Top ad agencies compete for LVCVA ad contract

Tuesday, Feb. 23, 1999 | 8:27 a.m.

The competitors for the five-year, multimillion dollar contract include agencies of the Interpublic Group, a large holding company of advertising agencies with total annual billings of $30 billion; Japan-based Dentsu Inc. with billings of $15 billion; and Young & Rubicam, which bills about $13 billion annually.

Collectively, their clients are the megagiants of the corporate community. The short list includes Toyota, Canon, Ford, Nestle, AT&T, Campbell Soup, Chevron, Kraft and United Airlines.

Now, they've turned their attention to Las Vegas and the government agency charged with promoting tourism to fill the burgeoning supply of hotel and motel rooms.

"We think Las Vegas is the key destination in the world. We're fascinated with the quality of that town," said Cliff Einstein, chairman and chief executive officer of West-Hollywood, Calif.-based Dailey & Associates Advertising, an Interpublic agency for 15 years.

Getting the convention authority's advertising contract would give the company a reason to open an office in Las Vegas - something it's been considering in recent years, Einstein said.

It's premature to talk about Dailey's plans for a Las Vegas marketing strategy, Einstein said, but at least two of the competitors have some ideas.

"We're very excited about working on Las Vegas. Everyone in our office loves coming to Las Vegas. It's the ultimate destination to escape from reality," said Rick Colby, president and executive creative director of Colby, Effler & Partners, the Santa Monica, Calif., office of Dentsu Inc.

A fantasy experience - an escape from reality - those could be the messages capable of attracting more of Las Vegas' traditional value-oriented visitors and the newer segment of high-end, upscale travelers, Colby said.

"It doesn't matter whether they're paying $3,000 a night, or $300, or $30, they can have that same fantasy experience coming to Las Vegas," Colby said during a visit to Las Vegas last week to talk with local tourism and gaming industry executives.

Some executives, particularly Venetian developer Sheldon Adelson, have criticized the convention authority and its longtime advertising agency, R&R Advertising, for taking too long to shift the marketing of Las Vegas from a value-oriented destination with inexpensive rooms and food to a resort destination with fine dining, shopping and other amenities.

R&R has handled the account since 1980 and is among the four competitors for the contract, which expires June 30. The board will make a decision after presentations on March 9.

R&R ranks as the largest ad agency in Nevada with annual billings of $100 million in 1998.