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9.A.
City Council Meeting - FINAL
Meeting Date:
05/03/2022
From:
Trace Ward, CVB Director

Information

TITLE:

Consideration and Approval of Contract:  Legends Entertainment District Marketing Agreement for advertising in downtown Phoenix on an electronic billboard, for a two year term at cost of $78,000 per year.

STAFF RECOMMENDED ACTION:

Approve the Contract with the Legends District.

Executive Summary:

Approval of this Contract will continue our relationship with the Legends Entertainment District in downtown Phoenix in order to reach a highly targeted audience to inspire visitation, support our sustainability message and to promote our values of keeping our wild places wild and visiting responsibly.

Discover Flagstaff has cultivated a valuable relationship with the Legends Entertainment District where we have a 'lock' on one of the best out-of-home advertising locations in the area - right in front of Chase Field and along the walking path of millions of visitors to the area as well as downtown employees and residents. This location checks all of the boxes - the demographic is heavy on middle-class and affluent Arizona residents attending concerts, sporting events, restaurants and entertainment venues. Additionally, the placement is in a walking district with slow moving traffic and often experiences street closures right in front of it for events. This relationship has been cultivated since 2016 with lots of value-added placements in the area and a healthy discount on their regular pricing. 

It's important to mention that this relationship has allowed us to message responsible visitation during the pandemic; promote our four seasons message; and our values on sustainability.

Discover Flagstaff has partnered with the Sustainability Division in the latest rendition of the out-of-home placement with a strong message of keeping our wild places wild, visiting responsibly, and sharing our mission to become a net neutral carbon destination.

This ongoing installation helps Discover Flagstaff provide a multi-faceted marketing program that includes print, digital, social and out of home. In order to market a destination successfully, we must have the message reaching all types of viewers on all platforms. 
 

Financial Impact:

The advertising services that will be provided under this Contract is a part of a Discover Flagstaff effort focusing heavily on Arizona, Southern California, and direct-flight markets of the cities of Denver and Dallas to promote tourism in Flagstaff and facilitate a speedy economic recovery for all of the businesses and the employees of those businesses in Flagstaff that depend on tourism. Also, important is the recovery and growth of sales tax dollars generated by the tourism industry so the City can provide the services that we all want to provide.

This two (2) year contract has an annual cost of $78,000.  This amount is budgeted in the BBB-Tourism Fund in account number 053-07-214-0851-4-4271.

Policy Impact:

NONE

Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan:

Priority Based Budget Key Community Priorities and Objectives
  • Environmental Stewardship - This ad features and promotes our sustainable values in Flagstaff
  • Robust and Resilient Economy - This is a key placement that will help us with our economic recovery and keeps us in front of our number one market
Carbon Neutrality Plan
  • Discover Flagstaff has been working with Sustainability on the branding of this community value and the logo is on the ad placement
Regional Plan
  • The ad placement support the Regional Plan's Mission: 
The greater Flagstaff community embraces the region's extraordinary cultural and ecological setting on the Colorado Plateau through active stewardship of the natural and built environments. Residents and visitors encourage and advance intellectual, environmental, social, and economic vitality for today's citizens and future generations.

Has There Been Previous Council Decision on This:

Yes. Council has voted nearly unanimously to approve this agreement two times previously.

Options and Alternatives:

In 2021, Arizona was listed as the 4th fastest growing state, and averaged 269 daily new residents moving into the state in 2021 -- that's more than 98,000 new people that may not be aware of Flagstaff.  Maricopa County was the #1 fastest growing US county.   The current 2022 Metro Phoenix population is 4.6 M. It's important for Discover Flagstaff to continue to outreach to our largest target audience. 

Background and History:

Discover Flagstaff has had a valuable relationship with management company of this entertainment district since 2016.

Key Considerations:

If not passed, we will lose this placement and it is sure to get picked up by another advertiser. We will also lose a valued audience that visit the DT Phoenix district which in turn could be a potential visitor or business partner for our future. Again, Phoenix is our largest target audience and we must continue to message to them safe and responsible visitation. 

Community Benefits and Considerations:

Budget/Cost of the placement is $78,000 annually - a minimum of 25% off from regular pricing

Additional value add:
No increase since the original ad placement in 2017
Legends district provides one complete vinyl change-out per contract term
Legends district provides other FREE placements with messaging of our choice in other parts of the district
 

Community Involvement:

We get the opportunity to message our values around sustainability, visit responsibly, fire safety, snow safety, keeping our wild places wild - all while inspiring our number one target market to spend their money in our community and build their businesses in our city.

Expanded Options and Alternatives:

The Tourism Commission is in approval of the creative and placement.

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