6.D.
City Council Draft Agenda
- Meeting Date:
- 11/05/2024
- Co-Submitter:
- Trace Ward
- From:
- Lori Pappas, Marketing and Media Relations Mgr.
TITLE:
Consideration and Approval of Contract: Renewal of a Contract for Digital Ad Serving for a one-year term in the amount of $160,000.00, with authority for the City Manager to approve the final one-year term in an additional amount of $160,000 (total of $320,000).
STAFF RECOMMENDED ACTION:
- Approve renewal of contract with Datafy with authority for the City Manager to approve the final one-year term in an additional amount of $160,000 (total of $320,000) through September 14, 2026, and
- Authorize the City Manager to execute the necessary documents.
Executive Summary:
This is a recurring budget item for a digital ad server vendor in the amount of $160,000 which is the same dollar amount administered in previous years.
The digital ad server is a critical portion of Discover Flagstaff's overall strategy in driving quality visitation to our destination supporting citywide stakeholders and partners -- accommodations, restaurants, breweries, attractions, and additional businesses reliant on the tourism economy.
This vendor relationship is needed because of the technology and speed of their real-time bidding platforms that leverage the budget to serve an advertisement to the right person at the right time. Here's an example: Discover Flagstaff could be bidding to serve an ad to a customer in Dallas that has expressed interest in visiting a national park, at this split second, Durango (and many destinations competing for national park business) are bidding to reach the same person at the same time. It's the digital ad server's algorithms, real-time bidding desk, that immediately identifies a person in a buying funnel -- the someone who is shopping for experiences at a national park -- and then serves the advertisement. These transactions occur in nanoseconds.
Further, the digital ad server's technology provides additional benefits: 1) Using the dashboard’s attribution data dashboard, we can identify opportunities as to who is visiting and when, as well as what they are doing in-market, which allows us to laser-focus on even more relevant content and audiences. 2) Create unique audiences including lookalike audiences (if a person is attending an arts or cultural festival in Telluride or Albuquerque, the person is identified with Datafy’s technology permitting Datafy the ability to serve an ad to inspire a Flagstaff festival visit) and so on. The ad server can identify key audiences -- one example is travelers preferring visits during off/shoulder seasons. These laser-focused abilities allow us to deliver various messages to a very interested audience which provides less budget waste.
This platform also enables us to serve ads supporting Stay and Play Responsibly, Be Fire Aware, Winter Recreation safety, Regenerative and Responsible Visitation, bond measures, and Leave No Trace, as well as supporting other sections including Pulliam Airport, Human Resources, Wildland Fire Department, and Public Affairs. One way Discover Flagstaff's digital ad server's strengths and successes can be measured is when viewing tourism metrics, such as hotel occupancy and average daily rate. These numbers demonstrate the current strategy is driving above-average results when compared to the state.
In FY'24, the digital ad server pushed out nearly 400 Discover Flagstaff digital ads supporting our stakeholders, partners, and resident sentiment, with strong click-thru results many of which were more than double the industry standard. These ads were served to audiences with a propensity to travel, to people highly targeted, qualified and engaged.
The original contract obtained in September 2021 endured a formal RFP process which included an evaluation committee. The contract allows for up to four one-year term renewals, or through September 14, 2026.
The digital ad server is a critical portion of Discover Flagstaff's overall strategy in driving quality visitation to our destination supporting citywide stakeholders and partners -- accommodations, restaurants, breweries, attractions, and additional businesses reliant on the tourism economy.
This vendor relationship is needed because of the technology and speed of their real-time bidding platforms that leverage the budget to serve an advertisement to the right person at the right time. Here's an example: Discover Flagstaff could be bidding to serve an ad to a customer in Dallas that has expressed interest in visiting a national park, at this split second, Durango (and many destinations competing for national park business) are bidding to reach the same person at the same time. It's the digital ad server's algorithms, real-time bidding desk, that immediately identifies a person in a buying funnel -- the someone who is shopping for experiences at a national park -- and then serves the advertisement. These transactions occur in nanoseconds.
Further, the digital ad server's technology provides additional benefits: 1) Using the dashboard’s attribution data dashboard, we can identify opportunities as to who is visiting and when, as well as what they are doing in-market, which allows us to laser-focus on even more relevant content and audiences. 2) Create unique audiences including lookalike audiences (if a person is attending an arts or cultural festival in Telluride or Albuquerque, the person is identified with Datafy’s technology permitting Datafy the ability to serve an ad to inspire a Flagstaff festival visit) and so on. The ad server can identify key audiences -- one example is travelers preferring visits during off/shoulder seasons. These laser-focused abilities allow us to deliver various messages to a very interested audience which provides less budget waste.
This platform also enables us to serve ads supporting Stay and Play Responsibly, Be Fire Aware, Winter Recreation safety, Regenerative and Responsible Visitation, bond measures, and Leave No Trace, as well as supporting other sections including Pulliam Airport, Human Resources, Wildland Fire Department, and Public Affairs. One way Discover Flagstaff's digital ad server's strengths and successes can be measured is when viewing tourism metrics, such as hotel occupancy and average daily rate. These numbers demonstrate the current strategy is driving above-average results when compared to the state.
In FY'24, the digital ad server pushed out nearly 400 Discover Flagstaff digital ads supporting our stakeholders, partners, and resident sentiment, with strong click-thru results many of which were more than double the industry standard. These ads were served to audiences with a propensity to travel, to people highly targeted, qualified and engaged.
The original contract obtained in September 2021 endured a formal RFP process which included an evaluation committee. The contract allows for up to four one-year term renewals, or through September 14, 2026.
Financial Impact:
Project Name: Digital ad server
Cost: $160,000 has been in the budget in previous years and will remain for FY 2024-25 which was recommended by the Tourism Commission and approved by the Budget team and adopted in the final City budget. Any City Manager approval of a final one year renewal term could not occur unless funding is allocated in the FY-2025-26 City budget.
Account Number Budgeted: 053.07.214.0851.4.4271.
FY Budgeted Amount: $160,000 FY 2024-25, $160,000 FY 2025-26
Grant Funded: No
Funding Source: BBB
Cost: $160,000 has been in the budget in previous years and will remain for FY 2024-25 which was recommended by the Tourism Commission and approved by the Budget team and adopted in the final City budget. Any City Manager approval of a final one year renewal term could not occur unless funding is allocated in the FY-2025-26 City budget.
Account Number Budgeted: 053.07.214.0851.4.4271.
FY Budgeted Amount: $160,000 FY 2024-25, $160,000 FY 2025-26
Grant Funded: No
Funding Source: BBB
Policy Impact:
Connection to PBB Key Community Priorities/Objectives & Regional Plan includes:
High-performance governance, Robust and resilient economy, Livable community, Environmental stewardship
Has There Been Previous Council Decision on this: Yes - Discover Flagstaff has been utilizing digital ad placement services since the beginning of digital ads -- more than 20-years.
High-performance governance, Robust and resilient economy, Livable community, Environmental stewardship
Has There Been Previous Council Decision on this: Yes - Discover Flagstaff has been utilizing digital ad placement services since the beginning of digital ads -- more than 20-years.
Previous Council Decision or Community Discussion:
The original contract obtained in September 2021 endured a formal RFP process which included an evaluation committee, and received city council approval. The contract allows for up to four one-year term renewals, or through September 14, 2026.
Options and Alternatives to Recommended Action:
1. Approve the agreement renewal with Datafy
2. Do not approve the agreement with Datafy
Key Considerations:
Datafy received the highest evaluation score from the panel.
Expanded Financial Considerations:
The overall cost of our digital ad server program is $160,000 which has been budgeted.
Community Benefits and Considerations:
A strong consideration is that Datafy is well-versed in working with destination marketing organizations which have included clients such as Experience Scottsdale, Visit Sedona, and mountain towns such as Ogden, Tacoma and more. Datafy also has over 500 data partners with amazing resources. We feel that our destination will continue to receive great results with this partnership.
Community Involvement:
In 2021, during the time of original procurement, Terry Madeksza, executive director of the Downtown Business Alliance, gave invaluable input as she sought input from her downtown partners throughout the process. She was also familiar with our current digital ad server and saw how we could take the next step with the same budget and be more strategic with Datafy.
2. Do not approve the agreement with Datafy
Key Considerations:
Datafy received the highest evaluation score from the panel.
Expanded Financial Considerations:
The overall cost of our digital ad server program is $160,000 which has been budgeted.
Community Benefits and Considerations:
A strong consideration is that Datafy is well-versed in working with destination marketing organizations which have included clients such as Experience Scottsdale, Visit Sedona, and mountain towns such as Ogden, Tacoma and more. Datafy also has over 500 data partners with amazing resources. We feel that our destination will continue to receive great results with this partnership.
Community Involvement:
In 2021, during the time of original procurement, Terry Madeksza, executive director of the Downtown Business Alliance, gave invaluable input as she sought input from her downtown partners throughout the process. She was also familiar with our current digital ad server and saw how we could take the next step with the same budget and be more strategic with Datafy.
Background and History:
In the Executive Summary section, we shared the history of using a digital ad server vendor. On June 14, 2021, the Purchasing Section posted a Request for Proposals (RFP) solicitation for a Digital Ad Server on the PlanetBids website, and advertised the RFP in the Arizona Daily Sun on June 20 and June 27, 2021. There were six (6) proposals received on July 1, 2021. A five (5) member Selection Committee consisting of four (4) City staff and one (1) outside consultant, evaluated the proposals. Based upon the numerical scoring, the Selection Committee determined Datafy to be top scoring firm. All scores are below in order of rank: Datafy (previously Datafy, LLC) = 454, Sojern = 433, Adara = 430, Media News Group = 368, Inuvo = 361, AZ Daily Sun = 356. The vendor that has been selected to render the digital ad service is Datafy.
Datafy was selected because they are data-rich and have the ability to utilize historical geo-geography location data. This is important because they can generate a custom audience of known past visitors. Our mission is to not only welcome new visitors but to serve advertisements to prior visitors to encourage a repeat visit. Datafy’s reporting metrics can even tell us if a person we served an advertisement is actually observed in-market. As we get more familiar with all the options afforded, we will continue to share the metrics with our stakeholders, Commission and Council.
Datafy was selected because they are data-rich and have the ability to utilize historical geo-geography location data. This is important because they can generate a custom audience of known past visitors. Our mission is to not only welcome new visitors but to serve advertisements to prior visitors to encourage a repeat visit. Datafy’s reporting metrics can even tell us if a person we served an advertisement is actually observed in-market. As we get more familiar with all the options afforded, we will continue to share the metrics with our stakeholders, Commission and Council.
Connection to PBB Priorities and Objectives:
High-performance governance -- the team leans-in and works with our partners and community members daily, much of what is accomplished by this platform supports partner and community needs, in addition to Discover Flagstaff campaigns, the platform has supported additional sections and divisions including fire, airport, human resources and public affairs.
Robust and resilient economy - the platform enables us to inspire responsible visitation while leveraging technology to target people to get the highest and best use of our budget, the platform assists us in driving demand, support and patronage for community businesses.
Livable community - Visitation drives BBB taxes which provides residents with a quality of life through programming provided by other city divisions and sections, in addition to Discover Flagstaff, that receive BBB funds for their budget.
Environmental stewardship - the platform enables us to serve ads with content to support this vertical.
Robust and resilient economy - the platform enables us to inspire responsible visitation while leveraging technology to target people to get the highest and best use of our budget, the platform assists us in driving demand, support and patronage for community businesses.
Livable community - Visitation drives BBB taxes which provides residents with a quality of life through programming provided by other city divisions and sections, in addition to Discover Flagstaff, that receive BBB funds for their budget.
Environmental stewardship - the platform enables us to serve ads with content to support this vertical.
Connection to Regional Plan:
NA
Connection to Carbon Neutrality Plan:
Digital ad serving assists in amplifying nuances of the carbon neutrality plan which includes regenerative and responsible tourism, as well as Stay and Play Responsibly, Be Fire Aware, Winter Recreation safety, and Leave No Trace.
Connection to 10-Year Housing Plan:
NA
Connection to Division Specific Plan:
Supporting the Economic Vitality Division's mission statement of: Provides quality services to residents and visitors that preserve and enhance Flagstaff's economic prosperity and overall quality of life.
Some of the work and marketing communication we have supported includes: Stay and Play Responsibly, award-winning Be Fire Aware, Winter Recreation and the snow play map, plus multiple campaigns to educate, inspire and motivate responsible visitation which include national parks and monuments (outdoors are the #1 reason people visit), dining and nightlife, performing and visual arts, cultural awareness and festivals, and there's so much more.
Some of the work and marketing communication we have supported includes: Stay and Play Responsibly, award-winning Be Fire Aware, Winter Recreation and the snow play map, plus multiple campaigns to educate, inspire and motivate responsible visitation which include national parks and monuments (outdoors are the #1 reason people visit), dining and nightlife, performing and visual arts, cultural awareness and festivals, and there's so much more.