UMGC’s ad spend raises questions

In a classic case of monkey see, monkey do, the University of Maryland Global Campus justified it’s new $245 million, three year advertising spend, by claiming that other online universities are spending even more money on advertising. And while the UMGC claims that these expenditures result in increased revenues and enrollments, UMGC has not produced any support for its claim. The Daily Record reports that these ad expenditures come at a time when staff is facing furloughs and pay cuts.

State Senator Clarence Lam questioned whether spending a quarter of $1 billion in this environment on advertising is the right thing to do, and he wanted to know whether UMGC and Maryland are getting value from these expenditures. We are with Senator Lam and raise the same questions. Perhaps even more importantly, he asks why there hasn’t been more discussion about UMGC’s business model and whether it should be so dependent on advertising spending. Again, we raise the same question.

While we understand that it’s not always a good thing for an outside body such as a legislature or a board of public works to interfere with another’s marketing efforts and decisions, here we must recognize that the nearly quarter of $1 billion UMGC has been authorized to spend is public money, raised largely through taxes imposed on Maryland citizens and businesses. These citizens and businesses through their elected representatives have every right to vet these expenditures so as to fully understand why they are intended to be made, the basis for the conclusions that they will drive revenue and enrollment and to what extent.

The governor and treasurer, sitting on the Board of Public Works, did not see fit to raise questions about these expenditures and the contracts with advertising agencies and others that UMGC would enter into. The comptroller was not present at this meeting. This approval by the Board occurred, incredibly, after UMGC was unable to document performance measures to demonstrate and determine whether the advertising even worked, and if it did to what extent. It is hard for us to imagine any credible advertiser failing to require that performance metrics be established, particularly when this amount of money is being spent. It’s never a good time to fly by the seat of the pants, but right now money is very dear in the Maryland budget.

UMGC President Gregory Fowler has told lawmakers that UMGC’s marketing efforts have contributed to significant increases in enrollment, but no proof of this has been offered. Nor has any evidence been presented as to why enrollments are up if in fact they are. With this very large sum of money being spent, the legislature should have demanded proof that the advertising campaign is responsible, and that revenue attributable to the campaign exceed the cost of the campaign. As should have the Board of Public Works. They should not serve as rubber stamps and their failures to ask questions and demand answers strike us as irresponsible.

And while we were at it, we also question whether Maryland tax dollars are being spent on Maryland advertising agencies or are those tax dollars being sent out of state where they will fail to support Maryland business efforts and jobs. We remind UMGC that there are many competent ad agencies located in Maryland.

Editorial Advisory Board Member Jeff Sovern did not participate in this opinion.

EDITORIAL ADVISORY BOARD MEMBERS

James B. Astrachan, Chair

James K. Archibald

Gary E. Bair

Arthur F. Fergenson

Nancy Forster

Susan Francis

Julie C. Janofsky

Ericka N. King

George Nilson

Catherine Curran O’Malley

Angela W. Russell

Debra G. Schubert

Jeff Sovern

H. Mark Stichel

The Daily Record Editorial Advisory Board is composed of members of the legal profession who serve voluntarily and are independent of The Daily Record. Through their ongoing exchange of views, members of the board attempt to develop consensus on issues of importance to the bench, bar and public. When their minds meet, unsigned opinions will result. When they differ, or if a conflict exists, majority views and the names of members who do not participate will appear. Members of the community are invited to contribute letters to the editor and/or columns about opinions expressed by the Editorial Advisory Board.