Arizona Lottery officials asking for an increase in advertising, marketing funds

PHOENIX — If the officials who run the Arizona Lottery get their way, you’ll be hearing more about their games. The state lottery wants to spend more of its revenue on marketing and advertising.

According to its five-year strategic plan, the lottery saw a 7 percent revenue increase in the 2013 fiscal year. It generated nearly $700 million during that time; of that amount, nearly $177 million went to public funds and the state legislature.

To meet demand from government groups and funds, lottery officials said lawmakers should allow it to increase its marketing and advertising budget by at least 10 percent a year. State law caps the amount the program can currently spend.

Officials are also concerned about future sales growth. They said instant ticket sales are considered the best predictor of baseline sales trends decreasing from fiscal year 2010 through 2013, with a further drop expected in fiscal year 2014.

To maintain current sales levels, the plan says:

• The lottery will continue to develop and execute an expanded digital strategy to become a more relevant product and brand in the Arizona market.

• The lottery will grow its customer base in the emerging market by building awareness, trust and engagement. For example, it will build the public’s awareness of the value of lottery funding to the state through a “How the Money Helps” campaign.

• The lottery will seek legislative approval of at least a 10 percent increase in the advertising and marketing component of the its budget. This rate of growth would help keep up with increasing costs as described above.

The strategic plan calls for more focus on 21- to 40-year-olds, especially in trying to reach potential and current players through tablets, computers and smartphones.

Click here to see the full plan and a breakdown of where lottery revenue goes.