HomeMy WebLinkAboutCOD-013-02
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ClNilJgron
REPORT
CORPORATE SERVICES
Meeting:
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date: March 4, 2002
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Report #: COD-013-02
Subject:
CORPORATE ADVERTISING
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1, THAT Report #COD-O 13-02 be received;
2. THAT Council approve the recommendations as presented at the conclusion of Report
COD-013-02.
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Submitted by: ~~arano
Director of Corporate Services
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Reviewed by: Franklin Wu,
Chief Administrative Officer
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T 905-623-3379 F 905-623-0584
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REPORT NO.: COD-013-02
PAGE 2
BACKGROUND
The intent of this report is to review the existing program in order to assess its effectiveness
relative to achieving the goals of the corporate marketing strategy.
Clarington is viewed as one of the most progressive municipalities in Durham Region (and
perhaps the GTA) in its use of available media to promote itself. The 2002 marketing strategy,
the anticipated end product of this report, will consider the use and mix of different media
(print, broadcast and Internet) to promote the services and opportunities of the Municipality of
Clarington. Being perceived as progressive means that the Municipality must continue to be
proactive in identifying opportunities through which it can promote itself.
2001 PROGRAM
Local advertising, although significant, is only part of the complete promotion program and
associated budget (approximately 65%). The corporate promotional strategy also considers
tourism development and promotion, municipal events and economic development. This report
is focusing attention on the local aspect of the corporate strategy only.
Municipal advertisements appear in the two resident newspapers - The Canadian
Statesman (owned by Metroland) and the Orono Weekly Times. By identifying the
publication(s) to be used, the Municipality is able to focus its efforts on keeping the public
informed and up to date.
The current program works on a bi-weekly publication schedule (with copy material due to
the Communications & Tourism Office by the Wednesday before the desired publication date),
As the Communications & Tourism Office creates all municipal advertisements in-house, they
are consistent in format and presentation of information, which is important in being readily
identified, by the public, as municipal information. Initially, the local advertising program
experienced some "growing pains" but it has operated without significant barriers or problems
for more than a year and a good working relationship that has been established with both
publications.
The municipal web site is a strong part of the marketing and promotion strategy. One of its
functions is to augment the Municipality's requirement to keep the public informed. In 1997 (the
web site's first full year) the web site received fewer than 100,000 visitors (hits). As of the end
of 2001, approximately 3.8 million visitors were recorded. As we continue to grow and attract
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REPORT NO.: COD-013-02
PAGE 3
interest from beyond the Municipality's boundaries, the strategic importance of our online
presence will heighten.
The use of on-air/broadcast media (Le. radio and television) has been sporadic and
inconsistent. It has been used, traditionally, to promote major events within the Municipality
(e.g. the Backyard Festival, the Mayor's Seasons Greetings). The reach of this media extends
beyond the boundaries of Clarington and, indeed, the Region of Durham. For example, for
tourism promotion and development this is an important consideration when looking to expand
the reach of present promotion vehicles such as the Clarington Visitors Guide.
2002 PROPOSALS
To ensure effective use of the established advertising/promotion budget, staff has
participated in meetings with representatives from Metroland Publishing (Canadian
Statesman/Clarington This Week) and CHEX TV. Both have presented proposals for
consideration.
The proposal from Metroland consists of the Municipality booking 52 weeks of advertising
space up front. With this commitment, Metroland will guarantee that page two of the Canadian
statesman will be reserved for the Municipality's use. The weekly cost of a full-page of the
Canadian statesman is $ 2,046.80. The following table summarizes the opportunities that can
be negotiated with Metroland.
1/2 a e for 26 weeks = $26,608.84' 1/2 a e for 52 weeks - $ 53,216,80
Full a e for 26 weeks - $ 53,216.80' Full a e for 52 weeks - $ 106,433,60
. NOTE:
Page dedication (pg. 2) may not be guaranteed for a commitment of less than 52
weeks.
The Municipality also prints its local information advertisements in the Orono Weekly
Times. Use of the Times will continue where the information to be presented is of specific
interest to the Orono community. In this way, it will continue to have a role in the Municipality's
advertising program.
A broadcast proposal was submitted by CHEX TV, which offers an extensive schedule of
on-air promotion for the Municipality. The schedule includes an average of 38, 30-second
spots each week for 52 weeks (approximately 1,976 spots/year). These spots would be
produced seasonally (Le. 4 times per year) allowing the Municipality to pick and choose the
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REPORT NO.: COD-013-02
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events, activities and facilities to be promoted. This proposal has an estimate annual cost of $
60,000 including all production expenses. If the Municipality chooses to accept this proposal,
CHEX TV agrees to provide four occasions during which 2-minute vignettes (infomercials) will
be broadcast - for a period of no less than two weeks, 4-times per year - at no cost. The
content of the vignette is at the total discretion of the Municipality and can be used to inform
and promote the successes of the municipal organization. This aspect of the CHEX proposal
has an airtime equivalent value of $ 15,000.00. Also, it should be noted that CHEX's parent
company, Corus Entertainment, owns the AM/FM radio station (Talk 1350 AM and Energy 94,9
FM). This could mean that radio airtime may also be made available to the Municipality.
A second broadcast proposal was received from Taalwood Media Services. This proposal
consists of a set time slot for a period of no less than 52 weeks. The format and content of the
2-minute vignette style infomercials is up to the Municipality and would be taped weekly. The
proposal has suggested that these infomercials would air every Monday evening at
(approximately) 6:58 PM. The proposal suggested that the airtime would be on CHEX TV
Durham, the Taalwood representative was asked to provide written confirmation from the
television station that they are in aware of the parameters of this proposal. This confirmation
was to be sent from CHEX directly. Although the Communications & Tourism Office has
received an email from Taalwood indicating that discussions have been held with the television
station but, as of the writing of this report, there has been no correspondence (letter or email)
received from CHEX. The bottom-line investment for this proposal is $ 59,280.00 (not including
applicable GST).
For clarity, the substance of both broadcast promotion proposals is summarized on the
following table.
CHEX TV DURHAM TAALWOOD MEDIA SERVICES
Average of 38, 30-second airings per
week. Approximately 1,976 air times
er ear estimated at 988 minutes
4 separate productions done by season
per year. Studio facilities available and
locations can vary at the discretion of
the Municipality. Promotions would be
somewhat generic to cover a longer
period of time (12 weeks)
1, 2-minute vignette per week. 52
airings per year (estimated 104
minutes of air time
52 productions done weekly. Locations
for productions can be varied.
Promotions would be more specific and
current as a result of weekly tapings.
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REPORT NO.: COD-013-02
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CHEX TV DURHAM TAALWOOD MEDIA SERVICES
4 2-minute vignettes to air a total of 8-
weeks per year provided to the
Municipality at no cost based on
minimum investment reauirements.
Access to other broadcast vehicles
such as Discover Durham and First
Take with Dan Carter
Financial Investment (GST not included): Financial Investment (GST not included):
$ 60,OOO/year (including production costs) $ 59,280/year
$ 1, 153.84/week or $ 1,140.00/week
$ 30.36/30-second spot
Staff Investment: Staff Investment:
Staff would be required to develop Staff would be required to develop
copy and suggest shoot locations to copy and suggest shoot locations to
the production team from CHEX. the production team. This would be a
Productions are to be done quarterly weekly requirement for staff relative to
and staff involvement is negotiable. providing the appropriate copy
CHEX personalities could, on request, material.
provide the on-air voice requirements.
The bonus quarterly vignettes would be
done as a seDarate entitv (no cosO.
RECOMMENDATIONS
The Municipality is "Leading the Way" in its strong and proactive approach to keeping its
citizens informed. To continue this path, the Municipality must review and modify its marketing
mix (use of various media) regularly to ensure that the residents and businesses of Clarington
are up to date regarding issues, services and opportunities of interest. The proposals received
by the Communications & Tourism Office gives the Municipality of Clarington new venues to
communicate their message.
The following recommendations are submitted to Council for consideration:
1 ) THAT the Municipality of Clarington revises the corporate advertising policy to include
broadcast media - specifically television and radio - in addition to print.
2) THAT Council approve the proposal from Metroland (Canadian Statesman) as the primary
print media to carry the Municipality's local advertising and information promotions.
Approval of this recommendation will result in cost savings to the Municipality on the
household distribution of municipal publications such as the Community Guide and
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REPORT NO.: COD-013..o2
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Municipal Directory. This also guarantees that all municipal information will be printed
on page 2 ofthe Canadian Statesman.
The Orono Weekly Times will continue to carry municipal advertisements on an ad hoc
basis. Advertisements and media releases that are of Clarington-wide and/or Orono
interest will continue to be sent for publication. No specific page location is being
requested.
3) THAT Council approves the proposal submitted by CHEX TV Durham.
The proposal received from Taalwood Media Services presents new opportunities for
the Municipality; the CHEX proposal appears to provide a greater return on the financial
investment. In addition to more than 900 minutes of airtime, the CHEX proposal also
provides an additional
$ 15,000 of airtime value in the form of quarterly, 2-minute vignettes.
4) THAT Council approves the mix of print and broadcast media to be implemented for the
balance of 2002.
Canadian Statesman & CHEX TV Durham for 52 weeks
(April 1 - December 31,2002).
2002 budget implication -
Canadian Statesman @ $ 2,046.80/week x 33 weeks =
CHEX TV @ $ 1, 153.84/week x 33 weeks =
TOTAL INVESTMENT =
$ 67,544.40
$ 38,076.72
$ 105,621.12
5) THAT the Corporate Services Department - Communications & Tourism 2002 corporate
advertising budget be adjusted by $15,000 to total $150,000 to provide for the total
corporate advertisement, including the enhanced municipal advertisement requirements,
6) THAT Section 5, Paragraph 5.06, of the Purchasing By-law 94-129 be waived.
7) THAT the new Corporate Advertising/Promotion plan be effective April 1 , 2002 and be
reviewed annually during the budget process.
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