10.0.
City Council Meeting - DRAFT
- Meeting Date:
- 06/07/2016
- From:
- Trace Ward, CVB Director
Information
TITLE:
Consideration and Approval of Contract: Legends Entertainment District Agreement
RECOMMENDED ACTION:
Review and approve the agreement, and authorize the City Manager to execute the agreement.
Executive Summary:
The CVB has always produced a key out-of-home ad placement in Flagstaff's #1 market - Phoenix. For the past two years, this placement was 'The Cool Zone' in the Legends Entertainment District. Continuing to strive for more eyes on impression and better positioning in the Phoenix market, we are planning on producing an 18' x 84' static billboard in the same area, but with better visibility. We anticipate getting around 20 million impressions over the 23-month contract period and will drive the message that Flagstaff is a destination for all seasons.
Financial Impact:
The cost for the billboard is $6,500 per month which includes all production costs. The agreement begins August 1, 2016 continues through the June 2018. Total costs are $149,500 for the two year contract. Funds are already budgeted in account 053-07-214-0851-4-2471 and come from BBB revenues designated for enhancing tourism. It is anticipated that this ad placement will generate significant tourist visitation which will have a positive financial impact on both BBB revenues and sales tax revenues.
Connection to Council Goal and/or Regional Plan:
COUNCIL GOALS:
9) Improve the economic quality of life for Flagstaff through economic diversification, and by fostering jobs and programs that grow wages and revenues
9) Improve the economic quality of life for Flagstaff through economic diversification, and by fostering jobs and programs that grow wages and revenues
Has There Been Previous Council Decision on This:
There has been no previous decision on this contract, but Council approved a similar agreement for marketing in the Legends Entertainment District over the last two years.
Options and Alternatives:
Council could elect to no longer market in the Legends Entertainment District.
Background/History:
As our number one feeder market, Phoenix remains our first target market to drive visitation to Flagstaff. We do this via a number of platforms: web search, print ads, email blasts, direct sales and out-of-home placements. Out-of-home refers to billboards, vehicle and transportation wraps, activations in key areas, etc.
Key Considerations:
Phoenix is the sixth largest city in the United States and is growing by 100,000 new residents per year. Additionally, the City of Flagstaff enjoys a strong repeat visitation number and therefore Phoenix remains a top market for us to buy advertising.
Expanded Financial Considerations:
The CVB has negotiated a very favorable deal for this particular billboard placement - $6,500 per month with all production costs included.
Community Benefits and Considerations:
Flagstaff is heavily supported by tourism.
Community Involvement:
Inform