What Happened?
Philadelphia is moving forward with a deal to generate revenue from bus shelter advertisements, while Atlanta is considering adding ads on different public assets such as parks and vehicles.
Philadelphia
The Philadelphia City Council is reviewing a plan to double the number of bus shelters available throughout the city, as well as make improvements to existing shelters. The city would renovate 300 bus shelters, while adding another 300 along public transit routes, CBS Local reported.
The proposal calls for a 20-year contract with an advertising company that will invest $12 million on building new bus shelters. All the revenue generated from ads on these shelters will be split between the advertising company and Philadelphia.
Philadelphia is guaranteed $52 million in minimum payments from the advertising company, with an expected $47 million coming from overage payments. That would generate $100 million over the course of the 20-year contract, CBS Local reported.
While the contract would raise city funds, those in opposition would like to see more modern bus shelters come out of the agreement. For example, Microsoft recently launched a new bus shelter design that features augmented reality technology to engage pedestrians in the digital environment of the company’s latest video game.
Ad Week reported bus stops in San Francisco, London and Melbourne are equipped with digital screens that make it possible for public transit riders to feel as if they are playing the game. The bus shelters are complimented by other innovative ads in public spaces such as a giant crate people can walk into in New York City outfitted with augmented reality screens for an immersive advertising experience.
Atlanta
Atlanta officials are reaching out to private businesses to gauge interest in placing advertisements on public assets throughout the city such as buildings, parks, vehicles and services. Atlanta wants to raise up to $5 million annually through the public space advertisements to help pay for a $250 million infrastructure bond package, CL Atlanta reported.
In addition, the city believes many public agencies could benefit from the selling of ads in the public space by gaining an additional resources through the agreements. If the city were able to sell ad space in public parks or recreational facilities, for example, the parks and recreation department could gain free, sponsored signs and tools, CL Atlanta reported.
Grenoble
Not all cities are embracing ads in the public space. In Grenoble, France, the mayor recently banned commercial street ads from public spaces, promising to take down 326 outdoor advertisements and billboards, The Telegraph reported.
Instead of maintaining its contract with the world’s largest outdoor advertising company, Grenoble will free up public space for projects of public expression. The city will plant 50 trees where advertisements once stood, as well as offer free, blank canvases for local cultural and social groups to use for advertising and raising awareness, The Telegraph reported.
The city will maintain its contract with the advertising firm for bus stop advertisements through 2019. In ending the contracts, the city stands to lose about $741,000 in annual revenue, The Telegraph reported.
Finding New Revenue Sources
Gov1 has reported on a variety of municipal financing projects that go beyond bus shelters and sell private sector sponsorships to generate millions in funding.