R&R Partners is expected to hold onto the lucrative Vegas tourism account after a lengthy review, but the shop will have to share it for the first time since first taking it on some four decades ago. WPP’s Grey is expected to handle the social media portion of the account, as the Las Vegas Convention and Visitors Authority looks beyond its hometown for agency help.
The agency selections are spelled out in the agenda for the authority’s board of directors meeting slated for Tuesday morning. The staff recommends the board sign a four-year deal with R&R, with an optional two-year extension, “in an amount not to exceed $500 million, inclusive of R&R’s services fees (agency compensation), content creation costs, and media purchases.”
Grey is recommended as the “social brand agency” with a two-year contract and optional two-year extension “in an amount not to exceed $160 million.”
Both shops are eligible for 10% yearly annual raises “based on market conditions.” The authority is also poised to hire Heart + Mind Strategies for consumer research and ad testing in a contract worth $2.5 million, according to the agenda.
The authority did not immediately respond to requests for comment from Ad Age. Grey and R&R declined comment.
The Las Vegas Review-Journal, which first reported the news, quoted LVCVA President and CEO Steve Hill as saying: “Our destination is complex and multifaceted, with both business and leisure travelers playing critical roles in filling rooms and venues. Our agencies need to understand what moves these travelers anticipate what is around the corner, and market our destination to incredibly diverse audiences around the globe. R&R continues to demonstrate their unparalleled ability to do just that, and the addition of Grey will complement our existing partnership and bring additional world-class talent to our team.”
R&R, run by longtime Vegas power broker Billy Vassiliadis, has had a stranglehold on the account for decades but was forced to fight for it when the authority put it in review under a new leadership regime that includes Chief Marketing Officer Kate Wik, who joined the authority after a lengthy stint at MGM. The review restarted in January after it was paused during the pandemic.
R&R is behind the iconic tagline, “What Happens Here, Stays Here,” which debuted in 2003. The shop also handled the revised line “What Happens Here, Only Happens Here,” which was released in January 2020 in a nod to the idea that nothing is truly secret in the social media age.
A few months later, Vegas, like all tourist destinations, was dealt a major blow by the pandemic. R&R and Grey will undoubtedly be called on to help the Strip surge back. Vegas is already enjoying some momentum: UNLV’s Center for Business and Economic Research projects that visitor volume will rise 57% this year, following a 55% drop last year, the Review-Journal recently reported.
