Is transit ready to solve its
revenue challenges?
ON-BOARD INFOTAINMENT SYSTEMS CAN SERVE UP NEW FUNDING, IMPROVE
THE RIDERSHIP EXPERIENCE, AND ENGAGE RIDERS LIKE NEVER BEFORE.
platform that delivers both crucial and
entertaining information to travelers via
existing or new-installs of high-defi nition
digital displays. Th e implementation of
an infotainment system helps agencies
leverage captive “eyeballs” in ways that
improve the rider experience and can
generate a potentially huge revenue stream
through the sales of advertising or other
content.
ALERT: Expect construction delays between Franklin and Pierc
Advancements in mobile
data delivery has opened
a substantial opportunity
for transit agencies to
improve the overall
transit experience, attract
riders, and create a new revenue stream
to help supplement operations, improve
service to core constituents, and support
area business.
It’s no secret that revenue and funding
represent two persistent issues for transit
agencies across the country. Ridership is
down in most major cities and fares are on
the rise. Mass transit operators are caught
in a diffi cult position as they know the
demographics of their riders skew toward
lower income households with 65.7 percent
earning under 50,000 per year. Rising
costs seem at odds with an industry whose
primary users are those of limited fi nancial
means.
Modern intelligent transit systems (ITS)
go a long way in optimizing the operations
and effi ciency of mass transportation
operations. Th ey can streamline routes.
Data collected from these systems can
help identify obsolete stops, save on fuel
expenses, and identify passenger behavior.
While these systems can help skinny up
the bottom line, they don’t provide a new
pathway to increased revenue.
For that, you need advertising.
Placing ads on mass transit vehicles
isn’t a new concept. We’re all familiar with
big printed signs plastered on the sides of
the local bus, or larger-than-life posters
displayed at stops. But print is very 20th
century, and our society is very high-tech—
and very connected.
Th at’s where on-board and at-station
infotainment systems come into play.
If you’re not familiar with the concept,
infotainment provides a multimedia
An infotainment display can provide
riders with system alerts and update, and
other useful information such as weather
forecasts, recorded local news broadcasts,
or GPS- or time-triggered advertising.
For example, the Metro in Washington,
D.C. is expected to earn over $20 million
in advertising revenue this year. It’s high
defi nition display outperform static,
printed ads by 400% (Klein, 2017).
In the Minneapolis/St. Paul, Minnesota,
their Metro Transit operations will see 65
percent of its revenue come from just 38
4 | 2018 Rail Product Guide | ADVERTORIAL | JUNE 2018
displays at two stations (Klein, 2017).
Th e presence of digital displays provides
greater inventory than traditional static,
printed placards. Th is means that more ads
can be sold on vehicles and transit stations,
which translates into a greater opportunity
for higher advertising revenue. Pair this
with the GPS-enabled features of an ITS
and transit agencies can pair placement
with timing by triggering ads to run as
specifi c locations or times, such as when
the bus passes right next to a participating
store or restaurant.
Th e size of a transit agency is of little
concern. Even small, fi ve to 10 bus service
can benefi t from incorporating these
systems on their vehicles. A common
concern is going to be bandwidth; large
transit agencies have larger budgets and can
devote resources to selling space on their
vehicles. Smaller agencies however, have
minimal staffi ng and certainly very little
time to devote to advertising sales.
“Partnerships are extremely important,
especially for the smaller agencies,” adds
Maglio. “Many billboard companies
such as Comcast or Lamar may be ideal
candidates to sell into your available
inventory, as will local advertising agencies.
Making these places aware of the existence
of these systems makes generating revenue
far easier.”
Infotainment systems can inject critical
new funding into any transit operation while
increasing brand value and improving the
overall ridership experience. “It certainly
makes for a more enjoyable ride and aff ords
the transit agencies the resources to make
signifi cant investments into other areas of
their operations,” concludes Maglio.
Contact ETA Transit for your free demo of
its SPOT ITS by calling (719) 453-0250 or
at etatransit.com.
Rich-media LCD screens can provide service updates,
engage riders with fresh content like news, weather, and
sports (top), and deliver new revenue through static or
GPS-targeted multimedia advertising (bottom).
1 Klein, K. (2017, May 15). Advertising Supports Transit. Retrieved from Huffi ngton Post: http://www.huffi ngtonpost.com/entry/advertising-supports-transit_us_5919cb77e4b03e1c81b00768
2 American Public Transportation Association. (2007). A Profi le of Public Transportation Passenger Demographics and Traveler Characteristics Reported in On-Board Surveys. Washington, DC: American Public Transportation Association.
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