MUNICIPAL MARKETING
Kitchener ’ s revenue generation strategy includes selling naming rights to facilities like Gibson ’ s Finest Club Lounge & Restaurant in The Aud
helped the city define a slate of options deemed appropriate , including advertising in city publications and on arena boards , alcohol and soft drink “ pouring rights ” and naming rights for some facilities .
Policy considerations The City of Kitchener did not previously have an advertising or sponsorship policy , but staff have now developed one and presented it to council . An existing policy used to dictate that none of the city ’ s websites or vehicles could carry advertising ; this rule was changed . Kitchener has even discussed such creative approaches as allowing paid advertising on the back of official documents like building permits .
When a policy is being drafted , the municipality “ needs to find balance between financial and social benefits ,” Hagey says . “ Do you sell naming rights to heritage designated buildings ? Do you put logos on synthetic turf sports fields ?”
Kitchener ’ s new policy clearly defines ideas that would not be allowed ; controversial , politically sensitive or potentially hazardous brands are off the list , Hagey says . “ That ’ s where the policy piece comes in . We don ’ t want to have porn . If you ’ re trying to promote a healthy lifestyle , you might not want to promote a lot of [ fast-food restaurants ]. It all boils down to what you are okay with .”
Libro Credit Union ’ s display at The Aud this spring consisted of temporary sign columns that didn ’ t even feature a logo : just an intriguing slogan and a QR code that could be accessed with a smartphone
Comprehensive or case-by-case ? Rather than proceed case by case without any set plan , Kitchener has adopted a comprehensive approach that will apply consistent policies to all marketing outreach activities , which will be centrally coordinated . This is more time-consuming to set up , but allows for better consistency across multiple locations and divisions , Hagey points out .
Who does the selling ? Although some municipalities might be equipped to set up an in-house sponsorship initiative , Kitchener is putting the function out to tender ; it will be up to bidders to calculate and commit to a certain level of potential revenue . “ It would be a time-limited venture ,” he says .
Revenue allocation The final consideration , he says , is “ what happens to generated funds ?” Will they be applied to reduce tax rates or will they allow for an investment in infrastructure ?
“ What budget do funds get applied to ?” Hagey asks . For example , “ if the water utility generates funds , do they keep them or are they returned to taxes ?”
In Kitchener , the decision was made to use advertising revenues to reduce tax rates . Sponsorship revenues are returned to the budget of the facility or program that generates them , while “ funds generated by enterprises stay within that enterprise ,” he says . That means “ Water revenues stay in water .” However , a different municipality might choose to apply revenues to anything from infrastructure rehabilitation to new program development .
Done right , entrepreneurial revenue generation can build on authentic connections between businesses and the community to reduce pressure on the tax base : a win for all concerned .
ALL PHOTOS COURTESY OF THE CITY OF KITCHENER
20 Q2 2015 www . amcto . com
A Toyota test-drive location outside of the Activia Sportsplex in March