Home MTA Economics MTA considering Sponsor-a-Station ad program

MTA considering Sponsor-a-Station ad program

by Benjamin Kabak

During the hullabaloo over the fully-wrapped Shuttle last week, MTA CEO and Executive Director sneaked in an interesting tidbit about the agency’s future advertising plans. According to the MTA head honcho, the agency is seriously considering offering up station sponsorship packages to willing advertisers.

Pete Donohue of The Daily News reported this development late last week:

MTA CEO Elliot Sander said the MTA is mulling the “complicated issue” of having corporations “adopt” or sponsor subway stations for a price.

“It’s something we are looking at potentially for the future,” Sander said. “It’s incumbent on the MTA to look at all possible avenues to increase revenues given the financial challenges we have.”

In the past, transit officials have described station adoption as an arrangement that could involve granting a corporation certain exclusive rights, like controlling ads there.

This is not a new idea. In fact, I first suggested this rather unoriginal idea back in July of 2007, and I will stand by my words. The subways have never been a pristine, ad-free environment. In fact, from the day the IRT first opened in 1904, the walls were adorned with ads. Even then, the system’s operators knew that fare revenue alone would not sustain the system.

Today, this idea makes even more sense. The MTA could sell high-traffic stations to top corporate clients who would then be free to brand the stations, respectfully, as they see fit. Not every space of wall needs to have a Disney ad at Times Square, but if every ad in the station were a Disney ad, the MTA could stand to draw in a pretty penny. The issue of naming rights, of course, opens up a whole different can of worms.

Advertising, of course, is but one way the MTA could start licensing aspects of their stations. A few months ago, the NYC Transit Riders Council suggested a modified adopt-a-station program. While the MTA shouldn’t necessarily outsourcing station maintenance programs, the agency needs the money. It might not be pretty; some people might complain; but, as they say, money is money. If it takes some more advertising, I won’t complain.

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4 comments

Peter October 6, 2008 - 8:35 am

Potential Daily News Headlines:

4 KILLED IN STARBUCKS
STATION MAYHEM

TRAIN DERAILS AT MACYS STATION

GREASE FIRE INFERNO AT
BURGER KING STATION

There may be an upside, but the downside will likely keep any stations from becoming totally branded, other than things like Times Square, 161-Yankee Stadium, and suchlike.
Besides, the revenue will be modest compared to what advertisers will want – and will likely be able to squeeze out of the MTA and its riders.

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SUBWAYblogger October 6, 2008 - 10:38 am

They should have adopted this a long time ago. Clearly, they are in a dire need of cash. People will live with the ads if it means no extra $$$ out of their own pockets. I think it is a great idea.

And they can be quite entertaining. Like when Bravo took over the Grand Central Shuttle platform for the Top Design show.

One thing to keep in mind though, it will never be the MTA selling any of this. They will simply allow CBS Outdoor to sell the sponsorships, of which they will take a cut. So it would be interesting to know what CBS Outdoor thinks of the possibility.

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Ray October 6, 2008 - 9:36 pm

Great thinking. Not going far enough.

Major stations should be exploited to qualified private developers.

Imagine what the space in the concourses of Herald Square, Times Square and Union Square stations are worth!

System wide, there must be a hundred million $ in potential rent that could be collected.

And we’d win – services, lighting, flooring, air conditioning, security.

Commercial leasing is a successful and established business – its easily launched and managed.

Penn Station is booming.

Why is this so hard to figure out?

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Ryan OHoro October 13, 2008 - 8:42 am

Again I have to express my disdain for the “compromise” of advertising. The 7 train is getting hideous. Ads on the outside, ads on the ceilings. Good lord. Can’t I have a moment of visual peace on my commute? I noticed the gargantuan Gillette ads they placed on the elevated platforms at 33rd St were destroyed and have not returned.

Where do I send my donation to the reduce visual pollution fund?

I’ll pay double to not see anything but the standard strip ads on trains.

Why should the MTA be forced to plaster everything with advertising? Where the HELL are the government subsidies? Am I the only one in this city who wants a fare hike and low income rider discounts!?

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