MTA: Color Trains Green As Ad Spots Hitch a Ride; Start With 'History' Shuttle
In the 1970s and early '80s, subway commuters rode in train cars covered with graffiti. In 2008, wall-to-wall artwork has returned in the form of high-priced advertising in an effort for the Metropolitan Transportation Authority to increase revenues in a time of an oppressive budget deficit.
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The Chief-Leader/Pat Arnow
CREATING A CASH LINE: The Metropolitan Transportation Authority believes that increased advertising on subways will help reduce its current budget deficit. Here, New York City Transit worker Marsha Durant looks over three cars of the Grand Central Shuttle, the first to features advertising on the entirety of the train's exterior and interior.
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Along with representatives of the History Channel, MTA Executive Director and CEO Elliot Sander Oct. 2 unveiled three cars on the Grand Central Shuttle that are completely wrapped inside and out with advertisements for the channel's "Cities of the Underworld" show for the entirety of this month.
Riding the IRT
There are also ads for the show on the stairway at Grand Central Station to the Shuttle as well as the turnstile arms. Ads will appear on small, exterior panels on 1, 3, 4 and 7 trains.
"If this trial is successful we will be able to sell all of these ad spaces as a special package that will command a premium price above standard advertising rates," Mr. Sander said. "These packages alone will generate an additional $1 million per year for the MTA."
The trial is part of a growing use of advertising at New York City Transit. The Shuttle tunnels will also feature video advertising displays next year. Advertising revenues increased from $38 million in 1997 to $106 million in 2007.
"The MTA will realize over $125 million in 2008 in advertising revenue," Mr. Sander said. "If we are able to pursue all of these new initiatives, we hope to grow this revenue by an additional 25 percent."
'Spare Fire Hikes, Service Cuts'
Mr. Sander said that a "prime motivation" for seeking more advertising revenue was to offset the possibility of fare increases, which was a part of his July budget proposal. His plan, which will be voted on by the MTA Board in December, also included asking for union givebacks.
"Certainly the objective of increasing revenue is to do precisely that, to reduce as much as possible potential fare increases or reductions in service," he said.
Gene Russianoff, the attorney for the Straphangers Campaign, said that he did not oppose the move to increase advertising presence in subways, citing the pressure to increase revenues.
"They have a very valuable market," he said in a phone interview. "I suppose if they had someone go on the train and start making announcements, that would be too much."