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ITEM 10

City Council Memorandum Economic Development Memo No. N/A

Date:

June 24, 2024

To:

Mayor and Council

Thru:

Joshua H. Wright, City Manager
Andy Bass, Deputy City Manager

From:

Kimberly Janes, Economic Development Senior Program Manager

Subject:

Agreement No. ED3-920-4587, Amendment No. 1, for Search Engine Optimization and Pay Per Click Services

Proposed Motion:

Move City Council approve Agreement No. ED3-920-4587, Amendment No. 1, with Simpleview Worldwide, Inc., for search engine optimization and pay per click services, in an amount not to exceed $109,200, for a one-year period, beginning July 1, 2024, through June 30, 2025.

Background/Discussion:

The Proposition 302 Maricopa County Grant program (Prop 302) is available to designated destination marketing organizations within Maricopa County and is administered by the Arizona Office of Tourism. This grant program provides funding for new and expanded tourism marketing activities such as advertising, website development, public relations and travel industry marketing that promotes the community as a travel destination. The City of Chandler has utilized Prop 302 to fund the development, maintenance, and support of the city's tourism website, www.VisitChandler.com, since 2003.

The responsive website features essential Chandler tourism information including, but not limited to, hotel accommodations, attractions, a calendar of events, and a dining guide. It is a key marketing tool to reach potential visitors. VisitChandler.com is featured in all promotional materials and advertisements and is also used to measure the success of marketing campaigns and general promotions. The website is a key source of information for people researching travel to Chandler and continues to drive online traffic. For the Fiscal Year (FY) 2023-2024, year-to-date traffic through May 2024, the tourism website has generated more than 434,000 sessions, representing a 16.1% increase in traffic compared to the same period in FY 2022-2023.

Pay-per-click (PPC) ads are strategically placed website advertisements that appear on the right and at the top of natural search engine results for specific keywords and phrases. PPC is typically a strong marketing strategy when trying to rank highly competitive keywords and phrases with immediate results. Search Engine Optimization (SEO) is an organic method of increasing the likelihood that a website is found by a user when searching for a keyword or phrase through a search engine, thereby connecting the user with the content they are seeking. SEO is a strong, long-term strategy that requires a continual investment of time but provides lasting website growth.

In recent years, PPC advertising costs have consistently increased due to rising costs associated with rising advertising demand for coveted placement with more advertisers competing for the same traffic. For FY 2024-2025, a 20% increase in the PPC media spend, from $4,000 per month to $4,800 per month (a $9,600 overall increase for the fiscal year) has been allocated.

Evaluation:

On July 6, 2023, the City executed an agreement with Simpleview Worldwide, Inc., for search engine optimization and pay-per-click services, following a competitive request for proposal process. The not-to-exceed amount in the first year of the agreement was $99,600. In this first extension term, additional funds will be dedicated to pay-per-click media. There are no changes to the underlying terms, conditions, or pricing. Staff recommends extension of this agreement.

Financial Implications:

Funding for this agreement is contingent upon awarding and acceptance of the FY 2024-2025 Proposition 302 Maricopa County Grant.

Fiscal Impact

Account No.

Fund Name

Program Name

Dollar Amount

CIP Funded Y/N

217.1580.5219.0.3ED001.0

Grant Fund

Prop 302 Maricopa County Grant

$109,200

Attachments

Amendment