Five years ago, the Port Authority’s reputation was much like the Pittsburgh Pirates in the midst of 20 straight years of losing seasons. The transit agency had gone through several years of service cuts and fare increases.
As a result, selling advertising on Port Authority buses, light rail vehicles and stations was about as successful as regularly drawing large crowds to Pirates games.
But like winning has improved baseball attendance, a better reputation — and the addition of the North Shore connector with two new stations — has substantially boosted Port Authority’s ad revenue. The agency’s revenue has grown from $1.27 million in fiscal year 2011 to about $2.3 million for the year that ended June 30.
“Relatively speaking, when you look at our overall budget [more than $400 million], it’s a small amount,” said Jim Ritchie, communications director who began overseeing advertising sales two years ago. “But when you look at locally generated revenue, it’s significant.”
Mr. Ritchie attributed the growth to the agency’s improved image and a more aggressive approach that began with the opening of the subway extension to the North Shore in 2012. With a push from Allegheny County, Port Authority seized the opportunity to market the North Side station, in particular, because the Allegheny Station was covered through an agreement with the Pittsburgh Steelers and Rivers Casino.
That coincided with the stabilization of Port Authority finances as a result of the passage in the fall of 2013 of Act 89, the state transportation funding bill that gave additional money to public transit. That eliminated years of public protests over service cuts and fare increases.
“The difference in the last couple of years is the perception of this agency now,” Mr. Ritchie said. “There was a lot of negativity surrounding everything.
“I’m sure advertisers were thinking, ‘Do we want [our ad] on a transit vehicle?’ Clearly that was a factor.”
With that image changed and the new stations, advertising sales director Terri Landis and her three-member staff get a warmer reception when they approach advertisers.
A lot of agency’s 726 buses have placard ads on the street side and rear panel. Some buses and T cars are covered with vinyl wraparound ads. And the Grant Street and North Side have been popular with advertisers who want a “domination” package, where they buy all of the ad space in the station.
The wraps and station packages are the big moneymakers. The vinyl ads cost $6,000 to produce and $3,000 a month for display while the stations sell for $25,000 to $30,000 a month.
Kathy Oldaker, senior vice president and media director at South Side ad agency Gatesman+Dave, said bus routes are popular for advertisers because ads can be directed to specific markets, a role newspapers served in years past. And the stations, which serve Heinz Field and PNC Park as well as daily commuters, allow an advertiser to shut out competitors, she said.
“It give them exclusivity with large concentrations of people,” she said. “It’s not cheap — it’s expensive — but because the traffic counts are so high it’s an effective way to reach a lot of people.”
UPMC has a yearlong contract with the Port Authority for advertising at the Steel Plaza station, which has the advantage of a long indoor walkway from the street to the boarding platform. That provides more space for ads. And advertisers have gotten creative, sometimes stretching ads up the steps on the long staircases in the T stations.
Mr. Ritchie said he knows the growth in ad revenue won’t continue forever.
“We feel we’re doing the right things,” he said. “There will be lean years. For now, we’ve definitely benefited from a strong economy.”
Ed blazina: eblazina@post-gazette.com or 412-263-1470.
First Published: July 18, 2016, 4:00 a.m.
