Tapping into Transit San Diego MTS Naming Rights California Transit - - PowerPoint PPT Presentation

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Nov 11, 2022 360 likes •578 views

Tapping into Transit San Diego MTS Naming Rights California Transit Association November 18, 2015 The Dark Days of 2009 State took our money We were all scrambling to reduce costs Employee layoffs MTS reduced management

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Tapping into Transit

San Diego MTS Naming Rights

California Transit Association November 18, 2015

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The Dark Days of 2009 – State took our money – We were all scrambling to reduce costs

Employee layoffs

– MTS reduced management positions by 20%

Reduced employee benefits
Fare increases

– From $64/mo to $72/mo in 2 yrs. – Service reductions

– Rethink non-fare revenue strategies

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Diverse non-fare revenue sources

– Railroad Right of Way -- $1 million – Real Estate -- $1.9 million – Advertising -- $2 million – Station Activations -- $250,000 – Concessions/Vending -- $500,000 – MTS-TV -- TBD

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Bus Advertising Policy

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The Naming Rights Deal

– RFP for a firm with Naming Rights expertise – Superlative Group

Did the Health Line in Cleveland plus sports
Teamed up with IMG

– The Superlative process

Asset Evaluation
Letters of Interest vs. RFP
Negotiations
CEO/Board member participation in meetings

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Rapid Network

Monetizing Assets

Trolley Map

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Mid-Coast Extension

11.5 miles
20,000+ new riders
UC S

an Diego

– 60,000 students, faculty and staff

Maj or Employment
Dense Residential
One-seat ride from

border

Direct link to downtown

and Trolley network

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Based on 324 million impressions per year, what would an advertiser expect to pay?

Based on 81,000,000 impressions in each medium

Media CPM Cost Radio $12.92 $1,000,000 TV $12.03 $1,000,000 Billboard $ 2.56 $ 200,000 Print (UT) $10.28 $ 800,000 Total $3,000,000

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Considerations

– That’s a lot of money!

MTS wanted at least $1 million per year

– It’s a big commitment for agency

Reprinting signs at stations
Reprinting timetables and other collateral
Meeting with local planning groups

– Big commitment for Naming Rights Partner

MTS wanted a long-term commitment of at

least 10 years

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Creating Impressions

Trolley Wraps (6) Station Names (3) Freeway/Street Bridges (3) Station Activations (6) Station Signage

Destination
Line Designation
Route Maps
S

ystem Maps

On-Board Signage

Route Maps
S

ystem Maps

Printed/Web/Digital

Timetable
Pocket Guide
One-way Tickets
WiFi and Digital Ads

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$36 Million Contract

– 30 years – $675,000/year until Mid-Coast is complete – $945,000/year upon completion – Increases with CPI

Uses historical average of 3%

– Value increases to $1.85 million/year by end of contract

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Who We Are – UC S an Diego Health

7500+ Employees 850+ Physicians 563-bed Health System $1.7+ Billion Operating Budget Two Campuses: La Jolla and Hillcrest

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Business Drivers for Partnership S trategy

One of the most competitive health care markets in the U.S. Some of the most expensive advertising rates in the U.S. Two well established competitors with mature positioning and high level of brand awareness

2011-2015

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Partnership 1 – North County Transit District

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Partnership 2 – UC S an Diego Campus Buses