South Dakota Lottery Issues Marketing RFP

Approved in 1986, authorized in 1987 and still going strong today. The Lottery has been providing good fun to the good people of South Dakota for three decades.

SCRATCH TICKETS

In November 1986, 60 percent of the electorate in a statewide referendum voted to amend the state constitution to allow for a state-operated Lottery. In 1987, legislators authorized the creation of the South Dakota Lottery, its commission and the sale of instant tickets.

On Sept. 30, 1987, six months after the legislation was signed into law, the Lottery sold its first instant ticket. The Lottery repaid its $1.5 million start-up loan plus interest to the state in three months.

VIDEO LOTTERY

Over the next two years, video lottery was studied intensely by legislative and private groups. In 1988, legislation was introduced to authorize video lottery, but the bill fell one vote short of the required two-thirds majority in the State Senate. In 1989, similar video lottery legislation was introduced on behalf of the Lottery Commission and this time passed.

On Oct. 16, 1989, South Dakota pioneered the first state video lottery in the nation. In 1992, an initiated measure to repeal video lottery appeared on the general election ballot. South Dakotans voted by a 63 percent to 37 percent margin to keep video lottery. Shortly after the election, a lawsuit was filed questioning the constitutionality of video lottery; on June 22, 1994, the South Dakota Supreme Court declared video lottery unconstitutional. In a special legislative session in July 1994, lawmakers passed a resolution to place a constitutional amendment on the general election ballot to reauthorize it. A court order to shut down video lottery was handed down on Aug. 12, 1994 but South Dakotans voted by a 53 percent to 47 percent margin to reauthorize it. On Nov. 22, 1994, video lottery was restarted. The issue came before voters two more times: Nov. 7, 2000 when a measure to outlaw video lottery failed by a 54 to 46 margin, and in November 2006 when an initiated measure to repeal video lottery was defeated 67 to 33 percent.

LOTTO

The South Dakota Lottery’s third product line lotto was authorized by legislators in 1990. Soon afterward, the South Dakota Lottery joined the Multi-State Lottery Association to offer Lotto*America. In November 1990, the first Lotto*America ticket was sold. The multi-million dollar game was replaced by Powerball in April 1992.

In April 1993, Dakota Cash became South Dakota’s very own cash lotto game.

The South Dakota Lottery joined with Montana and Idaho in February 1994 to offer Tri-West Lotto. Tri-West was changed to Wild Card in February 1998 and revised as Wild Card 2 in May 1999. The Wild Card 2 game ended in 2016.

Daily Millions was added to the lotto line-up in September 1996. It was replaced with Cash 4 Life in March 1998, Rolldown in September 2000, Hot Lotto in April 2002, and Lotto America in November 2017.

The South Dakota Lottery began offering Mega Millions in May 2010.

Lucky for Life became available in South Dakota in June 2017.

What you will learn...

Scope of Work:

The Lottery wants a full-service agency which:

A. Provides a full range of advertising and marketing services with responsive client service;

B. Provides quality advertisements, marketing materials and service at a valuable price and in a timely manner;

C. Gets the highest value possible in purchasing and placing media; and

D. Will be creative and innovative, but mindful of the sensitive nature of the Lottery and its products

The successful agency will be the Lottery’s principal advisor and provider of the services listed in Sections 4.3 and 4.4. The successful agency must be capable of performing these services within short time frames, as the Lottery must react to situations such as lotto jackpot winners coming forward, the short time between lotto drawings in which to promote a jackpot, and the production of multiple point of sale items in as little as one month to accommodate ticket print schedules.

4.3. GENERAL AGENCY SERVICES

A. Assisting in the development of a comprehensive advertising and marketing plan to support the Lottery brand, general game categories, video lottery games, and specific scratch ticket and lotto games and promotions;

B. Working in conjunction with other Lottery vendors on common planning, marketing, and promotional projects an example of which would be meeting to determine what scratch tickets will be printed, marketed and sold in the coming fiscal year;

C. Assisting in the evaluation of miscellaneous advertising and marketing opportunities offered to the Lottery;

D. Meeting with the Lottery’s Director of Advertising and Public Relations, Executive Director and Deputy Executive Director monthly in person or by teleconference to plan advertising objectives, strategies, and project status review; E. Developing and maintaining performance measurement matrices and procedures to gauge the effectiveness of advertising and marketing campaigns;

F. Attending and working at Lottery-sponsored events for at least one day during the scheduled course of the event (such as the South Dakota State Fair) at the agency’s own expense; and

G. Timely and accurate itemized billing for all purchases and maintaining appropriate accounting records. Agency fees must be itemized separately. H. The ad agency should assist with product and player research.

4.4. ADVERTISING SERVICES

A. Providing effective statewide advertising with appropriately targeted reach and frequency to the Lottery’s consumer audiences;

B. Creating, producing and placing television, radio, print, digital, billboard advertisements, and new and innovative mediums used in advertising; South Dakota Lottery – 2019 Advertising Services RFP #1900 14

C. Creating and producing point of sale materials which in the past has included posters, wobblers, crash bar stickers, banners, brochures, window clings, ceiling cards, and other promotional materials;

D. Creating and producing images and advertisements for use on the Lottery website, other partner websites, Facebook page, Twitter feed, YouTube channel, Lottery Players Club email messages, and mobile app push notifications;

E. Negotiating, purchasing and trafficking of media including negotiating bonus spots and value-added materials, identifying any long-term commitments, cooperative advertising, or other special programs to realize savings to the Lottery;

F. Verifying and documenting broadcast and publication of all requested media according to contracts and placement instructions;

G. Evaluating performance of media planning and placement for highest value, reach, and frequency to the Lottery’s consumer audiences;

H. Developing in conjunction with the Lottery, a per campaign budget for production and media;

I. Estimating production and media expenditures in advance; and

J. Sharing proposed and final television and radio ads on an agency-hosted client internet server. (Audio and video media files cannot be transmitted through the state’s e-mail network. Proposed and final print materials may be shared via e-mail.) The successful agency must also be able to contribute to the services in Sections 4.5 and 4.6 through advice, planning, production, and/or support if called upon to do so:

4.5. PRODUCT DEVELOPMENT

A. New game design, including ticket art, game names and logos;

B. Special sales campaigns and retailer incentive programs;

C. Improvements to existing Lottery games or new game concepts;

D. Fulfilling the Lottery’s market research and analysis needs in determining effective advertising methods to reach a variety of demographics and developing a reliable means of measuring the effectiveness of advertising campaigns for traditional, social and electronic media;

E. Graphic design and development of art for use by the Lottery; and South Dakota Lottery – 2019 Advertising Services RFP #1900 15

F. Consumer testing of Lottery products.

4.6. PUBLIC RELATIONS

A. Public relations and promotional events, such as game launches and news conferences for lottery initiatives and winner announcements;

B. Beneficiary information and awareness;

C. Responsible gaming awareness and education; and

D. Development and promotion of the Lottery’s Facebook page, Twitter feed and YouTube channel.

Daily management, updating and monitoring of the Lottery’s Facebook and Twitter platforms are handled by the Lottery while the agency will be responsible for updating the YouTube channel and assisting in its management and monitoring. The agency will also monitor trends in the social media industry to utilize any other platforms that may be beneficial.

4.7. COMMON GOALS OF THE LOTTERY AND ITS AGENCY

The Lottery’s mission is to work cooperatively with our partner licensees to promote and ensure the integrity, fairness, security and honesty of lottery games to maximize revenues for state programs and initiatives and to ensure the Lottery remains a viable and sustainable source of revenue and entertainment for the State of South Dakota. The agency and its work for the Lottery should reflect these overall goals of the Lottery:

A. Benefiting the people of South Dakota by raising revenues for state initiatives and programs;

B. Dedication to the Lottery’s mission to operate in a secure, efficient, fair and profitable manner;

C. Promoting quality products that provide entertainment and customer satisfaction of players and retailers;

D. Ensuring the Lottery gets the highest quality advertising and related services for its products at the most competitive price; and

E. Advertising and promoting the Lottery and its products in an effective and responsible manner.

Due Date:

4:00pm CT, March 20,2020

Address:

STATE OF SOUTH DAKOTA SOUTH DAKOTA LOTTERY 711 EAST WELLS AVENUE PIERRE, SOUTH DAKOTA 57501-3182

APCO Worldwide and MWWPR are relevant agencies.

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