By John Lyon
Arkansas News Bureau
LITTLE ROCK — Two advertising agencies made pitches today for a contract with the Arkansas Lottery, one of which said some of its advertising would target people who are “African American and … low-to-middle range income.”
The state lottery director has said the games would not target specific groups.
The Ramey Agency of Jackson, Miss., and The Communications Group of Little Rock were among six agencies that submitted bids for the lottery’s advertising contract. Lottery officials said four of the submissions did not meet their requirements, so only two companies were allowed to make presentations today to a committee of lottery staff members.
The owner of one of the companies not allowed to give a presentation criticized the state Lottery Commission, calling its process “exclusionary and improper.”
Brian Clark, Ramey’s sole employee based in Little Rock, told the evaluation committee the agency’s advertising would target the people most likely to play the lottery.
“Instant games (are played by) adults 25-54, 50-50 male-female. Fifty-four percent of those players, in our best estimate, they are African American and they are low-to-middle range income, and that’s what this plan is targeted to reach,” Clark said.
Players of drawing games would be more affluent and not as heavily black, he said.
Clark said the agency would spend about $190 million on media over three years. The advertising would have a “96 percent reach” within the state’s major demographic market areas, he said.
“It’s going to be skewed to the audience that we showed you, that target audience,” he said.
Lottery staff attorney Bridgette Frazier said lottery officials are sensitive about targeting minority groups and the poor. Lottery Director Ernie Passailaigue, who was not present, has said previously the lottery’s advertising will not target specific groups.
“I don’t think targeting is the correct word,” said Ramey Vice President Terry Tanner. “What we’re doing is making sure that all audiences in the vast demographic profile are covered. So if the African Americans are part of the demographic profile, to us it would be an elimination not to cover them.”
If Ramey receives the contract it will partner with Cornerstone Media of Cordova, Tenn., and Advantage Communications of Little Rock. Joining Ramey officers in the pitch was Advantage CEO Michael Steele, brother of state Sen. Tracy Steele, D-North Little Rock.
A team from The Communications Group, led by senior vice president Rex Nelson, showed the panel television and radio spots the firm has prepared, featuring a jingle and the slogan, “Come on, let’s play!” The agency’s advertising would reach 95 percent of people in the state’s major demographic areas, said Nelson, who once served as a top aide to former Gov. Mike Huckabee.
Nelson emphasized that the agency is based in Little Rock, calling it “the only full-service Arkansas agency” in the running.
If The Communications Group receives the contract it will partner with JM Associates of Little Rock and Chernoff Newman of Columbia, S.C.
Chernoff Newman formerly provided advertising services to the South Carolina Education Lottery, which Passailaigue ran from 2001 until becoming director of Arkansas’ lottery on July 1.
The evaluation committee will study the proposals and could make a recommendation to the Lottery Commission as early as Wednesday, when the commission is next scheduled to meet.
The companies that were not allowed to give presentations were Exclaim Media, Craig Douglass Communications, GWL Advertising Inc. and The Natural Brand Co., all of Little Rock.
Gary Lay, owner of GWL, said in a letter to the Lottery Commission his company was unfairly excluded because its financial statements for the past three years had not been audited and it did not have an earned net income of at least $300,000 for two of the past three years.
“If we are not selected based on true capabilities, then we can live with that. However, this process of elimination seems exclusionary and improper,” Lay wrote.
