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BOARD APPROVES CONTRACT TO GENERATE $40 MILLION IN ADVERTISING REVENUE
Non-Farebox Revenue Funds Operating Costs
NJ TRANSIT’s Board of Directors today approved two advertising agreements that will generate a minimal $40 million over the next five years, with the potential for substantially more revenue during the life of the contracts.
The Board approved a contract with Titan Outdoor of New York, N.Y., for bus, rail and light rail advertising. The company guaranteed $29.65 million and $2 million in media barter for five years; All-Vision of East Windsor, Conn., was awarded the contract for billboard management with a minimum guarantee of $8 million over five years to NJ TRANSIT, with the potential for more than $2 million in additional revenues from innovative commercial strategies.
“This is about maximizing resources in a time when resources are limited,” said NJ DOT Commissioner and NJ TRANSIT Board Chairman Jack Lettiere. “It’s also about continuing to look for innovative financing to help offset costs to maintain and build a strong transportation network for the residents of New Jersey.”
“Together with smart commercial partners, we are leveraging our real estate asset to increase non-farebox revenues that support our core business,” said NJ TRANSIT Executive Director George D. Warrington. “This is a good business deal for NJ TRANSIT that will increase the amount of revenue we generate through advertising on our property.”
Historically, a single contractor represented NJ TRANSIT in the sale of all revenue-generating space. However, the Corporation solicited proposals that allowed contractors to vie for different elements to promote competition and encourage new advertising forms such as station domination programs, full and partial vehicle wraps and street furniture programs.
In the past, NJ TRANSIT has provided an impressive portfolio of space that includes:
- 2,100 buses (interior bus cards, exterior tails and sides)
- 845 rail cars (4,200 interior frames)
- 65 light rail vehicles (300 interior frames)
- 2,200 rail station and platform posters
- 30 bridges with advertising
- 451 billboards on right-of-way
- 67 painted bulletins
- 186 poster panels
- 198 junior panels
NJ TRANSIT is the nation's largest statewide public transportation system providing bus, rail and light rail services for 752,600 daily trips on 238 bus routes, three light rail lines and 11 commuter rail lines. It is the third largest transit system in the country with 162 rail stations, 49 light rail stations and more than 17,000 bus stops linking major points in New Jersey, New York and Philadelphia.