Transit Advertising Sales Agreements (2004)

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44 APPENDIX A Survey Questionnaire TRANSIT COOPERATIVE RESEARCH PROGRAM Project J-7, Topic SB-10 TRANSIT ADVERTISING SALES AGREEMENTS Study Questionnaire This questionnaire should be completed by the transit system manager responsible for managing your agency’s advertising sales or advertising sales contract, concession, or franchise. Please forward this questionnaire to that person as necessary. Note to Individual Filling Out This Questionnaire: My sincere thanks for taking the time to fill out this questionnaire. We know you’re busy. The information that you and others from different transit systems provide will offer all of us valuable insights into transit advertising sales agreements and help agencies develop new and innovative ways to use advertising opportunities. This study is on a fast track to bring you results and we will be happy to share our report with you and others as soon as our study is printed. Please complete this questionnaire as quickly and completely as you can. If you don’t have all the information available, please send what you do have now and forward any additional information when it becomes available. Thanks again for your time and effort. Return by March 20, 2003, to: Bruce Schaller Schaller Consulting Voice: (718) 768-3487 94 Windsor Place Fax: (718) 768-5985 Brooklyn, NY 11215 schaller@schallerconsult.com Name: Title: Department: Transit Agency: Street Address: City, State, ZIP: Phone: Email: This questionnaire can be downloaded in MS Word format from www.schallerconsult.com/adsales. You can fill out the questionnaire electronically and return it by email.

45 A. If your agency does not sell or lease advertising space, check here and return this page only. ___ I. Forms of Advertising 1. Please check the boxes for the equipment and facilities that you sell or lease advertising space on or in. Buses: ___ Exterior ___ Interior ___ Bus stop ___ Passenger shelters other than bus stops Rail cars: ___ Exterior ___ Interior Rail stations: ___ Platforms ___ Other parts of rail stations ___ Billboards on right-of-way Other Facilities: ___ Trestles/bridge viaducts ___ Billboards Printed materials: ___ Fare cards ___ Tickets ___ Transfers ___ Schedules ___ Maps Other equipment/facilities for which advertising is sold: Types of displays: ___ Bus wraps ___ Rail car wraps ___ Brand cars or stations ___ Digital displays ___ Dioramas ___ Other upgraded displays: ___ Other (please specify) 2. What percentage of your inventory is currently sold, excluding space set aside for in-house advertising? (approximate if necessary) ____% ___ Don’t know 3. List any other type of advertising that is sold (e.g., floor and wall graphics, banners at park & rides, brand cars, plasma screens, waste baskets, in-tunnel ads, naming rights). II. Advertising Revenue 4. What was your annual revenue from advertising for each of the last four years? (approximate if necessary) FY 1999 $__________ FY 2000 $__________ FY 2001 $__________ FY 2002 $__________

46 5. Please comment on factors affecting any increases/decreases in these revenue figures. 6. How many transit agency staff are engaged in ad sales, contract management, and related activity? ______ (approximate full-time equivalent) 7. How is the sale or lease of advertising handled? ___ In-house staff ___ Outside advertising sales agency If outside advertising sales agency, go to Question 9. If in-house, please answer Question 8. III. In-House Advertising Sales 8. a. Who sells the advertising? ___Procurement ___Marketing ___Real Estate ___Other office (please specify) b. Is a commission paid? ___Yes ___No c. If yes, what percentage? _________ % d. Do you barter ad space? ___Yes ___No e. What percentage of your inventory do you use for in-house advertising? (approximate if necessary) ____% Go to Question 24 IV. Contracted Sales Agreements Note: “Sales agreements” include contracts, concessions, and franchises. 9. What firm (or firms) do you contract with? If you contract with more than one advertising sales agency, please indicate answers separately for each firm for Questions 9–23. 10. Does your contract call for a minimum annual guarantee? ___Yes ___No If yes: What was the guarantee amount in 2002? $______________ Does the guarantee escalate over the life of the contract? ___Yes ___No 11. Does your contract call for a percentage of annual net billings? ___Yes ___No If yes: What is the percentage? _____% Does “net billings” include or exclude production charges? __Include __Exclude Are any other costs subtracted to determine net billings? ___Yes ___No If yes, what other costs are subtracted? _________________________ 12. What is your percentage of national advertising? (approximate if needed) ____% 13. What percentage of your inventory is allowed for in-house advertising? (approximate if necessary) ____% 14. Do you have the right to use additional unsold space for in-house advertising? ___Yes ___No

47 15. Media trades: a. Do you barter ad space that is set aside for transit agency use? ___Yes ___No b. Do you permit external media trades by the advertising sales agency to the transit agency? (e.g., radio advertising in exchange for transit space) ___Yes ___No 16. Have you been asked to renegotiate your contract as a result of the downturn in the advertising market? ___Yes ___No If yes, describe the request and outcome (e.g., requested $40,000 decrease in minimum guarantee; request denied, under consideration, approved for lower amount, etc.) 17. When did the current contract term begin? _____ (year) 18. How long is the contract term? _____ years Explain any extensions or renewals if applicable. 19. When was the most recent competitive bidding for the contract? ______ (year) a. Did the same advertising sales company have the contract previously? ___Yes ___No If no, what company had the contract previously? __________________________ b. What companies bid on the contract? (Check off) ____ Viacom Outdoor ____ Obie Media ____ Clear Channel Outdoor ____ Gateway Outdoor ____ Princeton Media ____ Lamar Outdoor Advertising ____ P&C Media (prior to being acquired by Obie) ____ TDI (prior to being acquired by Viacom) ____ Eller Media (prior to being acquired by Clear Channel) ____ Other: ____ Other: c. Did the RFP specify a minimum guarantee level? ___Yes ___No If yes: could bidders bid above the level set in the RFP? ___Yes ___No d. Did the RFP specify the percentage of annual net billings? ___Yes ___No If yes: could bidders bid above the level set in the RFP? ___Yes ___No 20. Does your agency perform audits? ___Yes ___No a. If yes, how often? ____Annually ____Semiannually ____Spot Check ____Other (please specify) b. What method(s) are used to verify the amount of advertising that is sold? 21. Does the contract require a performance bond, letter of credit, or liquidated damages? ___Yes ___No. If yes, please describe:

48 22. Are there other incentives, disincentives, and/or enforcement provisions in the contract? ___Yes ___No. If yes, please describe: 23. a. Who owns the advertising frames or other infrastructure? (List types of property and ownership) b. If the advertising sales agency has ownership, how is ownership settled at the end of the contract if the contract is not continued/re-awarded to the same advertising sales agency? V. Other Advertising Practices 24. a. Do you set aside space for public service advertising (PSAs)? ___Yes:____% ___No If yes, who pays for labor and related expenses for PSAs? ___Client ___Transit Agency b. Are there any limitations in the advertising sales agreement on PSAs or co-promotions? ___Yes ___No. If yes, please describe: 25. Describe any other innovative or interesting practices or initiatives at your agency that would be of interest to other transit managers responsible for advertising sales. (Examples of the type of information relevant to this question: partnership with local TV station; bartering; in-tunnel advertising test; new contract for electronic signage that displays service information, news, and advertising.) VI. Advertising Policies 26. Do you have a written policy on advertising content? ___Yes ___No 27. Do you accept viewpoint advertising? ___Yes ___No (Viewpoint advertising includes political and other forms of non-commercial speech.) If yes, do you require identification of sponsorship? ___Yes ___No 28. Does your agency have a policy to permit only commercial advertising? ___Yes ___No 29. Do you restrict any of the following types of advertising? (check where you have restrictions) ___ Alcoholic beverages ___ Tobacco products ___ Products/services related to human reproduction or sexuality (e.g., contraceptive products, pregnancy counseling) 30. What is your process to review the content of advertising? Describe below or attach written procedures.

49 31. Have you ever canceled/refused an advertisement? ___Yes ___No If yes, briefly describe the issue: 32. Have you ever been sued over a controversial advertisement? ___Yes ___No If yes, briefly describe the issue and outcome: 33. Would you be willing to answer follow-up questions on the telephone? ___ Yes ___No If yes, what is the best time to call? _________________ == You’re almost done! Just one more thing! Also, we would appreciate any of the following that you could provide (by email if possible): • Advertising content policy. • Recent RFP for new advertising sales contract, concession, or franchise. • Advertising contract. • Advertising rate schedule. • Sample report from advertising sales agency detailing revenues and sales. • Sample report from advertising sales agency detailing what advertisements went up, location, dates, etc. • Photos of advertising and advertising displays on your facilities or equipment or printed materials. Please return this questionnaire and any documents by March 20, 2003 to: Bruce Schaller Schaller Consulting 94 Windsor Place Brooklyn, NY 11215 schaller@schallerconsult.com Voice: (718) 768-3487 Fax: (718) 768-5985 This questionnaire can be downloaded in MS Word format from www.schallerconsult.com/adsales. You can fill out the questionnaire electronically and return it by email. THANK YOU FOR YOUR COOPERATION!