LVCVA president and CEO Steve Hill is expected to get a raise of $ 15,292 per year at Tuesday’s board meeting of the agency. Two companies are also expected to land advertising and public relations contracts worth more than $ 600 million to promote tourism.
The big news is that if the board of directors of the Las Vegas Convention and Visitors Authority approves the contracts as recommended by the board’s marketing committee and several marketing directors of LVCVA’s resort partners, this will be the first time that marketing and advertising responsibilities will be shared between two agencies. The process was led by Los Angeles-based consultant Select Resources International, who completed the final review on May 17.
Las Vegas R&R Partners, the agency’s decades-long public relations firm, is expected to land a four-year, $ 500 million contract (with two option years) to continue its advertising and public relations work.
The contract with Gray Global Advertising of New York is worth a total of $ 160 million over the same four to six year period to promote Las Vegas as a destination through social media.
It will be interesting to see how R&R and Gray team up to develop ideas to market Las Vegas. Many insiders believed that R&R’s long-standing affiliation with LVCVA would give it an edge over the other three finalists who made presentations to the marketing committee made up of seven board members and various marketing directors from the resort partners. .
But it seems like the right move, because as travel picks up and more people search for vacation spots, the agency faces increased competition for travelers to come and spend their money in Las Vegas. Tribal resorts are closer to outsiders in Arizona and California, but they just don’t have the infrastructure of Las Vegas with its 150,000 rooms and multiple attractions.
R&R will be responsible for account management and brand planning; advertising and content creation; research; public relations; crisis communication; and events and sponsorships. The annual salary breakdown will include $ 6.72 million for agency services; $ 7.56 million for content creation services; and $ 4.2 million for media services. The rest goes to media and advertising purchases. The entire contract is subject to an increase in the consumer price index of 3.5%.
The deal with New York City’s Gray Global Advertising is much smaller – with LVCVA budgeting $ 20 million for fiscal 2022, $ 26 million for ’23, $ 27 million for ’24, $ 28 million for ’25 and $ 29 million for the first option year and $ 30 million for the second. The annual salary breakdown will include $ 2.46 million for agency services; $ 4.5 million for content creation services; and $ 1.44 million for media services.
Just like the R&R contract, a consumer price index increase of 3.5% is included.
R&R has the advantage of knowing the Las Vegas marketing environment better than most overseas agencies and has stood by LVCVA through a number of difficult times. R&R’s proximity to the market gave it an edge, quickly making its campaign debut after the October 1 shooting and the untimely death of Kobe Bryant in a helicopter crash.
The LVCVA did everything possible to level the playing field for the four finalists to ensure that no group or individual had an overwhelming influence over the final decision.
Whatever some may say that R&R has a domestic advantage, Las Vegas is likely to be well served by this collaboration between R&R and Gray.
Regarding Hill’s salary increase, LVCVA’s compensation committee has been cautious in its approach and compared the salary increases that have taken place at other government entities in southern Nevada at a time when revenues have declined. been amputated by the coronavirus pandemic.
A 4 percent pay raise for someone who didn’t get one last year seems fair, and the rest of LVCVA’s managers and staff get between 2 and 4 percent.
Hill did not receive any bonuses – a policy that prevailed prior to 2018. It outraged some people to see the former CEO getting a bonus of $ 50,000 on top of double-digit percentage pay increases.
Of course, that could all change when the full LVCVA board reviews it on Tuesday.
We will see if the recommendations hold.
Contact Richard N. Velotta at [email protected] or 702-477-3893. Follow @RickVelotta on Twitter.