9.A.
City Council Meeting - FINAL
- Meeting Date:
- 06/02/2026
- Co-Submitter:
- Trace Ward
- From:
- Lori Pappas, Marketing and Media Relations Mgr.
TITLE:
Consideration and Approval of Contract: Digital Ad Server Master Services Agreement with Adgenuity, LLC in the amount of $285,000, annually.
STAFF RECOMMENDED ACTION:
- Approve the Digital Ad Server Master Services Agreement with Adgenuity, LLC in the amount of $285,000, annually; and
- Authorize the City Manager to execute all necessary documents.
Executive Summary:
This is a reoccurring budget item for a digital ad server vendor in the amount of $285,000.
For FY ’27, we are seeking a single contract to include: Programmatic digital for $190,000, and an additional Contingency fund at $95,000. Contingency fund may be used by Discover Flagstaff to support additional city sections using the applicable section’s budget. The total amount is $285,000.
This contract service is critical to Discover Flagstaff's overall strategy in driving quality visitation to our destination, supporting citywide stakeholders and partners, including accommodations, restaurants, breweries, attractions, and additional businesses reliant on the tourism economy, while also folding-in support for Stay & Play Responsibly with special programming around Be Fire Aware and Winter Recreation. This vendor is needed as digital media continues to grow in demand, and as its technology provides their real-time bidding platform to leverage the budget to serve an advertisement to the right person at the right time – psychographically, demographically, and contextually.
For FY ’27, we are seeking a single contract to include: Programmatic digital for $190,000, and an additional Contingency fund at $95,000. Contingency fund may be used by Discover Flagstaff to support additional city sections using the applicable section’s budget. The total amount is $285,000.
This contract service is critical to Discover Flagstaff's overall strategy in driving quality visitation to our destination, supporting citywide stakeholders and partners, including accommodations, restaurants, breweries, attractions, and additional businesses reliant on the tourism economy, while also folding-in support for Stay & Play Responsibly with special programming around Be Fire Aware and Winter Recreation. This vendor is needed as digital media continues to grow in demand, and as its technology provides their real-time bidding platform to leverage the budget to serve an advertisement to the right person at the right time – psychographically, demographically, and contextually.
Some examples of the use of these funds, include Discover Flagstaff working with a potential visitor residing in Dallas that has digitally expressed interest in visiting a national park. At this split second, Durango (and many destinations competing for national park business) are also bidding to reach the same person at the same time. It's the digital ad server's algorithms and real-time bidding desk that immediately identifies a person in a buying funnel — that someone who is shopping for experiences in a national park — and then serves the advertisement. These transactions/bids occur in nanoseconds. Furthermore, the digital ad server's technology provides additional benefits such as creating lookalike audiences. The ad server has analyzed people that have visited us in-market/those who often engage on our website, etc., and now the ad server can identify lookalike customers that act similarly — behaviorally, geographically, and demographically. If a person/family was observed visiting southern California with time spent at Griffith Observatory and Joshua Tree, there is a probability they would be a 'lookalike' and served a Discover Flagstaff ad. The ad server can also assist in serving ads to people that prefer to travel during off/shoulder seasons. These laser-focused abilities allow us to deliver various messages to a very interested audience, which ensures our budget is not wasted on our digital platform.
Digital ad service has enabled us to support additional city sections such as fire, human resources, public affairs, airport, and planning and development. The platform’s dashboard will also provide metrics to help measure success – that success is seeing increased demand/action in Flagstaff from the advertisement.
A digital ad server's strengths and success can be measured by providing attribution (where ad-served visitors are observed in-market) and also providing a return-on-ad spend. These analytics help us make informed marketing decisions.
Digital ad service has enabled us to support additional city sections such as fire, human resources, public affairs, airport, and planning and development. The platform’s dashboard will also provide metrics to help measure success – that success is seeing increased demand/action in Flagstaff from the advertisement.
A digital ad server's strengths and success can be measured by providing attribution (where ad-served visitors are observed in-market) and also providing a return-on-ad spend. These analytics help us make informed marketing decisions.
Financial Impact:
Project Name: Digital Ad Server Master Services Agreement
Cost: $285,000 for 12-months of service, September 1, 2026 - August 31, 2027, with renewable terms for September 2027, September 2028, September 2029, September 2030
Account Number Budgeted: 053.07.214.0851.4.4271
FY 27 Budgeted Amount: $285,000 of the $1,166,194 advertising budget
Grant Funded: No
Funding Source: BBB tourism fund, CVB budget
Cost: $285,000 for 12-months of service, September 1, 2026 - August 31, 2027, with renewable terms for September 2027, September 2028, September 2029, September 2030
Account Number Budgeted: 053.07.214.0851.4.4271
FY 27 Budgeted Amount: $285,000 of the $1,166,194 advertising budget
Grant Funded: No
Funding Source: BBB tourism fund, CVB budget
Policy Impact:
Connection to PBB Key Community Priorities/Objectives & Regional Plan: High-performance governance, robust and resilient economy, livable community, environmental stewardship
Previous Council Decision or Community Discussion:
Council has approved digital ad services over the course of several years. The current contract is very similar and was presented on August 20, 2021, and the contingency contract was approved June 28, 2024.
Yes — Discover Flagstaff has been utilizing digital ad placement services since the beginning of digital ads — more than 20 years ago.
Yes — Discover Flagstaff has been utilizing digital ad placement services since the beginning of digital ads — more than 20 years ago.
Options and Alternatives to Recommended Action:
- Approve the Digital Ad Server Master Services Agreement with Adgenuity, LLC in the amount of $285,000, annually; or
- Not approve the Digital Ad Server Master Services Agreement, which is not recommended by staff. Hiring a digital ad server is a necessary part of the tourism strategy and there is no alternative to hiring a professional company for these purposes, as the City does not have the capability or expertise in-house.
Background and History:
On December 15, 2025, Purchasing posted a Request for Proposals (RFP) solicitation for a Digital Ad Server on the Opengov.com platform. There were fourteen (14) proposals received on January 30, 2026. A five (5) member Selection Committee consisting of four (4) City staff and one (1) tourism commissioner, evaluated the proposals, conducted an interview process, and evaluated Best and Final Offers. Based upon the numerical scoring, AdGenuity was the top scoring firm.
Connection to PBB Priorities and Objectives:
Supports a robust economy.
Connection to Regional Plan:
N/A
Connection to Carbon Neutrality Plan:
N/A
Connection to 10-Year Housing Plan:
N/A
Connection to Division Specific Plan:
Mission Statement: Discover Flagstaff increases visitation and visitor spending through responsible marketing, advertising, direct sales and other programming. This is done by utilizing data-driven strategies and tactics which inspire and motivate year-round visits, benefiting the community economically and socially.