The City of Ottawa’s Sponsorship office, established in late 2011, failed to meet projected revenue for 2012, receiving approximately half of what they had aimed for, according to Dan Chenier, General Manager of Parks, Recreation and Cultural Services.
The project boasted that it could achieve “$12.7 million in new revenue” over a period of five years.
The city predicted it would bring in approximately $3,078,000 for 2012, but received only $773,309, leaving a gap of $2.3 million.
However, Chenier said that the shortfall was partially offset by “savings in activation and recognition expenditures of $645,043” making the total gap approximately $1.7 million.
This was expected to be achieved through various sponsorship opportunities, including naming rights, inferior advertising signage, website and publication advertising.
According Chenier, the successful sponsorships to date include:
– pouring rights agreements with Coca Cola for “exclusive pouring rights in all City facilities”;
– naming rights agreements for two arena ice pads at Walker Baker Recreation Complex;
– billboard advertising;
– Family Physiotherapy Program Sponsorship, and various other naming rights agreements.
Mayor Jim Watson expressed disappointment with the program early this week, saying that the city was “overly optimistic” in projecting potential revenue from this project, according to a report from the Ottawa Citizen.
The city hired a consultant for this project for a five-year contract. The consultant, the Centre for Public Sector Marketing, receives a commission of 15 to 20 percent on naming rights, program and event sponsorships and advertisement sales. They also receive compensation for consultation services.
To date, the CPSM has received $7,600 in commissions and $16,000 in consultation fees.
Chenier told the Citizen that city staff have undertaken some of these sponsorship projects themselves, and added that they are looking into revenue generated from a partnership with Internet providers that would result in free Wi-Fi services in various municipal facilities.
The Wi-Fi would cost no money to taxpayers and would be provided free of charge in several municipal facilities.