What: Interpublic Group’s McCann and sibling shop UM have been assigned the New York Lottery creative advertising and media responsibilities, respectively beating longtime incumbent DDB. The New York Lottery, managed by the State of New York, has not confirmed the assignment yet. The agreement, still up for bid, will kick off January 15, 2005.
Why it matters:The Lottery has an annual budget for its advertising, marketing and media services requirements of US $92.25 million. Hispanic and multicultural consumers are an important part of The New York Lottery’s target audience.
The New York Lottery has designated Interpublic Group’s McCann and sibling shop UM to handle creative advertising and media responsibilities, respectively. However, no definitive contract has been signed yet.
The review for the business was launched in April by the New York State Gaming Commission, with separate and parallel pitches for the creative and media assignments. After winning the review, McCann and UM beat longtime incumbents Omnicom’s DDB and OMD.
For both agencies, the work includes existing and new “traditional lottery products,” such as jackpot and scratch-off games but not video lottery terminals and other products under New York State Gaming Commission scope.
UPDATE: The New York State has not oficially yet assigned the account to UM. Portada has heard that the creative and media agencies involved are still negotiating the fees with the State of New York. The procurement process also allows agencies who lose the pitch to contest the result and ask for an audit.
For both agencies, the work includes existing and new “traditional lottery products.
The creative agency tasks include account management, strategic account planning, market research, creative development, brand metrics and advertising communications tracking, multicultural, digital, social media, direct, CRM and Web site development and management.
The media agency is in charge of media research and strategy development, media planning and buying, multicultural media programs and ROI analysis.
The Lottery has an annual budget for its advertising, marketing and media services requirements of US $92.25 million. Of that, US$22.25 million is allocated to the creative agency assignment and US$70 million to media-related services. Estimated annual ad spending on the account is US $50 million. The N.Y. Lottery generated nearly $7.3 billion in sales in the last fiscal year, up 1.6%.
The five-year term agreement, which is still up for bid, will kick off January 15, 2015.It has a total value of a little more than US $460 million.
Hola Marcos – lo que se es que todas las agencias estan negociando temas de fees con el estado y no esta cerrada la negociación con nadie, asi que los finalistas todos están en esto y claro – DDB no quiere perder la cuenta. El estado también da la posibilidad de reclamo y auditoria de los perdedores asi que creo que por eso el estado esta siendo muy cauteloso y manejando las negociaciones directamente con cada agencia.