Practical Measures to Increase Transit Industry Advertising Revenues

Practical Measures to Increase Transit Advertising Revenues provides strategies to significantly increase transit's share of total advertising expenditures. The report describes advertising decision makers' perceptions about transit advertising products (current and future products) and includes a strategic responsive communications plan and recommendations to improve those perceptions and increase transit revenue. This report will be helpful to transit agencies, transit marketers, transit advertising sales organizations, media planners, media buyers, and advertisers. Recent trends in the advertising industry have weakened traditional advertising media. Television advertising, in particular, which has long dominated national advertising sales, faces both media fragmentation due to a mushrooming spectrum of cable and satellite channels and commercial-skipping technologies such as TiVo. These trends tend to decrease the attractiveness of TV as a medium for advertisers. In this context, transit advertising stands out as one of the last truly affordable mass media. Advertisements on transit cannot be turned off, deleted, fast forwarded, or easily ignored. With more than 370,000 bus; 13,000 subway and rail; and 32,000 shelter and kiosk displays; transit advertising can deliver an advertiser's message on a local, regional, and national stage. Transit advertising can also be targeted geographically to allow for ad message customization along demographic and psychographic lines. Transit offers various advertising products that can target nearly any segment of metropolitan populations, including bus riders, train riders, and motorists and pedestrians (via advertising on the outside of transit vehicles and facilities). In addition, transit increasingly uses new media and technologies that may offer additional opportunities for advertisers. Sale of advertising in public transit facilities and vehicles is a nearly $1 billion industry generating approximately $500 million annually to transit agencies. Yet transit advertising revenue was less than one-half of 1% of total U.S. advertising expenditures in 2003. The other 99.5% of advertising revenues went to television, radio, billboards, the Internet, newspapers, magazines, and other media. The American Public Transportation Association (APTA), as a service to its transit agency members, has an objective to boost transit's share of national advertising expenditures. This self-help, revenue-generating strategy is one of several to enable the transit industry to keep fares down and sustain service to its customers. Research is needed to understand the viewpoints of advertising decision makers and identify ways to influence them to purchase more transit advertising. Each additional tenth of 1 percent of advertising market share will generate upwards of $125 million in annual revenue to transit agencies. The objective of this project is to recommend strategies to increase transit's share of total advertising expenditures to at least 1% of the advertising industry total. The research will be designed to (1) understand advertising decision makers' perceptions about transit advertising products (current and future products) and (2) develop a strategic responsive communications plan and recommendations to improve those perceptions and increase revenue.

Language

  • English

Project

  • Status: Completed
  • Funding: $285000.00
  • Contract Numbers:

    Project B-33

  • Sponsor Organizations:

    Federal Transit Administration

    1200 New Jersey Avenue, SE
    Washington, DC  United States  20590

    Transit Cooperative Research Program

    Transportation Research Board
    500 Fifth Street, NW
    Washington, DC    20001
  • Project Managers:

    Chisholm-Smith, Gwen

  • Performing Organizations:

    Denneen & Company, Incorporated

    ,    
  • Principal Investigators:

    Alpers, Jane

  • Start Date: 20070319
  • Expected Completion Date: 0
  • Actual Completion Date: 20090228
  • Source Data: RiP Project 11725

Subject/Index Terms

Filing Info

  • Accession Number: 01462950
  • Record Type: Research project
  • Source Agency: Transit Cooperative Research Program
  • Contract Numbers: Project B-33
  • Files: RiP, USDOT
  • Created Date: Jan 3 2013 2:13PM