Okaloosa County BOCC — April 28, 2016 — Agenda Packet — reading text

Tourist Development Department Director SUBJECT: Marketing Plan Guidance Attachment: I. e. Mkting Plan Guidance (5539 : FY17 Strategic Marketing Plan guidance (Ed Schroeder)) STATEMENT OF ISSUE: Provide a high-level marketing plan allocation for FY 2016-17. BACKGROUND: The timeline for developing the FY17 Strategic Marketing Plan (SMP) is as follows. Guidance on several aspects of the Strategic Marketing Plan is requested.  TDC to provide high-level guidance 4/28  SMP presented to TDC 5/26 and BCC 6/7 (if no TDC changes); SMP fairly detailed for first quarter and less detailed for remainder of year  Media negotiations occur June – August for FY17 Q1 placements (i.e. Oct-Dec)  Media negotiations ensue for FY17 Q3-Q4  Ads start running in October 2016 Forecasted media budget for FY17 is $5.145M, including $1.775M for Allegiant Air. DISCUSSION TOPICS: FY17 Proposed Allocation Seasonality FY16 FY17 . 10% 30% Fall Fall $601K $1.011M Christmas 5% Christmas $100K $168K Snowbirds Snowbirds $133K $338K 10% Spring 5% Spring $543K $1.011M Summer Summer $350K $337K Non‐Seasonal/Niche 10% Non-Seasonal/Niche $595K $168K 30% Groups/Meetings Groups/Meetings $210K $337K $2.532M $3.370M Allegiant Air $1.170M $1.775M FY17 Proposed Allocation Media Allocation FY16 FY17 . 20% 45% Print Print $515K $674K 2% Online Online $965K $1.517M 3% TV $444K $1.011M TV Radio $63K $101K Radio Other $545K $67K 30% Other $2.532M $3.370M Allegiant Air $1.170M $1.775M RECOMMENDATION TO BCC: N/A, for staff direction only. Packet Pg. 29  1.f Tourist Development Council Meeting: 04/28/16 02:00 PM 1540 Miracle Strip Parkway Department: Tourist Development Council Fort Walton Beach, FL 32548 Category: Update Prepared By: Aida Wilkinson SCHEDULED Initiator: Aida Wilkinson Sponsors: TDC ITEM (ID # 5540) DOC ID: 5540 Allegiant Air contract (Ed Schroder) Updated: 4/25/2016 1:59 PM by Aida Wilkinson Page 1 Packet Pg. 30  1.f.a TOURIST DEVELOPMENT DEPARTMENT MEMORANDUM DATE: April 28, 2016 TO: Tourist Development Council FROM: Ed Schroeder, Tourist Development Department Director SUBJECT: Allegiant Air Contract STATEMENT OF ISSUE: Request approval to enter into a contract with Allegiant Air for the provision of paid media services to promote the Sub-County Taxing District. BACKGROUND: In October 2015 the Interim Airports Director presented a request to the TDC for Attachment: I. f. Allegiant Contract (5540 : Allegiant Air contract (Ed Schroder)) funding to bring new airline service and points of origin to the Destin-Fort Walton Beach airport. The airline recruitment package included the airport waiving all fees for the first two years, a VisitFlorida incentive package, and TDC marketing funding. As a result of the three-pronged incentive package offered, Destin-Fort Walton Beach airport was successful in securing Allegiant Air. On January 12, 2016 non-stop service twice per week to St. Louis and Cincinnati during late May – early September was announced. The high demand for those routes led to an additional day of service and the season being extended through mid-October. In March, non-stop service to Memphis, Oklahoma City, Knoxville, and Fort Lauderdale was announced for late May through mid-August. Demand and advance bookings may result in an extended season, as occurred with the first two routes. Allegiant has verbally committed to starting the 2017 season in March and has already demonstrated that seasons will be extended as demand warrants. At its April 19 meeting, the BCC approved the Airline Operating Agreement for Allegiant Air, LLC. A second agreement has been drafted to memorialize the County’s commitment of $3M in tourist development tax dollars for paid media services to market Destin-Fort Walton Beach airline service in the aforementioned markets. BUSINESS/ADVERTISING PLAN: Allegiant’s call-to-action for advertising is to drive customers to www.allegiantair.com only.  Allegiant’s advertising must comply with FAA regulations for fare-based advertising. Therefore, Allegiant will develop all creative at no cost to the County, and the County will reimburse the actual cost of paid media placements.  On a quarterly basis in advance, Allegiant will provide a Media Plan identifying the media type, market, unit, impressions, and cost.  The Media Plan will be presented to the TDC and BCC for approval, similar to the process for the County’s Strategic Marketing Plan.  For each specific media placement, Allegiant will email the TDD Director the media buy sheet and associated creative. The media buy sheet will be approved in accordance with the County’s procurement approval thresholds and the creative will be approved by the TDD Director.  The TDD Director may waive the Emerald Coast logo requirement on a case-by-case basis when approving creative.  Quarterly reporting of advertising and marketing services and relevant performance metrics (e.g. incremental web traffic, conversions, flights in/out by point of origin, percentage of deplaning passengers who booked lodging in Okaloosa County) will be provided to the County within 30 days of quarter-end. Packet Pg. 31  1.f.a FUNDING:  A $1.5 million ad spend from May – December 2016 (launch year, with strong peak months and lighter off-peak months )  A $1.5 million ad spend from January – December 2017 (maintenance year, with media presence in peak months only, except Cincinnati also has radio in off-peak months).  The media mix is TV, radio, and out-of-home. TV only in peak months and excluding very expensive markets (St. Louis and Miami-Ft Lauderdale).  Preliminary media plan attached. LODGING OFFERINGS ON WWW.ALLEGIANTAIR.COM: The hotel search option will be deactivated for Destin-Fort Walton Beach (VPS) until programming is in place to ensure that Okaloosa Attachment: I. f. Allegiant Contract (5540 : Allegiant Air contract (Ed Schroder)) County lodging properties (hotels and rental management companies) appear prominently (i.e. before those of neighboring counties) on the Hotel section of the website. Pursuant to section E.200 of the TDD Manual, the Council shall review and provide a recommendation for all proposed contracts requiring Board approval. The TDD attorney has reviewed the draft contract but not yet prepared a blue sheet since Allegiant has requested clarification regarding the public records provision. To facilitate placing this contract on the May 3 Board agenda, Council approval is requested contingent upon legal acceptance of any further changes and completion of the County contract coordination process. OPTIONS: Approve or Deny RECOMMENDATION TO BCC: Approve a two-year contract (January 2016 – December 2017) with Allegiant Air for the provision of paid media services to promote the Okaloosa Sub-County Taxing District, contingent upon legal acceptance of any further changes and completion of the County contract coordination process. Packet Pg. 32  1.f.a AGREEMENT FOR PAID MEDIA SERVICES TO PROMOTE SUB-COUNTY TAXING DISTRICT This AGREEMENT (the “Agreement”) is made and entered into on the effective date below by and between OKALOOSA COUNTY, FLORIDA, a political subdivision of the State of Florida (the “County”) and ALLEGIANT AIR, LLC, (the “Contractor”) relating to Sub- County Taxing District paid media services as more particularly set forth herein. WHEREAS, the County finds that supporting the advertising and marketing efforts of the Destin-Fort Walton Beach airport is an essential component of promoting the sub-county taxing district as a tourist destination; and NLY Attachment: I. f. Allegiant Contract (5540 : Allegiant Air contract (Ed Schroder)) WHEREAS, new points of origin at the Destin-Fort Walton Beach airport enhances the destination’s ability to attract tourists from those markets; and O WHEREAS, Contractor has committed to providing new points of origin to the Destin-Fort Walton Beach airport; and N media services as more fully set forth herein. IO WHEREAS, the County seeks to engage the Contractor for the purpose of providing paid SS NOW, THEREFORE, in consideration of the above and mutual covenants contained herein, the County and the Contractor agree as follows: