • Roberts Field at a Glance • Current Advertising Assets & Utilization • Comparable Airports & Industry Analysis • Suggestions for Asset Use • Rate Card • Action Plan Overview Project Objectives & Approach GOAL: Increase annual advertising revenue • New ad methods, new signage new sponsorship tactics • Passenger demographic assumptions • Primary & secondary research • Rate card Project Objectives & Approach • New ad methods, new signage new sponsorship tactics • Passenger demographic assumptions • Primary & secondary research • Rate card Project Objectives & Approach • New ad methods, new signage new sponsorship tactics • Passenger demographic assumptions • Primary & secondary research • Rate card Project Objectives & Approach • New ad methods, new signage new sponsorship tactics • Passenger demographic assumptions • Primary & secondary research • Rate card Project Objectives & Approach Roberts Field at a Glance • 236,000 annual enplanements (~47,200 monthly) • 15 daily flights • Low wait time Roberts Field at a Glance • 6.87% increase in passenger traffic • Record number passengers served (524,338) Annual Increase in Passenger Traffic 2013-14 More flights & passengers… Opportunity for more revenue! • 35% in 2000-2010 • projected 24% in 2010-2020 • projected 23% in 2020-2030 Growth of Deschutes County Current Advertising Assets & Utilization 1. Backlit displays / rotating television advertisements 2. Dioramas 3. Sponsored brochure racks Current Advertising Assets & Utilization Three types of advertising options: • Transitioning to 100% TV ads • Significant interest from advertisers • Easy to add, change, and discontinue ads Current Advertising Assets & Utilization Backlit displays / rotating television advertisements • Largest revenue source • Seemingly out-of-place in baggage area • Underpriced given traffic and size of installation Current Advertising Assets & Utilization Dioramas Current Advertising Assets & Utilization Sponsored Brochure Racks • Many customers, little revenue Current Advertising Assets & Utilization Restrained pricing structure… Revenue from each ad type is limited $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ • Underutilized space • Aesthetic and theme of airport Weaknesses & Opportunites Weaknesses & Opportunites • Underutilized space • Aesthetic and theme of airport • Ineffective pricing structure • No use of agency representation for advertising Weaknesses of Current Strategies • Ineffective pricing structure • No use of agency representation for advertising Weaknesses of Current Strategies • Lack of human resources • City Council approval process Weaknesses of Current Strategies • Lack of human resources • City Council approval process Weaknesses of Current Strategies Analysis of Current Advertising Current Advertising at the Roberts Field Strengths Weaknesses 1. Growth and expansion opportunities available 2. Airport has experienced significant expansion and increases in passenger traffic 3. Ongoing transition from backlit displays to rotating television advertisements 1. Underutilized space 2. Currently offer only three types of advertising 3. No flexible pricing structure 4. Lack of human resources to maintain current and potential advertising contracts Comparable Airports Comparable Airports Augusta, GA Grand Junction, CO Chattanooga, TN Rapid City, IA Industry Analysis • Disposable income has increased • Tourism to U.S. has increased Economic • Disposable income has increased • Tourism to U.S. has increased Economic • 23% of Gen X and Baby Boomers signed up for frequent flyer programs • Advent of Internet ––> increased price sensitivity and price transparency Sociocultural & Demographics • 23% of Gen X and Baby Boomers signed up for frequent flyer programs • Advent of Internet ––> increased price sensitivity and price transparency Sociocultural & Demographics • Land planning around airports increasingly focused on sustainability and environmental quality Environmental Suggestions for Asset Use • Reaches both travelers AND transportation providers • Partnership with numerous outdoor-oriented businesses and activities in Central OR • Example partnership: Deschutes County Fair & Rodeo Outdoor Asset Inclusion • Low-cost, high-impact opportunity to market to all travelers entering the airport and going through security • Example campaign: Zappos in airport security bins • Roberts Field application Indoor Asset Inclusion • Example: Ford Fusion @ Budapest Int’l • Potential partnerships: Subaru of Bend, Les Schwab Sponsored Advertising Opportunities Sponsored Advertising Opportunities Sponsored Advertising Opportunities Rate Card Flexible Rate Card Overview Creation of the Rate Card Creation of the Rate Card Map of Roberts Field Advertising Zones Map of Roberts Field Advertising Zones Map of Roberts Field Advertising Zones Creation of the Rate Card 1. Last year’s numbers for enplanement/deplanement 2. Benchmark cost per enplanement for the year 3. Mark-ups (only factor that requires approval from City Council) Flexibility of Rate Card The rate card can be changed each year these factors: Rate Card ROI Conservative estimated revenue growth: 172% • Advertising sales • Asset utilization and minimum number of advertisements under contract in each zone • Contract length and customer mix • Number of sponsorships and revenue from sponsorships Rate Card Key Performance Indicators Media Kit ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Why Roberts Field? Roberts Field functions as the Municipal Airport for Redmond, OR, servicing the residents of Central Oregon. Roberts Field benefits from high tourism year-round in Central Oregon. Central Oregon includes Crook, Deschutes, and Jefferson Counties. Deschutes County was the 7th fastest growing county in the U.S. in 2015 and the city of Bend grew 47% between 2000 - 2010 Roberts Field services 47,227 passengers monthly with 14 flights operating out of the airport daily. Currently, RDM has four air carriers: Alaska, American, Delta, and United. RDM also serves air cargo and general aviation traffic, including corporate and business travel using charter planes. ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Wall Space Roberts Field Municipal Airport has a variety of wall space throughout the airport where advertisers could capture traveler’s attention. Be creative! Zone B Wall Space – 60” x 80” (4 available) Zone C Wall Space Above Security – 60” x 80” (1 available) Above Gate E – 80” x 80” (1 available) Above Gate A – D – 36” x 80” (1 available) Stair Case Area – Ask for details ! Zone D Wall Space – 12” x 36” (5 available) Zone E Walkway Wall Space – Ask for details ! Media Kit !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Map of Roberts Field Municipal Airport Zone A Zone B Zone C Zone D Zone E Annual Zone A $3,046 Zone B $6,701 $3,807 Zone C Wall Space $3,063 $6,126 $4,594 $7,657 $3,063 $6,126 Zone D $2,680 $1,531 $1,914 Zone E $4,543 $3,786 $3,029 $1,893 $3,786 $510! Dec . 325 716 407 316 631 473 789 316 631 276 158 197 503 419 335 210 419 50! Nov. 295 649 369 299 598 449 748 299 598 262 150 187 486 363 290 182 363 50! Oct. 302 665 378 306 611 459 764 306 611 267 153 191 449 374 299 187 374 50! Sept . 307 675 383 311 621 466 777 311 621 272 155 194 454 378 303 189 378 50! Aug. 358 788 448 365 731 548 913 365 731 320 183 228 526 439 351 219 439 50! Jul. 364 801 455 358 717 537 896 358 717 314 179 224 555 463 370 231 463 50! Jun. 325 716 407 326 653 489 816 326 653 286 163 204 486 405 324 203 405 50! May 276 607 345 273 547 410 683 273 547 239 137 171 418 348 278 174 348 50! Apr. 262 576 327 262 524 393 655 262 524 229 131 164 393 327 262 164 327 50! Mar. 280 615 350 280 561 421 701 280 561 245 140 175 419 349 279 174 349 50! Feb. 240 528 300 242 483 362 604 242 483 211 121 151 358 298 239 149 298 50! Jan. 249 547 311 265 530 397 662 265 530 232 132 166 349 291 233 145 291 50! Pole Banner Wall Space Poles Above Security Above Gate E Above A-D Staircase Area Main Pole Free Standing Display Wall Space Pole Free Standing Display Walkway Wall SpaceBacklit Backlit Display Digital Display Poles Free Standing Displays Brochures Rate Card 2016-2017 Action Plan Action Plan 1 Implement Rate Card Include Lamp Posts Implement improved asset mix utilization and zones Pursue sponsorship opportunities to increase advertising revenue Development of KPIs for new assets, pricing strategy and sponsorships 2 3 4 5 Action Plan cont’d. Hiring of additional Airport Staff Write job posting + begin hiring processDetermine funding, base compensation needed, and approach Council if neededCreate position + determine chain of commandDetermine job scope, title and responsibilities for new position Questions? Lian Bossert Shannon Emmerson Mike Holland Emily Martin Katie Wight March 13, 2016 !2 Table of Contents Executive Summary ………………………………………………………………2 Project Objectives and Approach …………………………………………………5 Introduction: Redmond and Roberts Field Today ……………………………….9 Current Assets, Strategies & Infrastructure ………………………………………19 Industry Analysis ……………………………………………………………………32 Recommendations: Use and Positioning of Assets ……………………………41 Recommendations: Pricing of Assets………………………………………………51 Summary of Action Plan and Next Steps …………………………………………61 Bibliography……………………………………………………………………………64 !3 Objectives Roberts Field is seeking to increase advertising revenue, while promoting its authentic Central Oregon atmosphere. This project analyzed Roberts Field’s current asset mix use and potential opportunities for increased advertising and creative campaigns. We recommended the creation of a media kit with a flexible advertising rate card, providing advertisers with standardized pricing information and details of the assets available. The flexible rate card will allow Roberts Field to maximize advertising revenue based on demand, and increase efficiency by only requiring a one-time approval from council, allowing the airport to maintain greater autonomy over its advertising operations. Findings Our team conducted primary research at Roberts Field; specifically we interviewed the Director of Airport Business, Zachary Bass, and toured the space. From this research we were able to determine the airport’s current organization and execution of advertising efforts, assess and zone the airport’s assets based on estimated impressions, and identify underutilized or potential new assets for inclusion in the overall asset mix. Overall Roberts Field has experienced significant expansion and increases in passenger traffic, which provide additional advertising opportunities as well as potential increases in advertising revenue. Secondary research of regional airports nationwide identified comparable airports based on enplanements, number of airlines and number of daily flights. Four regional airports with similar profiles who also were popular recreational destinations that matched the profile of Roberts Field. Through analysis of advertising methods and pricing of comparable airports, we gained a better understanding of how to maximize revenue while minimizing clutter. We also recommend the increased use of sponsored advertisements that provide functional benefits for travelers while maintaining or improving the airport experience. Examples of these include Hydro Flask sponsored water refill stations and an OSU Cascades sponsored charging station. Trends that affect airport marketing as well as successful marketing campaigns implemented at other airports also demonstrate the opportunities for partnerships with potential advertisers or sponsors that align with Roberts Fields’ profile and aesthetic. Executive Summary !4 Findings The airports we found that were similar in size and maintained similar travel purposes had inconsistencies of advertising prices. We tried to use cost per impression (CPM) of comparable airports to find consistencies however they yielded a wide range of prices. Therefore even though some factors were comparable, the inconsistencies made it so that the comparable airports could not be utilized or applied in this project for rate card research purposes. Recommendation A new advertising plan, comprised of consistently priced zones based on traveler impressions, as well as improvements to the airport’s current asset mix use are all included in this project. Potential sponsorship or partnership opportunities that Roberts Field should pursue to increase its advertising revenue also exist and should be a priority for management. Throughout its execution Roberts Field should focus on providing a quality experience for its travelers by selecting advertisements that align with the airport’s aesthetic and traveler preferences. We furthermore recommend the use of a flexible rate card, which would allow Roberts Field to bypass the process of multiple council meetings to receive approval for individual fee changes, and maintain greater autonomy over its pricing. Additionally, we recommend minor infrastructure changes including the transformation of outdoor lamp posts into viable assets to include into the advertising mix. Finally, due to the lack of human resources available, we created a detailed action plan recommend Roberts Field hire a dedicated advertising personnel. A cost estimate based on similar positions researched from advertising agencies and other small regional airports is included in the report. Executive Summary !5 Table of Contents Executive Summary …………………………………………………………………2 Project Objectives and Approach ………………………………………………5 Introduction: Redmond and Roberts Field Today ……………………………….9 Current Assets, Strategies & Infrastructure ………………………………………19 Industry Analysis ……………………………………………………………………32 Recommendations: Use and Positioning of Assets ……………………………41 Recommendations: Pricing of Assets………………………………………………51 Summary of Action Plan and Next Steps …………………………………………61 Bibliography……………………………………………………………………………64 !6 The overall objective for the project is to increase the annual advertising revenue Roberts Field generates through the development of new methods, signage, and sponsorship tactics. While maximizing the value of the assets, is it essential to maintain the Central-Oregon aesthetic of the airport and its core positioning. In addition, Roberts Field requested the creation of an advertising rate card to ensure the accurate pricing of the asset mix. Passenger Demographics Assumption In order to accurately analyze Roberts Field’s passengers and complete our project, it was necessary to make a key assumption about the target audience. Currently, RDM does not collect any demographic or psychographic information on passengers, and thus we used the demographics of Central Oregon to represent those of the airport. Since the demographics of typical passengers affects potential advertisements that would target these groups, any future information about passengers may require adjustments to our recommendations. Primary Research To better understand the current advertising situation at Roberts Field, our team began by conducting primary research at the airport. We toured the airport and viewed current advertisements, available assets, and potential opportunities for future advertisements. In addition, we also wanted to understand the outdoor-themed brand image that the airport portrays and wants to sustain. We also interviewed Airport Director, Zachary Bass to gain additional insight into the operations of the airport, to better understand its objectives, and to gain an understanding of previous advertising ideas and current advertising strategies. Project Objectives and Approach !7 Secondary Research Once we gained a better understanding of RDM’s practices and objectives, our team began conducting research about the airport industry, potential advertising techniques, and other small municipal or regional airports. We completed a macro environmental scan to examine key trends in the external environment affecting the airport industry. We researched successful advertising techniques that involved guerrilla marketing at other airports. This enabled us to develop potential advertising options for RDM that we believed would be most successful and best use its assets. We researched small regional airports that are similar in number of enplanements to RDM. Originally we focused on twelve airports, but narrowed this to four in order to examine airports that more closely matched RDM in terms of the number of airlines, number of flights, and purpose of travel. We focused on the following airports: Rapid City Regional Airport (South Dakota), Augusta Regional Airport (Georgia), Chattanooga Metropolitan Airport (Tennessee), and Grand Junction Regional Airport (Colorado). Project Objectives and Approach !8 Rate Card In order to optimize revenue from Redmond’s asset mix, we created a flexible rate card that priced each advertising asset individually. In order to determine a basis for the pricing structure, we used the cost per enplanement (CPE) as well as amount of passenger traffic around the area where the ad would be placed. Price was provided by month to ensure Roberts Field maximized revenue during its busier seasons. A markup was applied to the advertisements to determine the ending price. All elements of the card can be easily updated by airport management as it gains experience and market feedback. Project Objectives and Approach Redmond Municipal Airport Rate Card 2016 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. Zone A Pole Banner 249 240 280 262 276 325 364 358 307 302 295 325 Zone B Wall Space 547 528 615 576 607 716 801 788 675 665 649 716 Poles 311 300 350 327 345 407 455 448 383 378 369 407 Zone C Wall Space Above Security 265 242 280 262 273 326 358 365 311 306 299 316 Above Gate E 530 483 561 524 547 653 717 731 621 611 598 631 Above Gate A-D 397 362 421 393 410 489 537 548 466 459 449 473 Stair Case Area 662 604 701 655 683 816 896 913 777 764 748 789 Main Pole 265 242 280 262 273 326 358 365 311 306 299 316 Free Standing Display 530 483 561 524 547 653 717 731 621 611 598 631 Zone D * Wall Space 232 211 245 229 239 286 314 320 272 267 262 276 Poles 132 121 140 131 137 163 179 183 155 153 150 158 Free Standing Display 166 151 175 164 171 204 224 228 194 191 187 197 Zone E Walkway Wall Space 349 358 419 393 418 486 555 526 454 449 436 503 Backlit Display 291 298 349 327 348 405 463 439 378 374 363 419 Digital Display ** 233 239 279 262 278 324 370 351 303 299 290 335 Poles 145 149 174 164 174 203 231 219 189 187 182 210 Free Standing Displays 291 298 349 327 348 405 463 439 378 374 363 419 Brochures 50 50 50 50 50 50 50 50 50 50 50 50 ! *Includes the upstairs areas above the terminal **For 10 seconds in a loop !9 Executive Summary …………………………………………………………………2 Project Objectives and Approach …………………………………………………5 Introduction: Redmond and Roberts Field Today ……………………………9 Current Assets, Strategies & Infrastructure ………………………………………19 Industry Analysis ……………………………………………………………………32 Recommendations: Use and Positioning of Assets ……………………………41 Recommendations: Pricing of Assets………………………………………………51 Summary of Action Plan and Next Steps …………………………………………61 Bibliography……………………………………………………………………………64 Table of Contents !10 General Information Roberts Field functions as the municipal airport for Redmond, Oregon, servicing the residents of Central Oregon. Roberts Field is geographically attractive to the regions as alternative airports require long drives over mountain passes. Roberts Field located in Deschutes County, benefits from high tourism year-round in Central Oregon. The total air service catchment area encompasses a population of approximately 240,000 (RDM - United Airlines Meeting Presentation). The airport was originally built in 1922 for use as a military airfield, and still houses a WWII bomber hangar. In 2009, Roberts Field underwent a large scale terminal expansion, increasing its facility area by 600% (RDM - Market Rent Study). This most recent renovation created additional passenger terminal areas, concessions and additional passenger amenities. Roberts Field at a Glance !11 Flight Information Among other regional airports studied, Roberts Field is on the medium-lower end in terms of its current flight services. Roberts Field services 47,227 passengers monthly, totaling 236,000 annual enplanements in 2015, with 14 daily flights (RDM - Airport Website). Currently, RDM is serviced by four air carriers: Alaska, American, Delta, and United. RDM also serves air cargo and general aviation traffic, including corporate and business travel using charter planes. By comparison Roberts Field’s highest retention rates within the top 25 domestic markets include: Seattle, San Francisco, Portland, Orange County, and Ontario, each with retention rates greater than 85% (RDM - United Airlines Meeting Presentation). Roberts Field at a Glance !12 Physical Plant Growth and Route Expansion Roberts Field has undergone rapid growth over the past several years and is currently working on two major expansion and development projects. At present, the airport is in the second phase of a runway rehabilitation project involving reconstructing and upgrading the runways. Furthermore, the airport just received a $500,000 federal grant to expand commercial air service to Phoenix Sky Harbor International (RDM - Website). Passenger Growth Roberts Field is also experiencing increases in passenger traffic each year as evidenced by a growing market and a record number of enplanements. From 2013 to 2014, the airport experienced a 6.87% increase in passenger traffic and served a record number of 524,338 passengers (RDM - Website). This trend is continuing to increase in 2015 as shown by an 8.6% increase in total passenger traffic from July 2014 to July 2015 (RDM - Website). To accommodate the increasing number of passengers, airlines such as Alaska Airlines have begun to add new routes. With more flights and increased passengers, Roberts Field should be able to generate more advertising opportunities and increase its advertising revenue by taking advantage of this growth. Low Wait Time The airport is extremely efficient, as it takes a very short amount of time to check in and go through security. Additionally, because Roberts Field is not a hub for connecting flights and layovers, passengers do not spend much time waiting for their plane. Due to this low wait time, people might not see or pay attention to advertisements. However, even though there is a low wait time, everyone has to enter through the security area, which contains a lot of unutilized space in which Roberts Field can display unique guerilla marketing advertisements that attract and capture the attention of passengers. Significant Growth and Development of Roberts Field !13 The Environment of Roberts Field: Catchment Area Roberts Field (RDM) Catchment Area !14 Deschutes County is Oregon’s fastest growing county and was the seventh fastest growing county in the United States in 2015; the County has experienced significant population growth over the past 10 years and is expected to continuing growing. Between 2000 and 2010 population grew 35%, and population is expected to continue growing in the next two decades (2010-2020 and 2020-2030) by 24% and 23% respectively (RDM - United Airlines Meeting). A majority of people migrating to Deschutes County are from Portland, Seattle, Los Angeles, San Francisco, and Phoenix (RDM - United Airlines Meeting). Interestingly, all of these cities currently have direct flights to and from Roberts Field, except Phoenix which is currently in development. As population continues to grow, more people can and will begin to fly through RDM. As a result, the airport will be able to increase ad impressions and generate more advertising opportunities and revenue. The Environment of Roberts Field: Growth of Deschutes County !15 Central Oregon offers a friendly small town feel environment for its residents and provides year-round recreation options. Central Oregon includes Crook, Deschutes and Jefferson Counties. Deschutes County was the 7th fastest growing county in the United States in 2015, and the city of Bend grew by 47% between 2000-2010 (EDCO 2015). The Environment of Roberts Field: Central Oregon Crook County Deschutes County Jefferson County • Prineville • Unincorporated • Bend • La Pine • Redmond • Sisters • Unincorporated • Culver • Madras • Metolius • Unincorporated !16 The average traveler in the Tri-Country area is white and between the ages of 18-64. This is important to advertisers when creating its advertisements. It indicates who are primary travelers are walking through the Robert Field airport. The Environment of Roberts Field: Population Breakdown 1% 12% 7% 1% 79% White Asian American Indian and Alaskan Native Hispanic/Latino Black or African American Native Hawaiian/Other Pacific Islander Tri-County Demographic Breakdown (Source: EDCO 2015) 18% 60% 22% Ages 0–17 Ages 18–64 Ages 65+ Population by AgePopulation by Race !17 In 2001, Oregon State University established a satellite campus in Bend, Oregon. This campus has grown by 150% from 2003 to 2014; the student population grew from 469 to 1,172 students (RDM - United Airlines Meeting). As OSU’s goal is to make Cascades its largest satellite campus, it is currently in the first phase of constructing a $111M campus (RDM - United Airlines Meeting). Roberts Field is capitalized on the opportunity presented by this rapidly growing campus by establishing an advertising relationship with the university, OSU Cascades’ ads are displayed across three televisions located directly outside of the baggage area. However, this opportunity can be further exploited. As OSU Cascades grows, students could use Roberts Field as their primary airport, helping bolster a stronger relationship with and creating additional advertising opportunities for the satellite campus. The Environment of Roberts Field: Expansion of OSU Cascades !18 More than 3.8 million overnight visitors travel to the Central Oregon region annually. Tourism is an $884 million year round industry in Central Oregon. The visitor travel peaks occur between June and September with a significant spike in July and August (RDM - United Airlines Meeting). The airport also experiences spikes in the summer, but the seasonality is lower than that of visitor travel. Because visitor travel is seasonal, advertising rates should reflect this seasonality. Furthermore, the airport should focus on targeting tourists in order to further increase passengers during the summer months. The Environment of Roberts Field: Seasonal Variance of Visitors Visitor Seasonality to Central Oregon Visitor Seasonality to RDM !19 Table of Contents Executive Summary …………………………………………………………………2 Project Objectives and Approach …………………………………………………5 Introduction: Redmond and Roberts Field Today ……………………………….9 Current Assets, Strategies & Infrastructure ……………………………………19 Industry Analysis ……………………………………………………………………32 Recommendations: Use and Positioning of Assets ……………………………41 Recommendations: Pricing of Assets………………………………………………51 Summary of Action Plan and Next Steps …………………………………………61 Bibliography……………………………………………………………………………64 !20 Roberts Field currently offers three types of advertising options for potential clients: 1. Backlit displays and rotating television advertisements; 2. Dioramas 3. Sponsored brochure racks However, since Roberts Field has no pricing structure for advertising, revenue from each of these types of advertising are limited. Overall, the airport’s Central Oregon location results in working with clients whose advertising is focused on the appeal of tourism in the area. RDM’s current assortment of advertising options, themes of advertisements, utilization of space, and pricing sets the stage for future recommendations. Current Assets, Strategies, and Infrastructure at Roberts Field !21 Current Customers Advertising at Roberts Field Company Name Company Base Industry AHM Brands Eugene Oregon Advertising Company Bank of the Cascades Headquarters Central Oregon Banking Becky Breeze & Company Bend Oregon Real Estate Bend Factory Outlets Bend Oregon Retail Bend Towncars of CO Bend Oregon Transportation Best Western Rama Inn Redmond Oregon Tourism Black Butte Ranch Central Oregon Tourism BusinessAir Redmond Oregon Transportation Captive Media Solutions Redmond Oregon Advertising Company Cascade Sotheby's International Oregon/SW Washington Real Estate Central Oregon Visitor Guide Central Oregon Tourism Central Oregon Visitors Association Central Oregon Tourism Central Oregonian-Crook County Visitors Guide Central Oregon Tourism Century 21 Gold Country Central Oregon Real Estate Checker Cab Bend Oregon Transportation Coldwell Banker - Prineville Real guide Prineville Oregon Real Estate Comfort Suites Airport Redmond Oregon Tourism Deschutes Brewery Bend/Portland Oregon Tourism Deschutes County Historical Society Central Oregon Tourism First Church of Christ Scientist Reading Room Central Oregon Religious Greater Redmond Historical Society Redmond Oregon Tourism High Desert Museum Bend Oregon Tourism Holiday Inn Express Hotel & Suites Redmond Oregon Tourism Indian Head Casino/Catalyst Marketing Co Central Oregon Tourism Jefferson County Historical Society Central Oregon Tourism John L. Scott OR/WA/ID Real Estate Juniper Golf Course Redmond Oregon Tourism Advertiser Breakdown % of Business Advertising Company 3% Banking 2% Corporate 3% Lottery 2% Real Estate 17% Religious 2% Retail 3% Tourism 60% Transportation 10% !22 Current Customers Advertising at Roberts Field Company Name Company Base Industry La Pine Visitor Guide Central Oregon Tourism Lorenzo Ghiglieri Redmond Oregon Retail Lost Tracks Golf Course Bend Oregon Tourism Marriott Fairfield Inn & Suites Redmond Oregon Tourism Mesa Convention & Visitors Bureau Arizona Tourism Mid Oregon Personnel Bend Oregon Corporate Motel 6 Location # 4076 Redmond Oregon Tourism Northwest Mortgage Advisors Redmond Oregon Real Estate Ochoco Inn (Econolodge) Prineville Oregon Tourism Old Mill District Bend Oregon Tourism Oregon Resort Acquisition Partners / Brasada Bend Oregon Corporate Oregon State Lottery Commission Oregon Lottery Outlaw Cab Sisters Oregon Transportation Oxford Hotel, The Bend Oregon Tourism Ponderosa Properties Sisters Oregon Real Estate Pronghorn Golf, LLC Bend Oregon Tourism Re/Max Key Properties Bend Oregon Real Estate Real Estate Book of Central Oregon Bend Oregon Real Estate Redmond Chamber/ Visitor and Business Guide Redmond Oregon Toursim Redmond Inn Redmond Oregon Tourism Redmond Taxi Redmond Oregon Transportation Sisters Oregon Guide Sisters Oregon Toursim Sleep Inn & Suites Redmond Oregon Tourism Sunriver Magazines Bend Oregon Tourism Sunriver Resort Bend Oregon Tourism Advertiser Breakdown % of Business Advertising Company 3% Banking 2% Corporate 3% Lottery 2% Real Estate 17% Religious 2% Retail 3% Tourism 60% Transportation 10% !23 Current Customers Advertising at Roberts Field Company Name Company Base Industry Super 8 Redmond Redmond Oregon Tourism Taxis of Bend Bend Oregon Transportation Tetherow Golf Club Bend Oregon Tourism Visit Bend Bend Oregon Tourism Warm Springs Museum Central Oregon Tourism Where to Eat Guide Oregon Tourism Advertiser Breakdown % of Business Advertising Company 3% Banking 2% Corporate 3% Lottery 2% Real Estate 17% Religious 2% Retail 3% Tourism 60% Transportation 10% !24 Backlit displays cover the walls surrounding the airport’s baggage claim area. Many of the advertisements currently displayed are old – their contract has already expired – and some companies are thus receiving free advertising. However, one of the main reasons for this is RDM’s current transition from backlit displays to rotating television advertisements (Bass). Thus, RDM is replacing the backlit displays with televisions that will rotate 10-second company advertisements. Attractive Medium These television advertising slots have already garnered significant interest from companies and will eventually become the main form of advertising at RDM. The digital nature of these ads make them especially valuable to companies. Specifically, it is much easier for companies to create seasonal ads or change their ad to reflect events or special offers. This interchangeability also enables RDM to discontinue ads after the contract expires, which is currently difficult to execute quickly. Missing Revenue Opportunity Currently, a flat rate is applied to every back-lit display and rotating television ad, despite seasonal fluctuations in passenger traffic and differing numbers of impressions based on location within the airport. Both back-lit displays and a single 10 second rotating spot on a television are $300 per month (RDM - Fee Schedule). To better leverage assets and extract maximum revenue, RDM needs a flexible rate card to take full advantage of the changes in the value of available advertising space (recommended rate card is presented later in this report). Current Asset Mix: Backlit Displays and Rotating Television Ads !25 Major Revenue Source The largest ad revenue source for Roberts Field, dioramas are currently present only in the baggage claim area representing lodges in the region. The companies buying diorama space are responsible for installing the structure and pay $300 per month plus installation costs (RDM - Diorama Advertising Contract). Underpriced Asset Although dioramas are located in one of the most heavily trafficked areas of the airport, they are not priced accordingly. Furthermore, the pricing does not take into account differences in available diorama size – thus two companies could be paying the same amount for dioramas drastically different in size. Pricing issues aside, many of the diorama displays are not aesthetically pleasing and seem out of place in the baggage claim area. For example both pictures shown to the right, have very different themes and are selling very different products to the same consumer. Current Asset Mix: Dioramas !26 Promoting Businesses Because Roberts Field is focused on creating an outdoorsy, log-cabin image, it is important for it to maintain this identity and attract advertisers who promote tourism. A common method of promotion is offering sponsored brochure racks, located in the baggage claim area. Lots of Customers, Little Revenue Only a small portion of RDM’s advertising revenue comes from sponsored brochure racks due to their low cost. However, according to RDM’s Advertising List, the number of companies that advertise by sponsoring a brochure rack is quite high. However, because the rental rate is low, the proportion of revenue from sponsored brochure racks is significantly lower than the proportion who advertise in this way (RDM - Advertising List). Companies have the option to sponsor either a 4” x 9” or 9” x 11” brochure rack, each costing $50 per month (RDM - Brochure Rack Advertising Contract). Current Asset Mix: Sponsored Brochure Racks !27 Underutilized Space Roberts Field is 132,000 square feet and has 8 gates (RDM - United Airlines Meeting). Amidst this, there are several open spaces and blank walls, providing an untapped opportunity. RDM can use blank spaces to advertise in unique and creative ways that highlight the region and support its brand image. The unutilized space, particularly near gates, is attractive to potential advertising clients and is an important asset when convincing companies to advertise at the airport. RDM has a variety of options, including varying numbers of impressions and differing square footage amounts, which allows partners to tailor how it advertises. Weaknesses & Opportunities in Roberts Field’s Advertising !28 Aesthetic and Theme of the Airport Currently, Roberts Field wants to promote an outdoor image centered around a log cabin feel. The airport wants advertisements to be in line with this image, which may limit the appeal of the airport to an even larger and growing number of businesses in Central Oregon. For example, entrepreneurship and new business are thriving in Central Oregon, but may be deterred by a perceived focus on tourism and hospitality. It is important for RDM to consider other businesses that do not fall into the outdoor market when pursuing potential advertising clients to ensure that they do not limit potential clients and advertising revenue. These business could advertise in unique and creative ways that are still in line with RDM’s aesthetic. Weaknesses & Opportunities in Roberts Field’s Advertising !29 Ineffective Pricing Structure The airport currently does not have an effective pricing structure or rate card for advertising. Rates do not reflect the differential value of an asset, nor that value during different times of the year. As previously noted, Roberts Field only offer companies three potential ways to advertise at the airport – backlit displays / rotating television advertisements, dioramas, and sponsored brochure racks. These restrictions limit and disincentivize potential advertising clients in the type of advertisements that they can display. Companies also have no concept of how much these ads will cost, further disincentivizing them. Therefore, RDM is not able to effectively communicate the value of assets and advertising space to potential clients. No Use of Agency Representation for Advertising Roberts Field does not use an advertising agency, such as Clear Channel or Lamar, to provide advertising management and custom exhibits for the airport. This gives Roberts Field more control over its advertising, the potential relationships it pursues, and the type of advertising that is displayed. However, the lack of an agency challenges RDM’s desire to maximize asset use and optimize revenues. Ad agencies have established relationships with more potential advertising clients and also provide the option of destination advertising, which involves advertising a specific city.The potential for incremental revenue from a broader range of customers, must be balanced against the costs of these firms. Weaknesses of Current Operational Strategies !30 Lack of Human Resources in Airport for Advertising Roberts Field does not have a marketing staff sufficient to keep track of advertising, analyze airport demographics, contact potential advertisers, create a rate card for advertisements, and maintain contracts. An increase in the number of human resources would allow RDM to take advantage of new advertising opportunities and increase revenue. Currently, many companies directly contact and want to advertise with RDM. However, the current human resources make it difficult to pursue new advertising contracts. Thus, we believe it is critical to hire a new person who specializes in marketing in order to maximize potential revenue from advertising. City Council Approval Process As Roberts Field is publicly owned by the city of Redmond, the Redmond City Council and the Airport Commission must approve the airport’s budget and any additional funding that it requires. Similarly both would need to approve the proposed rate cards. This approval process can take two to three months and can lead to a loss of opportunities and potential advertisers (Bass). In order to bypass this inefficient process, the airport should incorporate a flexible rate card that would only need to be approved by Council once. This would make the approval process much more efficient and would enable the airport to take advantage of unique and time-sensitive opportunities, which would lead to an increase in advertising revenue. Weaknesses of Current Operational Strategies !31 Analysis of Current Advertising Analysis of the Current Advertising at the Redmond Municipal Airport Strengths Weaknesses 1. Growth and expansion opportunities available 2. Airport has experienced significant expansion and increases in passenger traffic 3. Advertising is consistent with the outdoor image of the airport 4. Ongoing transition from backlit displays to rotating television advertisements 5. Strong relationship with the community leading to advertising contracts 1. Unutilized space 2. No pricing structure 3. Loss of potential advertising clients 4. Currently only three types of advertising 5. Seasonality of visitors to the airport – peak travel occurs in the summer months 6. Not receiving revenue from the current backlit displays being replaced (unintended free advertising) 7. Lack of human resources to maintain current advertising contracts 8. Dioramas are not aesthetically pleasing 9. No existing relationships with national companies who could generate more revenue through larger contracts !32 Table of Contents Executive Summary …………………………………………………………………2 Project Objectives and Approach …………………………………………………5 Introduction: Redmond and Roberts Field Today ……………………………….9 Current Assets, Strategies & Infrastructure ………………………………………19 Industry Analysis …………………………………………………………………32 Recommendations: Use and Positioning of Assets ……………………………41 Recommendations: Pricing of Assets………………………………………………51 Summary of Action Plan and Next Steps …………………………………………61 Bibliography……………………………………………………………………………64 !33 There are several macro environment trends that are affecting the industry, below is the analysis of the political, economic, sociocultural, technological changes that are affecting the airline travel industry. These trends could potentially be affecting the value and provide opportunities for advertisers. Political Although the airline industry is highly regulated through several government agencies, the US government have recently begun an investigation of the airline industry about antitrust conduct. Over the past year, the Department of Justice has been investigating anticompetitive, anti-consumer conduct and misuse of market power. “Consumers are paying sky-high fares and are trapped in an uncompetitive market with a history of collusive behavior” (Benton). These allegations, coupled with other cost- saving indicators such as fees, put pressure on the airline industry and will likely change the operational structure of the airlines. To the extent that fare changes result, traffic into and out of RDM could be affected. Economic The health of the economy and the amount of consumers’ disposable income can highly impact the airline industry based on frequency of travel. Currently, demand for domestic and international travel is projected to increase over the next five years (Haider). Another economic factor is the price of crude oil. The price has been declining over the past year (2015) but could be volatile in the future. If oil prices rise in the future, it will potentially hurt the airlines margins and the added cost of oil could be translated on to the airline ticket prices which will decrease the incentive to take a plane instead of other forms of transportation. Conversely, if prices continue to drop, audiences may begin to pass some of these savings to passengers, thus stimulating travel. Lastly, tourism to the US from other countries has increased. International tourism can help the U.S. economy (and airline industry specifically) by increasing the number of domestic travellers in and around the United States. Accordingly, the demand for flights will increase (Haider). Macro Environment Analysis !34 Sociocultural - Demographics As Baby Boomers enter retirement, their demand for vacation and leisure travel will increase, thus pushing demand up for air travel as well. According to a national consumer study, at least 23% of both Generation X and the Baby Boomers are signed up for frequent flyer miles. 30% of travelers overall said they book their travel arrangements online. (Advertising Age). The increase in Internet usage simplifies booking and facilitates searching in a way that addresses passengers’ price sensitivity. This then promote an increase in inter-airline competition. Sociocultural - Psychological In 2014, people spent on average disposed of around 37% of their income. In fact, from 2009 to 2014 consumer spending increased in general by 23%. With more disposable income, consumers are able to vacation more often, thus taking more flights (Euromonitor International - Income and Expenditure: USA). The more consumers are spending their income rather than saving, it will influence how much they travel and take flights. If consumers are willing to spend more they will be less price sensitive to airline’s ticket prices and willing to purchase from high-end airlines to have comfortable flight. Technological The traffic control system used by airports is changing from the current ground-based system to a satellite-based one. This new technology in the industry will save time and fuel, shorten airline routes and reduce traffic delays. A more precise traffic control system will enhance safety concerns (Haider). As noted above, flight prices readily available online to consumers and competitors fosters greater price competition between the major airlines. At the same time we are seeing an increase in the amount of add-on fees imposed on the consumers (Szopinski and Nowacki). Macro Environment Analysis !35 Environmental Across the country, local planning officials have begun implementing policy to use the land around the airport to improve sustainability and overall environmental quality (Dillingham). Due to noise and environmental zoning restrictions, local officials are trying to convert the surrounding space for farming or recreational purposes. A great example at Alliance Airport in Texas: the land around the airport has been leased for cattle “walking routes” as well as a golf course. Legal The airport operations industry is highly regulated, as private ownership of airports is prohibited by law. The Department of Transportation (DOT) and Federal Aviation Administration (FAA) classify airports on the basis of their annual traffic. No changes in regulations have been made recently, although legislation in 2010 requiring an evaluation of blast-resistant containers was implemented (Haider). Macro Environment Analysis !36 With a baseline understanding of macro trends affecting airports overall, as well as marketing and advertising specific trends, it was important to see what lessons could be learned from airports around the country. Initially, we identified twelve as comparable airports to Roberts Field based on the number of enplanements in 2015. After a preliminary review the initial twelve airports were focused down to four or five that more closely matched Roberts Field in terms of the number of airlines, number of flights, and purpose of travel. The profiles and advertising strategies of these four provided a comparative model for recommendations to Redmond. A thorough analysis below identifies the main facts, airlines, and advertising information of the four most comparable U.S. airports. Comparable Airports to Roberts Field !37 Fast Facts • Number of annual enplanements: 279,526 • Number of flights a day: 21 Airlines • Delta • American Airlines Cities for Daily Flights • Atlanta (Delta) • Charlotte (American Airlines) Advertising Management Departure Media handles advertising at the Augusta Regional Airport. It specializes in airport advertising at 11 different airports on the East Coast. All the displays in the airport monitored by Departure (Departure Media - AGS). Other Information Airport first established as a flight training school for the U.S. military Became a significant travel hub for the Central Savannah River Area Peak number of flights and passengers during The Masters (professional golf tournament in April) Augusta Regional Airport (AGS) - Georgia !38 Fast Facts • Number of annual enplanements: 292,830 • Number of flights a day: 20 Airlines • Allegiant • American • American Eagle • Delta Cities for Daily Flights • Atlanta • Charlotte • Chicago-O’Hare • Dallas/Fort Worth • Detroit • Orlando • Tampa • Washington-Dulles Advertising Rate Card Chattanooga Metropolitan manages its own advertising. The airport offers various media where companies and businesses can advertise to particular target markets. Blake Poole is the contact for the advertisements in the airport. Other information • Notary service • The Gig entertainment lounge, equipped with iPads, an XBOX, big-screen HD TVs, and a recharging table where you can plug in and recharge. Chattanooga Metropolitan Airport (CHA) - Tennessee !39 Fast Facts • Number of annual enplanements (minus charters): 218,338 • Number of flights a day: 9 Airlines • Allegiant • American • Delta • United • US Airways Cities for Daily Flights • Dallas/Fort Worth • Denver • Houston-Bush • Las Vegas • Phoenix • Salt Lake City Advertising Rate Card Lamar Advertising manages Grand Junction Regional’s advertising. It specializes in outdoor/indoor advertising in the Grand Junction area. All the displays in the airport are monitored by Lamar. Other Information • Charter air services (Colorado Flight Center, and Denver Air Connection to Centennial/RMMA Airports) Grand Junction Regional Airport (GJT) - Colorado !40 Fast Facts • Number of annual enplanements: 284,126 • Number of Flights a Day - 12 (both number of departures & arrivals) Airlines • Allegiant • American • Delta • United Cities for Daily Flights • Atlanta • Chicago-O’Hare • Dallas/Ft. Worth • Denver • Houston-Bush • Las Vegas • Phoenix-Sky Harbor • Minneapolis/St. Paul • Salt Lake City Advertising Rate Card Indoor Skydoor Studios manages the indoor advertisements for the Rapid City (70% of total), while Lamar Advertising controls the outdoor ads (30%). Other Information • Strong regional reputation for safety • Number one funding source is enterprise funds (63% of total funding) Rapid City Regional Airport (RAP) - South Dakota !41 Table of Contents Executive Summary …………………………………………………………………2 Project Objectives and Approach …………………………………………………5 Introduction: Redmond and Roberts Field Today ……………………………….9 Current Assets, Strategies & Infrastructure ………………………………………19 Industry Analysis ……………………………………………………………………32 Recommendations: Use and Positioning of Assets …………………………41 Recommendations: Pricing of Assets………………………………………………51 Summary of Action Plan and Next Steps …………………………………………61 Bibliography……………………………………………………………………………64 !42 We utilized our research above to recommend a new asset mix and the creation of a flexible rate card to improve the advertising at RDM. The goals we will achieve through the recommendation are stated below. Goals • Increase asset mix at the Roberts Field • Improve pricing structure for advertisers by the use of a flexible rate card • Better utilization of the current assets • Estimate impression and create a zoning structure • Increasing advertising revenue Goals and Summary of What Recommendations Accomplish Airport Management Through the increase in advertising and the time management required to maintain the advertising in Roberts Field, we highly recommend the implementation of dedicated advertising personnel to maintain and seek out advertisers/sponsors in the airport. We created a detailed action plan of the process to hire an advertising personnel, which is included in this section. Advertising Customers Pricing Passengers Demographics of Central Oregon Comparable Airports Current Strategies of RDM Asset Mix Rate Card Revenue !43 The outdoor lampposts scattered throughout the parking areas are not currently a part of Roberts Fields’ asset mix, yet have the potential to serve as an attractive and steady source of revenue for the airport. With the 2009 expansion, the parking lot now has the capacity for over 1,000 cars (RDM - Market Rent Study). As an outdoor asset, the ability to reach not only customers flying through the airport, but also friends and family transporting them to the airport makes this an extremely attractive asset. A potential partnership opportunity exists for RDM to promote events at the Deschutes County Fairgrounds & Expo Center, such as outdoor trade shows, concerts and car shows. These events are major entertainment attractions for the residents of Central Oregon as well as visitors. For example, the Deschutes County Fair & Rodeo attracted 262,000 attendees for the four day long event (Oregon Fairs Association) in 2015, and is a highlight event for Central Oregon residents. Such large events could benefit from using outdoor signage to market upcoming events to travelers, or local businesses could advertise for lodging or other guest services. The opportunities are limitless. Another potential use could be to promote groups of businesses around a common theme, such as golf, rock climbing or skiing. For community spirit, banner promoting key community events could also be displayed. As new routes are added such as the new new route to Phoenix, these banners serve as prime advertising space for the airlines themselves to promote. Suggestions to Include Outdoor Assets into Asset Mix !44 Example Campaign: Zappos Airport Security Bins Ads Zappos sponsored advertisements in several airports in the security bins used at TSA security checkpoints. The various advertisements captured the attention of travelers as they placed their shoes in the bins and saw the advertisement for the shoe retailer. (Garrett Specialties) Zappos’ decision to sponsor the creative ad placement also provided TSA behind the scenes benefits that many travelers may not have realized. By sponsoring the bins, Zappos absorbed the cost of purchasing the branded tables, bins and maintenance fees (Magness). The reduced costs were intended to allow TSA to spend the savings on increased hiring and training of more agents to improve efficiency for travelers. Roberts Field Application RDM could reach out to local shoe retailers or other potential sponsors to achieve the same mutually beneficial partnership by displaying ads in the bottom of security bins. Shoe stores are an obvious target, but RDM could also pitch this to a variety of other local businesses Create New Small-Scale Security Assets !45 Assumptions of Brand Recommendations Roberts Field is currently in the process of gathering demographics information and conducting primary research through a survey to better understand its customers. As a result, the recommendations made for potential sponsorship opportunities and brand partnerships to pursue are based on general assumptions of the Central Oregon lifestyle and deductions based on the types of brands and companies currently advertising at Roberts Field. Airport staff can assess and alter the suggestions in this proposal as this information is developed. Build New Sponsored Advertising Opportunities !46 Example 1 - Water Stations Hydro Flask, a successful company native to Bend, Oregon produces insulated water bottles, and has extended its reach to become an internationally recognized brand. Because of the Hydro Flask brand’s alignment with outdoor enthusiasts, a potential partnership opportunity exists for RDM to pursue: Hydro Flask sponsored water refill stations throughout the airport. The water stations would be branded with the Hydro Flask logo and could potentially be outfitted in the shape of an actual Hydro Flask. This sponsorship aligns RDM’s brand image with that of Hydro Flask, all while appealing to the current Central Oregon demographic and visitors to the area. Build New Sponsored Advertising Opportunities !47 Example 2 - Baggage Claim Ford recently sponsored an advertisement at the Budapest Airport that could be applied to Redmond. Ford’s creative advertisement displayed a Fusion’s open hatch as the opening of the baggage claim carousel. The advertisement was perceived as fun and humorous, and captured the attention of travelers waiting to claim their bags (SOURCE: 1 Outdoor Advertising). This ad lays a foundation for a potential partnership at Roberts Field. Subaru of Bend is a popular dealership in Bend servicing the needs of the greater Central Oregon area. Subaru emphasizes its vehicle safety, dedication to protecting the environment, and the company has numerous positive customer testimonials (SOURCE: Subaru of Bend). Additionally, Subaru’s brand as an adventurers vehicle of choice fits nicely with that of RDM and Central Oregon. RDM has not previously experimented with large scale wall ads, and this could potentially serve as a creative partnership opportunity between the airport and Subaru of Bend. An advertisement could be timed to align with new model launches, or seasonal promotions to drive traffic to Subaru of Bend. Additional opportunities exist to partner with other automotive businesses, such as Les Schwab which is headquartered in nearby Prineville, Oregon. Build New Sponsored Advertising Opportunities !48 Example 3 - OSU Cascades OSU Cascades is Oregon State University’s satellite campus in Bend, Oregon, offering upper-division and graduate courses through its partnership with Central Oregon Community College. OSU-Cascades is in the first phase of a $111 million investment in its Bend campus, with the goal to accommodate up to 5,000 full-time students. (SOURCE: EDCO 2015) OSU Cascades currently sponsors digital advertisements on displays in RDM. This partnership could be expanded to include sponsored charging stations within the airports terminals. Charging stations for travelers’ devices are popular at airports of all sizes, and would be a positive value-add for RDM’s passengers. Sponsored charging stations provides RDM the benefit of increasing airport amenities for travelers, while having a sponsor such as OSU Cascades absorb the additional costs. Similar partnerships can be seen throughout major airports, including charging stations sponsored by the University of Oregon MBA Program in Portland International Airport’s terminal. The University of Oregon recently began offering its Executive MBA program locally in Bend, so it too could be a potential advertiser for RDM. (SOURCE: EDCO 2015) Build New Sponsored Advertising Opportunities !49 Seven overall recent trends in the airport industry particularly when it comes to marketing could be relevant for RDM’s consideration for its future campaign strategies: 1. Advocacy - Airports increasingly aim to create a unique experience for travelers so they become advocates using word of mouth. Specifically, the goal of such experiences is to increase happiness of the passengers so they recommend the airport to their friends and share their experiences online. 2. Social Care - Through social media, airports are connecting with passengers and addressing their issues in real time. This creates goodwill with the passenger. 3. Storytelling - Airports want to build deeper relationships with the passengers by telling stories about their employees, airport operations, and even travelers. 4. Crowdsourcing - Using crowdsourcing, airports can gain feedback and implement ideas about product innovations, development of communities and improving passenger experiences. 5. Red Carpet - In the face of more middle-class travelers from specific international communities, airports are using localized social networks, and more native languages to improve the passengers experience. 6. Virtual Shopping - Airports and retailers now extend their reach to gate seating areas and sell products through effective signage and technologies such as QR codes. 7. Innovative Air Service Development - Airports are investing in segmenting and targeting potential passenger markets to become more appealing to find more direct advertisers that would resonate with the passengers. (Airport Business) Major Trends in Airport Advertising !50 Roberts Field can incorporate these trends in making future advertising decisions and sponsorships it pursues. For example, Roberts Field serves as the primary airport for Central Oregon and its residents, and has the unique opportunity to share its story with its tight knit community. Storytelling could apply to RDM as it highlights stories of travelers, employees, the history and changes that are taking place at the airport. As Roberts Field continues to grow its marketing staff, there is the future possibility of integrating social media into its marketing operations. Airlines frequently interact with travelers through social media to quickly respond to real-time issues. RDM could establish official social media accounts, allowing airport customers to provide feedback, tag RDM in their travel stories and posts, and keep its customers updated on airport operations. Recommendations for the Future Based on Trends !51 Table of Contents Executive Summary …………………………………………………………………2 Project Objectives and Approach …………………………………………………5 Introduction: Redmond and Roberts Field Today ……………………………….9 Current Assets, Strategies & Infrastructure ………………………………………19 Industry Analysis ……………………………………………………………………32 Recommendations: Use and Positioning of Assets ……………………………41 Recommendations: Pricing of Assets……………………………………………51 Summary of Action Plan and Next Steps …………………………………………61 Bibliography……………………………………………………………………………64 !52 Process & Rationale for the New Pricing The competitor analysis presented information about how comparable airports classify and price their advertising assets. We compiled the rate cards data in order to compare all prices, and to determine if these could serve as a basis for RDM’s pricing. We calculated each rate based on cost per impression (CPM) to derive a consistent CPM metric used across the industry. This metric allowed us to understand the price per person at each airport – regardless of its size or number of enplanements. For several of the airports in the competitor analysis, we weren’t able to find the rate card because their advertising is contracted out. Accordingly, we had difficulty obtaining information from smaller airports. Overall, the CPM calculation below shows the range of CPM’s for the airports analyzed and where Roberts Field stands in comparison. Flexible Rate Card !53 Overall, ad pricing appears to be arbitrary and no constant CPM metric is used across airports. We concluded that intangible factors must thus shape the pricing of its advertisements. Accordingly, we began to look for other sources to establish a foundation for the advertising rate. Flexible Rate Card Roberts Field Range of Comparable Airport Average Wall $13.3 $21.8 $21.8 Back-lit Diorama 13.4 7.1 - 34. 18 Parking Lot Light Pole 4.4 2.0 - 21. 11 Free Standing Display 4.4 6.3 - 39. 18 Digital LED Display (10 sec) 13.4 3.17 - 24.0 13.5 CPM Pricing Comparison for Roberts Field, Industry Average, and the Range of Comparable Airports Monroe Regional Thunder Bay Int’l Asheville Regional Yeager Airport Wall $21.8 - - $21.0 Back-lit Diorama 34 7 7 22 Parking Lot Light Pole 21 2 - 21 Free Standing Display 39 6 - 11 Digital LED Display (10 sec) 24.0 - 3.1 13.5 Comparison of Airport CPM Pricing !54 Since Redmond’s asset values differ by visibility, traffic volumes, frequency and size, we identified a number of discrete zones for the rate card. Establishing Roberts Field Advertising Zones • Zone A - Exterior/Parking Lot (lamp posts for external flags) • Zone B - Entrance area/hall ways (blank walls, smaller gift store) • Zone C - Terminal space (atrium, large overhead blank wall) • Zone D - Terminal space (blank walls, larger gift shop, small children's center, children’s center w/breast pod, upstairs restaurant and blank space) • Zone E - Tarmac entrance to baggage claim (walkway with open windows, staircase down to baggage claim, baggage claim, magazine rack, freestanding advertisements around columns/poles, children’s center) !55 Based on the Roberts Field - Redmond Municipal Airport Airport Performance Metrics Report in January 2016, we determined the cost per enplanement (CPE) used as a basis for the rates. We assumed that if costs for each enplanement were covered through advertising, airport revenue would be maximized. The benchmark CPE was used in conjunction with the enplanement and deplanement counts on the website to determine the base rate for each month to cover the costs. Then, we took the benchmark CPE times the total number of passengers (amount of enplanement and deplanements) and divided it by 1,000 to find the base rate. This rate for each month was multiplied by the markup for each different asset we identified. Passengers from both enplanements and deplanements will pass through Zones A and B, therefore garnering the most traffic and impressions. Accordingly, we used the total rates times the markup to find the price for the assets. For Zones C and D, we only used the enplanement rates, whereas for Zone E we used only deplanement rates. From the base rates we decided the markup based on the level of exposure the space has, and how fertile the space is for advertisement creation. The more space and the longer time spent by passengers in each Zone, the greater the markup. While the mark-ups will be the one rate card component needing Council’s approval, the other factors in the rate card (number of enplanement/deplanements and benchmark CPE) will change yet not need approval. This illustrates the flexibility of our rate card, as it can be changed based on the data available. Flexible Rate Card !56 The chart below shows the thought process of how we came up with the prices and the rationale for the recommended rate card. Assumptions • Benchmark cost per enplanement is the cost for each passenger in the airport. • The number of passengers in each zone,the level of exposure in the zone, the amount of space available, the available asset defines the value of assets per zone and thus drive a markup per zone. • Generally, the more traffic or more time a passenger/customer spends in the zone, the greater the markup • Some zones only use enplanements (C & D), while others only use deplanemnets (E). Zones A & B use both enplanements and deplanements. Flexibility of Rate Card The rate card can be changed each year these factors: • Last years numbers for enplanement/deplanement • Benchmark cost per enplanement for the year • Mark-ups (only factor that requires approval from City Council) The Formulation of the Rate Card Prices !57 In order to determine the revenue implications of the recommended rate card, we compared the current revenue generated from the assets in use to the projected revenue gained from the new pricing and mix of the assets. Currently, Redmond only has three assets in use. However, with our suggestions, Redmond could potentially gain revenue from eighteen different assets. Based on the current year's rates, we conservatively projected the amount of advertising opportunities to estimate the amount of revenue that could be gained over the next year. Next, we created a projection on the number of months we expect the assets to be sold based on the number of assets available and the expected demand for those assets. In total, our recommendations will increase advertising revenue to $195,232, a 172% increase. Projections & Change to Baseline !58 In order to illustrate the potential value of our suggestions, we maximized asset utilization using annual rates. The table below shows the number of possible impressions, the maximum amount of revenue that can be gained from each asset and the number of assets available in each zone. Projections For Max Asset Utilization !59 Flexible Rate Card Redmond Municipal Airport Rate Card 2016 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. Zone A Pole Banner 249 240 280 262 276 325 364 358 307 302 295 325 Zone B Wall Space 547 528 615 576 607 716 801 788 675 665 649 716 Poles 311 300 350 327 345 407 455 448 383 378 369 407 Zone C Wall Space Above Security 265 242 280 262 273 326 358 365 311 306 299 316 Above Gate E 530 483 561 524 547 653 717 731 621 611 598 631 Above Gate A-D 397 362 421 393 410 489 537 548 466 459 449 473 Stair Case Area 662 604 701 655 683 816 896 913 777 764 748 789 Main Pole 265 242 280 262 273 326 358 365 311 306 299 316 Free Standing Display 530 483 561 524 547 653 717 731 621 611 598 631 Zone D * Wall Space 232 211 245 229 239 286 314 320 272 267 262 276 Poles 132 121 140 131 137 163 179 183 155 153 150 158 Free Standing Display 166 151 175 164 171 204 224 228 194 191 187 197 Zone E Walkway Wall Space 349 358 419 393 418 486 555 526 454 449 436 503 Backlit Display 291 298 349 327 348 405 463 439 378 374 363 419 Digital Display ** 233 239 279 262 278 324 370 351 303 299 290 335 Poles 145 149 174 164 174 203 231 219 189 187 182 210 Free Standing Displays 291 298 349 327 348 405 463 439 378 374 363 419 Brochures 50 50 50 50 50 50 50 50 50 50 50 50 ! *Includes the upstairs areas above the terminal **For 10 seconds in a loop Redmond Municipal Airport Rate Card 2016 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. Zone A Pole Banner 249 240 280 262 276 325 364 358 307 302 295 325 Zone B Wall Space 547 528 615 576 607 716 801 788 675 665 649 716 Poles 311 300 350 327 345 407 455 448 383 378 369 407 Zone C Wall Space Above Security 265 242 280 262 273 326 358 365 311 306 299 316 Above Gate E 530 483 561 524 547 653 717 731 621 611 598 631 Above Gate A-D 397 362 421 393 410 489 537 548 466 459 449 473 Stair Case Area 662 604 701 655 683 816 896 913 777 764 748 789 Main Pole 265 242 280 262 273 326 358 365 311 306 299 316 Free Standing Display 530 483 561 524 547 653 717 731 621 611 598 631 Zone D * Wall Space 232 211 245 229 239 286 314 320 272 267 262 276 Poles 132 121 140 131 137 163 179 183 155 153 150 158 Free Standing Display 166 151 175 164 171 204 224 228 194 191 187 197 Zone E Walkway Wall Space 349 358 419 393 418 486 555 526 454 449 436 503 Backlit Display 291 298 349 327 348 405 463 439 378 374 363 419 Digital Display ** 233 239 279 262 278 324 370 351 303 299 290 335 Poles 145 149 174 164 174 203 231 219 189 187 182 210 Free Standing Displays 291 298 349 327 348 405 463 439 378 374 363 419 Brochures 50 50 50 50 50 50 50 50 50 50 50 50 ! *Includes the upstairs areas above the terminal **For 10 seconds in a loop !60 In order to ensure that the recommended zones, assets and pricing of advertising is successful for the Roberts Field Airport, management should focus on several key performance indicators: Advertising sales Through the increase in available assets and the guarantee of profit from every advertisement sold, the sales of advertisements will increase due to flexible ad pricing and the variety of different options available. Asset Utilization and Minimum Number of Advertisements Under Contract in Each Zone By ensuring at least three advertisements in each zone regardless of type of asset used, Roberts Field can ensure constant revenue generation from walls, poles, and floorspace in and around the airport. The constant presence of advertisements in each zone will also demonstrate increased demand for advertising at the airport. Measuring overall utilization of assets may indicate if pricing needs to be modified. Contract Length and Customer Mix Roberts Field should focus on selling advertisements in three-month minimum increments, selling the least expensive months to smaller business and the expensive months to the large businesses in the Central Oregon area. Number of Sponsorships and Revenue from Sponsorships Sponsorships will create long term contracts and revenue for the airport. One sponsorship in and outside the airport at all times will create assets that engage passengers and increase the aesthetic appeal of RDM. Key Performance Indicators of Advertising !61 Table of Contents Executive Summary …………………………………………………………………2 Project Objectives and Approach …………………………………………………5 Introduction: Redmond and Roberts Field Today ……………………………….9 Current Assets, Strategies & Infrastructure ………………………………………19 Industry Analysis ……………………………………………………………………32 Recommendations: Use and Positioning of Assets ……………………………41 Recommendations: Pricing of Assets………………………………………………51 Summary of Action Plan and Next Steps ………………………………………61 Bibliography……………………………………………………………………………64 !62 This table summarizes a prioritized set of activities for Roberts Field to begin implementing the recommendations made throughout our proposal. Next Steps to Implement Recommendation Priority Cost Personnel Required Outside Parties Implementation of flexible rate card High N/A Zach Bass, Airport Director Communicate changes in rates/ valuations, and updates to asset mix to current advertisers Inclusion of parking lot lamp poles into asset mix High N/A Airport Marketing/Business Personnel Reach out to potential partners for upcoming events Implementation of improved asset mix utilization and zoned sections Medium/High TBD Airport Marketing/Business Personnel N/A Pursue sponsorship opportunities to increase advertising revenue Medium/High TBD Airport Marketing/Business Personnel Reach out to potential sponsors (OSU Cascades, Hydro Flask) Development of KPIs for new assets, pricing strategy and sponsorships Medium/High TBD Airport Marketing/Business Personnel Work with respective parties involved (advertisers, council members) as needed to gain input on KPI standard !63 Roberts Field’s currently does not utilize an agency like most of the researched comparable airports, based on the size of its current operations and preference to remain independent. Given the scale of RDM’s assets and potential for growth, we recommend that a Airport Marketing position be created to implement the proposed recommendations and manage advertising accounts. The creation of a part-time or full time position would benefit Roberts Field by creating a central authority to manage current advertiser relations, and to pursue new advertising accounts or partnerships to generate revenue. Next Steps for Hiring • Discuss and determine scope of responsibilities for new position with Airport Director, create official position and chain of reporting • Determine funds available for potential position, and approach City Council as needed to approve increased spending • Research average salaries for comparable positions, and adjust based on Central Oregon statistics - Utilize salary estimates for comparable positions at small regional airports, or agency positions with similar scope • Write job posting and begin hiring process Estimated Cost Based on preliminary research for Account Executive or Sales Manager positions, the estimated costs for a potential position for Roberts Field are as follows: • Annual salary for full time position for Account Executive: $34,000 - $58,000 • Hourly position for Marketing Sales Assistant: $9.88 - $13.37 - Adjustment may be needed based on new Oregon minimum wage (Source: Glassdoor) Action Plan for Hiring Personnel to Implement Recommendations !64 Table of Contents Executive Summary …………………………………………………………………2 Project Objectives and Approach …………………………………………………5 Introduction: Redmond and Roberts Field Today ……………………………….9 Current Assets, Strategies & Infrastructure ………………………………………19 Industry Analysis ……………………………………………………………………32 Recommendations: Use and Positioning of Assets ……………………………41 Recommendations: Pricing of Assets………………………………………………51 Summary of Action Plan and Next Steps …………………………………………61 Bibliography…………………………………………………………………………64 !65 Advertising Age. 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Web. 10 Feb. 2016. Euromonitor International. "Income and Expenditure: USA." Passport GMID. Euromonitor International, Mar. 2015. Web. 10 Feb. 2016. Bibliography !66 Fly Redmond. "Redmond Municipal AIrport." City of Redmond, Oregon. N.p., 2016. Web. 18 Feb. 2016. Garrett Specialties. "May 22, 2009 - Promotional Products Blog Site: Specialties Blog Spot." Promotional Products Blog Site Specialties Blog Spot RSS. N.p., 22 May 2009. Web. 18 Feb. 2016. Glassdoor. "Clear Channel Salaries." Glassdoor. N.p., n.d. Web. 12 Mar. 2016. Grand Junction Regional Airport. "Grand Junction Regional Airport." Grand Junction Regional Airport. N.p., 2016. Web. 18 Feb. 2016. Haider, Zeeshan. "IBISWorld Industry Report 48811: Airport Operations in the US." IBISWorld. N.p., June 2015. Web. 10 Feb. 2016. Hydro Flask. "We Are Hydro Flask." Our Story. N.p., 2016. Web. 18 Feb. 2016. Leviton. "Recharging Electronic Devices at One of the Nation's Busiest Airports." Phoenix Sky Harbor International Airport Installs USB Receptacles. N.p., 2016. Web. 18 Feb. 2016. Magness, Aaron. "Why Does Zappos Advertise in Airport Security Bins?" Blogs.zappos.com. N.p., 11 Jan. 2011. Web. 18 Feb. 2016. Maxwell, Mary. Personal Interview. 30 Jan. 2016. Nudd, Tim. "Heineken Dares JFK Travelers to Ditch Their Plans, Press a Button and Board a Flight to Parts Unknown." AdWeek. N.p., 12 July 2013. Web. 18 Feb. 2016. Oregon Fairs Association. "Oregon Fairs Association - Information about Fairs in Oregon." Oregon Fairs Association - Information about Fairs in Oregon. N.p., 2015. Web. 18 Feb. 2016. Rapid City Regional Airport. "RAP Rates FY 2016." (2016): n. pag. Print. Redmond Municipal Airport. Advertising List. Redmond: Redmond Municipal Airport, 2015. XLS. Redmond Municipal Airport. City of Redmond Fee Schedule Effective February 1, 2016. Redmond: Redmond Municipal Airport, Jan. 2016. PDF. Redmond Municipal Airport. Redmond Municipal Airport United Airlines Meeting. Redmond: Redmond Municipal Airport, 16 Dec. 2015. PDF. Bibliography !67 Redmond Municipal Airport. Roberts Field Redmond Municipal Airport: Airport Master Plan. Redmond: Redmond Municipal Airport, Apr. 2005. PDF. Roberts Field. Brochure Rack Advertising Contract and Conditions. Redmond: Roberts Field, 1 Dec. 2013. PDF. Roberts Field. Diorama Advertising Contract and Conditions. Redmond: Roberts Field, 1 Dec. 2013. PDF. Subaru of Bend. "Subaru Of Bend." N.p., 2016. Web. 18 Feb. 2016. Szopinski, Tomasz Stanislaw, and Robert Nowacki. "The Influence of Purchase Date and Flight Duration over the Dispersion of Airline Ticket Prices." Contemporary Economics 9.3 (2015): 353-66. Business Source Complete. Web. 10 Feb. 2016. 1 Outdoor Advertising. "Out-of-Home Media . Outdoor Advertising Blog . Ambient Ads." Ford Fusion Creative Spin on Airport Advertising. N.p., 10 Oct. 2008. Web. 18 Feb. 2016. Bibliography Redmond Municipal Airport Rate Card 2016 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. Zone A Pole Banner 249 240 280 262 276 325 364 358 307 302 295 325 Zone B Wall Space 547 528 615 576 607 716 801 788 675 665 649 716 Poles 311 300 350 327 345 407 455 448 383 378 369 407 Zone C Wall Space Above Security 265 242 280 262 273 326 358 365 311 306 299 316 Above Gate E 530 483 561 524 547 653 717 731 621 611 598 631 Above Gate A-D 397 362 421 393 410 489 537 548 466 459 449 473 Stair Case Area 662 604 701 655 683 816 896 913 777 764 748 789 Main Pole 265 242 280 262 273 326 358 365 311 306 299 316 Free Standing Display 530 483 561 524 547 653 717 731 621 611 598 631 Zone D * Wall Space 232 211 245 229 239 286 314 320 272 267 262 276 Poles 132 121 140 131 137 163 179 183 155 153 150 158 Free Standing Display 166 151 175 164 171 204 224 228 194 191 187 197 Zone E Walkway Wall Space 349 358 419 393 418 486 555 526 454 449 436 503 Backlit Display 291 298 349 327 348 405 463 439 378 374 363 419 Digital Display ** 233 239 279 262 278 324 370 351 303 299 290 335 Poles 145 149 174 164 174 203 231 219 189 187 182 210 Free Standing Displays 291 298 349 327 348 405 463 439 378 374 363 419 Brochures 50 50 50 50 50 50 50 50 50 50 50 50   *Includes the upstairs areas above the terminal **For 10 seconds in a loop Redmond Municipal Airport Impressions, Annual Rates & Assumption Mark-up Annual Rate Zone A Pole Banner 100% $3,046 Zone B Wall Space 220% $6.701 Poles 125% $3.807 Zone C Wall Space Above Security 200% $3,063 Above Gate E 400% $6,126 Above Gate A-D 300% $4,594 Stair Case Area 500% $7,657 Main Pole 200% $3,063 Free Standing Display 400% $6,126 Zone D * Wall Space 175% $2,680 Poles 100% $1,531 Free Standing Display 125% $1,914 Zone E Walkway Wall Space 300% $4,543 Backlit Display 250% $3,786 Digital Display ** 200% $3,029 Poles 125% $1,893 Free Standing Displays 250% $3,786 Brochures Fixed Price $510 Months Deplanement Enplanement Total January 21,225 19,357 22,469 February 19,357 19,118 38,475 March 22,469 22,361 44,830 April 20,986 20,973 41,959 May 21,901 22,305 44,206 June 26,148 25,978 52,126 July 28,710 29,650 58,360 August 29,276 28,118 57,394 September 24,896 24,250 49,146 October 24,496 23,962 48,458 November 23,974 23,272 47,246 December 25,286 26,871 52,157 Assumption • Use the cost per enplanement as a basis for the pricing • Based on the number of enplanements – created an estimated mark-up from the number of impressions • 15% Discount rate for annual Impressions in Each Zone • Zone A, B = Total (Enplanement & Deplanement) • Zone C, D = Enplanement Flexibility of the Rate Card • Change the Cost Per Enplanement each year based on the bench mark • The number of enplanements on each month to find the new price for the next year • The mark up based on demand