The murky business of marketing money

By Georgina Scambler

The City of Melbourne has promised Docklands millions of dollars for marketing since 2007 – but have we been short-changed?

According to Docklands Co-ordination Committee’s Finance and Infrastructure Plan 2011-12 Financial Report, $857,500 was budgeted for marketing expenses in the last financial year.

However, last financial year only $652,388 was spent, a variation of over $205,000.

A City of Melbourne spokesperson was unable to specify exactly what happened to the $205,000 budgeted for marketing in Docklands that was unspent.

“Rather than being rolled over, funds allocated to ‘marketing’ may be spent on events or sponsorship, and this alters the figures set out in the forward estimates,” she said.

The spokesperson said the city recognised that Docklands was an emerging and growing precinct, and was committed to promoting Docklands.

“$1.29 million was provided in funding for Docklands events and sponsorship in the last financial year,” she said.

“A further $400,000 – 30 per cent of the City of Melbourne’s marketing budget – was invested in destination marketing for Docklands.”

The Lord Mayor, Cr Robert Doyle, incorrectly stated to Docklands stakeholders at a networking function last month that the council spent $1.3 million annually on Docklands marketing.

The City of Melbourne was also asked why its 2012 financial planning showed $371,000 less for Docklands marketing in 2012-13 than its 2011 plan.

The September, 2011 Five-Year Plan projected $894,000 in marketing expenses for the 2012-13 financial year, but by September 2012 the projection for the same period was $523,000.

The council explained that marketing was categorised in budgeting and projections in different ways, with distinctions made between destination marketing and events marketing.

“Funding to Destination Docklands has increased this year, from $50,000 to $200,000 to support new marketing and events programs,” the council spokesperson said.

She said that, in addition to the marketing budget, the council had provided $1.29 million in event funding and sponsorship for Docklands.

“This includes the annual winter fireworks held on Friday nights throughout July,” she said.

“The cost of the July winter fireworks and the related marketing cost sits outside the destination marketing budget.”

The council declined to provide an itemised account of expenditure on marketing and events.