Okaloosa County BOCC — March 18, 2014 — reading text

Resolution. BACKGROUND: The Board approved a $2.6M Strategic Marketing Plan (SMP) on November 5, 2013. However, the adopted departmental budget in accounts that are classified as “promotional activities” according to the uniform chart of accounts totals $3.5M (excluding accounts for BP funds). This $900K difference is attributable to $534K in marketing activities performed in-house by TDD staff and $375K in special event and sponsorship funding provided for in Section F of the Manual, and such expenditures should be included in the Strategic Marketing Plan. The department’s three-pronged marketing/advertising approach is summarized below. Advertising Agency Strategic Marketing Plan The Board approved SMP outlined marketing activities coordinated by the ad agency and included a line item for Co-Op Opportunities in the amount of $285,000. Due to low partner participation, the majority of co-op funds are proposed for reallocation to leisure media and television production to make a larger promotional impact for the taxing district. Meeting/Conventions and Groups have also been reevaluated. The revised SMP identifies the originally adopted budget as well as the proposed revised budget for each opportunity. Changes are noted in bold for ease of comparison. The overall budget remains unchanged at $2.6M. Ad agency SMP expenses are paid via task order. A few aspects of the ad agency SMP warrant further explanation: • Television Production - Due to the reallocation of funding, television production can be incorporated into the SMP. Two :30 spots and two :15 spots will be shot, edited, and developed to launch in late Spring. • Last Minute Deals - Unanticipated marketing/promotional opportunities will likely present themselves during the year. 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 are available for appropriation by the Tourist Development Director with notification to the TDC Chairman and concurrence of the County Packet Pg. 510  Administrator if a time-sensitive opportunity would be lost due to the timing of regular TDC and BCC meetings required to obtain advance approval. Total cost of the opportunity must be less than $35,000 and County Administrator approval is required regardless of dollar amount. The TDC and BCC will be apprised of the use of these dollars at their next regularly scheduled meetings. In-House Strategic Marketing Plan A Convention Center Local Strategic Plan was developed in August 2013, but an overall in- house strategic marketing plan outlining activities and expenses has not been formally reviewed by the TDC nor adopted by the BCC. There are several marketing efforts undertaken by Tourist Development Department staff. The Destination team attends trade shows throughout the year to promote the Emerald Coast area as a tourism destination. The Sales team attends trade shows and makes sales trips to promote the Emerald Coast Convention Center (ECCC) to meeting planners. The Events team ensures each client’s expectations at the ECCC are met or exceeded. A Film Commissioner is contracted to market the Emerald Coast to production and entertainment companies. There is $589K budgeted for in-house marketing and promotional activities, of which $534K is directly attributable to promotional accounts. A few aspects of the in-house SMP warrant further explanation: • Film Commission - The TDD has a contract in the amount of $38K with Gail Morgan for film commission services. In addition, travel (transportation, accommodations, meals, registration fees) is also reimbursed under the contract. Other expenses necessary to support Film Commission operations are paid directly by the TDD. The Film Commission was budgeted in a contractual services account, but is more appropriately classified as a promotional activity. • Entertainment Expenses/Meals for Meetings - Section C.500 of the TDD Operations & Procedures Manual provides for entertainment expenses when meeting with travel writers, tour brokers, or other persons connected with the tourist industry. Networking with local and out of area tourism industry professionals is an essential component of promoting the taxing district, and such activity may on occasion require the purchase of meals and non-alcoholic beverages. • Last Minute Deals - Unanticipated marketing/promotional opportunities will likely present themselves during the year. 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 are available for appropriation by the Tourist Development Director with notification to the TDC Chairman and concurrence of the County Administrator if a time-sensitive opportunity would be lost due to the timing of regular TDC and BCC meetings required to obtain advance approval. Total cost of the opportunity must be less than $35,000 and County Administrator approval is required regardless of dollar amount. The TDC and BCC will be apprised of the use of these dollars at their next regularly scheduled meetings. Special Events and Sponsorships Funding Packet Pg. 511 The adopted budget appropriates $375K for special event and sponsorship applications meeting the criteria of Section F of the TDD Manual. The Tourist Development Council unanimously approved the revised Ad Agency Strategic Marketing Plan and adoption of an In-House Strategic Marketing Plan at its February 27, 2014 meeting. OPTIONS: Approve or Disapprove RECOMMENDATION: Approve Resolution 2014-__ adopting the Okaloosa County Tourist Development Department Ad Agency Strategic Marketing Plan and Okaloosa County Tourist Development Department In-House Strategic Marketing Plan for Fiscal Year 2013-2014; copies of which are attached. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 512 October 1, 2013 – September 30, 2014 Advertising Agency Strategic Marketing Plan – Revised February 27, 2014 Packet Pg. 513 Marketing Plan Budget 2 Packet Pg. 514  Ad Agency Marketing Plan Budget Original Budget Revised Budget Research (ongoing visitor profile and economic impact study) $55,200 $55,200 Leisure Media $1,194,800 $1,371,629 Co-Op Opportunities $285,000 $24,952 Meetings and Conventions $100,000 $86,971 Groups $100,000 $70,320 Collateral, Campaign Production and Visitors Guide* $400,000 $507,115 Base Services/Travel Reimbursement $465,000 $465,000 Last Minute Deals** $0 $18,813 Total $2,600,000 $2,600,000 *Due to the reallocation, television production – not previously a part of the plan - will occur in the spring. Two :30 spots and two :15 spots will be shot, edited, and developed to launch in late spring. **Last Minute Deals reflects funding for unanticipated marketing/promotional opportunities that may become available March – September 2014. 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 are available for appropriation by the Tourist Development Director with concurrence of the TDC Chairman and County Administrator if a time-sensitive opportunity would be lost due to the timing of regular TDC and BCC meetings required to obtain advance approval. Total cost of the opportunity must be less than $35,000 and County Administrator approval is required regardless of dollar amount. The TDC and BCC will be apprised of the use of these dollars at their next regularly scheduled meetings. 3 Packet Pg. 515 Leisure Media Plan 4 Packet Pg. 516  Leisure Media Summary Vendor Opportunity Original Budget Revised 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 Coastal Living FP, 4C ad - Visit Florida: February & April 2014 $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 5 Packet Pg. 517  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