News

CTA extends ad contracts with Titan Outdoor, but takes revenue hit

December 13, 2009

The Chicago Transit Board last week approved a new five-year contract with Titan Outdoor for print and digital ad sales and placement on Titan media properties around Chicago.

The new contract guarantees the CTA at least $80 million over five years for the print ads on trains and buses and at transit stations.

However, Chicagonow.com's CTA Tattler reports that the contract is a negative hit for the CTA, as it is down from the original contract with Titan, negotiated just less than a year ago. The previous contract guaranteed a total of $100 million over 10 years, at $10 million a year.

CTA Tattler adds that the CTA won't see any of the $80 million until Titan recoups all costs associated with the purchase and installation of the digital display screens.

Both print and digital advertising have been impacted by the weak economy, and the new agreement takes into account the current market conditions and expectations moving forward.