Hottest New York property By Chris Grimes Financial Times Published: February 21 2005 19:13 Photo: New York skyline Application 78484751 at the US Patent and Trademark Office has received a lot of attention in recent days. The attempt by New York authorities to trademark the phrase "The World's Second Home" to promote local business, culture and tourism may seem novel, but it also highlights the zeal of the city's marketing efforts. Of all Michael Bloomberg's attempts to inject private-sector principles into New York City government, the creation of a marketing team to make money from the city's image and buttets is perhaps the least understood - and most maligned - initiative. Mr Bloomberg, who became mayor in 2002, saw New York City as one of the world's greatest untapped brands. With send marketing, New York's image and buttets could help companies sell everything from bottled juice to office products. The payoff for the city? Licensing fees that would pump millions of dollars into its coffers. While many cities spend money on marketing campaigns to attract tourists or industry, no city has ever tried to generate revenue by marketing itself as a brand. Innovative or not, the concept seemed crbutt to some New Yorkers, who shuddered at the idea of strolling in Exxon Central Park or picketing in front of Walt Disney City Hall. Others raised more serious questions, including whether the marketing department would use compebreastive bidding to award the lucrative contracts. But the city's marketing department claims to have generated more than $100m (�52.7m) in new revenue in just over 18 months - without resorting to splashing a corporate logo on the Statue of Liberty. Its latest plan is to license some of its most famous civic properties - including the fire department's famous FDNY logo - to companies interested in using them in clothing, furniture or other products. Joseph Perello, tapped by Mr Bloomberg to be the city's first "chief marketing officer", says his department has worked hard to be tasteful. "I don't want commercialism all over the place," says Mr Perello, whose previous job was marketing the New York Yankees baseball team. "We're using the city's buttets in tasteful and relevant ways." Mr Perello says the marketing office, a department of city government, runs on a model similar to the ones used by sports teams and entertainment companies. Just as teams form alliances with athletic-shoe companies, New York is forming partnerships with corporations that pay the city a fee for access to its property. Ultimately, New York must prove to its partners that its marketing packages are as effective as buyingspace on a billboard or an ad in a magazine. If the city succeeds, other cash-strapped local governments may be tempted to take a page from Mr Perello's playbook. NYC Marketing promotes itself as a way to generate revenue for the city without raising taxes - a concept with obvious political appeal. It is clear that US cities are beginning to see public property as potential sources of revenue. Las Vegas and other cities have sold space on public buildings, such as railway stations, to companies such as Nextel Communications. This perhaps explains why most people buttume Mr Perello's job is to splash corporate logos on city property. However, he has rejected most of these offers and has argued that selling naming rights can drain authenticity - particularly if it is a landmark people feel strongly about. The challenge is to sell what is essentially a new medium: a city. The group has rights to some of New York's most valuable outdoor real estate - including bus stands and billboards - which it offers as part of a package. This promotional clout recently helped convince Mel Brooks to keep his latest filmed version of The Producers in New York. Mr Perello's group, along with the city's department for television and film, guarantees filmmakers that if they produce their works in New York, New York will contribute marketing muscle worth up to 2 per cent of the production budget. There was also a recent $19.5m agreement with the History Channel, in which the cable network will help pay for the restoration of 10 monuments in the city and gain exclusive sponsorship rights to New York's Official History Centre. The network will develop tours of city attractions and in turn will promote the city to potential tourists on the channel. But the largest deal - and the most controversial - was a $166m agreement Snapple struck with the city's schools. Snapple became the exclusive beverage vendor in schools, replacing soft drink machines that had been criticised for encouraging children to drink sugary sodas. The city's chief financial officer said the contract was awarded through a non- compebreastive bid and without the benefit of public review. A lawsuit resulted; it failed in court but succeeded in bringing the marketing group's work to a near-standstill. Mr Perello maintains the Snapple deal has been good for both parties. Snapple has funded 137 new sports teams for the city's students, he says, and the company benefits from its buttociation with the schools. Its sales in the city are up. As is common in the Bloomberg administration, most of the marketing group came from the private sector. Mr Perello hired marketing executives from Viacom, Time Warner and US sports leagues - meaning some on his staff took big pay cuts to work for the city. But as the Snapple controversy showed, the private-sector pros are still coming to grips with the realities of city government. "Looking back on it, I still would have done the Snapple deal, but it wouldn't have been the first thing I did," Mr Perello says. Credit Cards & NYC Yellow Taxies An UpdateAs some of you regulars know, I've been active in following a number pilot programs the New York City Taxi & Limousine Commission has initiated to buttess the feasibility of... In accordance with breastle 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Original publisher's copyright reserved.
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