IOWA LOTTERY AUTHORITY SEEKS ADVERTISING AGENCY

The Iowa Lottery is issuing this Request for Proposals (RFP) to invite interested Vendors to submit Proposals for advertising and related services to include media planning and buying services and creative advertising services for the Lottery. This RFP is being issued by the Lottery in two distinct Phases.

Scope of Work:

The Vendor(s) will be responsible for supporting the marketing strategy and plan by providing expert creative, strategic planning, media planning and buying, trafficking, production, personnel, and/or subcontractors. The Vendor(s) will work in tandem with various Lottery marketing staff to assist in planning, designing, and execution of the Lottery’s marketing activities. The Vendor(s) must establish a fully functional office within 20 miles of Lottery headquarters located in Clive, Iowa with account staff to be available for meetings with one hour’s notice (during regular business hours).

General information regarding the Lottery can be found at the Lottery’s website at www.ialottery.com

The determination of how and when advertising and promotion funds are spent rests with the Lottery marketing team. While most of the budget for advertising and promotion is generally expended through the Vendor, this is not a mandatory arrangement and there will be a portion of the budget each year that does not go through the Vendor(s). It is incumbent upon the Vendor(s) to develop campaigns, promotions and media plans that, in the view of the Lottery, warrant the expenditure of funds. The Lottery anticipates spending for fiscal year 2018 to be similar to fiscal year 2017.

The marketing expenses last fiscal year totaled approximately $6,595,000, as follows:

Television/cable               $1,999,100

Radio                                     $1,480,300

Outdoor                               $1,062,900

Newspaper/print             $88,700

Interactive Media            $745,800

Sponsorships/Events     $110,000

Promotional Items          $47,500

Creative Materials           $321,500

Ad Agency Fees                                $474,725

Other*                                 $264,475

Total:                                     $6,595,000

Other*: Includes public information materials, public relations expenditures, retailer signage and miscellaneous production and promotional expenses.

The allocation of marketing/advertising expenditures is subject to change depending on the Lottery’s market strategies, requirements and needs during any given Lottery fiscal year. In past years the Lottery has implemented programs involving the following strategies and activities:

–              second- chance drawings                             – new game introductions

–              coupon promotions                                        – sports/event sponsorships

–              product enhancement campaigns            – proceeds messages

–              retailer incentives                                            – product maintenance campaigns

–              winner awareness campaigns                    – jackpot awareness activities

–              seasonal campaigns                                        – VIP club promotions

The Lottery reserves the option to modify strategy or budget allocations as the market warrants and in response to changes to legislative directives. The Lottery shall always retain final authority for determining allocations of funds, strategies, plans, campaigns, etc.

B2           Work and Deliverables

The Vendor(s) must provide Deliverables/Services and staff, and otherwise do all things necessary for or incidental to the performance of work, as set forth below:

Marketing

• Provide assistance in the development of the Lottery’s marketing plans and estimated budgets.
• Assist the Lottery with marketing, promotion, and advertising decisions.
• Utilize Lottery’s research information to identify and evaluate market and sales development opportunities.

Account Management

• Provide account management that is proactive and possesses the flexibility to change strategies as business conditions/situations warrant.

Media

• Plan and execute statewide broadcast, interactive and newspaper advertising buys according to a strategic media plan targeted toward specified audiences.
• Effectively negotiate bonus spots and promotional opportunities with media outlets to support lottery marketing and public relations initiatives.
• Place TV/cable, radio, online and newspaper advertising as needed for lotto game jackpot alerts.
• Demonstrate ability to produce maximum effectiveness for each dollar expended, optimal reach and frequency, and evaluate media use and placement for the post-buy analysis using leading industry research tools and technology. Detailed requirements for post-buy analysis shall be provided to the Vendor.
• Provide ongoing ratings and programming research and marketing consulting services.
• The Vendor(s) must meet with the Lottery for direction and to discuss the specifics of each project to be undertaken.
• The Vendor shall not begin any work on any project before the Lottery has given formal approval and a work/expense authorization/purchase order has been issued and signed (refer to Section 3.44).
• No later than two weeks prior to a quarterly media buy, the Vendor shall provide copies of the negotiated buy (including value-added opportunities submitted by stations free of charge) to the Lottery.

Creative

• Create strategic advertising materials for lottery products that satisfy the preferences of existing players while broadening the appeal of lottery products to a larger audience and maintaining the public’s trust and confidence in the lottery and its operation.
• Provide ongoing strategic brand communication counsel as it relates to overall marketing programs and market segments.
• On an as-needed basis, assist with development of institutional materials such as corporate signage and point-of-sale materials that require periodic replacement.
• Bid and purchase production services according the State of Iowa guidelines.
• Provide assistance for promotional event planning, website consultation and social media guidance if called on.
• The Vendor shall not begin any work on any project before the Lottery has given formal approval and a work/expense authorization/purchase order has been issued and signed (refer to Section 3.44).
• Although there will be continuous liaison with the Vendor’s team, the Vendor shall be required to confer weekly at a minimum, with Lottery for the purpose of reviewing progress and providing necessary guidance to the Vendor in solving problems that arise.
• The Vendor must confer with Lottery upon request, to initiate services, requests, review materials, review progress, discuss problems, obtain advice and counsel, etc.
• The Vendor shall be required to develop a critical path development schedule providing sufficient Lottery approval time frames from initial presentation of creative through the production and delivery of product.
• Conceptualize and produce marketing and sales support materials for lottery games, campaigns, promotions and other lottery business that will optimize the sale of lottery tickets and revenues to the State of Iowa.
• Upon failure to meet a predetermined deadline, the Vendor shall be required to provide an explanation for such failure as soon as it is known and submit an updated project schedule to the Lottery.
• Following receipt of a comprehensive project brief prepared by the Lottery, the Vendor shall be required to prepare at least three creative concepts for Lottery to review. Generally, one of the three concepts is taken to final art or script, which is generally routed for review and comment through necessary Lottery staff. Once changes are made and reviewed, the concept will receive final approval from Lottery to move forward (refer to Section 3.42).

Production

• Responsible for the timeliness and quality of production of marketing, advertising and promotion materials including, but not limited to, point-of-sale materials, collateral, and advertising specialty items.
• Direct and coordinate television and radio production and review all aspects including budgets, casting, music, and special effects with the Lottery. Responsible for film shooting, recording, editing, and post- production. Deliver both rough cuts and finished spots to the Lottery for final approval with sufficient time allowed for necessary changes, if required.
• The Vendor shall utilize Iowa-based companies for production of advertisements, facilities, staff and talent as described in Section 3.43.

Traffic

• Utilize and maintain a secure Internet-based asset management solution to view and transfer files between the Vendor, the Lottery, and other Lottery vendors.
• Distribute all approved advertising materials, with appropriate traffic instructions, to media vendors in time to meet program deadlines. Send the Lottery a weekly checklist summarizing all media traffic instructions.

Due Date:

February 23, 2018.

Address:

Iowa Lottery

13001 University Avenue

Clive, IA 50325

MWW PR and Zeno Group have experience in lottery PR.