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In-Kind Activation with Brand USA Brand USA Funding • Brand USA is a non-profit, public-private partnership supported by private sector investment and federal funding from the Electronic System for Travel Authorization (ESTA) • The annual ESTA fund of $100 million is generated by fees paid by international visitors from Visa Waiver countries • Private sector funding is required to receive the ESTA funds. This private sector funding can be in the form of cash investment or in-kind investment, with a cash target of 20% and an in-kind target of 80%. • To access the federal funds, private sector funds have to match federal funds in a 1:1 ratio (2:1 ratio in FY 2012) i.e. $100 M in private sector investment is required to receive or “un-lock” the $100 M ESTA fund. “Once in a Lifetime” Marketing Opportunity Up to $200M Each $1 from $1 in matching annually to the private funds from the invest in USA sector (cash or ESTA fund. brand and in-kind) ($2 thru 9/30/12)* Partner Co-Op marketing •Advertising The marketing •Sponsorships Funded by fund created by •Co-Op Marketing visitors from Visa the ESTA fee is •Licensing Waiver countries capped at $100M •Publications entering the USA annually •Web & Social •Trade Shows * 2:1 match in FY2012 Travel Promotion Act (TPA) Public Law 111-145 (as stated in the act) Section 9(d)(3)(B) In-Kind…determining the amount received from non-federal sources…other than money- i. The fair market value of goods and services (including advertising) ii. The fair market value of such goods and services may not account for more than 80% of the matching requirement In-Kind Definition Donation of non-cash contributions at fair market value of goods and services that will aid Brand USA in carrying out its statutory marketing mission, as well as its matching fund requirements. In-Kind Contribution Categories Goods & Services (Rooms, airline tickets car rentals, entertainment or attraction tickets, etc.) Research, Marketing, Content & Advertising & Assets In-Kind Communications (Web, social media, (Databases, lists, photos, film library, collateral, pr support, etc.) tradeshows, etc.) Supplies, Space & Donations (professional services, software, furniture, consultants, etc.) Goods & Services • Hotel rooms • Backstage passes • Banquet facilities • Motor coaches • Car rentals • Audio visual • Airline tickets • Etc. • Train tickets • Bus passes • Theater tickets In-kind value is determined by: Published rate • Entertainment/Sports – Brand USA gratis/discount rate = In-Kind Value tickets • Attraction tickets Research, Content & Assets • Travel Research • Webinars • Web content • Printing • B- roll/film • Translation services • Promotional video • Etc. • Editorial content • Data bases • Mailing lists • Email lists Supplies, Office Space & Donations • Office space & equipment • Cable • Computer - hardware & • Meeting facilities software • Tradeshow booths • Personal service • Signage – Consulting • Parking – Accounting • Etc. – Legal – Management – Directors time • Training & Webinars Marketing, Advertising & Communications • Ad space & time • Fam tours – Radio • PR support – TV • Etc. – Outdoor – Internet – Print • Web • Social media • Banners • Collateral • Brochures Partner In-Kind Opportunities Partner website Partner collateral/communications Partner merchandising Partner goods and services 10 Partner In-Kind Opportunities: Logo Placement Brand USA logo Partner’s advertising placement and/or URL Partner’s collateral/communications Partner’s merchandise Partner assess in-kind value Partner’s goods and services Partner’s website Brand USA receives Brand USA receives in- Brand USA receives “in-kind” value match “in-kind” value match kind value match In-Kind Valuation Goods & Services • In-kind based on fair market value • Partner creates advertising/collateral and includes Marketing & Brand USA logo/URL. In-kind value is based on a percentage of the cost, based on space or share of Advertising voice provided to Brand USA Research, • In-kind value based on the cost to the partner to produce, develop or purchase Content & Assets Parallel Partner Campaign w/ In-Kind Value Brand USA Tourism Partners and launches their Brand USA define a media campaign strategy in a campaign in target market target market Partners follow 100% of Partner in same media buy and market with creative is credited to destination or in-kind for Brand USA product specific message 13 In-Kind Media Example Partner buys and Partner includes places advertising Brand USA logo in in international their existing market(s) campaign Brand USA Determination is receives in-kind completed re. % of earned value ad that represents in-kind value 33% MEDIA VALUE 14 In-Kind OOH Spectacular 15 In-Kind OOH –30 Sheet 16 In-Kind OOH - Transit 17 In-Kind Newspaper & Magazine 18 In-Kind Magazine – Travel Trade 19 In-Kind Digital 20 Thank You!
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