Advertising with RTD

RTD has a Board-adopted System Advertising Policy (Policy) to permit and guide how advertising is used on the interior and exterior of vehicles, stations, buildings, facilities, and other agency-owned assets. The Policy allows for the use of RTD space for advertising purposes, to the extent that it supports the agency’s needs and operations. The current Policy, which was approved by the Board in December 2019, outlines the scope of commercial advertising and RTD’s promotion of its own services.

During the monthly Board Meeting held on Tuesday, June 22, 2021, the Board authorized the General Manager and CEO to enter into a 10-year contract with Lamar Advertising Company (Lamar) to manage and sell the agency’s advertising-related assets. The contract was subsequently signed by both parties and implemented in January 2022. Under this contract, Lamar agreed to enhance the customer experience by providing service-related content and schedules on public information displays (PIDs) and transition RTD’s existing PIDs to a unified content management system. As of February 1, 2024, approximately 45 digital screens have been installed at rail stations throughout the service area, and an additional 90 are planned to be added to the system in 2024.

Beginning January 2022, Lamar has also installed and utilized digital screens and static, backlit advertising displays in the Denver Union Station underground bus concourse. The backlit displays were added to improve the lighting and support RTD’s efforts to initiate Crime Prevention through Environmental Design (CPTED) methodologies. The additional light allows customers in the area to see and be seen, which supports CPTED’s goal of preventing crime by designing a physical environment that positively influences human behavior.

The 10-year contract with Lamar provides annual escalating minimum annual guarantee (MAG) payments through 2031, in a total amount of $63 million. In 2023, RTD’s payment from Lamar was $5.4 million, and this year’s contracted amount is $5.6 million. The revenue from this advertising contract makes a significant contribution towards RTD’s operating expenses.

On-vehicle advertising is a foundational element of RTD’s System Advertising Program. A sizeable majority of the advertising revenue received from Lamar is a direct result of advertisements placed on the agency’s rolling stock. As outlined above, Lamar provides a minimum annual guaranteed payment to the agency for advertisements sold, and revenue is additionally shared with RTD on a 70/30 basis, where RTD receives 70% above the MAG.

The application of advertisements on the windows of revenue vehicles only occurs when an advertiser purchases either “Full Wraps” or “Kongs,” terms of art used to describe the nature and location of certain advertisements. Full Wraps are the application of an advertisement to all allowable surfaces on a revenue vehicle, and Kongs are the application of an advertisement on the side of a vehicle between the wheels from the top to the bottom.

The System Advertising Contract with Lamar defines RTD’s allowable window coverage, which includes the following parameters:

• Advertising materials applied to windows must be perforated and allow customers inside the vehicle to see out the window (Section 9.14.2 Exterior Space on Buses)
  • Perforated window applications must adhere to a 60:40 ratio, where the first number represents the amount of printable area, and the second number represents the amount of open (see-through) area. To emphasize, 40% of the window’s mesh application must be see-through and allow visibility outside the vehicle
• Window applications on RTD’s buses are restricted to support public safety and operations
  • Applications are not allowed on the street side operator window
  • Applications are not allowed on the street side front door
  • Applications are not allowed on the first curbside window
  • Up to, but not to exceed, 50% coverage is allowable on the total remaining square footage of all remaining vehicle windows
• Similar restrictive specifications also apply to both commuter and light rail vehicles

As of February 1, 2024, Full Wraps and Kongs accounted for 648 installations on RTD’s 3,690 totaled tracked advertising units. It is important to note that units are not the same as vehicles and simply reflect the advertising space on rolling stock. For example, the quantities on light rail in the table below take into account each side of a vehicle, so one train consist, with both sides wrapped, equates to two Full Wrap installations.