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Item # 11.
         
Work Session and Regular Meeting
Meeting Date: 01/22/2019  
Department: Communications & Marketing  
Pillars: Optimize the Addison Brand

AGENDA CAPTION:

Present, Discuss and Consider Action on a Resolution Approving a Contract with Rodney Hand Associates Marketing Communications, LP for Advertising in Addison - The Magazine of the North Dallas Corridor and Authorize the City Manager to Execute the Agreement in an Amount not to Exceed $90,000.

BACKGROUND:
In October 2018, Rodney Hand, the publisher of Addison Magazine, informed us that he no longer planned to publish Addison Magazine in its current form.  According to Mr. Hand, advertising income over the past year has diminished to a point that the publication was losing money each issue.  For 20 years, Addison Magazine has promoted the Addison brand in hotel rooms throughout North Dallas.  Our current $132,000 advertising contract with Addison Magazine is funded through the Marketing Department and Hotel Funds.

The Marketing Department has been working with Addison Magazine to brainstorm options to reduce the scope of the magazine, its website, and its weekly e-newsletter to accommodate a diminished budget, but still achieve our tourism goal of having an Addison-branded publication in local hotel rooms. 

The pricing submitted by two other companies for in-room publications (range $35K-$40K per issue) did not include delivery to the hotels.  Addison Magazine’s proposal included not only delivery to Addison hotels, but also placement in an additional 13 hotels along the North Dallas corridor, additional publications to replace worn out copies between printings and an audit of the magazine placement.  Addison Magazine was the only company to offer a corresponding website and a regular electronic newsletter component in their proposal.  Based on the enhanced service and robust digital platform, staff is recommending forward to Council a $90,000 advertising contract with Addison Magazine that will include:
  • Visitors' Guide: to be distributed to the current 36 hotels featuring almost 8,000 hotel rooms two times per year (targeted publish dates each year are April and October).
    • Addison will receive 18 pages of Run of Book (R.O.B.) advertising and editorial for each of the two issues, with guaranteed inside back cover and up to four additional full-page ads.
    • This new version will be the same oversized size as the current Addison Magazine with a little heavier text paper weight to give it long life in the hotel rooms, with a minimum of 40 pages.
    • A minimum of 10,000 copies will be printed and distributed (giving approximately 2,000 extra each issue for replenishment throughout the semi-annual cycle).  Addison Magazine currently has contracts with 36 hotels in the North Dallas corridor for in-room placement of the publication.
    • The publisher will deliver the publication to the hotels and verify they are placed in hotel rooms. The publisher will also distribute the guide to participating hotel sales offices, corporate concierges and selected commercial, and residential leasing offices.  It will not be mailed to residents.
    • The advertising sales area will be limited to: South of Legacy, East of Marsh Lane, North of Harvest Hill, West of Hillcrest Road.
  • Digital Issue will be published at the same time as the print issue. 
    • A link to the digital issue will be included in the E-News and included on the website
    • Addison will receive 18 pages of R.O.B. advertising and editorial for each of the two issues, with guaranteed inside back cover and up to four additional full-page ads. 
  • Website will be maintained with content updates to be made a minimum of every two weeks. 
    • Addison to be given adverting space each month on the home page, as well as each of the category pages.
    • The current Addison Magazine website has on average 25,000 visitors per month. 
  • E-News Publication will be produced and distributed at a minimum frequency of every two weeks.
    • Addison will receive one banner ad position in each issue of the E-News publication.
    • Editorial focus will be on items related to Addison tourism (restaurant specials, live musical entertainments, events, etc.) and less “life style” oriented (travel, medical updates, etc.)
    • The current Addison Magazine E-News has 24,000 subscribers.
Addison Magazine Contract History
 
Year Times per  Year Annual Cost Distribution
1998 2 $80K Addison hotels
2000 3 $90K Addison hotels, plus North Dallas Corridor businesses and residential community
2006 4 $111K Increased distribution to 7,500 businesses, 8,000 residents, 6,500 hotel rooms and added newsstands and retail
2012 52 $0 Added a digital platform
2015-16 6 $132K Continued to increase circulation - added Foreign Consulates per EDT request in 2014-15.
2018 2 $90K Addison and North Dallas Corridor hotels (36), participating hotel sales offices, corporate concierges, and selected commercial and residential leasing offices plus the digital platform

    
 
RECOMMENDATION:
Administration recommends approval.
Attachments
Resolution - Rodney Hand Associates Agreement

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