Item Coversheet
  CITY COUNCIL AGENDA MEMO
MEETING DATE: 12/11/2023
DEPARTMENT:Visit Plano
DIRECTOR:Doug McDonald, Director of Economic Development
AGENDA ITEM:Approval of Expenditure for Advertising Agency Services for Visit Plano.
RECOMMENDED ACTION:Approval of Expenditure

ITEM SUMMARY

To approve an expenditure for Advertising Agency Services contract effective December 13, 2023 through September 30, 2024 in the estimated amount of $1,032,914 with five (5) one-year automatic renewals in the estimated annual amount of $1,289,409, for an estimated total amount of $7,479,959 over the duration of 5 years and 9 months, from Atkins International, LLC for Visit Plano; and authorizing the City Manager to execute all necessary documents. Approved

BACKGROUND

Visit Plano has been working with The Atkins Group (TAG) for over 13 years. The Visit Plano team has found this firm to be one of the leading agencies in Texas to address the City’s marketing and advertising needs in promoting tourism in Plano.  TAG also works with Plano Event Center and Plano Economic Development, which provides cost savings and shared marketing and advertising opportunities beyond Visit Plano’s scope of work. TAG’s past work experience with the City of Plano, specifically with Visit Plano, has been exceptional, and their expertise and creative approach align with Visit Plano’s advertising and marketing objectives. The agency has consistently met deadlines, delivered measurable results in terms of brand, visibility and sales conversations, and responded promptly to address inquiries, respective to feedback, and proactive in suggesting solutions. TAG’s approach to storytelling is both engaging and relevant to Plano’s target demographics.

 

Visit Plano recommends entering into this service agreement for continuity of operations for tourism and visitor traffic, and to continue to share marketing and advertising opportunities with the Plano Event Center and Plano Economic Development Department. In addition, Visit Plano will be undertaking its first Tourism Strategic Plan in 2024, and it would be disruptive to onboard a new agency while the plan is being completed. This plan is intended to develop goals, strategies, and measurable performance metrics for Visit Plano, which will include actions for marketing and advertising. Finally, Visit Plano has had an exceptional experience working with TAG in meeting deliverable deadlines, staying within budget, and developing “out of the box” marketing and advertising materials that have a positive measurable outcome and stand out in a crowded marketplace.

  

Over the last 5 years, the current service agreement with TAG has provided Visit Plano a total of 218,775,328 ad impressions and nearly 2.5 million website visits resulting in over 15 million overnight visitors to Plano, while contributing to the overall Plano economy by spending money at Plano hotels, restaurants, shops, attractions, and other offerings. The current contract was executed in 2017 and amended in 2018 to include a total estimated yearly compensation amount of $1,040,600. Over the past five years, the scope of work has been expanded and was last amended on March 9, 2023 to include a total estimated yearly compensation amount of $1,201,853 per year for increased services. The proposed service agreement is for $1,289,409, which is a difference of $87,556 per year from the existing contract. The contract cost increase is due solely to media buying price increases. The proposed service agreement has a duration of five years and nine months for a total of $7,479,958.66. The yearly budget is outlined below:

 

·         12/13/23 – 9/30/24- $1,032,913.66

·         10/1/24 – 9/30/25 - $1,289,409.00

·         10/1/25 – 9/30/26 - $1,289,409.00

·         10/1/26 – 9/30/27 - $1,289,409.00

·         10/1/27 – 9/30/28 - $1,289,409.00

·         10/1/28 – 9/30/29 - $1,289,409.00

 

Since the pandemic, the digital economy has grown exponentially. Digital marketing and advertising have become even more important as potential visitors are spending more time online than ever before. In addition, Plano has increased competition for visitors as additional hotels and entertainment venues have been constructed in neighboring cities. As Visit Plano enters this next phase of growth, the investment in marketing and advertising is critical to maintaining Plano’s strong HOT tax and retail sales tax base and competing for business.

 

The City is exempt from the competitive bid process for this purchase as allowed by Texas Local Government Code Chapter 252 Subchapter B Section 252.022(a)(4). (City of Plano Internal Contract No. 2023-0700- XR)

FINANCIAL SUMMARY/STRATEGIC GOALS

Funding for this item is available in the FY 2023-24 Visit Plano budget and is planned through FY 2028-29 as well. This contract for an advertising agreement will begin December 13, 2023 and will end September 2029. The estimated total amount to be spent is $7,479,959 with expected annual expenses of $1,032,914 in FY 2023-24, and $1,289,409 annually for FY 2024-25 through FY2028-29. All future year expenditures will be made within the annually approved budget appropriations.

 

Approval of this item supports the City's Strategic Plan Critical Success Factors of Welcoming and Engaged Community, Residential and Commercial Economic Vitality, and Excellent, Innovative, and Accountable City Government.