City looks at what ‘Las Vegas’ is worth

Diana Sahagun

Friday, April 26, 2002 | 10:58 a.m.

City leaders exploring a potential advertising program want to establish the value of the name "Las Vegas," envisioning swapping revenue for the chance to become the official drink of the city.

Maybe it will be Pepsi, or maybe Gatorade. Either way, as part of a proposed marketing program city officials are looking for an advertising consultant to determine how much the city's name is worth to corporate executives who want their product to be the official drink -- or vehicle -- of the city of Las Vegas.

Nearly four months after the City Council directed staff to study the possibility of selling ads on city property as a way of generating revenue, staff has the rough outlines of a program, which would mirror one adopted by San Diego in 1999.

The plan, which would include the hiring of an advertising consultant to help establish the value of the city's name, has generated millions for San Diego, Las Vegas Deputy City Manager Betsy Fretwell said.

Las Vegas leaders are looking for new revenue opportunities, as once-constant funding sources have started to dry up. The city's 2003 fiscal year budget, which begins July 1, shows a $1 million deficit.

San Diego has found success by partnering with companies that have an existing contract with the city and extending the opportunity to brand their product as the "official company of the city of San Diego."

The city has exclusive partnerships with Pepsi Cola Bottling Company, Verizon Wireless, Qualcomm, and Cardiac Science, Inc., generating more than $1 million per year, Fretwell said. San Diego is currently negotiating with GMC as the official vehicle of the city.

Fretwell said if Las Vegas limits the number of partners to those already doing business with the city, it would minimize the perception that the city has become "corporatized."

The city of Las Vegas spends hundreds of thousands of dollars with high-profile companies such as 3M, AT&T Wireless, Mercury Reprographics, Berlin Industries, Office Depot, Sprint and local companies including Fletcher Jones Automotive Group and Rebel Oil. As part of their contract, the companies would be offered the chance to get involved in an advertising venture.

While some early ideas included selling ads on city buildings, Fretwell said more common revenue generators would include sponsorships of city events.

There could be other "in-kind" benefits, including a company donating its product at a city event, or covering the cost of publications in exchange for its name being placed on a page.

The city in the coming weeks will request qualifications for a consultant who would help assist city staff in evaluating and negotiating advertising agreements, and establish a value of the designation "city of Las Vegas."

While the city would likely start with companies contracted with the city, the plan could be extended to other businesses, Fretwell added.

"We don't want to corporatize the city, that's not the goal," she said. "The goal is to focus on those guiding principles that the City Council has spelled out to us, including that the advertising message doesn't tarnish the name of the city."