The Metropolitan Transportation Authority in New York has selected a joint venture of Civic Entertainment Group and Octagon Worldwide to sell the sponsorship rights for brands to promote their goods and services on many of the city’s properties, including commuter railroads and stations, subways, buses, bridges and tunnels.
The New York-based agencies formed a joint venture to handle the MTA’s two-year contract. The unnamed venture will, for example, identify ways to improve riders’ and drivers’ experiences, then find corporate partners to help fund those enhancements. That will give MTA some revenue to fund capital improvements, the agencies said in a statement.
“Companies now have the opportunity to actively help to improve stations, whether sponsoring a cleaning crew for a line, improving lighting and sound in various stations, and/or designing a more comfortable and efficient waiting area or car,” said Octagon senior VP David Bober in a statement.
“This is about defining what fits in the context of these public places,” said Civic Co-CEO Stuart Ruderfer.
MTA will pursue sponsors for capital improvements, rider rewards and affinity programs, licensing, merchandising and branding. At least four marketers already have expressed interest in sponsorship, including Subway Restaurants.
The New York Times reported the two agencies were selected from among seven groups who vied for the post last summer. The agreement calls for the partnership to make up to 25% commission on the revenue it generates.
The MTA faced a $1 billion deficit and hopes to generate $5 million annually from the deal.
Civic founders Ruderfer and Co-CEO David Cohn began their careers in the New York City Department of Parks & Recreation (January PROMO).
Cash-strapped local governments and school districts have stepped into the sponsorship arena to sell naming rights and corporate sponsorships to generate much needed revenue including, Dallas, Las Vegas and San Diego.
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