Oak Brook officials expect to save about $200,000 a year by eliminating the consultant responsible for marketing the seven hotels and creating a new staff position, marketing manager, in her place.
Village Manager Greg Summers said the village's current budget for the hotel advertising program is $500,000 a year, which is funded by state law directly from Oak Brook's hotel tax.
Regarding the new position, Summers said, “Research indicates that a comparable position would be compensated approximately $100,000 to $130,000 annually, plus benefits.” “Even with an additional $10,000 per month in advertising media budget, the total cost is two-thirds of his previous expenditures, leaving him with more than $200,000 free to use for subcontracting and other purposes.”
Eighty-five percent of the cost of the new marketing manager will be covered by village hotel/motel tax revenues, with an additional 15 percent paid by the village.
Summers said that through his experience with multiple advertising vendors, he has found that the village's annual spending allocation is too small to garner attention or priority from advertising companies, which often have multi-million dollar clients. Ta.
“The village will not continue to be subordinate to other customers,” he said. “Instead, we find that many suburban municipalities employ their own dedicated marketing personnel, who are dedicated to the village and responsible for the success of the program.”
After terminating its relationship with its previous advertising agency due to a lack of track record and metrics to support its strategy, the village issued a request for proposals last year in hopes of finding a new consultant. The Oak Brook Hotel Committee met with several new agencies and ultimately selected a Chicago advertising firm with extensive hotel advertising experience.
Due to the previous vendor's poor performance, Oak Brook officials made the decision to continue the short-term referral agreement with the new vendor, Summers said.
“Despite this, the new advertising partner failed to meet the established milestone dates and did not correct those issues even after being notified of the failure,” he said. “The vendor was also reluctant to pursue some of the approaches proposed by the village due to conflicts with other prominent clients.”
As a result of these two issues, Summers said, the vendor was issued with a notice to terminate the partnership and the decision was made to begin pursuing a new path with increased accountability.
“We are looking for a passionate, energetic, and responsible Marketing Manager who can balance the needs of all seven of Oak Brook's hotels while delivering a consistent and intentional brand message that resonates with consumers. and promote proven results that enhance guest stay at Oak Brook,” Summers said.
Assistant Village Manager Joe Mitchell said creating the marketing manager position represents a strategic investment in the future growth and success of Oakbrook's hospitality industry.
“By working with the seven hotels, the marketing manager will be able to increase Oak Brook's profile as a premier destination and drive economic prosperity for years to come,” he said.
Mitchell said a subcommittee has been established to determine the annual marketing budget and budget amendments will be provided for approval at the next village board meeting.
Village President Larry Herman said the move to an in-house marketing manager, using funds from Oak Brook's hotel tax receipts, will be much lower than the village previously used with outside advertising companies. We agreed that we could take direct responsibility for costs and improve outcomes.
“My message to residents has always been to be conservative with accountability and proven spending,” he said.
Michael Manzo, Oak Brook's longest-serving current Village Board member, had a similar view.
“This village has spent millions of dollars at the behest of advertising agencies with zero transparency and no performance metrics,” he said. It is unthinkable to repeat the mistakes of the past.
Chuck Fieldman is a freelance reporter for the Pioneer Press.
