The CTA on Wednesday consolidated all of its print and digital advertising with Titan Outdoor, but at the same time reduced its projected revenue from those ads due to the sluggish economy.
The new contract with Titan guarantees the CTA at least $80 million over five years for the print ads on trains, buses and stations.
But the CTA's take for digital advertising took a big hit -- down a whopping 67% from the original contract with Titan negotiated just less than a year ago. The CTA expect that That contract inked in 2008 would generate $100 million over 10 years, or $10 million a year.
But this new consolidated contract will net the CTA just $3.3 million for five years. That's a 67% drop in expected income. Plus, the CTA won't see that income until Titan recoups all costs associated with the purchase and installation of the digital display screens.
The CTA press release notes: "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."
A CTA spokesperson says that while these new contract revenues "are lower than the prior one's projections, they are guaranteed revenues. It is better to have actual revenue coming in from digital advertising now than the promise of revenue in the future."