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.
Signature: (seal)
RMPUB\.I'I'REMBLAY\3]68572 7
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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