Another promotion agency is entering the fast-growing sector of municipal marketing with the purchase of a matchmaking consultancy.
The Active Network—the San Diego-based parent company of event-marketing shop Active Marketing Group—has bought Public Enterprise Group, Huntington Beach, CA, and formed a new division called Active Public Enterprise Group.
The new division will be led by Public Enterprise President Don Schulte and principal Judy Anderson. The unit will work with La Jolla, CA-based Active Marketing Group to broker deals between brands and local governments, schools and hospitals. The agency is now negotiating city partnerships with banks as well as cellular service and Internet access providers.
“Our goal is to help municipalities, healthcare organizations, school systems and other public enterprises increase the services they can provide to their citizens without having to raise taxes, while creating significant opportunities for our marketing partners,” said Active Network President Matt Landa in a statement.
Six-year-old Public Enterprise Group is credited with establishing the first municipal marketing deal in the U.S., between Coca-Cola Co. and Huntington Beach in 1999. Active Marketing Group ranked No. 15 on the 2004 PROMO 100 with 2003 net revenues of $4.5 million, up 407% from 2001.
The new marketing division bridges off Active Network’s expertise in municipal administration: Its two divisions (Active Government Solutions and Active Community Solutions) sell software for government administration. Active Network began that work when it bought Vancouver, BC-based Class Software Solutions in October 2004.
A handful of shops offer municipal marketing services to meet growing demand from cities seeking corporate sponsors. Civic Entertainment Group and Octagon Worldwide, both New York City, work with New York’s Metropolitan Transportation Authority (MTA); Civic recently cut a multi-year deal between New York and The History Channel for a $19.5 million tourism push (Dec. 9, 2004 Xtra). Velocity Sports & Entertainment, Wilton, CT, formed a municipal marketing division a year ago.
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