HomeMy WebLinkAbout07/01/1997, C-10 - USE OF PROMOTIONAL COORDINATING COMMITTEE (PCC) ENHANCED PROMOTIONAL FUNDS jcouncils _ y�
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C I T Y OF SAN LU IS OB IS PO
FROM: Ken Hampian,Assistant City Administrative Officer
Prepared By: Wendy George,Assistant to the City Administrative . icer
SUBJECT: Use of Promotional Coordinating Committee (PCC) Enhanced
Promotional Funds
CAO RECOMMENDATION
Approve the PCC's recommendation to allocate the remaining $7,104 of Enhanced Promotional
Funds to extend newspaper advertising in the San Jose/San Francisco Bay Areas.
DISCUSSION
Backeround
Several years ago,in conjunction with an increase in the Transient Occupancy Tax(TOT) from 9%
to 10%, the City created an Enhanced Promotional Fund to be used to finance innovative
promotional ideas and provide seed money for new special events. Annually, the PCC makes
recommendations to the City Council on how this fund should be spent. At its last meeting, the
City's advertising firm, Bamett, Cox & Associates (BC&A) presented the PCC with several
additional advertising opportunities which could be financed using the remaining Enhanced
Promotional Funds. After discussion of the different options, the PCC unanimously approved
recommending that the finds be used to purchase additional advertising in the San Jose/San
Francisco Bay Areas (Recommendation#1 on Attachment 1).
Advertising efforts have traditionally been focused on Southern California, as this market provides
San Luis Obispo's highest volume of visitors. However, zip code analysis of requests for
information over the last two years shows an increasing visitor interest in the City from residents of
Northern California, notably the San Francisco Bay Area and the Santa Clara Valley. It appears
that the wine regions of the Central Coast are of particular interest to Bay Area visitors.
Because of budget limitations in past years,the PCC has opted not to advertise in the San Francisco
Bay Area. However, with the addition of$7,000 in enhanced promotional funds, money would be
available to run a test ad in the San Francisco Sunday Examiner Chronicle and San Jose Mercury
News without detracting from existing ad schedules in Southern California_
The current proposal is to create a specific Bay Area ad which would have a separate 800 number
from the one normally used. The separate number would allow BC&A to track the call responses
to the ad to determine the level of its success. The ad would be placed one time in the Sunday
travel sections of the two newspapers. The PCC feels that by placing an ad in these sections the
City will gain additional visitors, as well as information needed to expand the advertising program
into new markets. Depending on the level of success,BC&A would continue to pursue this market
as part of the City's future advertising program.
Council Agenda Report-Use of Enhanced Promotional Funds
Page 2
FISCAL EMPACT
There is currently$7,104 remaining in this year's Enhanced Promotional Fund. The cost of a one-
time ad in each newspaper, the 800 response line and the fulfillment material sent in response to
telephone requests is estimated to be approximately$7,000.
Attachment
Proposals from Barnett,Cox&Associates
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Newspaper Detail:
Newspaper Sunday Circulation Per column inch l2"ad(one time)
SF Chronicle/Examiner 636,187 354.00 $4248.00
San Jose Mercury 3447454 130.00 $1560.00
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