Ad Deal Will Net $80 Million For CTA

By Marcus Gilmer in News on Dec 9, 2009 10:40PM

A new deal that consolidates the CTA's advertising duties could help the agency garner at least $80 million in new revenue, according to Crain's. Titan Outdoor LLC will handle ad placement on buses, trains, and at train stations. Only bus shelters remain under the domain of another company (JC Decaux). Crain's reports:

Titan will pay the CTA at least $80 million for placing print advertisements, or between 62.5% and 63.5% of net print advertising revenue, whichever is higher.

The advertising firm will pay the transit agency at least $3.3 million for revenue generated from placing digital advertising, but only after Titan recoups the money it spends in buying and installing digital ad displays. There are currently 92 digital ad displays at 17 train stations and on 25 buses. In addition, the Red Line station at 47th Street has a digital ad panel and digital turnstile display.

The deal also has an allowance for five one-year "renewal periods" that could generate another $100+ million for the CTA. At least as long as Jim Hendry isn't allowed to have anything to do with the contract.