WestJet Richard Bartrem Director of Marketing & Communications WestJet Outdoor Advertising – An Evolution OMAC Canada October 18, 2006 Fun Facts About WestJet » Total # of Employees: » Front-line Employees: » Total Resumes received per week: » ESP Participation: » 2005 average salary contribution: » Primary reason WestJetters join WestJet: 5,000+ 4,300 1,000 87% 12% – People & the Culture » Guest Feedback is primarily about: – Our people & the experience vs. functional attributes Fun Facts About WestJet » Total Sponsorship Requests: » Total Donations Requests: » Coldest day for TAC agents: » Fastest aircraft turn time (112 guests) » Average weight of bags carried / day » Number of marriage proposals on-board: 100 / week 60 / week -54 degrees 6 minutes 434,800 lbs 432 WestJet Snapshot » 10th year anniversary February 2006 » Over 300 flights departing everyday » Almost ¼ million passengers every week » 1996 revenues of $37 million – 2005 revenues of $1.395 billion » 62 aircraft flying to 32 destinations not including charters » North America’s newest fleet of aircraft – Average age 2.3 years The Challenge in Advertising WestJet » A careful blend of brand and retail advertising is required in the airline industry – WestJet needs increased awareness in the East but needs to sell seats at the same time » Every time the aircraft door closes inventory expires and can not be resold – This happens 300 times a day – Revenue, load factor and yield to budget is tracked every 8 minutes » The pricing changes several times a day, seven days a week » All within the context of an industry with a 97% failure rate – The only airline in Canada not to have been in receivership or bankrupt » Target is 25-54 – Over 65% of bookings – business and leisure – are made by women Advertising WestJet » WestJet is consistent with low-cost carriers around the world – Marketing spend ~2% of revenue » Mix of brand and retail messaging – Retail messaging is the bread and butter that puts “bums in seats” » Always looking to determine how traditional brand media can be made more “retail” – – – – Internet TV Radio Outdoor » Can these mediums that are typically brand or longer lead be adapted to our short-term retail needs? Owners Brand Campaign Objective Fall Brand Campaign: Overview » Owners Campaign launched September 2005 – One of 2 creative directions that were available as a brand » Second wave ran in Spring 2006 » Fall 2006 campaign started September 12 for 8 weeks – Key objective was greater integration of messages across media • Clearer connection of Owners messaging to all aspects of the campaign • Stronger retail integration to Owners – TV, radio, outdoor, ENN, cinema » Introduction of “Because Owners Care” as campaign tagline » Currently over 470 OOH boards up across the country Outdoor Works for WestJet » On a per dollar basis there is no better media for looking big – Helps give campaigns a “bigger feel” through increased reach » With outdoor, the consumer perception of the size of campaign is greater than the spend » Works particularly well in the East where our awareness is lower – Legitimacy to the airline » In smaller towns, outdoor helps us feel connected at the local level Outdoor Works for WestJet » Outdoor has been an important component of the Owners campaign since launch » Message integration has been the key deliverable for this fall » Market Specific Outdoor – Increase in production costs – Are there new cost saving measures available to continue doing this? » On the hunt for variable or flexible messaging opportunities – Digital video boards, ENN » Outdoor has been more tightly integrated with retail message in other media WestJet Outdoor Fall Campaign Examples Future of Outdoor for WestJet Future of Outdoor for WestJet » Our media strategy is working – Load factors are increasing as we increase capacity » Outdoor advertising has helped contribute against our stated campaign objectives » Delivers the required reach and frequency – Key for WestJet is integration of retail messaging – Pricing can change hourly » Any opportunity that allows us to combine the reach and frequency in outdoor together with a retail call to action will help us win the day Our Outdoor Wish List » Even better integration opportunities » Mix of brand and retail works well for our industry » As a low cost operator, any opportunity to save on production costs as we customize messages is beneficial Book Now! 1-888-WestJet westjet.com