Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
NOVEMBER 21, 2024
Subject
SUBJECT: ADVERTISING POLICY REVISIONS
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
CONSIDER:
A. ADOPTING the amended System Advertising Policy (Attachment A); and
B. ADOPTING the amended Commercial Sponsorship and Adoption Policy (Attachment B).
Issue
ISSUE
To expand and expedite potential advertising and sponsorship revenues immediately, Metro can amend two policies governing advertising revenue programs: 1) the System Advertising Policy - focusing on content restrictions and 2) Commercial Sponsorship and Adoption Policy - focusing on duration restrictions. As the policies are solely managed by Metro, these revisions can be executed within three months from Board adoption and will afford immediate opportunities in increased advertising revenues.
Background
BACKGROUND
On March 29, 2024, a Special Board Budget Workshop was held to provide the Board a comprehensive analysis of the projected financial outlook and a detailed assessment of the economic conditions in LA County that would impact Metro's operational program delivery. Staff presented cost growth drivers in Metro transit operations, infrastructure construction risks, capital program expansion, and other programs. Staff also presented alternatives to address increasing budget costs including opportunities in advertising, sponsorships, and beyond. Two potential policy revisions were identified that could generate additional revenues: the current System Advertising and Commercial Sponsorship and Adoption Policy.
Metro's initial advertising policy was adopted in 2000, and at that time its scope was limited to Metro's bus fleet. The policy was revised several times thereafter to include additional assets:
2005 - Include rapid transit bus vehicles
2008 - Include trains and stations
2017 - Include Orange Line bus vehicles
As a result of those revisions, Metro's advertising polic...
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