Consideration and Approval of Contract:  CVB Online Display Advertising and Pay Per Click (PPC) Campaign Management: RFP No. 2013-46

This action will allow the Convention and Visitors Bureau (CVB) to place online advertising throughout an entire ad network focusing on target markets in accordance with the media plan proposed during the FY 2014 budget process. In addition, the CVB will also be conducting a search, or pay-per-click (PPC), campaign in conjunction with the overall marketing strategy.

Subsidiary Decision Points: None

The $135,000 for online display advertising and PPC campaigns is allocated in the CVB's FY 2014 media plan and corresponding marketing budget (053-8402-650-2802).

Retain, expand, and diversify economic base

Yes. Each year the City Council has reviewed this purchase, which in the past was sole sourced. Due to the increase in online advertising networks and companies that provide this placement service, the contract is no longer a sole source purchase and was sent out for RFP. Each year that the contract has been presented to City Council, it has been approved with no amendments.

Option A: Approve contract with The Reporter
Option B: Amend the FY 2104 Media Plan and corresponding online placements and PPC campaigns
Option C: Reject contract with The Reporter

The Flagstaff CVB develops and executes a comprehensive media plan each year in order to generate interest in the destination and promote overnight travel. In addition to the media plan, the CVB also generates all of the creative elements of the advertising campaign.

Recognizing the importance of online marketing tools and search marketing to the success if its overall objectives, the CVB sought a contractor to manage their online display advertisements in multiple markets, as well as administer their overall PPC/search campaign. The contractor will be responsible for: a) media plan recommendations and online placement tactics to best promote Flagstaff as a visitor destination, b) placing advertising based on selected media schedule, managing the campaign, and making adjustments as needed for optimum performance, c) reporting results to the CVB on a monthly or campaign basis, and d) reviewing the media plan with the CVB to make ongoing adjustments or recommendations based on performance.

The contract type is an annual firm-fixed fee with an initial five (5) year term. Upon mutual agreement between the City and the vendor, the agreement may be renewed for one (1) additional five (5) year term. The City received three (3) responses to the RFP. In the RFP, the evaluation criteria utilized included experience and qualifications, marketing plan/presented approach, pricing fee/budget and references. The evaluation team reviewed the proposals and short-listed two (2) Proposers. The short-listed two (2) Proposers were invited to a formal interview process with the Evaluation Committee where an established set of questions and new evaluation criteria were scored. The new evaluation criteria included: implementation/flexibility/access, budget - best and final, account representation and schedule/timeline. The scoring tabulation from the interview process resulted in one (1) top Proposer: The Reporter. The Reporter scored a total of 2,200 points out of a possible 2,500.

Per the FY 2014 Media Plan, the CVB places online advertising in various markets throughout the year. In order to place these ads, the CVB must schedule and place these early in the fiscal year. By contracting with The Reporter, the CVB will secure much more favorable rates, increase reach and frequency, be able to manage search campaigns, and coordinate different types of campaigns to better promote Flagstaff.

The CVB is responsible for executing an aggressive and targeted marketing campaign which will attract overnight visitation and increase BBB revenues. These BBB revenues are a critical component in creating a sustainable community, as they fund arts and science initiatives, beautification projects, economic development, parks and recreation programs and future tourism promotion.

It is anticipated that the total media plan for FY 2014 will be approximately $525,000 as budgeted. The cost allocated to The Reporter for online placements and search campaigns will not exceed $135,000. The CVB places advertising in more than 75 publications throughout the world, in addition to working with an online ad display network which places ads through their network of websites, including Google, Yahoo, Bing, Facebook and more. These efforts are supplemented with a search pay-per-click campaign and additional marketing, sales and public relations efforts.

By placing advertising through an online display network which is managed by a contractor, Flagstaff is promoted as a year-round visitor destination. A contractor is able to not only secure better placement rates, but also take part in real-time-bidding (RTB) to secure better search terms appropriate for Flagstaff. The goal of the CVB's advertising is to increase overnight visitation to Flagstaff, thereby generating BBB tax revenue to be reinvested in the community.

Consult - The CVB budget, which included the proposed FY 2014 Media Plan, was presented to the Tourism Commission on May 28, 2013, and was recommended by the Commission.
Collaborate - The proposed media plan includes opportunities for cooperative marketing in order to gain coverage of Flagstaff as a destination.