OCTOBER 10, 2017 | MassTransitmag.com | Mass Transit | Expo Daily | 17
dvancements 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 go a
long way in optimizing the operations and
efficiency of transit operations, including
streamlining routes. Data collected from
these systems can help identify obsolete
stops, save on fuel expenses and identify
passenger behavior. While these systems can
help the bottom line, they don’t provide a
new pathway to increased revenue.
For that, you need advertising.
Placing ads on transit vehicles isn’t a new
concept, with the big printed signs plastered
on the sides of the local bus, or larger-thanlife
posters displayed at stops. But print is
very 20th century, and society is very hightech
— and very connected.
That’s where on-board and at-station
infotainment systems come into play.
If you’re not familiar with the concept,
infotainment provides a multimedia platform
that delivers both crucial and entertaining
information to travelers via existing
or new-installs of high-definition digital
displays. The implementation of an infotainment
system helps agencies leverage a
captive audience in ways that improve the
rider experience and can generate a potentially
huge revenue stream through the sales
of advertising or other content.
Washington Metropolitan Area Transit
Authority in Washington, D.C., is expected
to earn more than $20 million in advertising
revenue this year. It’s high-definition
display outperforms static, printed ads by
400 percent.
In Minneapolis/St. Paul, Minnesota,
Metro Transit operations will see 65 percent
of its revenue come from just 38 displays at
two stations.
The presence of digital displays provides
greater inventory than traditional
static, printed placards. This 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 intelligent transportation system and
transit agencies can pair placement with
timing by triggering ads to run at specific
locations or times.
Getting Started
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. Many
billboard companies, such as Comcast or
Lamar, may be ideal candidates to sell into
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 affords
the transit agencies the
resources to make signifi cant
investments into other areas of
their operations.
Public Transit
is Ready
for Some
Screen Time
As technology advances, transit
agencies can expand onboard and
at-station infotainment systems,
generating revenue and increasing
rider enjoyment.
By Matt Schroeder A
INFOTAINMENT
An infotainment display can provide riders with system alerts and updates,
and other useful information, such as weather forecasts, recorded local news
broadcasts, or GPS- or time-triggered advertising.
ETA
» Visit ETA Transit Systems at booth 8007.
Matt Schroeder is the marketing
director for ETA Transit Systems.
