The Port Authority of New York and New Jersey announced four new contracts for advertising services on Oct. 29, which are expected to generate nearly $400 million in revenue for the agency over the next 12 years. The contracts will drive $90-$100 million in investment in cutting edge digital infrastructure.
The winning firms - Clear Channel Airports, OUTFRONT Media, Branded Cities, and Intersection - will make historic capital expenditures to construct immersive digital installations and video walls, develop new billboards in strategic and profitable locations, and invest in interior and exterior digital screens at Port Authority facilities. These firms have committed to tailor the new digital infrastructure to each facility and its customers, attracting brands seeking to advertise in the nation’s number one media market. Under these new contracts, the Port Authority will be able to utilize 20% of ad space to share real-time updates, informational messages and emergency notifications with the traveling public.
“Today’s Board vote is a step forward in transforming our facilities and properties to provide a 21st century travel experience and allow for the creation of advanced displays that match the agency’s redevelopment across the region,” said Kevin O’Toole, chairman of the Port Authority of New York and New Jersey. “Many of our facilities lack digital assets, which are key drivers for brands looking to advertise in New York and New Jersey. These contracts will bring new brand partnerships that offer value to customers while delivering revenue to the Port Authority.”
“These contracts advance two key priorities for the Port Authority: increased ad revenue and significant investment in modern digital infrastructure at our facilities,” said Rick Cotton, executive director of the Port Authority of New York and New Jersey. “Moving forward, these contracts will enable the Port Authority to better sell advertising rights to generate hundreds of millions of dollars in revenue, while travelers will benefit from the latest in digital display technology that allows for real-time alerts.”
In 2019, the Port Authority issued a Request for Proposals seeking contractors in four asset categories: Aviation, Billboards, Bus Terminals (interiors and exteriors of terminals and stations), and PATH. The RFP sought to optimize the Port Authority’s advertising assets, expanding its digital footprint and bringing in firms with dedicated experience in transportation advertising. The Port Authority is committed to meeting strong diversity goals and expects the same from its suppliers and contracting firms. At least 30% of contracting/subcontracting opportunities to complete the installation of infrastructure improvements at bus terminals, PATH stations and billboard programs will be made available to Minority and Women-Owned Business Enterprises (MWBE), and 11% in subcontracting opportunities for Airport Concessions Disadvantaged Business Enterprises (ACDBE). The contracts, which are anticipated to begin on Dec. 30, include:
Aviation: Clear Channel Airports will make investments over the initial term of the contract to the Port Authority’s media program revitalization, marking the company’s largest-ever media investment commitment for a U.S. airport contract. Clear Channel Airports plans to modernize the entire advertising program across John F. Kennedy International, Newark Liberty International, New York Stewart International and LaGuardia airports with over 95% of the overall investment going into highly impactful digital media.
Billboards: OUTFRONT Media will increase the value of the Port Authority’s existing portfolio, while adding a focus on developing new assets in high-value locations across New York and New Jersey.
Bus Terminals: Branded Cities will install, operate, and maintain advertising assets in the interior and exteriors of the Port Authority Midtown Bus Terminal, the busiest bus terminal in the world, and select areas of the George Washington Bridge Bus Station.
PATH: Intersection was selected to install, operate, and maintain advertising assets at PATH stations and in PATH trains. They will create a unified digital signage network across the system, installing over 100 new screens and video walls for PATH riders across the system’s 13 stations. These screens will include dedicated space for customer communication, including displaying train arrival times, service alerts, and other time-sensitive messaging.
