MTA Issues RFP for Advertising Concessions
Adrian J Cotterill, Editor-in-Chief
The Metropolitan Transportation Authority (MTA) has just announced the release of a Request for Proposals (RFP) for media firms interested in the right to advertise in subways, buses and commuter railroads, including concessions for traditional and digital advertising throughout the entire MTA rail and bus network.
In addition to managing the MTA’s advertising portfolio, the RFP calls for the winning firm to create a robust network of digital screens to be placed in stations, on platforms, and in buses and train cars. This new network would serve as an additional platform for revenue generating advertising, while at the same time giving the MTA additional ways to communicate next train/bus, track information, service status and planned service changes to consumers, all at no cost to the riding public.
MTA Chairman and CEO Thomas F. Pendergast told us “We are dedicated to leveraging technology to improve the system. The creation of a new network of digital screens will give us an additional way to generate ad dollars for the MTA, as well as new ways to reach our customers with travel updates and information. The fact that we will have Wi-Fi connectivity in all underground subway stations by the end of 2016 will also make it possible for the winning advertising concessionaires to integrate their mobile and digital screen advertising strategies, resulting in a better, and much more powerful, platform.”
More than 8.7 million people take MTA trains, buses and subways in a 5,000 square mile area encompassing New York City, Long Island, and other parts of New York State and Connecticut. In 2015, ridership hit record levels across all agencies, with New York City Transit breaking a modern subway ridership record of 6.2 million customers in October 2015. Ridership is expected to increase as the NYC Transit prepares to open a new subway line on Second Avenue and as commercial and residential developments continue to grow amid a strengthening economy.
The current advertising licenses have generated hundreds of millions of dollars for the MTA’s operating budget, money that defrays operating costs and helps keep future fare increases to the rate of inflation. In 2015, the MTA received USD 158 million in advertising revenue, with approximately 20 percent coming from digital advertising. That number is expected to grow as more digital screens are deployed, including on NYC Transit’s bus and subway car fleet and new technology is deployed enabling advertisers to target their ads to specific viewers. The MTA anticipates digital advertising at all new subway stations, such as those under construction for the Second Avenue Subway, which will have the ability to accommodate screen installations. Digital screens are already in place at 34 St-Hudson Yards and Fulton Center.
The MTA RFP seeks proposal for three separate concessions: subway, commuter railroad, and bus including some Access-A-Ride vehicles. Proposers will be able to propose on one, two or all three concessions.
Outfront Media currently holds all three concessions, which are due to expire at the end of 2016. The terms of the new licenses are for 10 years, with an option for the MTA to extend the length by five more years.
The new concessions will commence January 1, 2017.
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