May 17, 2012 Lottery Marketing & Incentive Pay: Jackpot and Economy, Not Advertising or Beneficiary Change, Appeared to Impact Ticket Sales Peter Heineccius.

Slides:

Advertisements

Similar presentations

City of Kalamazoo Early Retirement Incentive (ERI) 2011.

Advertisements

Slide 1 Insert your own content. Slide 2 Insert your own content.

Cost Accounting: Information for Decision Making

Win Big AddingSubtractEven/Odd Rounding Patterns Q $100 Q $200 Q $300 Q $400 Q $500 Q $100 Q $200 Q $300 Q $400 Q $500 Last Chance.

K A I S E R C O M M I S S I O N O N Medicaid and the Uninsured Figure 0 From Crunch to Crisis: State Budgets, Medicaid and the Economy Robin Rudowitz Associate.

February 16, 2014Ministry of Regional Development - 2 Mid-term assessment of information and publicity measures Commission Regulation (EC) No 1828/2006.

Jeopardy Q 1 Q 6 Q 11 Q 16 Q 21 Q 2 Q 7 Q 12 Q 17 Q 22 Q 3 Q 8 Q 13

Jeopardy Q 1 Q 6 Q 11 Q 16 Q 21 Q 2 Q 7 Q 12 Q 17 Q 22 Q 3 Q 8 Q 13

A Report on Tennessee Lottery Revenues, Expenses, and Net Lottery Proceeds Presented to: The Fiscal Review Committee Presented by: Robert N. Currey Tuesday,

Tennessee Higher Education Commission Higher Education Recommendations & Finance Overview November 15, 2012.

Creating a Policy Framework and FY14 Proposed Budget Presentation to the EEC Board October 16, 2012.

1 GET SET FOR © 2010 by ACT, Inc. All rights reserved. College.

MULT. INTEGERS 1. IF THE SIGNS ARE THE SAME THE ANSWER IS POSITIVE 2. IF THE SIGNS ARE DIFFERENT THE ANSWER IS NEGATIVE.

£1 Million £500,000 £250,000 £125,000 £64,000 £32,000 £16,000 £8,000 £4,000 £2,000 £1,000 £500 £300 £200 £100 Welcome.

April 23, 2014 Sunset Review of Alternative Process for UW Medical Facility Construction Projects Proposed Scope & Objectives Mark Fleming, JLARC Staff.

Construction Engineering 221

SUPPLEMENTAL LEVY ELECTION TUESDAY, MAY 17, 2011 Joint School District No. 2.

ACCREDITATION Community Day February 1, Significance of Accreditation Accreditation – Accreditation – Allows the students at KC to apply for Federal.

Highway Maintenance and Preservation Needs

Stormwater Permit Requirements at the Department of Transportation Proposed Final Report Joint Legislative Audit & Review Committee January 5, 2011 Stephanie.

February 20, 2013 Puget Sound Partnerships 2012 Action Agenda Update: Revised Approach Continues to Lack Key Accountability Tools Envisioned in Statute.

$100 $200 $300 $400 $100 $200 $300 $400 $100 $200 $300 $400 $100 $200 $300 $400 $100 $200 $300 $400.

California Competes Tax Credit Workshop Presented by: Grace Arupo-Rodriguez, Deputy Director of Legal Affairs for GO-Biz Will Koch, Deputy Director of.

Manufacturing Innovation Sunset Review: Proposed Final Report Joint Legislative Audit & Review Committee December 1, 2011 John Woolley, JLARC Staff Legislature.

The Croydon Monitoring Report Homes December 2012.

1 Contract Costing Every clause in a contract, regardless of whether it applies to economic or non- economic issues, can have cost implications. However,

NIH RESEARCH CONTRACTS

Property Management Contract Oversight VDOTs Outsourced Safety Rest Area Program November 15, 2013 Maintenance Division.

Lecture 10 – academic year 2013/14 Introduction to Economics Fabio Landini Macroeconomic Aggregates: Exercises and Applications 1.

Effective Rate of Protection

GSA Federal Supply Service DOING BUSINESS WITH GSA.

DNR Helicopter Use and Cost Proposed Final Report Joint Legislative Audit & Review Committee January 5, 2011 John Bowden, JLARC Staff.

State Ferry Terminals: Procedures to Account for and Request Capital Funds Have Improved, but Additional Actions Are Needed Joint Legislative Audit & Review.

How Using ARL Statistics Helped Get Us More Money! Steve Hiller University of Washington Libraries June 25, 2010.

Developmental Disabilities Employment and Day Services Proposed Final Report Joint Legislative Audit & Review Committee October 20, 2010 Elisabeth Donner,

FY Enacted State Budget and November Forecast Update Brent Gustafson Senate Counsel, Research & Fiscal Analysis January 31, 2012.

1 FY10 ACS Methods Panel Update Jennifer Guarino Tancreto Chief, ACS Data Collection Methods Staff Decennial Statistical Studies Division Presentation.

A Key to Economic Analysis

Accuracy of Capital Project Cost Estimates Proposed Final Report Joint Legislative Audit & Review Committee September 23, 2009 Mark Fleming, JLARC Staff.

FY 15 Salary Proposal Budget Commission Meeting April 17, 2014.

Superintendent’s Proposed FY 2013 – FY 2022 Capital Improvement Plan May 10, 2012.

1 Town of Colchester FY 12 Budget. 2 Current Financial Challenges Vermont and the nation are coming out of a recession Expenses rarely go down.

City Council Meeting Agenda Items October 28, 2013.

Strategy Review Meeting Strategy Review Meeting

FY 2010 School District Funding Chuck Essigs AASBO.

CREATING GREAT OPTIONS FY 2012 SLPS BUDGET Revised for Approval May 26, 2011.

Addition 1’s to 20.

25 seconds left…...

Apprenticeship Grant for Employers of 16 to 24 year olds (AGE 16 to 24) Employer Update Presented by DMT Business Services.

GVSD & GVTA EDUCATION FINANCE PRESENTATION J ANUARY 10, 2013 P REPARED BY : J OEL J. S WAAN, B.E D, B.M US E D. F INANCE R EP., GVTA.

1 Atlantic Annual Viewing Trends Adults 35-54, Total TV, By Daypart Average Minute Audience (000) Average Weekly Reach (%) Average Weekly Hours Viewed.

11 = This is the fact family. You say: 8+3=11 and 3+8=11

High Performance Public Buildings Proposed Final Report Joint Legislative Audit & Review Committee June 23, 2011 Mark Fleming, JLARC Staff.

Flexible Budgets and Performance Analysis

Workshop for ‘Learning for Living and Work’ Summer Conference

1 Unit 1 Kinematics Chapter 1 Day

HB 1048 / SB 518 Adjustments for Local Programs May 13, 2014 Jennifer B. DeBruhl Director, Local Assistance Division.

Presentation Capital Projects Funds Note - This presentation and other budget documents are available on the District’s website 1.

Russell Allen, Business Director Randy Lary, Human Resources Dir.

December 10, 2014 The Legislature Should Reauthorize the UW Medical Construction Contractor Alternative Process Because Timeliness and Quality Have Improved.

Tax Preference Performance Review: Beef Processors Proposed Final Report Joint Legislative Audit & Review Committee March 21, 2007 Lizbeth Martin-Mahar.

August 2011 Office of the State Auditor 1.  Analysis and ratios  Roles of the OSA and CDE  Trends and evaluation of ratios  Factors that impacted.

Washington State Auditor’s Office Troy Kelley Independence Respect Integrity 2014 Performance Audit Progress Report Joint Legislative Audit and Review.

Mid-Year Budget Issues and Decisions Presented by Chris Straub.

Local Housing Assistance Plan Amendment State Fiscal Years Board of County Commissioners August 5, 2014.

Motion Picture Competitiveness Program Proposed Final Report Joint Legislative Audit & Review Committee December 1, 2010 Stacia Hollar, JLARC Staff.

K-12 Pupil Transportation Funding Study Proposed Final Report Fara Daun & Stephanie Hoffman Joint Legislative Audit & Review Committee November 29, 2006.

Presentation transcript:

May 17, 2012 Lottery Marketing & Incentive Pay: Jackpot and Economy, Not Advertising or Beneficiary Change, Appeared to Impact Ticket Sales Peter Heineccius & Stephanie Hoffman, JLARC Staff Proposed Final Report

Lottery Generates $500 Million from Ticket Sales Each Year Lottery Marketing & Incentive Pay 2 Prizes $301 M State Programs (Beneficiaries) $124 M Admin & Operating $75 M 60% 25% 15% This revenue pays for: Source: JLARC analysis of Lottery data. E2SSB 6409 (2010) changed the primary beneficiary and initiated a JLARC study. Avg Annual Revenue (FY ): $500 M Report Page 1

Study Addresses Three Questions 1.To what extent has advertising impacted lottery ticket sales? 2.To what extent has the change in beneficiaries impacted lottery ticket sales? 3.What is Lotterys employee incentive payment program, and how do other state lotteries compare? Lottery Marketing & Incentive Pay 3 Report Page 2

To What Extent Has Advertising Impacted Lottery Ticket Sales? 1 1 Advertising Expenditures Did Not Appear to Increase Weekly Ticket Sales in the Biennium

Advertising Expenditures Did Not Appear to Increase Ticket Sales Lottery Marketing & Incentive Pay 5 Statistical analysis of data showed jackpot amount and economic conditions were highly predictive of sales. Actual SalesPredicted Sales Advertising expenditures had no apparent relationship to weekly ticket sales. Source: JLARC analysis of Lottery data. Report Pages 4-6

Further Analysis Needed to Understand Why There Was No Impact This analysis measured impact of advertising expenditures on weekly ticket sales. Does not identify why there was no relationship between advertising and sales. For example: Too much advertising? Too little? Ineffective content? Unresponsive public? Further analysis would be necessary to identify next steps to improve ad effectiveness. Lottery Marketing & Incentive Pay 6 Report Page 6

2 2 Beneficiary Change Did Not Appear to Increase Ticket Sales in FY 2011 To What Extent Has the Change in Beneficiaries Impacted Lottery Ticket Sales?

Avg Annual Revenue (FY ) Legislature Changed Primary Beneficiary of Lottery Revenue Lottery Marketing & Incentive Pay 8 Prizes $301 M Admin & Operating $75 M 60% 25% 15% State Programs (Beneficiaries) $124 M 80% School Construction Prior to FY 2011 Washington Opportunity Pathways Account Starting FY 2011 State Programs (Beneficiaries) $124 M Higher Ed Scholarships/Grants ECEAP (Early Childhood Education & Assistance Program) Report Page 7

Beneficiary Change Did Not Appear to Increase Ticket Sales Lottery Marketing & Incentive Pay 9 Report Pages 7-9 Actual SalesPredicted Sales Beneficiary Change Sales increased by over $19 million in FY 2011 compared to the prior year. However, this increase is consistent with JLARCs prediction of what sales would have been without the beneficiary change. Statistical analysis showed no relationship between ad campaign about new beneficiary and ticket sales.

3 3 Limited Program for Sales Staff That Is Similar to Other States What Is Lotterys Employee Incentive Payment Program, and How Do Other State Lotteries Compare?

Adds Current Incentive Pay Program Is Limited to 35 Sales Representatives Lottery Marketing & Incentive Pay 11 In FY 2011, awards: Based on exceeding ticket sale goals Totaled $233,000 Averaged $6,300 per sales representative In past, Lottery offered other types of monetary awards, but Legislature has suspended other awards until June 2013 Average Salary Low$2,500 25% 6% $42,400 Incentive Pay Avg$6,300 High$10,700 15% Report Page 11

Washingtons Incentive Pay Program Is Similar to Programs in Other States Ten of the 43 state lotteries answered JLARCs questions about incentive pay Like Washington, all ten respondents award incentive pay to sales representatives Like Washington, all ten respondents use ticket sales as a measure to award incentive pay Lottery Marketing & Incentive Pay 12 Report Pages 12-13

Study Answers Three Questions 1.To what extent has advertising impacted lottery ticket sales? Did not appear to impact sales. 2.To what extent has the change in beneficiaries impacted lottery ticket sales? Did not appear to impact sales. 3.What is Lotterys employee incentive payment program, and how do other state lotteries compare? Limited program, similar to other states. Lottery Marketing & Incentive Pay 13 Report Page 2

Recommendation for Further Analysis to Improve Ad Effectiveness Lottery Marketing & Incentive Pay 14 Recommendation: Washingtons Lottery should report to the Lottery Commission with a plan on how to evaluate and improve the effectiveness of its advertising budget in generating ticket sales. Lottery and OFM Concur Report Page 6

Contact Information 15 Peter Heineccius Stephanie Hoffman