Okaloosa County BOCC — April 24, 2014 — VII.b. SMP Revision — reading text

TOURIST DEVELOPMENT DEPARTMENT MEMORANDUM DATE: April 21, 2014 TO: Tourist Development Council FROM: Ed Schroeder, Tourist Development Department Director Charlotte Dunworth, Finance, Administration, & Compliance Manager SUBJECT: Strategic Marketing Plan Revisions Background All advertising/marketing expenditures shall be in conformity with the approved Strategic Marketing Plan per section D.200.2.c of the TDD Operations & Procedures Manual. TDC recommended on February 27 and BCC adopted on March 18 a revised ad agency and in-house Strategic Marketing Plan (SMP). Discussion Based on conversations with Purchasing and Finance, the following revisions are proposed:  Promotional Reserve – The terminology has been changed from Last Minute Deals to Promotional Reserve to more accurately define the purpose of the funds, and approval authority has been aligned with existing County policy. The funds are budgeted for promotional opportunities that may arise which were unknown when developing the SMP. To the greatest extent possible, such opportunities will be presented to the TDC for recommendation to the BCC for approval in advance. However, these funds may be appropriated in accordance with County approval authority and with concurrence of the TDC Chairman if an opportunity would be lost due to the timing of regular TDC and BCC meetings. In such case, the TDC and BCC will be apprised of the use of these dollars at their next regularly scheduled meetings.  Consolidated Document – The Ad Agency and In House strategic marketing plans have been combined into one document for ease of reference and to permit promotional reserves to be used by either the ad agency or in house, as appropriate. By definition, it is unknown whether opportunities meriting the use of promotional reserves can be completed in house by TDD staff or will require ad agency assistance. Therefore, promotional reserves are no longer included in the ad agency or in house plans, but are identified separately in the consolidated strategic marketing plan to allow flexibility and minimize the need for strategic marketing plan revisions. The chart below illustrates the reclassification of promotional reserves to a separate category: Current Budget New Budget Ad Agency Strategic Marketing Plan $2,600,000 $2,581,187 In House Strategic Marketing Plan $588,782 $457,534 Special Events & Sponsorships $375,000 $375,000 Promotional Reserve $0 $150,061 FY 2013-14 Strategic Marketing Plan $3,563,782 $3,563,782 Transportation/Lodging/Meals* ($54,582) ($54,582) Budgeted Promotional Activities $3,509,200 $3,509,200 TDC Recommendation to BCC Recommend approval of FY 2013-14 Consolidated Strategic Marketing Plan. October 1, 2013 – September 30, 2014 Consolidated Strategic Marketing Plan TDC: April 24, 24 2014 BCC: May 6, 2014 (anticipated)  FY 2013‐14 Consolidated St t i M Strategic Marketing k ti PlPlan B Budget d t Current Budget New Budget Ad Agency Strategic Marketing Plan $2,600,000 $2,581,187 In‐House Strategic Marketing Plan $588,782 $457,534 Special Events & Sponsorships $375,000 $375,000 ((awarded d d per Section F off TDD Manual) l) Promotional Reserve* ‐ $150,061 FY 2013‐14 Strategic Marketing Plan $3,563,782 $3,563,782 Transportation/Lodging/Meals** ($54,582)* ($54,582)* Budgeted Promotional Activities (548xxx accts) $3,509,200 $3,509,200 *Promotional Reserve funds are budgeted for promotional opportunities that may arise which were unknown when developing the SMP. To the greatest extent possible, such opportunities will be presented to the TDC for recommendation to the BCC for approval in advance. However, these funds may be appropriated in accordance with County approval authority and with concurrence of the TDC Chairman if an opportunity would be lost due to the timing of regular TDC and BCC meetings. In such case, the TDC and BCC will be apprised of the use of these dollars at their next regularly scheduled meetings. **not accounted for in a ‐548xxx promotions account TDC 4/24/14 BCC 5/6/14 (anticipated) 2 Ad Agency Marketing Plan Budget Original Revised New Budget Budget Budget Research (ongoing visitor profile and economic impact study) $55,200 $55,200 $55,200 Leisure Media $1,194,800 $1,371,629 $1,371,629 Co‐Op Opportunities $285,000 $24,952 $24,952 Meetings and Conventions $100,000 $86,971 $86,971 Groups $100,000 $70,320 $70,320 Collateral, Campaign Production and Visitors Guide $400,000 $507,115 $507,115 Base Services/Travel Reimbursement $465,000 $465,000 $465,000 Last Minute Deals Promotional Reserve ‐ $18,813 ‐ Total $2,600,000 $2,600,000 $2,581,187 TDC 4/24/14 BCC 5/6/14 (anticipated) 3  Leisure Media Summary V d Vendor O Opportunity t it O i i lB Original Budget d t Revised R i d Budget Visit Florida Guide 2‐page, 4C spread – January release $15,000 $15,000 Play Florida FP, 4C ad – year round distribution $28,650 $28,650 Life’s a Beach FP, 4C ad – spring/fall/winter $9,345 $9,345 C Coastal l Li Living i FP 4C ad FP, d ‐ Visit Vi i Fl Florida: id FFebruary b & April A il 2014 $47 740 $47,740 $47 740 $47,740 FP, 4C ad – reduced from full‐year to Beaches, Resorts, and Parks $9,030 $6,020 seasonal presence 2/3 page, 4C ad – November 2013 & August Southern Living $124,000 $124,000 2014 Family Circle, Family Fun, FP, 4C ad – May 2014 $53,674 $53,674 Parents Bon Appetit/Architectural FP, 4C – July 2014 $72,770 $72,770 Digest/Vanity Fair FP, 4C – May 2014 ; Custom advertorial Travel+Leisure/Food & Wine creation ; digital Mar‐May 2014 exposure ; $0 $0 custom e‐blast TDC 4/24/14 BCC 5/6/14 (anticipated) 4  Leisure Media Summary Vendor Opportunity Original Budget Revised Budget 3 metro market; reduced from Christmas Digital Outdoor $40,000 $20,000 2013 & 2014 to only Christmas 2014 FP, 4C – VF: Escape to the South – January Toronto Life $10,949 $10,949 2014 FP, 4C – February 2014 issue Crossings $4,500 $4,500 FL editorial and guaranteed EC content Reduced from FP to 2/3P, Regional Magazines 4C units – top‐feeder markets, Christmas, $223,624 $175,549 Spring/Summer, Fall :30 sec schedules Nationally for all key Satellite Radio $30,895 $30,895 campaigns Yahoo BT/Geo‐Targeted Banners $117,000 $117,000 Google Keyword Text Ads $ $78,911 $ $78,911 TDC 4/24/14 BCC 5/6/14 (anticipated) 5  Leisure Media Summary Vendor Opportunity Original Budget Revised Budget Targeted Tile Ads, Promoted Facebook