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Home My WebLink AboutXpnditure for Journey TV Marketing Pgrm �� - CITY OF PALM DESERT COMMUNITY SERVICES STAFF REPORT REQUEST: Approve expenditure for Journey Television marketing program. DATE: July 12, 2Q07 CONTENT: June Marketing Committee Meeting Minutes Recommendation: By Minute Motion, approve the expenditure of$100,000 for commercial airtime as part of Time Warner's Journey Television program. Funds are available in account number 110-4417-414-3221. Executive Summary: Journey TV is a new "On Demand" programming feature being offered by Time Warner Cable. The cost is $100,000 and includes an extensive, year-long advertising schedule targeted to the select markets of our choosing on various Time Warner cable channels. In addition to the commercials, Palm Desert also would receive 24 minutes of video airtime on the Journey N On Demand channel (1079). One of the most appealing aspects of Journey TV is that it is fully trackable. Time Warner will provide monthly reports that show how many people watched the Palm Desert videos, which ones were watched, how long they tuned in, and the city in which they live. Tracking advertising is always a difficult task and this program reports specific information about potential Palm Desert visitors. Staff believes that because the program includes $100,000 worth of television commercial airtime in our targeted markets and the On Demand Palm Desert video/s of our choosing, it is a unique opportunity that fits into the City's goal of branding Palm Desert. Funds are in the budget and would be allocated from the specially allocated marketing dollars. The Marketing Committee also supported participation in the program. Staff Report Journey Television Page 2 Background: Staff will work with a media planner at Time Warner Cable to select the appropriate target markets and television stations on which to air the Palm Desert commercial. A Time Warner Digital Cable subscriber that sees the City's television commercial will be prompted to turn to Channel 1079 to view more information about Palm Desert. When they turn to that channel and select "Palm Desert" from the menu, they will have the option of selecting several different videos including Tour Palm Desert, Fashion Week EI Paseo, Art of Food & Wine, and any other specialized videos we choose, such as a Desert Willow or a shopping feature. The videos can total up to 24 minutes. The Journey TV station is available to 7.4 million digital cable subscribers and viewing the Palm Desert video is not limited to those in our selected targeted areas. In addition to Palm Desert's commercial directing people to the Journey TV station, Time Warner also is promoting the channel through advertising and Disney was one of the first company's to sign on and directs people to tune in. Due to a planned rate hike for the program, and at the request of the Marketing Committee, staff is negotiating with Time Warner to lock in a rate for next year should the program be successful. Staff and the Marketing Committee recommend the expenditure of$100,000 for Journey TV. s ' �i � .. � ;�--''; ' -,, /', � Submitted By: � P�proval�„ � �` � `l ;^ -` '��.� , � \`,J� `''': Kristy Kn iding r Sheila R. Gilli n � ' Mar ke ting Manager Assis tan t i ty Man P � W �i r „ ��S� � � - P � A a �-- � Carlos L. ga Paul ' on o � City Manager Dire or f Finance H _ � 1 ~ `, U � � .. U Q . U� � U`' � .`:;, �j i s�:s 1� M ',.' H .. .. �7+ F4 �-I -•..;. �a L� �-+ v� c�� w [: r�,/+ i� W � � �� /Z 4ia "r ii � � � � � �`.� � �.:f; PRELIMINARY MINUTES PALM DESERT MARKETING COMMITTEE JUNE 19, 2007 D. PALM SPRINGS LIFE EXPENDITURES/ADDED VALUE REPORT Ms. Kneiding prepared a report on the demographics and expenditures for Palm Springs Life, the Desert Guide, and Palm Desert Magazine. Palm Desert Magazine was being sold nationally at several Barnes & Noble locations, the Empire State Building in New York City, and other areas throughout the country. She answered questions, and listened to comments regarding the material. Ms. O'Flynn commented that Palm Springs Life did a great job promoting the City. Ms. Bird-Hrivnak agreed with the comments made by Ms. O'Flynn. Ms. Kneiding stated that the partnership with the Art of Food &Wine Festival was not included in the report. Upon question by Ms. Bird-Hrivnak, Sheila Gilligan responded that the meeting with The Desert Sun, regarding Palm Springs Life, would take place this summer. Ms. Kneiding reported that Kemper Sports was talking with The Desert Sun regarding the Art of Food & Wine Festival and its participation. She added that she had a conversation with The Desert Sun's sales staff regarding media releases and she felt that they had a clear understanding about the City's publicity. Upon question by Ms. Maggio, Ms. Kneiding responded that the media- advertising budget was $600,000, and a large majority of those funds were spent on out of the area advertising. Mr. Morcus moved, by Minute Motion, to receive and file the Palm Springs Life Expenditures/Added Value Report. Motion was seconded by Ms. Maggio and carried 6-0. E. TIME WARNER PRESENTATION OF JOURNEY TV (Added to the agenda by unanimous vote.) Ms. Kneiding stated this opportunity was presented to her after the agenda was prepared and mailed. She invited Time Warner to make a presentation at this meeting due to budgetary guidelines that the City needed to consider. MIKE CZERWINSKI, General Manager-Desert Cities and JIM LAWRENCE, Sales Representative-Desert Cities from Time Warner addressed the Committee. Mr. Czerwinski stated that Journey N was a new product by launched Time Warner. Time Warner recently picked up all the Adelphia Systems in Los Angeles. It has 72% of the homes in the LA area or 1.2 million cable homes. Ms. Kneiding stated that Disney had signed with Journey TV and would be promoting it in markets across the United States. If Disney were promoting in a market that the City of Palm Desert was not, households would still be able to view Palm Desert's video. 3 PRELIMINARY MINUTES PALM DESERT MARKETING COMMITTEE JUNE 19,2007 Mr. Czerwinski stated that this was a groundbreaking opportunity. He believed that the price to subscribe next year would be double the current price. Upon question by Mr. Morcus, Mr. Czerwinski gave a demonstration on how an individual would find Palm Desert's video on Journey TV. A discussion ensued regarding the costs and benefits associated with advertising on Journey TV. The Committee asked staff to return to Time Warner and request a secured second year renewal deaf. Mr. Shimer moved, by Minute Motion, to approve the Time Warner Cable Journey N opportunity for one year. Motion was seconded by Ms. Bird-Hrivnak and carried 5-1. Ms. O'Flynn opposed the motion. VI. OLD BUSINESS None VII. REPORTS FROM CITY COUNCIL LIAISONS Councilmember Spiegel announced that Westfield Palm Desert hired a new General Manager from St. Louis and he will be in place on August 5, 2007. Councilmember Spiegel stated that the City's sales tax revenue had not increased this year. He encouraged the Marketing Committee to come up with ways to bring in sales tax dollars into the City. VIII. REPORTS AND REMARKS A. Chair Ms. O'Flynn said discussions regarding changes and additions to The Gardens on EI Paseo were all good. The Art of Food & Wine focus has been great and The Gardens' staff was very involved in helping with that event. B. Committee Members None C. Staff Ms. Kneiding announced that Athena Award nominations forms were available at the Visitor Center and City Hall. Nominations close on July 27, 2007. 4