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HomeMy WebLinkAboutC30020 - Online Marketng Svc - Off Madison Ave CITY OF PALM DESERT STAFF REPORT REQUEST: AWARD CONTRACT NO. c3oo2o TO OFF MADISON AVE. IN THE AMOUNT OF $37,500 FOR ONLINE MARKETING SERVICES SUBMITTED BY: Kristy Kneiding, Marketing Manager CONTRACTOR: Off Madison Ave. � 80 East Rio Salado Parkway, Suite 711 Tempe, Arizona 85281 DATE: July 8, 2010 CONTENTS: Off Madison Ave. Contract Off Madison Ave. Presentation Marketing Minutes: May 18, 2010 Recommendation By Minute Motion: 1. Concur with the Marketing Committee's recommendation and award Contract No. c3oo2o to Off Madison Ave. in the amount of $37,500 for online marketing services; 2. Authorize the Mayor to execute the agreement on behalf of the City; and 3. Authorize to advertise and issue a Request for Proposals (RFP) for online marketing services. Funds are available in Professional Other, Account No. 110-4417-414-3090. Executive Summary Off Madison Ave. (OMA) is a full-service agency specializing in interactive website and online strategy. The company monitors and analyzes online advertising buys, pay-per- click and search engine optimization results, and other promotions for cost efficiency and effectiveness. They provide monthly reports for each initiative and recommend areas for improvement. In addition, OMA's staff is up-to-date on the latest trends and advises clients on their benefits and drawbacks. Previously OMA was a subcontractor of Full Gallop Marketing. However, in this fiscal year, the City will no longer retain a traditional advertising agency and will bring many of those functions in-house, or contract on a per-project basis. The complexity and ever- Staff Report Award Contract No�30020 to OMA for Online Marketing Services July 8, 2010 Page 2 of 3 changing environment of the online marketing industry requires the expertise of an online agency made up of specialists in a variety of online fields. OMA has provided the City with data from February 2009 through April 2010, establishing a benchmark. Staff believes an additional six months of consistent data from the same company is crucial to measuring the marketing program's success. Staff will recommend going out to bid for these services in January 2011. The projected monthly service fee of $6,250 was included in this year's approved marketing budget and includes the following services: • Media management and reporting (placing online ads, monitoring effectiveness, making adjustments, etc.) • Search Engine Optimization management, adjustments, and reporting • Pay-Per-Click management, adjustments, and reporting • Overall account management • Consulting for social media and strategic initiatives • Database consulting Staff recommends contracting with OMA for online marketing services for a six-month term. Backqround Representatives from OMA recently presented the Marketing Committee with an overview of the past year's results for the City's online initiative. Some highlights from February 2009 —April 2010 include the following: Online Advertising • Click through rate for online ads were nearly double the industry average. � 587 vacation guides were requested, representing a 5% conversion rate versus a 1% industry average. Pay-Per-Click � Clicks on search links — 57,801 • Click through rate— 1.2% versus 1% industry average • 3,686 vacation guides were requested, representing a 6.4% conversion rate versus a 2% industry average. • The cost per click over time has decreased 43% since February 2009, allowing for additional click buys with the same budget. Search Engine Optimization • Overall search engine traffic from Februa o period last year. rY — April was up 50/o over the same g:\rda\kristy kneiding\word data\staff reportsmemos\advertising�2010-11 oma online services rpt.doc Staff Report Award Contract No c30020 to OMA for Online Marketing Services July 8, 2010 Page 3 of 3 . • Due to optimization efforts, the tourism website saw a 118% increase in traffic from those users searching for restaurant information and an 80% increase in visitors searching for hotels. In order to achieve and maintain these types of results, OMA works daily on the City's tourism website to keep content relevant and research trends. The results noted above establish a benchmark for year-over-year comparison. Due to these positive results, staff is recommending contracting with OMA for six additional months prior to going out to bid. Hard costs associated with search engine optimization (SEO), pay-per-click (PPC), and banner advertising online programs would not be included in the monthly service fee and have already been included in the marketing budget under the "media buys" line item. Any additional projects outside the scope of the contract, such as creative and production costs, would be billed on a time and materials basis. OMA does not charge any agency commissions or mark-ups. Fiscal Analvsis Approval of this contract would ensure continued exposure for Palm Desert in the online marketing realm. The immediate impact on the general fund is $37,500. These dollars were included in this fiscal year's budget process. Denial of the request would negatively impact Palm Desert's presence online. The City's tourism website would be more difficult to find through search engines and there would be no online advertising to help drive traffic to the site. Submitted By: Department Head: ,. ' c Kristy Knei i , M �ting M ager t McCarthy, ACM edevelopment �� �� OUNCIL A ON � � � APPROVED � fl� Paul S. i so ' ector of Finance RECEIYED OTHER Approv . MEET D� " ,y } � - � � AYES: �` NOES; � ABSENT: � John Wohlmuth, City Manager pBSTAIN: VERIFIED BY: - � � Original oa File wit6 City rk'e Office g:\rda\kristy kneiding\word data\staff reportsmemos\advertising�2010-11 oma online services rpt.doc Contract No. C30020 MARKETING SERVICES AGREEMENT This Marketing Services Agreement ("Agreement'� is entered into this 1st day of July, 2010, by and between the CITY OF PALM DESERT, a municipal corporation, ("CITY"), and Off Madison Ave., hereinafter referred to as ("AGENCY"). The CITY and AGENCY are sometimes collectively referred to as "Parties" and individually referred to as "Party". The Agreement is made in light of the following recitals: RECITALS A. CITY desires to engage AGENCY to prepare, develop, and implement certain advertising and marketing programs for the CITY. 6. AGENCY desires to prepare, develop, and implement such programs for the CITY. NOW, THEREFORE, in consideration of the mutual promises set forth herein, and in light of the above Recitals, which are hereby made a part of this Agreement, the Parties hereby agree as follows: AGREEMENT �. Term: The term of this Agreement shall commence on July 1, 2010, and end on December 31, 2010. 2. Scope of Services: Subject to the terms and conditions of this Agreement, AGENCY shall conduct online marketing tactics and analysis including: a. Account management and consulting b. Online media placement, recommendations, management, adjustments, and reporting Check insertion of approved online advertising and otherwise verify proper execution. �. Search engine optimization, recommendations, adjustments, and reporting d. Pay-per-click management, recommendations, adjustments, and reporting e. Provide monthly reporting for all online activities including those outlined in this Section. 3. Compensation� � Prior to pertorming any services this contract to be undertaken and furnished by AGENCY, the CITY or its designee, after conferring with AGENCY, shall authorize the RMPUB\JTREMBLAY\316857.2 Contract No. C30020 services rendered, the agreed compensation to be paid for these services, the manner of payment, the description of the estimate of reimbursable expense, and such other matters as may be deemed proper. Subject to the limitations and provisions set forth in this Section, the CITY shall compensate and reimburse AGENCY as follows: a. The CITY will pay AGENCY a monthly fee of Six-thousand, two-hundred and fifty dollars ($6,250) to cover services outlined in Section 2. The Parties estimate that AGENCY will provide an average of approximately 50 hours per month of services; the actual number of hours provided in a given month may be more or less than 50. b. Any work outside the scope contained in this agreement, including, but not limited to landing page design, website updates, and adding content, will be billed at one-hundred and twenty-five dollars ($125) per hour or on an agreed upon project fee. c. AGENCY will purchase online media at the lowest rate available. All billings will be submitted at net costs for payment by the CITY. AGENCY will not markup billings or receive commissions. d. CtTY shall pay the AGENCY the fee as outlined in 3a. at the beginning of the month. Each invoice shall contain, in reasonable detail, the projects and services worked on and rendered with supporting documentation or reimbursable costs and expenses for the previous month's activities. Payment and reimbursement will be made in due course of payment by the CITY. e. AGENCY shall keep full and accurate books of accounts and records and other pertinent data in accordance with generally accepted accounting principles reflecting all transactions contemplated by this Agreement. 4. Termination: Either Party may terminate this Agreement at any time by giving the other Party thirty (30) days written notice of its intent to terminate, provided, however, the CITY's obligation to compensate and reimburse AGENCY for services rendered or materials furnished or contracted for as of the date of notification by either Party of the election to terminate, shall continue in accordance with the terms herein. 5. Owner of Work: All art work, advertisement of any form, online content, or other materials shall be the property of the CITY subject to any third Party ownership and /or use restrictions. AGENCY specifically transfers any "right of reproduction" as defined by California Civil Code Section 982 and Section 988 to the CITY and its assigns. Advertising Materials are governed by the following Sections: a. To the extent applicable, AGENCY agrees that all advertising materials created for the CITY are considered "work made for hire" as defined in the United States Copyright Act, Title 17, United States Code. Notwithstanding the foregoing, AGENCY may use and disseminate any Advertising Materials developed by AGENCY for the CITY to promote AGENCY, including disclosure of the Parties' relationship to others, work perFormed, and projects developed and/or implemented. RMPUB\.ITREMBLAY\316857.2 2 Contract No. C30020 b. Notwithstanding the foregoing, all software applications, databases, computer programs (including source code and object code for any such programming), and executable code (collectively "Code") as well as other creative content and materials in existence prior to this Agreement (or created outside the scope of this Agreement) and all Code or portions thereof developed or provided by AGENCY hereunder, excluding any materials provided by the CITY ("Agency Property"), shall remain the sole and exclusive property of AGENCY. Upon full payment of all sums due and owing to AGENCY, AGENCY hereby grants a fully paid-up, perpetual, non- exclusive, non-transferable license to the CITY to use internally and only for the benefit of the CITY such Agency Property solely as integrated into the Advertising Materials. For clarity, it is understood that AGENCY shall own all modifications, improvements or enhancements to the Agency Property and any and all Code utilized by AGENCY, or made available by AGENCY for use by the C�TY, that is not integrated within the Advertising Materials, may not be used by The CITY after the term of this Agreement except pursuant to a separately negotiated license agreement. 7. Confidentialitv. Confidentiality. Each Party (the "Recipient") shall take reasonable steps to protect proprietary and confidential information and materials (hereinafter "Confidential Information") provided by the other Party or its representatives (the "Discloser") from improper disclosure. Confidential Information shall not include information previously known to Recipient or materials to which Recipient had access prior to the provision of such information or materials by Discloser; information or materials that are now or later become publicly known; or information or materials provided to Recipient by a third Party not bound by a duty of confidentiality to Discloser. Recipient shall inform Discloser of all inquiries into or requests for Discloser's Confidential Information by third parties and shall disclose Confidential Information to such third parties only when legally compelled to do so and after notice to Discloser, or when so permitted or instructed by Discloser. Notwithstanding any other provision of this Agreement, Confidential Information shall not include any CITY information or material that is not conspicuously marked as Confidential Information upon delivery to AGENCY. Further, the CITY acknowledges that the media rates negotiated by AGENCY on behalf of the CITY are protected by AGENCY as trade secrets and are not generally known by the public or AGENCY's competitors. The disclosure of rate information to third parties, including but not limited to any advertising agency or media planning or buying service, or discussions of these rates with the media by the CITY, may cause the media to withdraw the rates. AGENCY also agrees to maintain adequate books and records of all works in progress throuqhout the duration of this Agreement. Said books and records shall be and remain the property of the CITY upon the expiration or earlier termination of this Agreement. Within five (5) days of any expiration or earlier termination of this Agreement, AGENCY agrees that it shall provide the CITY with the aforementioned books and records. 8. Indemnification. AGENCY agrees to indemnify, defend and hold harmless the CITY, its officials, officers, employees, agents and consultants for any loss, costs or damage by CITY due to or related to, any material information furnished by the AGENCY, materials and/or projects developed for use by the CITY in any advertising or RMP11B\.I'I REMBI,AY\31(,8572 3 Contract No. C30020 public relation; for any claims made against the CITY by a present or former employee of the AGENCY due to or related to the AGENCY's investigation or interviewing of such employee, and the results thereof, for the project. This indemnification is intended to be as broad as possible and as broad as allowed by law. Only in the instance of damage caused solely and exclusively by the negligence and/or malfeasance of the CITY or its employees or agents will the indemnification not apply. This indemnification includes but is not limited to indemnifying for attorneys' fees, costs and other related expenses, including expert witness fees incurred by the CITY directly, through its carriers or for its agents and/employees. 9. Notices. Whenever it shall be necessary for either Party to serve notice on the other regarding this Agreement, such notice shall be served either in person, by certified mail, return receipt requested to the addresses below. CITY: City of Palm Desert Palm Desert Civic Center 73-510 Fred Waring Drive Palm Desert, CA 92260 Attn: City Manager AGENCY [NAME] [ADDRESS] Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the Party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 10. Leqal Costs. In the event of any legal action between the CITY and AGENCY arising out of the obligations of the Parties pursuant to this A reement, Party will be entitled to payment of its costs and expenses, incl ding its attoh neys' feelsg 11. Bindina Effect� Successors. AGENCY shall not assign or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the CITY, which may be given in the CITY's sole and absolute discretion. Any attempt to do so shall be null and void, and any assignees or transferees shall acquire no right or interest by reason of such attempted assignment or transfer. This Agreement shall bind and inure to the benefit of the Parties and their respective heirs, legal representatives, successors and assigns and all of the Parties thereto shall be jointly and severally liable hereunder. 12. Counterparts. This Agreement may be executed in counterparts each of which shall be deemed an original and all of which together shall constitute one and the same instrument which shall be binding upon the Parties notwithstanding that the Parties may RMPUB\JTRF:MBLAY\316857.2 4 Contract No. C30020 not be signatories to the same counterpart or counterparts. The Parties may integrate their respective counterparts by attaching the signature pages of each separate counterpart to a single counterpart. 13. Further Assurances. Whenever requested to do so by the other Party, each Party shall execute, acknowledge, and deliver any further conveyances, assignments, confirmations, satisfactions, release, powers of attorney, instruments of further assurance, approvals, consents, and any further instruments or documents that are necessary, expedient, or proper to complete anything contemplated by this Agreement. In addition, each Party shall do any other acts and execute, acknowledge, and deliver any requested documents in order to carry out the intent and purpose of this Agreement. 14. Modifications. All modifications to this Agreement must be in writing and signed by the Parties. 15. Third-Partv Rights. Nothing in this Agreement, express or implied, is intended to confer upon any person, other than the Parties and their respective successors and assigns, any rights or remedies. 16. Governinq Law� Choice of Venue This Agreement shall be governed and construed in accordance with California law. Venue shall be Riverside County. �7. Severabilitv. If any provision of this Agreement becomes or is declared by a court to be illegal, unenforceable or void, that clause will be omitted and the remainder of the Agreement will continue in full force and effect. �Such holding shall in no way affect the validity or enforceability of this Agreement. 18. Entire Agreement. This Agreement is the entire agreement between the Parties and supersedes any prior or contemporaneous representations, understandings or agreements, whether written or oral. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective authorized officers or representatives as of the date and year first above written. CITY OF PALM DESERT A Municipal Corporation By: By: Printed Name: Date: � RMPUBU'I'RF,MBLAY\316857.2 5 Contract No. C30020 (Signature must be notarized) ATTEST: By: City Clerk RMPUB�.ITREMBLAY\316857.2 6 • Contract No. C30020 STATE OF CALIFORNIA � COUNTY OF RIVERSIDE � On , 2010 before me, Public, personally appeared , Notary me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are ubscr bed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. 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F" � � � > � f' `�- � � � ""�a �, �a v o � ° � � .x � o c� X o 0 � W u� o ° 3 3 � � � � � d Q c�n U F-�- � � �� a V �, . . . . . �,�'='.. � � � � � � o �— _ JI� R � � ,� .w � 'N � �� � . � � � � � � � � •� � . � � � � � � � � � � a� co �. � � �� � o � � — � �. �, � � � i U .� O � � � � 4- '}� Q� L � � � 4-- � � Q � � �' X � � � � � .� v � � � � '�� .- U ' •� •- � •- • M Q� W � � }-�,, Q •� � �--+ � � � � � � � � � •— � 4� � � o . .� ,_ � +-+ +-+ � � � � � U � � .- � � � o 0 � � L � � � O � a� +� � � � +� 'o � � � �, a� � °C O !�. .,r ;.� «, ' � . � .� � 0 � � � � � V ) � � � � � � � •- � . � a-�-+ � WV � � � N .� � � � � � � � � � �� � � � � � � � � � cn �C fa — � N U L � . � � �� � � . M W � -�-+ � V ,Y '� U `�' � +�.+ � � Q � � � � � � � � W � '�' � � � � � � U cn ._ O - > � � � . � � � � � ���� ������ PALM DESERT MARKETING COMMITTEE PRELIMINARY MINUTES Tuesday, May 18, 2010 —2 p.m. Administrative Conference Room I. CALL TO ORDER Emily Bird-Hrivnak called the meeting to order at 2:00 p.m. II. ROLL CALL Members Present: Members Absent: Sara O'Flynn, Chair Lee Morcus Emily Bird-Hrivnak, Vice Chair Theresa Maggio Marlane Wolf Michael Shimer Kimberly Bowers Stephanie Loog Staff/Others Present: Robert Spiegel, Councilmember Justin McCarthy, Assistant City Manager Kristy Kneiding, Marketing Manager Donna Gomez, Visitor Center Manager David Hermann, Management Analyst Ruth Ann Moore, Economic Development Manager Jane Stanley, Recording Secretary Roger Hurni, Off Madison Ave. Amy Rushia, Off Madison Ave. Michael Mathews, Palm Springs Life III. ORAL COMMUNICATIONS None. IV. CONSENT CALENDAR A. MINUTES OF THE MEETING OF APRIL 20, 2010. Michael Shimer moved, by Minute Motion, to approve the minutes of the April 20, 2010, meeting as presented. Motion carried by unanimous vote. POSTED AGENDA PALM DESERT MARKETING COMMITTEE MAY 18, 2010 V. CONSENT ITEMS HELD OVER None VI. NEW BUSINESS A. PRESENTATION BY OFF MADISON AVE Kristy Kneiding introduced Roger Hurni and Amy Rushia from Off Madison Ave. The City subcontracted with Off Madison Ave. through Full Gallop Marketing for online marketing services. Previously, this company helped develop the tourism website. Mr. Hurni gave an overview of the company's services. Ms. Rushia described the February 2009 to April 2010 results in the following categories: online media, paid search and search engine optimization, showing that conversion and click through rates are well above industry average. She also described the tactics and strategies in those areas for the coming year. Off Madison Ave. also assists city staff with interactive media, such as Facebook and Twitter, email updates, and the tourism website. Discussion ensued regarding opportunities for targeting customers using social media and mobile devices. Councilman Spiegel inquired as to when the current contract will end. Ms. Kneiding responded it will end on June 30, 2010, and the proposed monthly fee for fiscal year 2010-2011 will be the same as it was for 2009-2010. She is recommending there be one more year of results before going out to bid for these services. Theresa Maggio moved, by Minute Motion, to approve staff recommendation to contract with Off Madison Ave. for online and interactive services for a one-year term, fiscal year 2010-2011. Motion was seconded by Michael Shimer and carried 7-0. B. FASHION WEEK WRAP-UP AND REQUEST FOR SPONSORSHIP Ruth Ann Moore gave an overview of the past five years of Fashion Week, and introduced Michael Mathews from Palm Springs Life magazine. Mr. Mathews distributed a booklet recapping Fashion Week 2010 and one outlining sponsorship opportunities for next year. He detailed event attendance and additional sales on EI Paseo reported during Fashion Week 2010. Attendance was up 50% over 2009, there was over $200,000 additional sales reported. Also listed are the charities that benefited from the event as well as the media coverage in editorial, news and paid media. Mr. Mathews answered questions regarding future strategies and identified the vision for Fashion Week. He described the proposal for the requested sponsorship. Videos from all the 2010 fashion shows are available year-round on the Palm Springs Life website. Links to EI Paseo Merchants Association members are also on the website. 2