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The role of Branding & Marketing to reinforce the Attractiveness of Airport AreasMr Vincent Gollain, IAU Ile-de-France, Director of the Economic Department2016, ARC Conference, Budapest

Budapest, Friday, November 11, 2016

Show-room Georgia Ress, Center, 2016Source : Budapest Airport, 2016

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I. Airport Areas, strategicdrivers for the attractivenessof urban regions

II. How to brand and marketyour Airport Area ?

© Sébastien Le Clézio for Hubstart Paris Region

Structure of the Presentation

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Airport Areas, strategic drivers for the attractiveness of urban regions

© Atlanta Aerotropolis Alliance, 2016

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An airport area is a strategic factor of regional economic development

“The empirical results show that a 10 per cent increase in passenger enplanements in a metro area leads approximately to a 1 per cent increase in employment in service-related industries” (at regional level).

Jan K. Brueckner, economist

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Airport Areas are the new hotspots of the Urbanregions Economic Development

Denver, USA

Amsterdam, NL Shanghai – Pudong AA, CN

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The DNA of Airport Areas is:

ConnectivityFor :

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The spatial Impact of the Economic Development: The “3AR” Model. Airport City / Aerotropolis / Airport corridor / Regional level

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BUT !

ATTRACTIVENESS

IS NOT

AUTOMATIC

YOU HAVE TO

WORK ON IT!

Especially because Airport Areas are located on several administrative districts !

How to brand and market your Airport Area ?

11Source : The 10 pillars of AA strategy, Metropolis Initiative, 2016

Marketing & Branding: a key pillar for Airport Areas

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Marketing & Branding: Definition

• Branding is what you are: the competitive identity of your Airport Area (characterristics, values, and attributes). It’s a pull tactic.Brands are also created to unite the local players under a neutral umbrella.

• Marketing is what you do to attract more activities. It’s a push tactic to promote your A.A. It’s pushing out a message to get “sales results”.

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Why Marketing & Branding an Airport Area is key!

• Competition is High• Competition is Global• Businesses and customers have picky

expectations• Changing global regulatory

environment• Different levels of local goverment

with different agenda• Few one-stop economic development

team

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Marketers want to influence the perceived value of the airport area to increase the attractiveness

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The ultimate objective of Marketing & Branding: improve the perceived value of the Airport Area

Perceived Value of your Airport Area

Total Benefit

Product

Services

Personnel

Image

Total Cost

Monetary

Time

Energy

Psychological

Other Places

Branding &Marketing

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Create your Branding and marketing Strategywith the TRACER Model

TOGETHER

REPUTATION

AFFINITIES

CONVERSION

ENGAGEMENT

RETENTION

Airport Areas: the Power of Alliances (Together)

Global Brand

Alliance of local Brands

Local Brands

1. Create a common ground for collective work / 2. Build a shared vision / 3. Create an alliance of public and private partners / 4. Co-construction

Airport Areas: brand your Airport Area to improve your reputation

= TELLING A GREAT STORY

An Airport Area is not only a density of infrastructures!

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Airport Areas: Choose your target audiences based on affinities

40% of global airports’ revenues deriving from the non-aeronautical sector, (Source: 2015 ACI Airport Economics Report)

Source : IAU Ile-de-France, 2015

= TARGETING THE RIGHT « FANS »

Airport Areas: Choose your Prospects through affinity with your strengths – PUDONG & PARIS

“Pudong International Airport is the air gateway to Shanghai. It is one of the 3 largest airports in China. The Pudong Airport free trade zone with a surface of 3.59km² (1.81km² inside and 1.78km² outside the airport) was established in 2009. Priority sectors for the zone are: international cargo transit, procurement and distribution, international express transit, repair and test, financing leasing, warehousing, export processing, commodity exhibition and its supporting business finance insurance and agency”.

Jiewei Jiang, Deputy Director, Shanghai Free Trade Zones Administration, 2013

Airport Areas : Convert your business prospects into new business

= ENHANCING YOUR DELIVERY

Airport Areas: Business Retention & Expansion

- An action-oriented and community-based approach to business and economic development

- Focuses on nurturing existing businesses

- Help communities to prioritize their efforts

= HELPING DEVELOPMENT OF EXISTING BUSINESS ACTIVITIES

Airport Areas: use social media and brand ambassadors to increase your influence (engagement)

= PROMOTE YOUR AIRPORT AREA BY INFLUENCING

Final Remarks

Branding and Marketing for

Airport Areas, What else ?

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Prepare the future: Create amenities that people and workers like

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THANK YOU FOR YOUR ATTENTION!

A Public Foundation for better living Cities

A Paris Region’s Agency

Mr Vincent GOLLAINChief Economic Development

Officer

Vincent.gollain@iau-idf.frVisit us: www.iau-idf.fr/en