Columnist Jeff German: R&R dazzles LVCVA into renewing lucrative advertising deal

Thursday, March 11, 1999 | 11:37 a.m.

It was never in doubt. R&R Advertising locked up a new five-year contract to market Las Vegas the day tourism officials opened it up for bid several months ago.

On Tuesday, the Las Vegas Convention and Visitors Authority made it official when it voted unanimously to hand the state's largest and most politically connected advertising firm nearly $150 million to promote the city of Glitz well into the new millennium.

Everyone knew what the end game would be Tuesday when the likes of former presidential adviser and R&R founder Sig Rogich and Richard Bunker, president of the Nevada Resort Association, the casino industry's influential political arm, dropped by to watch the show from the front row.

R&R President Billy Vassiliadis didn't disappoint them. He and his troops were at the top of their game when they made their space-age pitch to cement the deal, which will be worth $27 million its first year.

Vassiliadis and crew, having the benefit of 18 years of working hand in hand with the LVCVA, blew the competition away with their jazzy high-tech presentation.

Their chief rival, a partnership between the San Francisco-based Young & Rubicam and The Merica Agency of Las Vegas, demonstrated that it had the resources and worldwide contacts to do the job. But it clearly was out-classed and out-hustled by R&R.

Though he had the home field advantage, Vassiliadis spared no expense to ensure that his company would prevail. He appeared to spend every penny of the $300,000 he had promised to shell out for the fast-paced presentation. It probably was the wisest investment Vassiliadis has made in a long time. By holding onto the contract, he ensured that his company will remain at the forefront of the advertising and political scenes here for years to come.

In the face of criticism that R&R has failed to capture the changing dynamics of the Las Vegas tourism market, Vassiliadis on Tuesday demonstrated a renewed commitment to promoting the city as the "greatest stage on earth" at a time when the city needs it the most.

It's a commitment we likely would not have seen from R&R had it not been pushed into competing for the LVCVA contract. Vassiliadis himself suggested the contract be put up for bid.

"The single greatest difference for us being in competition was the energy level we haven't had for a while," Vassiliadis said. "Internally, people were fired up. It brought a real sense of unity and energy within the company that I think is going to continue now. I think you're going to see us keep charging and pushing in the future."

As R&R's fast-paced presentation kicked into high gear, several things caught my attention.

Vassiliadis told the LVCVA board members there was no reason why Las Vegas couldn't become the Olympic Village of the nearby Salt Lake City games in 2002.

With a smile, he suggested the slogan to lure Olympic guests 450 miles to Las Vegas would be: "We'll treat you like an IOC member."

When it came time to take a cheap shot at the competition, Vassiliadis was not under the spotlight. He left that task to his soft-spoken partner and senior vice president, Mary Ann Mele. It was Mele who tossed out a one-liner that encouraged board members to see the future of Las Vegas in terms of the solid partnership they have developed with R&R instead of the "little green men" approach advocated by Young & Rubicam. The San Francisco agency earlier had pitched a series of television ads looking at Las Vegas from the perspective of an alien in space.

But what struck me the most about R&R's presentation were the creative special events proposed for the next couple of years to attract visitors to Las Vegas.

Some of the ideas: A World Cup soccer tournament, an international food festival featuring the city's famous chefs, a fireworks spectacular with competition from casinos along the Strip, a "Rat Pack 2000" music festival, a professional sports weekend involving the NBA, NHL and major league baseball and "the world's greatest fashion show" on the pedestrian overpasses of the Strip.

This is exactly the kind of innovative thinking Las Vegas needs to stay ahead of the competition and keep its place as a world-class destination.

In the end, Team R&R earned its right to continue marketing Las Vegas.

But you have to wonder whether Vassiliadis and crew would have been so eager to brainstorm these ideas if they weren't performing under pressure.

If we've learned anything from Tuesday's show, it's that competition is good when you're spending the public's money.