Media Placement Amendment 1.docx

State of South Carolina

Request for Proposals Amendment 1 Solicitation: Date Issued: Procurement Officer:

Phone: E-Mail Address: Mailing Address:

5400027920 02/26/2025

ZACH YARBROUGH

803-896-0284 zyarbrough@mmo.sc.gov SFAA, Div. of Procurement Services 1201 Main Street, Suite 600 Columbia, SC 29201

DESCRIPTION: Advertising Media Placement and Other Related Services

USING GOVERNMENTAL UNIT: South Carolina Lottery Commission

SUBMIT YOUR OFFER ON-LINE AT THE FOLLOWING ADDRESS: https://www.procurement.sc.gov

SUBMIT OFFER BY (Opening Date/Time): 03/03/2025 03/13/2025 11AM ET (See "Deadline For Submission Of Offer" provision)

QUESTIONS MUST BE RECEIVED BY: 02/06/2025 10AM ET (See "Questions From Offerors" provision)

NUMBER OF COPIES TO BE SUBMITTED: Submit online only: One (1) Electronic Technical marked "Original Technical", One (1) Redacted Electronic Technical Copy marked "Redacted Technical” and One (1) Electronic Price marked “Original Price”. (See provisions “Disclosure of Your Bid/ProposaL and Submitting Confidential Data” and “Electronic Copies- Required Media and Format”). Initial here_____ if a redacted copy is NOT necessary.

CONFERENCE TYPE: N/A

DATE & TIME:

(As appropriate, see "Conferences - Pre-Bid/Proposal" & "Site Visit" provisions)

LOCATION: N/A

You must submit a signed copy of this form with Your Offer. By signing, You agree to be bound by the terms of the Solicitation. You agree to hold Your Offer open for a minimum of sixty (60) calendar days after the Opening Date.(See "Signing Your Offer" provision.)

NAME OF OFFEROR

(full legal name of business submitting the offer) Any award issued will be issued to, and the contract will be formed with, the entity identified as the Offeror. The entity named as the offeror must be a single and distinct legal entity. Do not use the name of a branch office or a division of a larger entity if the branch or division is not a separate legal entity, i.e., a separate corporation, partnership, sole proprietorship, etc.

AUTHORIZED SIGNATURE

(Person must be authorized to submit binding offer to contract on behalf of Offeror.)

DATE SIGNED

TITLE

(business title of person signing above)

STATE VENDOR NO.

(Register to Obtain S.C. Vendor No. at www.procurement.sc.gov)

PRINTED NAME

(printed name of person signing above)

STATE OF INCORPORATION

(If you are a corporation, identify the state of incorporation.)

Offeror’s TYPE OF ENTITY: (Check one) (See "Signing Your Offer" provision.)

_ Corporation (tax-exempt) Government entity (federal, state, or local)

COVER PAGE - ON-LINE ONLY (MAR. 2015)

PAGE TWO

(Return Page Two with Your Offer) HOME OFFICE ADDRESS (Address for offeror's home office / principal place of business)

NOTICE ADDRESS (Address to which all procurement and contract related notices should be sent.) (See "Notice" clause)

Area Code - Number - Extension Facsimile

E-mail Address

PAYMENT ADDRESS (Address to which payments will be sent.) (See "Payment" clause)

____Payment Address same as Home Office Address ____Payment Address same as Notice Address (check only one) ORDER ADDRESS (Address to which purchase orders will be sent) (See "Purchase Orders and "Contract Documents" clauses)

____Order Address same as Home Office Address ____Order Address same as Notice Address (check only one)

ACKNOWLEDGMENT OF AMENDMENTS

Offerors acknowledges receipt of amendments by indicating amendment number and its date of issue. (See "Amendments to Solicitation" Provision)

DISCOUNT FOR PROMPT PAYMENT

(See "Discount for Prompt Payment" clause)

PREFERENCES - A NOTICE TO VENDORS (MODIFIED): On June 16, 2009, the South Carolina General Assembly rewrote the law governing preferences available to in-state vendors, vendors using in-state subcontractors, and vendors selling in-state or US end products. This law appears in Section 11-35-1524 of the South Carolina Code of Laws. A summary of the new preferences is available at www.procurement.sc.gov/preferences . ALL THE PREFERENCES MUST BE CLAIMED AND ARE APPLIED BY LINE ITEM, REGARDLESS OF WHETHER AWARD IS MADE BY ITEM OR LOT. VENDORS ARE CAUTIONED TO CAREFULLY REVIEW THE STATUTE BEFORE CLAIMING ANY PREFERENCES. THE REQUIREMENTS TO QUALIFY HAVE CHANGED. IF YOU REQUEST A PREFERENCE, YOU ARE CERTIFYING THAT YOUR OFFER QUALIFIES FOR THE PREFERENCE YOU'VE CLAIMED. IMPROPERLY REQUESTING A PREFERENCE CAN HAVE SERIOUS CONSEQUENCES. [11-35-1524(E)(4)&(6)]- PREFERENCES APPLY IN CONJUNCTION WITH SPECIFIC PROVISIONS OUTLINED IN THE SOUTH CAROLINA EDUCATION LOTTERY ACT [SECTION 59-150-140(E)(1)(2)&(3)] PREFERENCES - ADDRESS AND PHONE OF IN-STATE OFFICE: Please provide the address and phone number for your in-state office in the space provided below. An in-state office is necessary to claim either the Resident Vendor Preference (11-35-1524(C)(1)(i)&(ii)) or the Resident Contractor Preference (11-35-1524(C)(1)(iii)). Accordingly, you must provide this information to qualify for the preference. PREFERENCES APPLY IN CONJUNCTION WITH SPECIFIC PROVISIONS OUTLINED IN THE SOUTH CAROLINA EDUCATION LOTTERY ACT [SECTION 59-150-140(E)(1)(2)&(3)]

__In-State Office Address same as Home Office Address ____In-State Office Address same as Notice Address (check only one)

*Specific provisions in the South Carolina Education Lottery Act [Section 59-150-140(E)(1)(2)&(3)] must be considered in conjunction with Section 11-35-1524. Attachment B is provided at the end of this solicitation to assist Offeror in determining eligibility for this preference. In order to be considered for vendor preferences, please provide the information required in Attachment B.

PAGE TWO (SEP 2009)

End of PAGE TWO

AMENDMENTS TO SOLICITATION (JAN 2004)

(a) The Solicitation may be amended at any time prior to opening. All actual and prospective Offerors should monitor the following web site for the issuance of Amendments: www.procurement.sc.gov (b) Offerors shall acknowledge receipt of any amendment to this solicitation (1) by signing and returning the amendment, (2) by identifying the amendment number and date in the space provided for this purpose on Page Two, (3) by letter, or (4) by submitting a bid that indicates in some way that the bidder received the amendment. (c) If this solicitation is amended, then all terms and conditions which are not modified remain unchanged. [02-2A005-1]

REVISED SCHEDULE OF KEY EVENTS. All dates are subject to change.

QUESTIONS FROM OFFERORS - AMENDMENT (JUN 2017)

The solicitation is amended as provided herein. Information or changes resulting from questions will be shown in a question-and-answer format. All questions received have been reprinted below. The “state’s response” should be read without reference to the questions. The questions are included solely to provide a cross-reference to the potential Offeror that submitted the question. Questions do not form a part of the contract; the “state’s response” does. Any restatement of part or all of an existing provision of the solicitation in an answer does not modify the original provision except as follows: underlined text is added to the original provision. Stricken text is deleted. [02-2A097-1 ]

REQUEST FOR PROPOSALS

ADVERTISING MEDIA PLACEMENT AND OTHER RELATED SERVICES

SOLICITATION NO. 5400027920

Amendment #1

KPI’s Q1. It is always our goal to build the best plans that can be tied directly to measures that are most important to you. It would be helpful to understand what type of sales data you capture so we can think through on a macro level the types of marketing and media tools/assets would be recommended to deliver measurable results.

a. Total ticket sales?

b. # tickets sold?

c. # of locations where sold?

d. % coverage of a market?

e. Net revenue for education?

f. Profit margin?

g. Retailer commissions/bonuses?

h. Per capita sales?

State’s Response: The following sales data represents some of the types of instant ticket and draw information SCEL captures: total number of prizes for each game; total number of winners for each game; total number of games sold; total game revenue; per capita sales, prize expense, game margin, net income (Education Lottery Account), and retailer commissions/incentives earned, ticket price points, estimated jackpot amounts, winning numbers, draw dates, and number of draws for each draw game.

Q2. How are these sales able to be broken down? By day/daypart? week? by location? By geography or media market (MSA, DMA, zip)? By game type? By demographic segment?

State’s Response: Sales data can be broken down by game type, retailer, and geographic location (including county and zip code) and generated on a daily and/or weekly basis. Demographic segments are not included in sales data.

Q3. As you think about the above types of metrics, are there any where your performance is currently best-in-class vs other education lotteries, or out-performing other lotteries? Are there areas where you feel that you are underperforming vs other education lotteries?

State’s Response:

Recent trends in the Lottery industry indicate overall ticket sales are decreasing because of lower demand for lower price point instant games and less frequent $1 billion-plus Powerball and Mega Millions jackpot runs. To overcome this obstacle and ensure sales goals are met, SCEL makes continuous efforts to modify game launches, ticket quantities, and top prizes. As a result of adapting to the shift in the players’ preference for the larger prize structures associated with higher price points, SCEL is seeing successful results with increased overall instant ticket revenues despite industry trends.

It is difficult for SCEL to respond to underperforming in other sales related areas because of the legislative differences between South Carolina and the other 47 lottery jurisdictions in the United States. The Lottery Act inhibits SCEL from performing on a level playing field with other lotteries in many ways. For instance, whereas most jurisdictions permit the use of debit cards and instant ticket vending machines as a means of purchasing tickets, South Carolina is one of three jurisdictions that provide players with a cash-only payment option to purchase tickets. Despite these challenges, SCEL continues to remain competitive with neighboring lottery states (Georgia, Florida, and North Carolina) and other jurisdictions throughout the industry.

Q4. What are the KPIs that you have been most readily able to tie directly back to specific media metrics?

State’s Response: Media KPIs have historically included such metrics as click-through rates, website traffic data, and app downloads.

Q5. What are the highest priority demographic segments based on their end contribution to net revenue for education? (Any insight you can share based on gender, age, income, ethnicity/race, geography, occupation and how these breakdowns over index vs the state population)

State’s Response: SCEL is unable to respond to this question since the Lottery Act prohibits SCEL from targeting specific demographic segments as described in the advertising guidelines in Section IX, Attachment D.

Q6. What are the top three drivers that you have found over time that increase net revenue for education?

State’s Response: Mega Millions and Powerball jackpot amounts that continue to increase in size and grow into the billions and larger prize payouts offered through SCEL’s scratch-off games are the primary drivers that result in increased net profits which are transferred to the Education Lottery Account.

Media Planning & Strategy Q7. The RFP states that the current vendor will preplan the FY26 media buy. To what extent will the new contractor have the ability to adjust or reallocate the planned media placements?

State’s Response: With approval from SCEL’s Marketing and Finance teams, the Contractor will have the ability to adjust or reallocate the pre-planned FY26 media buys.

Q8. What is the process for budget reallocation once the fiscal year begins? Does SCEL allow for shifts between platforms based on performance data?

State’s Response: SCEL will communicate the budget allocation process to the Successful Offeror at the start of the contract term prior to the beginning of the fiscal year. Yes, shifts between media platforms in response to performance data will be permitted with approval from Marketing.

Q9. Beyond the channels listed in the RFP, does SCEL have any platform restrictions or preferences that must be adhered to?

State’s Response: SCEL has no specified platform restrictions or preferences at this time; however, the Contractor must adhere to the advertising guidelines provided in Section IX, Attachment D.

Q10. Does SCEL allow the introduction of new media channels or emerging digital platforms, or is the expectation to optimize existing placements?

State’s Response: The Contractor will be expected to identify and implement innovative (media placement) strategies that reach across all relevant media platforms as specified in Section III, Parts 2(A)(3); 2(B)(1)(a); and 2(C)(3).

Q11. Are there any pre-negotiated vendor rates that must be utilized, or does the agency have full discretion over vendor selection?

State’s Response: The Agency will have full discretion over vendor selection with SCEL approval and there are no pre-negotiated vendor rates that must be utilized.

Q12. If a campaign underperforms, how much flexibility is allowed in mid-flight budget reallocations to optimize results?

State’s Response: SCEL will allow reasonable flexibility for mid-flight budget reallocations to optimize results if a campaign underperforms. Budget reallocation needs will be evaluated by SCEL on a case-by-case basis prior to making final determinations associated with requests for budget-related approvals.

Budget & Compensation Q13. The 3% media commission cap is defined in the RFP. Can SCEL confirm whether this applies exclusively to media placement, or does it also include strategic consulting, reporting, and account management?

State’s Response: The 3% commission rate is required by the Lottery Act and applies to all the media placement related services described in Section III, Part 2 (A - E) and includes strategic consulting, reporting, and account management. See also Section III, Part 3.

Q14. Are there any reimbursable costs beyond the media commission, including expenses for reporting tools, ad tracking software, or research initiatives?

State’s Response: The Contractor may not charge additional fees separate from the commission rate to perform the service requirements listed in Section III, Part 2 (A-E). The Contractor will be compensated for all “Other Related Media Initiatives and Services” (including research initiatives) as described in Section III, Part 2(F) at the fixed hourly rate described in Section III, Part 3(c). Additional requests for compensation in the form of a pass-through will be considered if deemed necessary and approved by SCEL in advance.

Approval Process & Decision-Making Q15. Who will serve as the primary point of contact for approvals—Marketing, Procurement, or the Board of Commissioners?

State’s Response: Marketing.

Q16. What is the expected turnaround time for approvals on media plans, reallocations, and optimizations?

State’s Response: Turnaround time for approvals on media plans, reallocations, and optimizations will vary and may be expected within the same business day but should be no more than five business days.

Q17. How often does SCEL conduct formal reviews of media performance? Are there predefined quarterly or annual evaluation points?

State’s Response: Section III, Part 2(E) outlines the expectations for reviews of media performance and their expected frequencies.

Reporting & Attribution Q18. What attribution model does SCEL currently use to evaluate media effectiveness?

State’s Response: SCEL does not currently use an attribution model for media effectiveness.

Q19. Will historical campaign performance data be made available to the new agency to inform strategic decision-making?

State’s Response: Yes, campaign performance data may be made available to the awarded Contractor.

Q20. Are there any third-party auditing or validation requirements for media buys (e.g., Nielsen, Comscore, Moat)?

State’s Response: The Contractor will be required to verify and provide proof of performance for media placements as described in Section III, Part 2(B)(1)(e). Auditing requirements are specified in Section III, Part 2(E)(5).

Q21. How does SCEL define success in media placements? Beyond standard reach and impressions, what performance indicators are prioritized?

State’s Response: Strategic media placement, when performed successfully, should achieve the stated goals and objectives of SCEL’s Marketing Department and thereby result in maximizing transfers to the Education Lottery Account as described in Section III of this RFP. Successful performance of strategic planning should closely align with media placement and the development of creative content and production of advertising resulting in an increased awareness of SCEL’s product line and brand.

Transition Process & Collaboration Q22. Will the current vendor be required to provide a full knowledge transfer, including past campaign data, vendor contracts, and strategic documentation?

State’s Response: See the Obligations and Requirements at End of Contract Term Clause provided in the Terms and Conditions in Section VIIB. This clause outlines the expectation requirements at the end of the contract term for the Existing Contractor and the Next Contractor (Successor). This clause is required and must be adhered to in response to this RFP and the Existing Contract. The current Contractor will cooperate with SCEL and the next Contractor (Successor) and assist in the conversion of services provided for in this Contract and provide any and all materials, data, records, databases, software and all other things that are the property of SCEL in the Contractor’s possession. These services and information will be provided without delay as needed by the Successor provider at no cost to SCEL with the understanding that this requirement does not include proprietary materials listed by the Contractor pursuant to this Contract. Contractor understands and agrees that the purpose of these requirements and duties imposed on the Contractor is so that no disruption of media placement or other services as provided in this Contract, will occur at any time during any transition from the Contractor to the Successor.

Q23. What is the expected duration of the transition period, and will there be direct collaboration between the outgoing and incoming agencies?

State’s Response: The exact duration of the conversion period is not known at this time but will require a collaborative effort among the existing Contractor, the Successor, and SCEL as provided in response to Question #22.

Q24. If media placements for FY26 are pre-booked, is there any flexibility to renegotiate those contracts, or will the new agency be required to execute them as planned?

State’s Response: FY26 Media placements are pre-planned but not pre-booked by the current Contractor as described in Section III, Part 1. The State’s Response to Question #7 also addresses the flexibility of the Contractor’s ability to renegotiate FY26 media buys.

Research Q25. What types of research studies are you currently using on a regular basis? Any quantitative testing? Any qualitative testing? Any creative testing?

State’s Response: Market research studies are conducted on an annual and biannual basis that are both quantitative and qualitative in nature. These studies involve the participation of lottery players, prospective players, non-players, and/or lottery retailers through focus groups, player surveys, demographic surveys, and segmentation studies for the purpose of seeking player satisfaction and awareness of the SCEL brand and products.

Q26. The cover page from MMO says that bidders should submit online only but under “VIII. BIDDING SCHEDULE / PRICE-BUSINESS PROPOSAL” it states, “Price proposals must be submitted in a sealed envelope and separate from the proposal.” Should we submit price proposal both electronically and via a sealed envelope?

State’s Response: The State only requests Offerors submit their Offers online via SCEIS. If Prospective Offerors cannot access the system, they may submit their offers subsequent to the Clause titled “ELECTRONIC COPIES – REQUIRED MEDIA AND FORMAT (MODIFIED)”.

Q27. What tactics historically have worked best for you?

State’s Response: SCEL is unable to answer this question because there is no “one tactic that has worked best” and fits every campaign. See also the State’s Response to Question #10 and Section III in its entirety for minimum requirements.

Q28. What tactics have you never (or rarely) tried that you would like to explore more?

State’s Response: See the State’s Response to Question #10.

Q29. What tactics do you know should be avoided?

State’s Response: Any tactics that violate the advertising guidelines provided in Section IX, Attachment D must be avoided.

Q30. Are there any regulations specific to South Carolina regarding advertising lottery that we should be aware of?

State’s Response: See Section IX, Attachment D.

Q31. Is creative done in-house or is that with a different agency? Will we be able to influence creative at all?

State’s Response: SCEL maintains two separate advertising contracts: 1) Media Placement and 2) Production of Advertising (which includes the creative development of commercial videos and audio campaigns) as described in the Overview and Part 1 of Section III. The Selected Contractor will work in collaboration with SCEL’s Marketing Team and the existing Advertising Contractor.

Q32. It looks like FY 26 will be planned by the incumbent agency. Will we be able to make any adjustments or will everything be locked in already?

State’s Response: See the State’s Response to Question #7.

Q33. Will we be able to get vendor contacts transferred or will we need to develop relationships from scratch?

State’s Response: Yes, vendor contacts will be shared during the conversion process.

Q34. Are there any restrictions that exist for sports sponsorships or event-based activations?

State’s Response: The only restrictions associated with SCEL’s Sports and Event Sponsorships are the selling of Lottery products on State owned property and sponsoring any events/teams that violate the advertising guidelines provided in Section IX, Attachment D.

Q35. How does SCEL currently measure the effectiveness of different media channels? What software programs are used (Google Analytics, Salesforce, LiveRamp, etc)

State’s Response: SCEL currently uses a myriad of software programs to measure effectiveness of different media channels including Google Analytics and internal/external data among others.

Q36. How does SCEL currently track conversions?

State’s Response: SCEL is unable to track sales conversions as a result of the cash-only payment method required by State law. SCEL tracks app download conversions differently depending on the tactics used.

Q37. What is the process for gaining approval for media buys and adjusting placement strategies?

State’s Response: See the State’s Response to Questions #15 and #16.

Q38. Is there existing research on the target market or will that need to be conducted/updated?

State’s Response: See the State’s Response to Question #25.

Q39. What advice do you have for us as we work towards the final submission?

State’s Response: It is recommended that Offerors read the entirety of the solicitation, and follow all instructions listed therein.

Q40. The RFP outlines a requirement that the agency must have spent $1M annually in linear TV within the state over the past five years. Given the significant shifts in media consumption trends—particularly the decline in traditional linear TV viewership and the increasing fragmentation of audiences across digital and streaming platforms—can you clarify whether this qualification is a strict requirement or if alternative media experience with comparable reach and effectiveness would be considered?

State’s Response: This is a strict requirement.

Q41. Additionally, given that many platforms impose restrictions on lottery advertising, how is the state evaluating the most effective media mix moving forward to ensure broad audience engagement, rather than defaulting to historical spending patterns? This would seem critical to maintaining relevance and maximizing return on investment for lottery marketing efforts.

State’s Response: See the State’s Response to Question #10.

Q42. Given the incumbent’s long-standing relationship with the lottery, can you share any insights into how the selection process will ensure a fresh perspective in media strategy while maintaining continuity?

State’s Response: Offerors will be evaluated as listed in Section VI.

Q43. What data assets does the lottery have access to, and how are those currently being leveraged for media planning and audience segmentation? Would there be an opportunity for the selected agency to help enhance data strategies – such as CRM integration, anonymized ticket buyer insights, or location-based targeting – to improve precision in media investments?

State’s Response: See the State’s Response to Questions #1 and #10.

Q44. The RFP outlines a commission cap of 3%, which is relatively lean for a media-only scope of this size, particularly given the strategic planning, reporting, and ongoing optimization required to effectively manage a $10M investment. Can you confirm whether there is flexibility in how media services are structured and compensated – especially in cases where media planning and buying are separate from creative and production?

State’s Response: See the State’s Response to Questions #13 and #14.

Q44 a. Additionally, if the media scope remains distinct from production, would the state be open to reviewing alternative compensation models that ensure the necessary resources and strategic oversight are in place to drive optimal results?

State’s Response: No, the State is currently not open to reviewing alternative compensation models.

Q45. Beyond standard dashboard reporting, how does the state currently evaluate media performance at a granular level—such as audience engagement, regional impact, and cross-channel attribution? Would there be an opportunity for the selected agency to enhance the depth of reporting and analysis to ensure optimization efforts are aligned with key business objectives and revenue impact?

State’s Response: See the State’s Response to Questions #10 and #17.

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