Fact Finder: Pure Michigan Plan
Posted: 04.29.2010 at 1:32 PM

With a drastically reduced budget, see how it's selling the state.

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Tourism is big business in northern Michigan. Many small business owners rely on the state's Pure Michigan advertising campaign to spread the word about the region beyond the state's borders.

After a down to the wire fight, lawmakers did approve funding, but it's less than half of what it was last year.

Several local businesses asked us how far the ad campaign will reach with such a reduced budget.

The answers are tonight's Fact Finder Report.

We've all heard the old adage you have to spend money to make money. And in the business of tourism, there are numbers to back it up.

State Senator Jason Allen says, "The actual return on investment is very significant. What several studies indicate is that every dollar spent on tourism you get about a $2.34 return on investment."

But in a state with big budget problems, finding the money to invest wasn't easy. Shortly before the deadline to get in on the summer advertising schedule, the state was able to secure $14.9 million for the 2010 Pure Michigan advertising campaign; which is half of last year's $30 million budget.

And that pointed to some big changes in strategy.

Sen. Allen says, "We recognize because of the reduced numbers we are going to be having fewer dollars for a national program."

Here's the breakdown according to the George Zimmerman, the Vice President of Travel Michigan:

The state spent $30 million on the Pure Michigan Campaign in 2009:$10 million on national ads for spring and summer, $9.4 million on regional ads year round, and $10.6 million on "other marketing related activities." That includes production costs, which won't carry over to this year's budget.

Sen. Allen says, "last year there was the development of the advertising programs. The Pure Michigan ads cost several million dollars for the professional fees and development we do not have to worry about that."

So what can you buy with nearly $15 million?

Here's the plan for the 2010 Pure Michigan budget: $8.9 million on national ads but for spring and summer only, which is pretty close to what was spent last year.

The bigger cuts come here: $2.3 million on regional ads but for radio and billboards only, and $3.7 million for partnerships and "other marketing related activities."

Organizers say they're focusing on national ads for spring and summer, while cancelling all ads for fall and winter and cancelling TV ads in the Great Lakes region.

Zimmerman says spring and summer draws the most visitors and the most money. And visitors outside of the Great Lakes spend more money when they make the trip.

He hopes these cutbacks are just temporary and that next year's Pure Michigan budget will be back at $30 million.

Meanwhile lawmakers are working on ways to foot the bill.

Sen. Allen says, "We're still trying to find a long term solution to tourism funding and there have been several different proposals laid out."

So what do you think about how the state's Pure Michigan ad campaign? Is it a good use of money? What about the decision to not promote winter and fall? Is it a good idea to focus on national ads while slashing the regional ones? Many small businesses rely on these ads, if you were in charge, how would you advertise?

Leave your comments below.