CREATING AN ECONOMIC,
SOCIAL AND MARKETING
ENGINE FOR CITIES
Presentation to:
City Marketing Congress
Den Haag, Netherlands
May 26, 2006
Joseph M. Perello

OVERVIEW
WHY CITY MARKETING?
ROLE OF PRIVATE ENTERPRISE
PHILANTHROPY VS MARKETING
TAPPING INTO MARKETING BUDGETS
CREATING NEW DISCIPLINES
NYC CASE STUDY

WHY DO CITIES NEED TO MARKET THEMSELVES?
FORCES OF CHANGE ARE RAPIDLY
IMPACTING THE WAY WE INTERACT
Seemingly universal access to information
◘
Increasing ease of travel
◘
Proliferation of globalism
◘
Emphasis on social responsibility
◘

WHY DO CITIES NEED TO MARKET THEMSELVES?
CITIES ARE NOT EXEMPT FROM THESE
FORCES
Indeed, they have dramatically affected the way cities
compete for:
◘ Talent
◘ Jobs
◘ Investment
◘ Visitors
◘ Events

WHY DO CITIES NEED TO MARKET THEMSELVES?
THE WORLD IS GETTING SMALLER…
Minimal communication barriers allow for a critical mass
of empowered people to become exposed to new:
◘ Ideas
◘ Careers
◘ Opportunities
◘ Way of Life

WHY DO CITIES NEED TO MARKET THEMSELVES?
…AND FLATTER
The dimensions of differentiation among cities are fewer
and smaller. Most world-class cities offer:
◘ Public Safety
◘ Reliable infrastructure
◘ Gainful employment
More and more are offering:
◘ World-class universities
◘ State-of-the-art health care
◘ Talented work force
◘ Compelling quality of life
◘ Robust and diverse culture

WHY DO CITIES NEED TO MARKET THEMSELVES?
A CITY IS INCREASINGLY
DIFFERENTIATED BY ITS BRAND
The perception and promise of a city – its brand – is
playing a growing role in a city’s ability to compete.

WHY DO CITIES NEED TO MARKET THEMSELVES?
CITY MARKETING IS THE FIRST STEP
TOWARDS MANAGING THIS INTANGIBLE
ASSET - THE CITY BRAND
Paramount is a city’s ability to actively manage and
influence its brand.

PRIVATE ENTERPRISE CAN PLAY AN
IMPORTANT ROLE IN CITY MARKETING
Corporations (a concept pioneered here in the
Netherlands) can play an important role in helping cities
create an
◘ Economic
◘ Social and
◘ Marketing engine for cities

PRIVATE ENTERPRISE GOALS
At their best, corporations want to:
◘ Create and provide valuable goods and services
◘ Earn a fair profit
◘ Provide value to shareholders
◘ Innovate
◘ Be responsible and have a lasting impact on
communities

CORPORATE GIVING
In the US in 2002, $750 billion flowed into the non-profit
sector
◘ 76% came from individuals
◘ 11% came from private foundations
◘ 8% came from bequests
◘ 6% came from corporations ($45 billion)
Corporate giving was about 1% of pre-tax profits

CORPORATE GIVING
Corporations have historically given in two ways:
1. Membership
2. Philanthropic grants

MARKETING BUDGETS VS
PHILANTHROPY BUDGETS
In 2005, total corporate
philanthropy budgets in the US
were about $75 Billion
In the same year, US companies Marketing
spent $1 TRILLION on
marketing
Philanthropy

TAP INTO THE MARKETING BUDGET
Corporate philanthropy budgets are small
Corporate marketing budgets are big
Tap into the marketing budget

CURRENT STATE OF MARKETING
The Internet and a fragmented media marketplace has
made it increasingly difficult for marketers to reach
consumers in a meaningful way.
At the same time, consumers, already bombarded by
messages seemingly everywhere, are skeptical of
“promises” by marketers.
Marketers are seeking new ways to break-through and
touch consumers in a meaningful and memorable way.

FROM PHILANTHROPY TO
CAUSE MARKETING
In the past 10 years, “strategic philanthropy” or “cause
marketing” has become a major part of corporate marketing
budgets, rather than a small division of a companies PR unit.
AMERICAN EXPRESS
In the 1980’s American Express pioneered the idea with
◘
their Charge Against Hunger campaign.
BOOST MOBILE
In 2004, the mobile cell phone provider BOOST
◘
launched a marketing campaign centered around a
series of concerts (RockCorps) to encourage
volunteerism – and provided free tickets to youths who
volunteered in their community
(RED)
In 2006, Robert Shriver created (RED) a for-profit
◘
enterprise which partnered with for-profit companies
to donate a larger percentage of profits to Darfur and
other prominent causes.

CITIES ARE UNIQUELY POSITIONED TO
PROVIDE MARKETING SOLUTIONS TO
CORPORATIONS
By capitalizing on this cause marketing trend, Cities are
uniquely positioned to provide both the message and the
medium for corporations who want to break-through the
marketing clutter and reach people in a meaningful way.

PRIVATE ENTERPRISES WANT TO
ASSOCIATE WITH CITIES AND
THE IDEA OF A CITY
At their best, cities are force for good in the world.
A city’s mission is to provide the broadest platform for
their citizenry to be at their best. To nurture individuals
so they can
◘ Educate and innovate
◘ Cure disease
◘ Create new wealth
◘ Invent and discover
◘ Promote peace
A city’s mission is perhaps the pinnacle of modern
aspiration

CITIES CAN UNLOCK THIER TANGIBLE
AND INTANGIBLE ASSETS TO DELIVER
VALUE

TANGIBLE ASSETS INCLUDE
Traditional Media
◘ Outdoor
◘ Broadcast and Online
Parks and Open Spaces
Events
Vehicles
Other Real Estate
Transportation and Other Infrastructure
Trademarks

INTANGIBLE ASSETS INCLUDE
A Noble Mission
Rights
Local Authority and Prominence
Press Attention
A seemingly endless number of equally important causes
and initiatives that need support and adoption

CITIES CAN MONETIZE THESE ASSETS
THROUGH CONTROL, PROTECTION AND
CENTRALIZATION
By centralizing the authority over these tangible and
intangible assets, cities can attract corporate investments
from marketing budgets through sponsorships and
partnerships

NYC EXAMPLE
In 2003, NYC created a new agency NYC Marketing, to
identify and centralize the administration of its marketing
assets in order to
◘ Generate new revenue
◘ Support local initiatives
◘ Fund a global marketing initiative

THREE NEW DISCIPLINES UNLOCKED THE
HIDDEN VALUE IN NYC ASSETS
The agency, NYC Marketing, created 3 new disciplines
1. Intellectual Property
2. Media
3. Corporate Partnerships

CREATE AND PROTECT THE CITY’S
INTELLECTUAL PROPERTY
Intellectual Property
1.
• Legally protected and enforced the existing
trademarks of the city
• Created new trademarks and intellectual
property
• Established the framework for a new city
brand identity

MANAGE AND CENTRALIZE THE CITY’S
MEDIA ASSETS
Media
1.
• Identified, inventoried and centralized all
city-owned and city-controlled media assets
• Established new policies which secured a
portion of the space for city use
• Created new media assets where
appropriate

PACKAGE AND MONETIZE IP AND MEDIA
ASSETS TO PARNTERS
Corporate Partnerships
1.
• Established policies and procedures around
the corporate partnerships
• Packaged City’s brand and media assets with
strategic causes
• Recruited corporate partners

NEW GUIDELINES ENSURED PROPER USE
OF ASSETS AND ASSOCIATION WITH
PEERLESS BRANDS
Strict policies, procurement procedures and standards
were created to ensure the proper and appropriate use of
the City’s brand and media assets. All partnerships must:
◘ The partnership must
• Support a cause and initiative that is
important to the City and strategically
aligned with the corporate partner
• Make a noticeable difference in the lives of
New Yorkers
◘ The city must:
• Provide real marketing value to the corporate
partner
◘ The corporation must
Deliver significant revenue to the City
Adopt the City in its marketing

GUIDING PRINCIPLES:
PUBLIC/PRIVATE PARTNERSHIP
Core to the strategy of NYC Marketing is establishing
public/private partnerships to engage corporate and
media partners, who could benefit by helping the city
achieve its goals. The group’s guiding principles ensure
that it provided real value for the City and partners in a
manner far surpassing that realized by traditional
philanthropy-based partnerships, while supporting City
initiatives and programs.

GUIDING PRINCIPLES:
CENTRAL BUT COLLABORATIVE
While the centralized approach allowed NYC Marketing
to achieve many unprecedented milestones, its
collaborative approach helped incorporate the efforts of
many other governmental and private organizations who
all had a stake in recruiting visitors, events, jobs,
investment and talent.

GUIDING PRINCIPLES:
DO WELL, DO GOOD, DO MORE
NYC Marketing created opportunities for partners to Do
Well for themselves by helping them achieve their
marketing goals through the appropriate use of the City’s
assets.
Partners were obligated to Do Good for New Yorkers by
supporting City initiatives that align with the partner’s
brand; and
Do More for the City and the partner by activating its
association with New York City in a way that reflects
accurately and positively on both brands.

SNAPPLE:
The City packaged vending rights in schools
◘ Press announcements
◘ Outdoor Media
◘ Events and concerts
◘ Official Designation
Snapple Provided;
◘ Healthy beverages in Schools (juice and water)
◘ Sponsorship Fees
◘ Local and National Ad Campaign about NYC
◘ Funded 137 new public school sports teams

THE HISTORY CHANNEL:
The City packaged:
◘ Visitor Center Rights
◘ Outdoor and TV Media
◘ New Tours around History
◘ Events
◘ Press announcements
The History Channel provided:
◘ Sponsorship Fee
◘ National and International TV Media Time
◘ Funded a New History Visitor Center
◘ Restored 250 Monuments
◘ Created new historical tours in Lower Manhattan

NEW DISCIPLINES AND ASSETS CAN BE
APPLIED TO OTHER INITIATVES
BIG EVENTS
ATTRACTING FILM AND TV PRODUCTION
RECRUITING NEW EMPLOYERS

ATTRACTING LARGE-SCALE AND IMAGE
ENHANCING EVENTS
Country Music Awards
The City, through the Big Events group supported by
NYC Marketing, lured the CMA Awards to host their
annual award show in NYC instead of Nashville, TN, for
the first time.
The city packaged CMA and City media assets together,
funding the production of the show and generating a
surplus for the City.
The awards showcased NYC on a national stage in made
the City seem more accessible

ATTRACTING FILM AND TV PRODUCTION
Marketing Incentives Increase film and TV production in
NYC
The City, through the Mayor’s office of Film, Theatre and
Broadcasting, with NYC Marketing, augmented tax
incentives with a media and promotional credit for movie
and tv productions that make their films and shows in
NYC
Productions received outdoor media and promotional
support, money they would have spent, in NYC to launch
their production.
In 2007 Movie and TV production has risen to 237
productions from 180 in 2005.

A NEW ECOMONIC AND PROMOTIONAL
ENGINE FOR CITIES
GENERATES
REVENUE,
PACKAGED MEDIA FUNDS A GENERATING
WITH EXPOSURE AND GLOBAL MORE TOURISM,
STRATEGIC PROMOTIONAL MARKETING EVENTS, AND
CENTRALIZED
INTIATIVES… PARTNERS… CAMPAIGN… JOBS AT HOME.
CITY ASSETS…
Intellectual Property
- Trademarks
- Designations
Revenue
- New Brand
Self-funded
- City Initiatives Media Tourism, Events
centralized
Physical Property marketing
Media
Sponsorship
- Media initiative to
- City Events Employers
promote jobs
Licensing
- Promotions
and tourism
Promotions
-Open Spaces
Support for
Rights
City Agencies
- Marquee Events
- Concessions

RESULTS

RESULTS

RESULTS

RESULTS

RESULTS

NEXT GENERATION OF
MARKETING IN NYC
NYC Marketing generated over $100,000,000 in new
cash, resources and media for New York City in three
years.
Once the group became established and self-funded, the
City merged it with two other groups: the City’s Big
Events group, which recruited large, compelling events to
the city and the convention and visitor’s bureau, NYC and
Company.

NEXT GENERATION OF
MARKETING IN NYC
As a result, New York City, once regarded as the ungovernable
city, is terrifically effective at:
◘ Recruiting impact events without expense to the city
◘ Establishing national and international media and
promotional partnerships
◘ Generating support for city agencies through
public/private partnerships
◘ Generating new revenues
◘ Securing positive exposure and custom content for New
York
◘ Recruiting new industries without additional tax
incentives
◘ Supporting key philanthropies which help the city do its
job

DANK U WEL