AGENDA REPORT
Meeting Date: May 2, 2023
Item Number:
To: Honorable Mayor & City Council
From: Laura Biery, Marketing and Economic Sustainability Manager Subject: RECOMMENDATION OF THE BEVERLY HILLS CITY COUNCIL
LIAISON / RODEO DRIVE / SPECIAL EVENTS / HOLIDAY
PROGRAM COMMITTEE REGARDING THE RODEO DRIVE
COMMITTEE FISCAL YEAR 2023/2024 WORK PLAN
Attachments: 1. Rodeo Drive Committee Website & Social Media Funding for Fiscal Year 2023-2024
2. “Rodeo Drive Celebrates” Programs for Summer and Fall 2023
RECOMMENDATION
Staff recommends the City Council review the recommendation from the Beverly Hills City Council Liaison / Rodeo Drive / Special Events / Holiday Program Committee and approve the Rodeo Drive Committee’s (RDC) Fiscal Year 2023/2024 (FY 23/24) work plan and funding request in the total amount of $210,998.
INTRODUCTION
On April 24, 2023, the City Council Liaison / Rodeo Drive / Special Events / Holiday Program Committee, Vice Mayor Friedman and Councilmember Bosse, reviewed the RDC’s annual work plan and funding request for FY 23/24 as well as a recap of the accomplishments from the FY 22/23 work plan. This item seeks City Council approval of the recommendation from the Beverly Hills City Council Liaison / Rodeo Drive / Special Events / Holiday Program Committee (Liaisons) supporting the RDC’s proposed annual work plan and approval of the RDC’s funding request for FY 23/24 in the total amount of $210,998.
DISCUSSION
The Rodeo Drive Committee is comprised of approximately 70 retailers, hotels and property owners. Founded in 1972, the Committee promotes Rodeo Drive through a variety of programs, which enhance the street’s image as a world-class destination.
Prior to the start of each fiscal year, the Liaisons meet to discuss and review the annual work plan items for the upcoming year for the RDC. The Liaisons make
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Meeting Date: May 2, 2023
recommendations regarding the RDC’s proposed work plan and provide modifications, if any, which are then presented at a future City Council meeting.
In previous years, the RDC has received City support to conduct marketing and events on behalf of its retailers, hotels and property owners to promote tourism and visitor spending on Rodeo Drive. Funding for these purposes has traditionally been provided from the City’s Tourism and Marketing Budget.
The RDC’s proposed work plan and funding request includes $184,998 for FY 23/24 for digital marketing management, social media content creation, and ongoing website maintenance. These tools will be used for:
Website Updates and Management
Social Media Management
For FY 23/24 the RDC is requesting an additional $26,000 as well for a new program for Summer and Fall 2023 called “Rodeo Drive Celebrates.” The first campaign will be held in early August (with 28 banners installed) and focus on Fashion while the second campaign will be held in early October (with 28 banners installed) and focus on Timepieces and Fine Jewelry. Each campaign season, consisting of 28 banners each for a total of 56 banners, will rely heavily on the existing Rodeo Drive brands themselves to create activations and experiences for visitors and shoppers. The RDC funding request is to partner with the City on cobranded street pole banners (including installation, and removal costs) and print advertising in the local Beverly Hills newspapers. Funding for the street pole banners (with installation, uplighting, and removal) is $26,000 for the combined campaigns and will be funded by anticipated Tourism & Marketing budget funds in FY 23/24 if Council approves. The banners are anticipated to be used for three years and recurring costs will include, storage, maintenance, installation, date changes to banners (patch), and removal. It is anticipated that these costs will be funded from the Tourism & Marketing budgets for FY 24/25 and FY 25/26. Funding for the print advertising in local Beverly Hills newspapers (estimated between $6,440 and $12,880) will be funded by anticipated Policy and Management Communications Division budget funds in FY 23/24 if Council approves.
The items in the RDC FY 23/24 Work Plan and “Rodeo Drive Celebrates” campaigns support the goals and action items of the Economic Sustainability Plan. One of the key focus areas of the Economic Sustainability Plan is “Brand” and the RDC’s FY 23/24 Work Plan focuses heavily on brand awareness to attract and bring travelers and shoppers to Beverly Hills.
FISCAL IMPACT
To carry out the proposed Work Plan for FY 23/24, the RDC requests $184,998 (no increase from prior year) for Digital and Website Management as well as $26,000 for the new “Rodeo Drive Celebrates” campaigns for a total funding request for the RDC for FY 23/24 of $210,998.
Description FY 23/24
Website Updates & Management / Content Curation $40,003 Social Media Management / Content Curation $103,997
General Topics & Maintenance $15,998
Paid Social Media Advertisement $8,000
Purchasing Content & Content Creation $10,000
Meeting Date: May 2, 2023
Website Template Updates, Hosting of Website, Apps, Email $2,000 Language Plug in $4,000
Misc. Expenses $1,000
Digital & Website Management - SUBTOTAL $184,998
Cost for 28 Banners on Rodeo Drive ONLY (2 campaigns at $8,000 each) = total of 56 banners including installation and removal
$16,000
Cost for Uplighting of Banners (2 campaigns at $5,000 each) $10,000 Rodeo Drive Celebrates - SUBTOTAL $26,000
RDC Budget Request for FY 23/24 - TOTAL $210,998
The City has maintained a policy of funding its tourism and marketing programs from a specific allocation of the transient occupancy tax (“TOT”). The City collects a total of fourteen percent TOT based on gross room sales from the City’s hotels. One-seventh of the total TOT revenue has been the basis of calculating the funding for the Tourism and Marketing budget in Beverly Hills for approximately 25 years.
The FY 23/24 funding request of $210,998 from TOT – Tourism and Marketing dollars is an increase of $26,000 from the FY 22/23 funding request of $184,998. Pending Council direction, funding for the print advertising in local Beverly Hills newspapers will be funded by anticipated Policy and Management Communications Division budget funds in FY 23/24. These advertising costs are estimated between $6,440 and $12,880.
Keith Sterling,
Deputy City Manager
Approved By
Attachment 1
PROPOSAL
FISCAL YEAR 23/24
RODEO DRIVE
WEBSITE & SOCIAL MEDIA
BOLD
PROPOSAL FISCAL YEAR 2023/2024
OUR YEAR IN NUMBERS
Followers Apr'22 Apr'23
lnstagram: Followers 78.8k 88.9k • 13%
Facebook: Followers 77.Sk 78.5k • 1.3%
TikTok: Followers 1.4k 2.2k • 57%
Analytics (In a one year time frame) Apr '21-'22 Apr '22-'23 lnstagram: Average engagement on post per reach 8.41% 8.72% • 3.7% lnstagram: Top countries US, Brazil, Mexico US, Brazil, Mexico = lnstagram: Gender split 59.61% FI 40.39% M 57.94% FI 42.06% M - lnstagram: Website clicks 1.167 1.315 • 13% Facebook: Engagement on reach 4.67% 5.83% • 25%
Paid media IG & FB: Costs per 1 k impressions* $0.94 $0.93 • -1.3% Paid media IG & FB: Costs per 1 k accounts reached* $2.29 $2.24 • -1.9% TikTok: Engagements** 2.973 4.055 • 36%
TikTok: Views of videos from content creators 1.6M 1.8M • 12% Website visitors 12k (monthly average) 1 Sk (monthly average) • 25% *A lower spending is preferred
** Tik Tok was launched August '21. Compared time-periods: Aug '21-Apr '22 vs Aug '22-Apr '23
RODEO DRIVE'S CHANNEL MIX
INSTAGRAM
lnstagram continues to be the number one channel for Rodeo Drive's social media due to the app's visual-first approach and relevant audience.
Biggest wjn1:
• Our analytics show that creating and posting our own content was the right decision, given its proven success. We have been capturing more of our own content which has helped with the overall performance of our posts. • Louis Vujtton x Yayoj Kusama /1 BK views & 1.3K likes organically • Holiday Announcement/ 15.BK views & 936 likes organically • Video content is key: Four out of the five best performing posts on lnstagram in 2022 were videos, that's why we increased video content by 17%. • With the additional budget, we have been able to produce three professional photo shoots, compared to one shoot the year before.
Approach fiscal year '23/'24:
• We recommend continuing investing our paid media budget mostly for this channel to grow our global reach.
• Connecting with the people of Rodeo Drive: Interviewing interesting people on the street to create authentic & personal content.
BOLD
RODEO DRIVE'S CHANNEL MIX
FACE BOOK
With 50% of our followers from the U.S. and 6.7K in Los Angeles, Facebook is our most important channel for reaching our local audience and promoting local events.
Biggest wins:
• Paid media spendings for Rodeo Drive event pages have proven to be successful. The event pages for Concours D'Elegance & the Holiday Lighting Celebration successfully gained us 35K views and 2.7K RSVPs. • Our health page status on Facebook is 'excellent' compared to other businesses in the same field.
Approach fiscal year '23/624:
• Similar to last year's approach, we want to continue to maintain this channel organically and use paid media budget only for promoting RDC events. • Additionally, we want to leverage the success we have seen with our own Facebook events and start creating event pages for RDC member's pop-ups and public events as well.
BOLD
RODEO DRIVE'S CHANNEL MIX
PINTEREST
Pinterest is a source for inspiration and therefore important for us. It is a visual search engine which is proven by the massive 5 billion monthly searches that occur on the platform*.
Biggest wins:
• We changed our strategy last year since we didn't get the high reach that we used to receive with just re-pinning our existing content. Instead, we chose to start pinning user-generated-content from lnstagram to our boards, which has proven to be successful.
• We expanded our audience globally by creating boards to showcase RDC members being featured in fashion weeks, award shows, and more.
Approach fiscal year '23/'24:
• Pinterest is an important source for inspiration. Our goal is to elevate the level of glamour and fashion on our boards even further.
• We will continue to create unique boards to showcase our RDC members' looks at Hollywood award shows and international fashion shows. * Sprout Social
BOLD
RODEO DRIVE'S CHANNEL MIX
TIK TOK
TikTok was added to Rodeo Drive's channel mix in August, 2021. Since then, 85K people have seen our content on our own channel.
Biggest wins:
• Collaborating with content creators: These collaborations allow us to leverage their existing audience and social media influence to expand our own reach.
• Producing our own content: Unique, personal content has greatly increased our following.
• Our content creators have garnered over 1.8M views and 200K likes.
Approach fiscal year '23/'24:
• Our goal is to double our followers in the next fiscal year. We are going to promote videos in order to reach that goal.
• Since it's so important to have a personal connection behind our account, we are beginning to interview the unique visitors of Rodeo Drive.
BOLD
Past Events
Vero Wang Trunk Show
MCM VaJenune
Zegn.a Wimer '2023 Fashion Show
TliEBlvd at Bcvt-rly Wilshire, a. Four Su~o s Hotd ctltbrate~ thanlsiivin~ \.,,ith an artfoll\• prepared The 8e.,.erly Hills Hotel Hosu fu:hibnion Showcasing
jean Pigoui
THESh'tf Valennne's O.iy
Loro Pian.1 Pop-Up Store
S-Olairc Cuhurt' Exhibi1ion
RODEO DRIVE'S CHANNEL MIX
WEBSITE
The new website launch was successful. All crucial metrics have gone up since the launch of the new website, and Google has ranked our website higher because our analytics shows that organic search is up by 25% - indicating a better website health and SEO performance.
Biggest wins*:
• Organic search: +25.9% (68K vs 54K) +
• Direct search: +55.5% (17K vs 11 K) +
• Website users: +30.51 % (89K vs 68K) +
• Sessions: +29.11%(103 vs SOK) +
• Bounce rate: -13.67% (63% vs 55%) •
Note: A lower number is preferred
A1-1proach fiscal year '23/'24:
• The website has been performing well. We are going to update the website as needed and will continue adding new inspiring content. • Making the website accessible to important international audiences. We recommend adding a translation plug-in with 1-2 languages (Mandarin/ Arabic) to the website to increase international visibility and SEO. *Time period: Mid of September '22 • mid of March '23 compared to year before BOLD
PROPOSAL FISCAL YEAR 2023/2024
BUDGET
Digital & Website Management FY22/23 FY23/24
Agency Fee:
Website Updates & Management I Content Cu ration $40,003 $40,003 Social Media Management I Content Cu ration $103,997 $103,997 General topics & Maintenance $15,998 $15,998
IQtal 8geacy: Eee: $J 52.228 $J 52.228
3rd Party Costs:
Paid Social Media Advertisement $8,000 $8,000
Purchasing Content & Content Creation $10,000 $10,000
Website Template Updates, Hosting of Website, Apps, Email $5,600 $2,000 Er~:it:iQus: Customization of new Squarespace template & adding ADA Language plug in (1-2 languages I Standard Chinese /Mandarin & Arabic) $4,000 Rodeo Drive signs $400
Misc. Expenses $1,000 $1,000
Total 3rd Pa~ Costs: $25,QQQ $25,QQQ
Total Funding Request: $184,998 $184,998
Attachment 2
A new and timely activation
conceived by the Rodeo Drive
Committee to create
excitement on the street and
engage local and International
visitors at member boutiques
as part of our community - a
world class luxury destination.
Every year, over two dedicated weeks in summer and fall, a series of intimate, in-store, celebratory happenings will raise a glass to the best in fashion and luxury on the
world's leading fashion thoroughfare - Rodeo Drive.
SPRING I SUMMER 23
AUGUST 7-13
FALL I WINTER 13
October 1-7
VIP cocktail reception or
dinner
'Meet the designer' or
'Meet the buyer
presentations
Gift with purchase
Extra loyalty points
Autographed book signing
Special trunk show
Giveaways/raffles-enter
to win a handbag or free
tailored suit
In-store fashion show
Charity event - a portion
of sales to benefit
company charity of choice
Stylist Panel: 'How to put
together the perfect look'
Wine or whiskey tasting
Cutest pooch activation
Meet 'XYZ' celebrity
Most lnstagramable
moment, photo,
opportunity, photo booth,
photo stickers
The Rodeo Drive Committee, with funding support from
the City of Beverly Hills, will launch a tailored and visual marketing and communications campaign to engage local
and international audiences, customers and influencers.
BUDGET Rodflo\! Drive Rodeo Drive Budget Request
Ce le bi\ates Celebrates Timepieces
SUMMER I FALL CAMPAIGNS Fa hl
and Fine Jewe lry
Event Week 'August 7 - I J October 1-7
Local Advertising $6,440-$12,880
Ba nner In stallation Week of July 23 Week of September 17 As wit h previous event s, It Is requested t hat the
City cover t he cost of placing ads in local
newspapers reminding residents about the
upcoming week of celebration. This cost Is Banner Removal By end of week August By end of week October 14 19 estimated at $6,440-$11,880 (tbd) with funding
available in the Policy and Management
Communicat ions Budget . Cost for 18 Banners - 20 $8,000 $8.000 $ 16,000 Ce nter Median and 8
Sldewalk on Rodeo Drive
Street Pole Banners $26,000 ONLY (fabrication, color testing, installation, maintenance. and
removal)
Funding requested from TOT - Tourism and Marketing
Cost for Upllghtlng $5.000 $5,000 $ 10,000
(instoflo!ion, focus, moin1enonce,
budget. and removal)
TOTAL $26,000
RODEO DRIVE CELEBRATES
SUMMER I FALL CAMPAIGNS
Outdoor street pole banners on Rodeo Drive
Print advertising in local, luxury and news
media outlets
+
Social media campaign across Rodeo Drive,
Beverly Hills CVB, Beverly Hills Chamber of
Commerce, local hotel and participating
member boutique and business channels
Rodeo Drive, Beverly Hills CVB and Beverly
Hills Chamber of Commerce website event
and campaign listings
Press release on public facing events to
secure campaign coverage
VIP outreach by participating member
boutiques to their customers
***DRAFT DESIGN· WILL BE SHARPENDED BY CITY GRAPHICS TEAM IF THIS 18 APPROVED DIRECTION FROM CITY COUNCIL LIAISONS*** ....
AUG~ AUG 13·1H 7·1H ~ /.0?.3 ~ /.0/.3
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