Advertising agencies and PR firms should look closely at government opportunities
by Mary Scott Nabers, CEO of Strategic Partnerships, Inc.
It is hard to understand why any advertising agency and/or communications firm would overlook the public sector marketplace. Opportunities in this environment are extremely large and most public entities contract for services for several years at a time. It is a lucrative marketplace.
In every state, public entities hand out contracts for services worth hundreds of millions of dollars. Government has always purchased traditional services which include messaging, graphic design, publication development, printing, constituency communications, traditional media buying and communication services. Now government is buying even more…and numerous new types of services. Some would be shocked to see the price tag on many recent government contracts for social media services.
Public entities are contracting for help with new Web site designs, interactive blogs, tweeting services, online forums and texting. According to public officials who are signing these contracts, the ROI is extremely good. And, this is the only way to reach some constituencies that government must serve.
In many cases, public agencies must provide outreach to regulated constituents. That may require consulting services, marketing plans and resources not found within the agency. Online surveys are in high demand and occasionally regional sessions to receive public input are required. Some messages are delivered in more than one language and when that is the case, the service is usually outsourced.
Every state has a few extremely large advertising and marketing contracts that turn over on a regular basis. Some represent billions of dollars. A few of the largest ones in any state usually include:
- Lottery promotion;
- Tourism; and
- Regulatory and agency publications.
Each state also has programs, funded with federal and state dollars, that carry advertising mandates. For example:
- Tobacco use;
- Safety programs;
- Drugs use warnings;
- Dropout prevention; and
- Health services…of all types.
Cities and counties are also big consumers of advertising and marketing services. At some time or another, they all must purchase communication services for:
- Convention and tourism departments;
- Public transportation;
- Bond elections; and
- Emergency outreach.
Public universities and public hospitals sign large advertising and marketing contracts, often with dozens of contractors. Health care districts, water authorities, community colleges and quasi-agencies also have large budget allocations for marketing and communication services. Even school districts spend more money on outreach than most would realize.
Public information is easy to obtain. Advertising firms or individuals can inquire about large contracts and ask specifically when they are scheduled to end. It is also possible to ask to see copies of existing contracts which will include costs, deliverables and any specific terms and conditions.
Since the contracts are large and abundant, it is hard to understand why there is not more competition in this particular market space.
Mary Scott Nabers is president and CEO of Strategic Partnerships, Inc., a 15-year-old procurement consulting and procurement research firm headquartered in Austin, Texas.
