Is MTV Complying With the 2008 Spring Break Marketing Plan?

I just became aware of some additional information that I didn’t know when I wrote “A Review of the 2008 TDC/CVB Spring Break Marketing Plan” last week (see post). In addition to my original concerns, I now have doubt as to whether MTV is complying with the terms of the $200,000 contract with the TDC/CVB.

When the Plan was originally proposed to the TDC/CVB, it was explained that the MTV Networks were now going to mainly cover Spring Break via their mtvU network, not their flagship MTV channel as in years past. This explanation was consistent with the written proposal presented to the CVB Marketing Committee on October 3, 2007:

* “mtvU is the hub for everything and anything that represents Spring Break”
* “. . .and where we go, we bring our big brothers, MTV and MTV2.”

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Spring Break is here and the beaches are filling up

I can’t believe it is already March in 2008 already! Spring Break is here, and the beach is coming to life. I said this last year and I’ll say it again. I don’t like many of the things that come with spring break, but I do love it when our area comes alive.

My mother-in-law owns a rental business and I was told that this week isn’t quite as busy as next week, but most of their rentable units are occupied.

It is supposed to cool off a little as the week goes on, but all-in-all, we should have pretty good weather.

Click the “more” link for a list of schools in town this week.

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A Review of the 2008 TDC/CVB Spring Break Marketing Plan

As I am writing this, our first group of college spring breakers are on the road heading to liven up our beach. No one knows whether the TDC/CVB’s College Spring Break Marketing Plan will end up being a success, a failure, or somewhere in between. Hopefully President Dan Rowe has a plan for calculating a reliable estimate of how many college students visit our destination during the four-week period this year and what the actual economic impact is to Bay County. Lately, I have heard the estimate being mentioned that 250,000 college students came here for Spring Break last year and that we are expecting the same or better this year. However, it is my understanding that the TDC/CVB has no data to actually support this 250,000 figure. I am pleased that the new TDC/CVB board has been very diligent in questioning the attendance and economic impact of other special events; however, I do not believe that they have had the same diligence in questioning College Spring Break. But regardless of how successful the MTV plan ends up being, it is clear that the plan has some major problems.

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Notes and Comments from the 2/12/08 TDC/CVB Board Meeting

8 of the 9 board members were present. Absent was Marty McDaniel. It was also reported that McDaniel is no longer employed by Royal American Hospitality. Since Mr. McDaniel has accepted employment with another collector, TDC/CVB Attorney Doug Sale advised that both he and the Bay County Attorney did not see any problem with McDaniel retaining his board seat.

After the “more” link, info on the bed tax collection, Coastal Vision 3000, and College Spring Break Co-Op.

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Wednesday TDC Meeting – Spring Break Marketing Update

Notes from Wednesday’s TDC meeting:

Artificial Reef
A presentation seeking financial assistance to sink a boat that is currently at the PC Marina was added to the agenda. The gentleman was seeking $40,000 to assist with the total $75,000 cost. There was some concern whether there were funds available in the current year budget; however, a motion passed 9-0 recommending that the CVB board approve the $40,000 expenditure.

Indian Summer Festival Contract
A motion made by Jack Bishop passed 8-0(with Joe Kennedy abstaining) recommending that the CVB board exercise its option to cancel the final year of the 3 year contract with Sound Associates/Ron Johnson to put on the Indiana Summer Festival. Some members felt that the CVB should not continue to fund events that have shown an inability to become self-sustaining. Some felt that the event is primarily a local event, rather than a tourist draw, and was therefore an inappropriate use of CVB funds. And finally some were of the belief that continuing the festival was important, but that Sound Associates did a poor job of putting on this years festival.

Special Events Policy
A motion passed 9-0 recommending that the CVB board reaffirm the “January
2003 Special Events Advertising Policy and Procedure” be followed for all future special event funding requests. Although this policy has never been revoked or modified, recent boards(including the current board and committee with the 2007-08 budget) have not followed it.

Update on The Klages Group Research
The committee briefly discussed the final draft of the Klages Group survey form which was included in the committee packet. Visitor inquiry data and mapping prepared by Klages was also distributed.

2008 Spring Break Co-Op
Barry Lott of Y Partnership updated the committee on the plans for Spring Break 2008. He explained that although the contract with MTV has not yet been finalized, the plan is to begin implementing the advertising elements by mid-November. Lott presented the agencies current co-op plans:

Hotel Partner Options
Premium $10,000 (only 4 available; includes featured coverage on the PCB Spring Break subsite and 1M impressions on the mtvU site, additional impressions available @ $7500 per 1M) Promotional $2500 (limited number available; includes extensive PCB Spring Break subsite coverage, but no coverage on the mtvU site) Unlimited $1000 (listing on the PCB Spring Break subsite and event calendar)

Non-Hotel Partner Options
Premium $5,000 (logo on mtvU site)
Unlimited $1000 (listing on PCB Spring Break subsite) Event $500 (listing on subsite event calendar)

Ann Henry expressed her concern that the co-op plan resulted in a disproportionate contribution from the Hotel Partners in comparison to the Non-Hotel Partners. Chairman Phillips was in the audience and responded that some changes will be made before being finalized.

Lott also advised the committee that an additional expense of $18-20,000 to design and operate the co-op web subsite will be required in addition to the $200,000 payment to MTV. The subsite will be required because Hotel logos can not appear on the mtvU site except in the form of banner advertising using the 10M impressions in the contract. Bill Spann stated that all required expenses should have been included in the budgeted amount of $200,000; however, Lott expressed his belief that the agency had previously advised the CVB that this additional expense would be required. Mr.
Phillips expressed his disappointment that the co-op now needs to reach $70,000 before reducing the CVB’s budgeted expense of $150,000.

Lott also informed the committee that MTV was currently negotiating the village location with two hotel properties. It was also announced that no non-hotel properties were being considered due to mtvU’s alcohol policy. An co-op registration meeting is scheduled for next Tuesday afternoon.

A motion was made by Bill Spann to request that the board revise the plan concerning co-op funds received in excess of $50,000. The board decided on October 9th that any co-op funds received in excess of the $50,000 budgeted amount would be used to reduce the CVB’s budgeted portion of $150,000. Mr.
Spann suggested that any excess funds could be used for additional Spring Break promotion instead. The motion was withdrawn before a vote was taken.

Jack Bishop also advised the committee that a competing co-op is being proposed to do additional marketing beyond the MTV program. Mr. Phillips expressed his opinion the industry is free to do additional marketing, but that the CVB should not get involved in any further Spring Break 2008 programs other than the current plan. Mr. Phillips also expressed his opinion that PCB has changed and that the CVB needs to get out of the Spring Break business. Russ Smith stated that he did not feel that multiple competing co-ops was a good idea.

A revised motion was made by Mr. Spann suggesting the board revise October 9th passed motion concerning the treatment of co-op funds exceeding $50,000.
The motion to suggest that the board revise the $50,000 number to $70,000 to account for the Spring Break internet subsite cost passed 7-1 with Kirk Lancaster casting the dissenting vote and Mr. Kennedy having departed early.
Prior to the vote, Mr. Smith suggested that the CVB revise its Spring Break plan to provide for $150,000 special event funding to an outside co-op which could take over the MTV program and add additional promotions. Mr. Phillips disagreed stating that the CVB needs to retain control that it would lose with an outside co-op managing the MTV program.

Meeting notes courtesy of Bryan J Durta. Thanks Bryan, for the thorough notes.

The TDC is bringing MTV to Panama City Beach

The Tourist Development Council approved an arrangement to work with MTV for Spring Break 2008. The expected cost is $150,000 in TDC funds and $50,000 from local tourist properties. This arrangement was made under the urgings of YPartnership, the marketing firm leading the TDC’s marketing efforts for the Panama City Beach area.

I’m gonna back up here. I know I posted the other day about how spring break is a tourism necessity for our area and how the revenue dollars make up a good percentage of what our community thrives on, but I thought we were trying to get away from the “college spring break” and the “party-crazy atmosphere”. Wasn’t the cause of the whole TDC disbandment several months ago (maybe at the beginning of the summer, has it been that long?) because the “college spring break” was directly benefiting a local tourism business owner that had a majority influence over the decisions of how TDC funds were spent? Wasn’t everyone upset because Charlie Hilton had influence on the TDC to make marketing decisions that would drive business to his resorts that may be targeted to a younger crowd? What’s going on now? How is what is happening now different from what was happening then, other than it being a NEW board is essentially making the same decisions. Am I missing something?

I thought all the uproar at the beginning of the summer was because we were tired of the party crazy image this area has from all the years of being the “spring break capital of the world”. I thought the new TDC board was going to work miracles and make things totally different and set precedent for how this area is to be perceived over the next several years. I thought we were going to set in motion a transformation that would solidify this area as a true destination for families and higher end tourists.

I know many on the TDC board read pcbdaily, I also know that many who have influence over the decisions the TDC make read pcbdaily too. Please chime in and let us know how the decisions that are being made now are different from the decisions they were making months ago and even last year. Click on the “comments” link below to respond.

Also, what happened to the Other 96%? I thought they were huge proponents to “family spring break”? I haven’t heard a peep from them since the new board was appointed.

Panama City Beach TDC Information

In a meeting this week, the Panama City Beach Tourist Development Council explored ideas regarding increasing the bed tax. Currently the TDC is being funded by a 2% tax that will generate over $3.5 million this year. The County Commissioners have the authority to increase the bed tax up to 6% as mandated by state law, but must have a separate authorizing vote for each penny per dollar increase. With the sharp increase of rental available units on the beach, it is estimated that we have to draw an additional 3000 visitors here each day during the in-season. I think we need to be clear how the current budget is being spent before we make any increases in bed tax. I think we need to be sure we’re not wasting money before we increase the bed tax which will in turn either increase room rental rates, or cut into rental management profits.

In a conversation I was having with the owner of PanamaCityBeach.com, it was brought up that “spring break is a necessary market segment.” As our industry is tourism, we have no choice than to try and have the best tourism season year after year in order to increase revenue and support our area. But actually, it goes further than that. Tourism is a necessity to keep our community alive. Currently, this is our main revenue generating industry and it feeds the mouths of a large percentage of families in Panama City Beach. We can’t afford to sacrifice any of that market share. The bottom line is, spring break and other types of vacation tourism is our bread and butter, and until we get some other substantial industry here, this is what we have to work with.

With that said, the TDC decided to work with MTV this year to create an “Spring Break Village” during a 10 day period and broadcast the event through its cable and online network. In my conversation with PanamaCityBeach.com owner, we discussed the “party crazy” look that MTV will bring to the area but that it needed to be controlled. He spoke of marketing through “brand conscience Apple and MySpace.” I was against college spring break, but he made me aware that college spring break is a necessity as is commands a large percentage of our yearly tourism revenue, but agreed that we need to move away from the “party crazy” spring break. He mentioned that by utilizing advertising mediums such as Apple and MySpace – whose demographic is specifically targeted – we could ultimately achieve a “higher-end” spring break visitor.?

The Bay County TDC cut Spring Break Marketing Budget

In a meeting Tuesday the 28th, the Bay County Tourist Development Council slashed the spring break budget in half, from $300,000 to $150,000. In addition they approved a $112,500 budget for a market research study to determine who best to market to instead of college spring breakers. Among other things, a new two year contract with YPartnership in Orlando was approved with an increase in their monthly retainer form $9,500 to $12,500. YPartnership has recomended a partnership with MTV to produce the “college spring break” period. In the past, the 3 to 5 week period of spring break received over a third of the entire marketing budget, but generated only 10% of the annual bed tax collections.

This is all in an effort to get a more family-oriented demographic to our area during peak vacation seasons and ultimately to help change the image of Panama City Beach to that of a more family friendly area and shift away from the images of kids drinking and partying on our beaches.