Palm Beach County School District Advertising Initiative

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1 Palm Beach County School District Advertising Initiative

2 The Proposal To sell and place age- and content-appropriate advertisements on district websites and other property to promote business partners and raise revenue The district s 1,100+ registered business partners could become the core group of targeted advertisers, and other local, regional and national businesses would be targeted. The district s websites receive 4 million + total page views per month - traffic can be monetized.

3 Pros Sustainable recurring revenue stream to assist in current economic crisis Large appetite of consumer product manufacturers and other businesses to reach school-aged children and their parents in key demographics Cons Considerable time and possible financial resource requirements for effective implementation Impact of commercialism vs. education Potential bombardment of advertising messages on impressionable children

4 Pros SUSTAINABLE RECURRING REVENUE STREAM NY City School District school bus ad campaign raised approximately $5.9 million per year. Jefferson County, CO bus campaign generates approx $500,000 over 4 years in added revenue from a local bank ($7 per bus per day). Minnesota s St. Francis School District s wrap around locker ads generate $230,000 per year over 5 schools. Orange County School District (FL) raises approximately $500,000 over four years in web and other campus advertising. Volusia County School District (FL) launched web ads, 2011.

5 Pros LARGE APPETITE OF CONSUMER PRODUCT MANUFACTURERS AND OTHER BUSINESSES TO REACH SCHOOL-AGED CHILDREN Many advertisers view children as a 3-in-1 market: > As buyers - $15,000,000 in purchasing power > As Influencers Influence approximately $160 billion per year in parental purchases > As future adult purchasers Children grow up to be brand loyal adults. $2 billion of US s $230 billion in advertising expenditures was directed at juvenile consumers in 2004.

6 Cons CONSIDERABLE TIME RESOURCE REQUIREMENTS FOR EFFECTIVE IMPLEMENTATION Very few school districts are set up to sell advertising on a broad scale. Significant resources must be applied to: > Developing a policy and guidelines for school advertising that will embrace practical, responsible approaches and protect the integrity of education > Soliciting and reviewing sponsored materials and activities to meet guidelines > Deciding where and where not to allow advertising in schools > Soliciting, contracting and placing advertising, and billing and collecting advertising revenues.

7 Cons Impact of commercialism vs. education "American Association of Pediatrics 2006 research: Children younger than 8 years are cognitively and psychologically defenseless against advertising. They do not understand the notion of intent to sell and frequently accept advertising claims at face value." Advertising messages can contradict messages schools are trying to promote (i.e. healthy diets vs. cola ads). vs. Learning at a young age is more than just the experience in the classroom. It involves interaction throughout the campus.

8 Types of School Advertising District/School Web Sites Direct Advertising Posters, book covers, scoreboards, buses Sponsored Educational Material Often subtle advertising messages like Exxon s lesson plan about healthy, flourishing wildlife in Alaska with the underlying attempt to clean up its image post Valdez incident. Contests and Incentive Programs Recently popular means of getting computers and other classroom aides are nothing more than attempts by manufacturers to cull demographic data.

9 Is it Worth It? Corporate offers may sound like they are worth a lot of money on the surface; however, school districts that have engaged in these tactics have found the revenue often times is not sufficient to significantly offset budget short falls. Florida educators already face a difficult job in trying to impart quality education to all students. Schools relying on corporate sponsorships and marketing messages may increase the chatter that competes with the education message. There are no federally mandated guidelines for advertising in schools, so each school district must develop a clear plan for evaluating potential ad revenue vs. impact of ad messages.

10 Is it Worth It? Given the significant budget shortfall facing PBCSD, a pragmatic evaluation of the revenue potential is warranted. PBCSD is significantly larger than most school districts that are leveraging in-school advertising. PBCSD s results could be more robust than those referenced, depending on the type/size program selected. A combination of in-school and off-location (buses) advertising could prove to be lucrative without the education vs. indoctrination argument. It is clear that the decision to allow outside commercial advertising in PBCSD is a serious consideration that will draw the ire of opposition. Further research is needed to make a decision that can effectively help bridge the budget shortfall and withstand the scrutiny of the vocal opposition.

11 Research - Districts Nationally Large School Districts without Web Advertising Programs School District State Student Enrollment New York City Department of Education New York Los Angeles Unified School District California Chicago Public Schools IIIinois Miami-Dade County Public Schools Florida Clark County School District Nevada Broward County Public Schools Florida Hillsborough County Public Schools Florida Hawaii Department of Education Hawaii FairFax County Public Schools Virginia School District of Palm Beach County Florida Dallas Independent School District Texas Duval County Public Schools Florida School Districts with Web Advertising Programs School District Revenue Inception to Date Type of Web Ads Colorado-Jefferson County School District $500, Ads on Buses Florida-Flagler County School District * $0.00 Web Ads, Athletic Fields and Property Florida-Volusia County School District * $0.00 Web Ads New Jersey-Collingwood County School District $5, Web Ads and School Walls Pennsylvania-Bucks County School District $425, School Walls, Floors and Lockers California-San Diego Unified School District $100, Web Ads Arizona-Scottsdale Unified School District $207, Ads on Buses Utah-Salt Lake City School District $333, Ads on Buses Florida-Orange County School District(National Leader in Web Advertising) $546, Web Ads, Athletic Fields and Property Texas-Houston Independent School District * $0.00 Web Ads Virgina-Pince William County School District * $0.00 Web Ads Minnesota- St. Francis School District $230, Wrap around Locker Ads *Recently Started Web Ad Program

12 Orange County Public Schools Three Types of Programs Online Advertising Parent and Employee Tabs Only Communication Advertising (newsletters, etc.) Athletics (Field, events, etc.) Internally Run One dedicated individual Sales & Marketing Manager Public Relations Financial Analyst additional responsibility to bill clients & track revenues First Year of Program Approximately $80,000 in revenue in the first 8 months, averaging $10,000 per month Expecting $200,000 next year Revenues are tracked by CPM (cost-per-thousand impressions/views)

13 Orange County Public Schools Revenues $279, $118, $149, School Year

14 Orange County Public Schools Web Advertising Revenue Sale Percentages Property 3% Print 8% Licensing 10% Athletics 42% Online 37%

15 Orange County Public Schools Revenue Sources-All Ad Programs Colleges, 21% Restaurants, 11% Sports, 1% Military, 10% Health & Fitness, 3% Financial, 19% Communication, 9% Entertainment, 13% Healthcare, 11% Beverages, 2%

16 Orange County Public Schools Web Advertising Policy (Excerpt) SOLICITATIONS IN SCHOOLS FILE: KHF TITLE: Online Advertising POLICY: Online advertising shall be permitted to use as a revenue generating resource. The online advertising will be limited to three ads per page. Types of advertising that will be permissible are: (1) Banner advertisements (2) Button advertisements (3) Text block advertisements (Ads that are only text, with a header and short teaser copy below; maximum three ads per block) (4) Web page sponsorships Link to view complete Web Advertising Policy https://www.ocps.net/sb/superintendent%20documents/khf- Solicitations%20in%20Schools%2008_25_09.pdf

17 Volusia County School Board Policy 714 on Advertising Statement of Purpose The Volusia County School Board is committed to ensuring that all students graduate with the knowledge, skills and values necessary to successfully contribute to our society. The School Board is likewise committed to providing a school atmosphere conducive to appropriate learning, in which students, parents, and educators conduct themselves in an appropriate, orderly and mutually respectful manner. In promoting its educational mission, the School Board also encourages a continuing, positive relationship between Volusia County schools and the community. Every program sponsored by the Volusia County School Board is conducted to further this educational mission and to ensure effective school management. Inclusive of the programs are publications and written resources, in a variety of printed and Internet platforms, that the Volusia County School Board and the individual schools in this school district publish and maintain. Each publication and written resource facilitates communications among parents, students at all grade levels, and educators. Each conforms with School Board policies and supports the educational mission Link to view complete Advertising Policy sp?course_id=_765_1&content_id=_56850_1

18 Next Steps 1. Budget Committee, Board and Superintendent decide goals, timelines and type of program: Internal program with external support External, professionally-run program with some internal support Web only Other only Web and other 2. Stakeholder Buy-in, Support 3. Enabling Board Policy 4. Board Approval 5. RFP / Contract or hire personnel to create web and other campus advertising, sales and marketing infrastructure

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