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Home My WebLink AboutParticipate in CVA & CTTC Cooperative Mrkting Pgrm CITY OF PALM DESERT STAFF REPORT REQUEST: CONSIDERATION OF A REQUEST FOR PARTICIPATION IN THE CONVENTION AND VISITORS AUTHORITY (CVA) AND CALIFORNIA TRAVEL AND TOURISM COMMISSION (CTTC) COOPERATIVE MARKETING PROGRAM SUBMITTED BY: Kristy Kneiding, Marketing Manager DATE: July 8, 2010 CONTENTS: CTTC/CVA Marketing Program Components Draft Marketing Committee Minutes: June 15, 2010 Recommendation By Minute Motion: Concur with the recommendation of the Marketing Committee and participate in the CTTC/CVA marketing program in the amount of $12,500. Funds are included in the Marketing Budget, Account N o. 110-4417-414-3221. Executive Summary The CTTC and Custom Marketing Group (CMG) have partnered once again to produce a United States and Canada cooperative marketing program. The City of Palm Desert has the opportunity to take advantage of the program at a reduced cost by participating with the Palm Springs Desert Resorts CVA. The program will reach more than 2.6 million affluent leisure travelers, representing a 30 percent increase from last year's program. Staff is proposing purchasing a half-page print advertisement that will run as part of the CTTC/CVA's special section in four popular travel magazines and four Canadian newspapers during the fall season. The opportunity also includes a springtime component with digital distribution to 1.5 million geographically targeted potential visitors in the United States and Canada. As with other CVA cooperatives, participation in this program stretches the City's marketing dollars and reaches audiences that are cost prohibitive if undertaken alone. Staff recommends concurring with the Marketing Committee to participate in the CTTC/CVA cooperative marketing program in the amount of$12,500. Funds are available in the current Marketing Budget, Account No. 110-4417-414-3221. Backqround Palm Desert has participated in this cooperative opportunity for several years. Each year the program has been expanded and offers more exposure and value. What started out as an advertising section in three popular magazines now has grown to four publications, and reaches the Canadian target market as well as a significant online audience. Staff Report Request for participation in the CTTC/CVA Cooperative Marketing Program July 8, 2010 Page 2 of 2 The cooperative print section will be inserted into the November issues of the following publications: Travel + Leisure; Budget Travel; Food & Wine; and Nationa/ Geographic Traveler. The digital guide, with a distribution of 1.5 million, will debut in spring 2011 and will be emailed to target audiences in both the United States and Canada. As a bonus for participating with a half page advertisement, Palm Desert would receive a dedicated email campaign with customized messaging distributed to 25,000 emails. Lastly, this program has secured additional distribution of the publication on Zinio.com, the . largest e-newsstand in the world and will be available for free consumer downloading. The regular cost for a half page advertisement and representation online is $25,350. By participating in the cooperative opportunity with the CVA, the City's cost for the same benefits is reduced to $12,500, a 51 percent cost savings. In addition to benefiting from additional air service, this cooperative marketing opportunity also stretches Palm Desert's marketing dollars to a desirable, targeted area (Western Canada and the Pacific Northwest) that were eliminated due to budget reductions. Staff also would pursue additional promotional opportunities for Palm Desert such as pages on the tourism website, social media pages, and search engine support. Fiscal Analvsis By participating in this cooperative opportunity, Palm Desert will benefit from the exposure of the Palm Desert message to the City's target market, including Canada, a market which was eliminated in the current plan due to budget constraints. Denial of this request would result in no mentions of Palm Desert in any of the programming outlined above. The cost is $12,500 for a half page advertisement. Funds for this program were included in the Fiscal Year 2010/11 Marketing Budget, Account No. 110-4417-414-3221. Submitted By: Department Head: . Kristy Knei i Ma eting Ma a er Ju #in cCarthy, AC or edevelopment �.- ..1'��5� � � CITYC CILACTtON Paul S. son, D' or of Finance APPROVED ✓ DF.NIF,D.�.,.� RECEIVED OTHER Approv : � MEF,TI1�G DATE ' -�C L-' . AYES: k`�� -e�. i�S or� �� c r er '�'c� No�s: ��n � ��'� � John . Wohlmuth, City Manager ABSI:NT: � � A135TAIlV: �n VFRIFIED I3Y: g:lydalkristy kneidinglword datalstaff reporlsmemos\cva\2010 cmg cttc cva coop.doc - Original on File with CiYy Clcrk';; t ficc _ `':��` Palm Sprir�c�s Desert ��sort C�on�r��r� ities ,� �� o �iv � r� � � �:� �t� ;� �: �� ,�, � _ . , �. � � 3 ; � :--�. �, ; _,_ .,, _. � � �rc_� � .� x �_. . � E ,...� �. � ; 2010-2011 Consumer Promotions CTTC Partnerships CMG Magazine Insert 8� Digital Campaign Co-Op PROGRAM COMPONENTS Total Program Reach =2,600,000+ Affluent Leisure Travelers 30� Increase from 2009/2010 program I. Fali 2010 Print Insert-Circulation = 1 100 000 Inserts will target upscale hhlds in key western U.S./Canadian regions (includes readerserviceJ U.S. Magazine Inserts (Total Circulation = 700,000): • Travel & Leisure Nov. 20 l0 (150,000) • Budget Travel Nov. 2010 (200,000) • Food 8� Wine Nov. 2010 (200,000) • National Geographic Traveler Nov. 2010 (150,000)* Canada Newspaper Inserts (Total Circulation = 400,000): • Vancouver Sun Nov. 6, 2010 (100,000) • Calgary Herald Nov. 6, 2010 (100,000)* • Edmonton Journal Nov. 7, 2010 (100,000)* • Toronto Star Nov. 6, 2010 (100,000)* II. S�rinp 2011 Diaital Guide-Circulation = 1 500 000 • U.S. Geo-Targeted E-mails April/May 201 1 (1,000,000)* • U.S. Geo-Targeted E-mails April/May 201 1 (500,000)* III. Bonus Distribution Customizable; dedicated e-mail campaign geographically or demographically targeted to increase program exposure and communicate your promotional messaging • Full page advertisers-50,000 e-mails* • Half page advertisers-25,000 e-mails* Additional distribution will be secured through Zinio.com, the largest e- newsstand in the world.* *New to 2010/201 1 CMG/CTTC Campaign Serving the Desert Resort Communities of Riverside County Cathedrai City • Desert Hat Springs • Indian Welis • Indio • La �uinta • Palm �esert • Palm Springs • Rancho Mirage ...-----......-•.............................--�.._.�.............................----........---.......----........-----....-----.._.....---.....----......------...------�-��-----...------._....---._.....------.......... 7D-1q0 Highway 111 • Rancho Mirage, CA 92270 • T: 760-770-9000 • TF: 8�0-967-3767 • F: 760-770-9007 • palmspringsusa.com Washinqton, DC Sales Office • 515 King Street, Suite 315 • Alexandria, VA 22314 • T: 703-549-8026 • F: 703-519-7579 f 1'�LM D�SER�" PALM DESERT MARKETING COMMITTEE PRELIMINARY MINUTES Tuesday, June 15, 2010 — 2 p.m. Administrative Conference Room I. CALL TO ORDER Sara O'Flynn called the meeting to order at 2:03 p.m. II. ROLL CALL Members Present: Members Absent: Sara O'Flynn, Chair Lee Morcus Emily Bird-Hrivnak, Vice Chair Theresa Maggio Marlane Wolf Stephanie Loog Michael Shimer Kimberly Bowers . Staff/Others Present: Jim Ferguson, Councilmember Justin McCarthy, Assistant City Manager Kristy Kneiding, Marketing Manager David Hermann, ManagementAnalyst Jane Stanley, Recording Secretary Jessica Stephens-Walke, PSDRCCVA Mark Graves, PSDRCCVA Mark Kiehl, Palm Springs Airport III. ORAL COMMUNICATIONS None. IV. CONSENT CALENDAR A. MINUTES OF THE MEETING OF MAY 18, 2010. Michael Shimer moved, by Minute Motion, to approve the minutes of the May 18, 2010, meeting as presented. Motion carried by unanimous vote. V. CONSENT ITEMS HELD OVER None PRELIMINARY MINUTES PALM DESERT MARKETING COMMITTEE JUNE 15, 2010 VI. NEW BUSINESS A. PRESENTATION AND CAMPAIGN REQUEST BY PSDRCCVA —AIR SERVICE CO-OP MARKETING Mark Graves and Jessica Stephens-Walke from the Palm Springs Desert Resorts Communities Convention and Visitors Authority (PSDRCCVA) were in attendance to make a presentation regarding the Air Service Co-op Marketing opportunity. The proposed cooperative partnership is between the CVA, the member cities, the Palm Springs International Airport, WestJet and Alaska Airlines. The program began in 2007 with Alaska Airlines, and WestJet was added last year. The goal is to maintain and grow air service with target markets of western Canada and the Pacific Northwest. The proposed marketing timeline is August to November 2010 in Western Canada, and October 2010 and January to February 2011 in the Pacific Northwest. The proposed funding is $150,000 from the CVA and $25,000 from each participating city for a total of$250,000 to $300,000. Mark Kiehl from the Palm Springs Airport mentioned that this campaign is supported by the airport because it targets the biggest markets and the primary carriers. WestJet has seen year over year growth in traffic, and starting June 2010 is offering year-round flights to Canada. Upon question, Mr. Kiehl stated that according to surveys taken, $75 million is spent yearly in the Coachella Valley from the Canadian market. Mrs. Walke outlined the proposed media for the campaign, including print, online, in- flight and public relations. Additionally, travel trade and outdoor advertising will be added in western Canada, and radio ads will be used in the Pacific Northwest. Added value from the airlines will include "preferred partner" media rates, discount offers for bookings, promotional tickets, and airline website homepage exposure. Mr. Graves added that the key partners have honed some effective strategies from the past years' campaigns. Ms. Kneiding said that in the past this co-op opportunity had a cost of$50,000, and it was just with Alaska Airlines. Mrs. Walke anticipated four to five valley cities will participate in this marketing opportunity. She added that the creative portion will be presented to the participating cities for their approval, and a report of the results will be available at the end of the campaign. Marlane Wolf moved, by Minute Motion, to approve staff recommendation to support the CVA air service development campaign in the amount of$25,000. Motion was seconded by Michael Shimer and carried 5-0. B. CVA / CMG / CTTG CO-OP ADVERTISING PROGRAM Mr. Graves and Mrs. Walke presented this advertising opportunity with the California Travel and Tourism Commission (CTTC) and Custom Marketing Group (CMG). The 2 ---------- PRELIMINARY MINUTES PALM DESERT MARKETING COMMITTEE JUNE 15, 2010 two groups have partnered to produce a United States and Canada cooperative marketing program. A multi-page, advertorial print insert will be created and inserted into various upscale magazines and Canadian newspapers. Budget Travel magazine and three newspapers have been added from the previous campaign, with an estimated program reach of 2.6 million affluent leisure travelers in key markets. The $12,500 participation level is for half of a page. As a bonus, an e-blast will be distributed to a database of 25,000. Ms. Kneiding added that the iPad has an app for online magazines through Zinio.com. With this app, the print insert can be downloaded as a posted magazine title. She also mentioned that the City is participating in the "Cool Pools and Summer Deals" campaign with the CVA that is already underway. Kimberly Bowers moved, by Minute Motion, to approve the staff recommendation to participate in this cooperative opportunity with the CVA in the amount of$12,500. Motion was seconded by Emily Bird-Hrivnak and carried 5-0. VII. CONTINUED BUSINESS None VIII. OLD BUSINESS None IX. REPORTS FROM CITY COUNCIL LIAISONS A. Jim Ferguson reported that last week Council approved the installation of Wi- Fi equipment on EI Paseo from Portola Avenue to Highway 74, which will provide free wireless internet. This will be a fest area with the goal of Wi-Fi coverage in all commercial shops in Palm Desert. The users' network sign-on page will provide another marketing opportunity for the City. X. REPORTS AND REMARKS A. Sara O'Flynn reported construction of EI Paseo Village and the expansion of The Gardens is ahead of schedule and mentioned the new stores that will be opening. B. Michael Shimer was pleased to report that over 500 people took advantage of Restaurant Week at Tommy Bahama's. Kimberly Bowers recapped The Living Desert's "Quarters for Conservation" campaign starting July 1St, and mentioned there will be a special event on July 4tn Emily Bird-Hrivnak mentioned the upcoming "Nick Your Stay" campaign at the Marriott. 3 '