The City of Moose Jaw’s advertising and sponsorship program has generated $14,150 in new revenue this year, with the advertising firm hired to help producing about 28 per cent of that amount.
The municipality’s advertising and sponsorship policy has been in place since April 2019. Its purpose was to “create a consistent approach surrounding the soliciting of advertising and sponsorship opportunities and the execution of advertising and sponsorship agreements,” according to a recent city council report.
The municipality has used EMJ Marketing since at least 2015 to help find advertising and sponsorship opportunities for the Yara Centre, Kinsmen Sportsplex Pool, city parks and city programs. This is an extension of the previous contract that the Downtown Facility and Field House (DFFH) held with EMJ for advertising at the Yara Centre, the report continued.
The municipality also has an agreement with the WHL Moose Jaw Warriors for advertising sales at Mosaic Place.
During the most recent executive committee meeting, city administration presented a reporting summarizing how much revenue had been generated in 2018, 2019, and 2020. As of June 30, 2020, $67,575 in advertising and sponsorship money had been generated from the Yara Centre, playground program, municipal arenas, and naming right rights to the Yara Centre and West Park.
Of this amount, $14,150 was new money for this year, while $53,425 came from previous agreements already in place. After commission money for EMJ Marketing and the Warriors is subtracted, $64,980 is left for city coffers.
EMJ Marketing generated $900 in new revenue for the playground program and $850 in new advertising for the Yara Centre, for a total of $1,750 or about 12.5 per cent of all new revenue generated this year.
City administration put the advertising and sponsorship program on hold when the pandemic forced the municipality to close its buildings and put city programs on hold, the report said. This prevented the marketing firm from finding advertising for the entire year of its contract, which expires on Aug. 31. Thus, city administration recommended extending the agreement by one year under the same terms as the previous contract.
During the executive committee meeting, council voted 6-1 on a recommendation to receive and file the report as information. Coun. Brian Swanson was opposed.
Council must approve the motion at the next regular meeting for it to become official.
Council discussion
What this annual report shows is that agreements that have been in place for years generated most of the revenue for 2020, Swanson pointed out. The playground program is the one new initiative and EMJ Marketing raised $900 for it. If council factored in the time and effort it took the firm to raise these funds, this turns into a money-losing proposition.
“I think it’s overestimated that the desire of people in Moose Jaw (is) to give the city money to rename a park (or) playground, so I don’t think this program is worth it, to tell you the truth,” he added.
Derek Blais, director of the parks and recreation program, pointed out that the Kinsmen Club has committed to providing $100,000 over the next 10 years — or $10,000 a year — for the naming rights to the new West Park community park. Therefore, that money is also new this year.
Coun. Scott McMann was curious about whether city administration had set any minimum standards or expectations of what it wants from EMJ Marketing for when the firm looks for sponsorship opportunities. Sometime in the future, he thought city hall should set minimum standards of what it expects any advertising firm to achieve instead of merely relying on existing contracts.
“I would support something like that,” replied Blais, adding city administration could explore that in a future request for proposals and include a type of sales guarantee in the contract.
The next executive committee meeting is Monday, July 27.
