From TransitWiki
Jump to navigation Jump to search

Areas for expanding knowledge -- Sirinyamatute (talk) 22:55, 16 April 2014 (MST)

Transit planners like myself and some of my friends end up handling transit advertising, a revenue generating avenue for which we have no experience. Fleshing out this page is critical. Why is transit advertising potentially important to an organization? Although the sum is usually some insignificant looking statistic, the revenue that a transit operator nets from their advertising sales program is completely discretionary and can be directed to the operator's area of greatest need. Funding from other sources is usually heavily restricted, and sometimes limited only to capital expenditures. Revenue from transit advertising, particularly for agencies located in major media markets like Los Angeles, New York, San Francisco, DC and Atlanta, can be particularly lucrative. How do transit agencies handle advertising? The vast majority of transit agencies contract out the sale of their space (both interior and exterior) to third party companies through the issuance of an RFP. The RFP usually stipulates that respondents must include one of both of these funding scenarios: fixed fee or commission based (at least 30 to 40% of total revenues). There has been a lot of consolidation in the industry. These are the major players I have uncovered in my research:

  • CBS Outdoor
  • Clear Channel
  • Titan Worldwide
  • Lamar Advertising

These entities have maintained in-house programs

  • Santa Monica Big Blue Bus
  • Madison, Wisconsin