FY 25 Budget Q&A #058: Can you provide the expected impacts if the one-time increase in advertising proposed for Visit Alexandria was expanded beyond $200,000 to $400,000 or $600,000?What additional revenue benefits could be realized by such an expansion?

Question: Can you provide the expected impacts if the one-time increase in advertising proposed for Visit Alexandria was expanded beyond $200,000 to $400,000 or $600,000? What additional revenue benefits could be realized by such an expansion? (Operating Budget Page 13.27) (Mayor Justin Wilson)

Response:

A Return on Investment (ROI) study conducted by Destination Analysts in 2014 of Visit Alexandria advertising effectiveness indicated a 6:1 tax revenue return. That report was based on an average (not marginal) rate of return, so it is reasonable to assume that incremental advertising investment would experience diminishing marginal returns, yielding a lower return than 6:1, but still positive for the City’s General Fund.

Attachments:

Attachment 1- Advertising Effectiveness & ROI Study

City of Alexandria, VA

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FY 25 Budget Q&A #058: Can you provide the expected impacts if the one-time increase in advertising proposed for Visit Alexandria was expanded beyond $200,000 to $400,000 or $600,000?What additional revenue benefits could be realized by such an expansion?

Question: Can you provide the expected impacts if the one-time increase in advertising proposed for Visit Alexandria was expanded beyond $200,000 to $400,000 or $600,000? What additional revenue benefits could be realized by such an expansion? (Operating Budget Page 13.27) (Mayor Justin Wilson)

Response:

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