NH Lottery Marketing and Advertising Services

1 STATE OF NEW HAMPSHIRE LOTTERY COMMISSION RFP LOT 2021-03 Marketing and Advertising Services November 19, 2021 2 Table of Contents AGENCY OVERVIEW 4 A. THE BIDDING PROCESS 6 Section 1 - Deadlines and Questions 6 Section 2 - How to Prepare and Submit a Proposal for this RFP 7 2.1. Bidder Communication and Questions 7 2.2. Pre-Bid Conference 7 2.3. Pricing Proposal 7 2.4. Pricing Submittal Checklist – Required Proposal Submittals 8 2.5. Proposal Format 8 2.6. Submitting Proposals 8 Section 3 - Proposal Evaluation 9 3.1. Overview 8 3.2. Responsiveness 9 3.3. Evaluation (Step 2) 9 3.4. Responsibility Analysis 10 3.5. Administrative Proposal 10 3.6 Case Studies 10 3.6.B Digital Case Study (Optional) 10 3.7 Presentation (Step 3) 10 3.8 Price Proposal (Step 4) 11 Section 4 – Contract Award 12 4.1. Announcement of Apparent Successful Bidder (ASB) 12 4.2. Contract Negotiations 12 4.3. Contract Execution 12 Section 5 – Terms and Conditions Related to the RFP Process 13 5.1 RFP Addendum 13 5.2

Non-Collusion 13 5.3 Property of the Agency 13 5.4 Confidentiality of a Proposal 13 5.5 Public Disclosure 13 5.6 Non-Commitment 14 5.7 Proposal Preparation Cost 14 5.8 Ethical Requirements 14 5.9. Challenges on Form or Process of the RFP 14 3 B. 1. SCOPE OF WORK – New Hampshire Lottery Contract 15 Accounting 16 Cost Savings 17 Estimates Required 17 Invoices 17 Advance Payments 17 Ownership of Work 17 Advertising 18 Advertising Development 18 Media Plan and Strategic Plan Development 19 Advertising Sensitivity 19 Collateral Material and Signage 19 Trade Show attendance/Special Events/Meetings 20 Co-Promotions 20 Media Planning and Buying 20 Bonus Commercials 20 Negotiation and Placement 20 Placement Verification 20 Post-Buy Analysis 20 Spending Analysis 21 Media Services 21 Web Management 21 Other Services 24 Promotional Items 24 Public Relations 24 Public Service Announcements 25 Research 25 Retailer Visits 25 Retail Marking Support 26 Strategic Planning 26 Staffing 27 B. 2. SCOPE OF WORK – New Hampshire Digital Media Buy Contract 30 Statement of Work 30 Staffing 31 C. ADMINSTRATIVE PROPOSAL 32 Bidder Experience and Expertise 32 Contract Term and Key Personnel 33 Business Approach and Processes 33 D. COMPLETION OF EXHIBIT B – BIDDERS PROFILE IN TOTALITY 34 E. CASE STUDY 35 E. 1. CASE STUDY (Digital Media Buy – OPTIONAL) 36 F. EXHIBITS 37 4 AGENCY AND BUDGET OVERVIEW The New Hampshire Lottery broke their sales record in Fiscal Year 2021, recording more than $519 million in sales and other revenues, with more than $146 million earmarked to support public education in the Granite State. The previous sales record was set in FY 2020 of $392.2 million. Since its inception in 1964, the New Hampshire Lottery has contributed more than $2.3 billion to education. The New Hampshire Lottery was the first legal lottery in the United States, created in 1964. For a decade, from 1953 to 1963, Larry Pickett, a state legislator from Keene, tried unsuccessfully to introduce bills calling for a state lottery. The morality and ethics of gambling were called into question, yet in 1963, Pickett suggested that the revenues from a lottery should be earmarked for education and the rest is history. More than five decades later, 48 jurisdictions (45 states plus the District of Columbia, Puerto Rico, and the U.S. Virgin Islands) have followed New Hampshire’s lead. Our current game portfolio is robust and includes eight draw games: Powerball, Mega Millions, Lucky For Life, KENO 603, Tri-State Megabucks, Tri-State Gimme 5, Tri-State Pick 3 and Pick 4. In addition to the draw portfolio, we also launch approximately 50 - 60 scratch ticket games (price points of $1 up to $25) a year. Our scratch ticket sales account for approximately 65% of our annual sales. Tri-State Fast Play is similar to a scratch ticket yet it is printed directly from the lottery terminal. Players choose from rolling jackpot games with top prizes that increase with each ticket sold, to a variety of other Fast Play games – all with a number of different price points of $1, $2, $5, $10 and $20. We sell all of these products at more than 1,300 retail locations statewide. KENO 603 is offered at more than 220 locations statewide, in taverns and restaurants across New Hampshire with drawings from 11 AM to 1 AM daily. Along with the traditional products listed, we also offer NH iLottery which was launched in September of 2018. NH iLottery’s portfolio consists of more than 70 e-Instant games along with Powerball, Mega Millions and Tri-State Gimme 5. Sports Betting, launched in 2019, is also a part of our product offering through DraftKings mobile application and three DraftKings retail locations in Manchester, Seabrook and Dover. Our contract with DraftKings requires the lottery to support this product with a minimum promotional spend of $250,000 annually. New Hampshire is a state with an older age demographic. The population of the state (2020) is just shy of 1.4 million with those 18 years and older at approximately 1 million. The higher populated age groups are from age 50 to age 70. Our research shows that the demographic of the core player base in New Hampshire mirrors that older age demographic. We continually strive to attract the younger demographic with the challenge of making New Hampshire’s Lottery fun for all by offering a number of different products, and to fulfill our mission in returning the maximum amount of net profits annually which are allocated for public education (grades K – 12). The New Hampshire Lottery (“NH Lottery,” “Lottery”) works within two advertising budgets – a New Hampshire Lottery budget that oversees the New Hampshire Lottery games (scratch tickets, Powerball, Mega Millions, Lucky For Life, KENO 603, iLottery games, Sports Betting) as well as a separate, Tri-State budget that oversees the Tri-State Games (Megabucks, Gimme 5, Fast Play, Pick 3, Pick 4). New Hampshire advertising dollars are spent on the New Hampshire games and Tri-State advertising dollars are spent on the Tri-State games. The contract that will result from this RFP will be for 3 years, with the Lottery holding an option to exercise an additional two-year extension or up to 5 years total. Any contract awarded from this RFP is subject to Governor and Executive Council approval as well as funding approval through the State budget process. 5 The New Hampshire Lottery is requesting proposals for management of the New Hampshire Lottery advertising account. The advertising funding for the current Fiscal Year 2021 is $4.4 million, which is comprised of $2.6 million for New Hampshire products and $1.8 million for the Tri-State products. In presenting such a proposal, it would include traditional and digital media buys. Alternatively, you have the option of bidding on an additional separate scope of work for digital media advertising in support of our online sales platform, NH iLottery. That budget stands at $400,000 ($300,000 from the $2.6 million New Hampshire budget and $100,000 from the Tri-State budget of $1.8 million). The digital media channels would include but not be limited to, support of e-Instants as well as the online purchase of Powerball, Mega Millions and Tri-State Gimme 5 via display, social media, native, search, video, and email marketing. During the course of the contract, additional games will be added to this sales platform. The New Hampshire Lottery reserves the right to award one contract for all scope of work identified in this RFP, or award a separate iLottery digital media advertising contract. The remainder of this page is intentionally left blank. 6 A. THE BIDDING PROCESS The bidding process is divided into 4 sections: Section 1: Deadlines and Questions Section 2: How to Prepare and Submit a Proposal for this RFP Section 3: Proposal Evaluation Section 4: Contract Award Section 1: Deadlines and Questions This section identifies important deadlines for this RFP and where to direct questions regarding the RFP. The following table provides a Schedule of Events for this RFP through contract finalization and approval. Lottery reserves the right to amend this Schedule at its sole discretion and at any time through a published Addendum. EVENT DATE LOCAL TIME RFP Posting and Availability November 19, 2021 Proposer Inquiry Deadline December 15, 2021 4:00 PM All Questions Answered by December 22, 2021 4:00 PM Deadline for Submitting Proposals January 21, 2022 4:00 PM Presentations TBD Anticipated Announcement of Apparent Successful bidder(s) February 28, 2022 Negotiate Contract(s) March 7 to March 11, 2022 Presentation to NH Governor and Council for approval March 2022 Contract Work Begins July 1, 2022 Questions regarding this RFP must be directed to the following: Maura McCann, Director of Marketing Maura.A.Mccann@lottery.nh.gov Tel: 603-271-7111 New Hampshire Lottery 14 Integra Drive Concord, NH 03301 When emailing questions or concerns regarding this RFP, please copy the following: John Conforti, Chief Compliance Officer John.J.Conforti@lottery.nh.gov mailto:Maura.A.Mccann@lottery.nh.gov mailto:John.J.Conforti@lottery.nh.gov