CITY OF STANWOOD COMMUNITY DEVELOPMENT COMMITTEE AGENDA STAFF REPORT
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1 CITY OF STANWOOD COMMUNITY DEVELOPMENT COMMITTEE AGENDA STAFF REPORT ITEM NUMBER: DATE: January 8, 205 SUBJECT: CONTACT PERSON: ATTACHMENTS: Stanwood/Camano Visitor Magazine Deborah Knight, City Administrator A Proposed proforma for visitor magazine B Print Ads vs. Direct Mail Promo C Normandy Park Ad Sheet D Normandy Park Press Release ISSUE The issue in front of the community development committee is to review a proposal by Phillips Publishing to write, print and distribute a visitor magazine three times per year highlighting the Stanwood/Camano area. RECOMMENDATION Review the proforma (Attachment A) prepared by Phillips Publishing. Discuss the pros and cons of distributing a visitor information magazine as part of the city s long-term strategy to promote the City of Stanwood as a tourist destination. SUMMARY STATEMENT The city council approved funding in the 204 economic development budget to design and print a Stanwood visitor information brochure to distribute to visitor information centers throughout Snohomish County and surrounding areas. At the Manager s and Administrators annual conference in August, one of the conference sponsors was Phillips Publishing. Phillips Publishing prints magazines for a number of professional organizations and cities including Normandy Park and Des Moines. City staff asked Phillips Publishing to put together a proposal to print and distribute a Stanwood/Camano visitor magazine three times per year. The magazine would replace the proposed visitor information brochure. Mr. Philips presented a proposal (Attachments B-D) to the city s Economic Development Board on September 8, 204. The Board recommended getting input from Chamber members to judge the level of interest in advertising in a local tourism focused magazine. Mr. Philips attended a joint Stanwood/Camano Chamber meeting on October 6, 204 and described the proposal and advertising costs.
2 There was an overwhelming consensus at the joint Chamber meeting to investigate next steps. Mona Campbell (Canopy Tour) is very excited to have this and knows about target marketing. The Stanwood Chamber recommended involving Port Susan Rec Area (info) for things to do. City staff will present the proforma (Attachment A) to the Economic Development Board at its next meeting on January 22, 205. The purpose of this agenda is to give the community development committee an opportunity to review the proforma and ask any questions in advance of the presentation to the Board and the city council on February 2, 205. FINANCIAL IMPACT Under the business model developed by Peter Phillips, the printing and distribution costs are covered by advertising. Any additional profit from advertising is split 50/50 between the city and Philips Publishing. The business model is designed to be cost neutral to the city. 205 Pro Forma Financials Summer Issue Holiday/Spring Camano-Stanwood Visitors Guide (Budget) Fall (Budget) (Budget) Totals Pages Copies Printed 9,000 5,000 3,000 7,000 Advertising Sales $ 25, $ 20, $ 5, $ 60, Ancillary Revenue Total Revenues $ 25, $ 20, $ 5, $ 60, Cost of Sales Media kit Layout and $25 per page $ 4, $ 4, $ 4, $ 2, Printing $ 7, $ 4, $ 2, $ 4, Mailing $ $ $ $ Postage (est.) Certified Distribution $, $, $, $ 5, Editorial Costs Advertising Sales 25% $ 6, $ 5, $ 3, $ 5, Administrative Overhead $ 2, $ 2, $ 5, $ 9, Credit Card Fees $ $ $ $ Flip Book $ $ $ $ Misc Total Expenses $ 22, $ 7, $ 7, $ 57, B&O 2% $ $ $ $, Revenue After Expenses $ 2,0.50 $,95.50 $ (2,979.50) $,046.50
3 The committee should note that editorial costs the cost to write the content is not included in the proforma. There is an additional $6,000 for a professional writer that would not be covered by the advertising. The city can choose to provide the content or hire a third-party vendor to provide the content. The magazine would be distributed to visitor information centers and other places such as ferry terminals where tourists congregate. COMMITTEE RECOMMENDATIONS The Economic Development Board has discussed the proposal. There is general consensus that a professionally developed visitor magazine will provide a greater benefit to both the city and to local businesses than a tri-fold brochure. CITY COUNCIL OPTIONS The 2009 Economic Development Action Plan recommends developing a more ambitious community marketing campaign. The plan suggests: Promoting the community s special events; Involving the Chamber of Commerce and private sector; Increasing visits and spending by out of town guests Targeting those who currently pass through Stanwood Strengthen the connection between Stanwood and Camano by building a foundation for joint tourism promotion. Encourage eco-tourism and capitalize on the natural environment Create tools to attract and engage visitors such as a map and website highlighting attractions. The question for the city council is whether the benefits generated from a widely distributed visitor magazine would off-set the potential costs. If the city council wants to write the content using in-house staff, the council would have to reprioritize the work plan to allow sufficient time to development content. Unlike a city magazine where departments are tasked with each writing an article for the upcoming issue, it will take more time to interview local businesses and write compelling travel articles. The community development subcommittee should review the information provided and ask questions. Peter Phillips will present the proforma information to the Economic Development Board on January 22. This is an opportunity for the subcommittee to express concerns prior to bringing a proposal back to the city council for consideration in February. RECOMMENDATION Review the proforma (Attachment A) prepared by Phillips Publishing. Discuss the pros and cons of distributing a visitor information magazine as part of the city s long-term strategy to promote the City of Stanwood as a tourist destination.
4 205 Pro Forma Financials Camano-Stanwood Visitors Guide Summer Issue (Budget) Fall (Budget) Holiday/Spring (Budget) Totals Pages Copies Printed 9,000 5,000 3,000 7,000 Advertising Sales $ 25, $ 20, $ 5, $ 60, Ancillary Revenue Total Revenues $ 25, $ 20, $ 5, $ 60, Cost of Sales Media kit Layout and $25 per page $ 4, $ 4, $ 4, $ 2, Printing $ 7, $ 4, $ 2, $ 4, Mailing $ $ $ $ Postage (est.) Certified Distribution $, $, $, $ 5, Editorial Costs Advertising Sales 25% $ 6, $ 5, $ 3, $ 5, Administrative Overhead $ 2, $ 2, $ 5, $ 9, Credit Card Fees $ $ $ $ Flip Book $ $ $ $ Misc Total Expenses $ 22, $ 7, $ 7, $ 57, B&O 2% $ $ $ $, Revenue After Expenses $ 2,0.50 $,95.50 $ (2,979.50) $,046.50
5 Page Count Unit 32 Size/position Rate* Advertisers Total Editorial Pages Ad Pages OBC $, $, IBC $, $, IFC $, $, full page $ $ 2, /2 page $ $ 2, /3 page $ $, /6 page $ $, Total 8 $, OBC $, $, IBC $, $, IFC $, $, full page $ $ 4, /2 page $ $ 2, /3 page $ $ 2, /6 page $ $, Total 23 $ 4, OBC $, $, IBC $, $, IFC $, $, full page $ $ 7, /2 page $ $ 7, /3 page $ $ 4, /6 page $ $ 2, Total 48 $ 26, * Resident Business Rate Non-Resident Businesses add 40%
6 Direct Mail vs. Print Advertising Costs for City Magazines Print advertising in city magazines is easier, more affordable and more effective than direct mail. An attractive editorial environment PRINT: The magazine contains information important to residents of the community. Advertising in relevant editorial environments means your ad stays with your customer because they look for the magazine in their mailbox and they keep it. DIRECT MAIL: Your direct mail piece faces competition in the mailbox with other unsolicited direct mail pieces: real estate flyers, grocery store leaflets, offers for internet systems, security systems, free vacations and new cars. At a more affordable cost You don t pay printing or postage costs by advertising in our city magazines. You pay both with direct mail. An example of relative costs for our city magazines below: Normandy Park 4,600 households DIRECT MAIL: Printing $703 Mail Preparation: $8.29 Postage: $690 TOTAL COST: $,574 MAGAZINE ADVERTISING: ½ page, four color ad $ Better exposure, longer shelf life at 30% of the cost of direct mail Des Moines 23,000 households DIRECT MAIL: Printing $,500 Mail Preparation: $ Postage: $3,59.00 TOTAL COST: $5,34.00 MAGAZINE ADVERTISING: ½ page, four color ad $,020.00
7 Direct Mail vs. Print Advertising (South Sound) Better exposure, longer shelf life at 20% of the cost of direct mail Auburn 40,000 households DIRECT MAIL: Printing $2, Mail Preparation: $ Postage: $6,20.00 TOTAL COST: $8, MAGAZINE ADVERTISING: ½ page, four color ad $, Better exposure, longer shelf life at % of the cost of direct mail Lynnwood 57,000 households DIRECT MAIL: Printing $3,3.70 Mail Preparation: $ Postage: $8,72.00 TOTAL COST: $2,593.8 MAGAZINE ADVERTISING: ½ page, four color ad $, Better exposure, longer shelf life at 08% of the cost of direct mail Mailing Rates Envelope or postcard saturation rate: Flat size piece ( 8.5 x ) saturation rate: Individually addressed rate: $0.53 per piece $0.67 per piece $0.234 per piece 2 Prepared by Philips Publishing Group (206)
8 Normandy Park City Scene magazine dedicated to promoting and growing the beautiful gem that is Normandy Park. Cheers for CityScene Normandy Park City Scene is a great way to communicate with the residents of Normandy Park and beyond. It was a perfect vehicle to market our theatre during the holiday season! Dan House, Owner, The Tin Room The exposure we got for our new Subway location at NP Town Center was fantastic! The attention has brought in new and old customers alike. Dan Benham and Michele Dyer, Owners, Normandy Park Subway Normandy Park City Scene was the perfect place to reach new people in Normandy Park! We received new clients to our business. We look forward to a great partnership and being in the spring issue. Andy Cho, Desert Sun When approached about advertising in the Normandy Park Scene, we knew right away it was a great way to communicate with the Normandy Park community. Kim Parks, Community Outreach Director, Normandy Park Senior Living AdvertisingRates Normandy Park Businesses SIZE (width x height) x 3x (per insertion) Outside Back Cover x * $,500 $,275 Inside Back Cover x * $,200 $,020 Inside Front Cover x * $,200 $,020 Full Page x $900 $765 /2 page x 4.8 $600 $50 /3 page - (sq) 4.75 x 4.8 (v) 2.25 x $400 $350 /6 page - (h) 4.75 x 2.25 (v) 2.25 x 4.8 $200 $75 Advertorial -.25 x * $,000 $850 Non-resident Businesses SIZE (width x height) x 3x (per insertion) Outside Back Cover x * $,765 $,500 Inside Back Cover x * $,400 $,200 Inside Front Cover x * $,400 $,200 Full Page x $,050 $900 /2 page x 4.8 $700 $600 /3 page - (sq) 4.75 x 4.8 (v) 2.25 x $475 $400 /6 page - (h) 4.75 x 2.25 (v) 2.25 x 4.8 $250 $200 Advertorial -.25 x * $,50 $,000 CityScene SUMMER 203 NORMANDY PARK s u m m e r in and around the PARK ART AROUND THE PARK Your guide to a fun-filled summer in Normandy Park SUMMER FUN Your guide to a fun-filled summer in Normandy Park CityScene WINTER 202 Shop the Park Events and projects aim to boost Normandy Park CITY NEWS Your guide to a fun-filled summer in Normandy Park SHOw me THE money! How your taxes are invested in Normandy Park LEVY LID LIFT What you need to know NORMANDY PARK HOLIDAY EXTRAVAGANZA What s happening around the Park this Season Normandy Park City Scene magazine serves the community by providing news and information about city services alongside seasonal features aimed at the dynamic community that makes Normandy Park one of the region s most desirable places to live and play. The most effective, cost-efficient way to reach Normandy Park s affluent homeowners One of the state s highest ranking elementary and secondary schools systems Median household income in excess of $73,000 per year* Mailed directly to the 6,600 residents of Normandy Park * Demographic data from Washington State Office of Financial Management EditorialCalendar 203 Summer Issue Advertising/Editorial Deadline: April 26 Ad Materials Deadline: May 3 Mail Date: May Fall Issue Advertising/Editorial Deadline: July 26 Ad Materials Deadline: Aug. 2 Mail Date: Aug Winter Issue Advertising/Editorial Deadline: Sept. 27 Ad Materials Deadline: Oct. 4 Mail Date: Oct. 4 ReserveSpace Peter Philips peter@philipspublishing.com Published for the City of Normandy Park by
9 FOR IMMEDIATE RELEASE September 202 Contact: Peter Philips, President, Philips Publishing Group (206) Normandy Park introduces Normandy Park City Scene Magazine The City of Normandy Park is pleased to announce that Philips Publishing Group has been selected to produce a redesigned Normandy Park City Scene Magazine. The city s front line source for communicating with Normandy Park residents, the new four-color glossy format of City Scene Magazine will enhance the aesthetic of the publication, and allow city administration to expand editorial to more fully engage the community. We are excited about the potential this new publication offers to promote the city as a place to live, work and play says City Manager Doug Schulze. We are particularly pleased that Philips Publishing can offer us this publication at no cost to the city. Advertising will be accepted to cover all expenses associated with publication, and Philips Publishing Group has retained local resident Mike Seifert to handle advertising sales for the magazine. The design is clean, elegant and of a quality that gives it an extended shelf life. Though the primary mission continues to be sharing city administrative news with residents, Normandy Park City Scene will also serve as an excellent marketing tool for local retailers looking to attract customers. We think the take-away value of the publication will make it one of our most valuable ongoing marketing tools, says Schulze. Residents and visitors alike will read about local retailers, service providers and community events all of which raises the visibility of Normandy Park and the local businesses that keep us vibrant. Philips Publishing Group president, Peter Philips, and Advertising Manager Seifert are residents of Normandy Park. The project promises to be a success for all of us stated Philips. It s an opportunity for me to get more involved in my community and to promote Normandy Park as a great place to live, work and play. Philips Publishing Group specializes in the design, production and distribution of magazines for the maritime, hospitality and tourism communities S.W. 74 TH STREET NORMANDY PARK, WA PHONE: FAX:
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