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Pages 34-38

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From page 34...
... 25 CHAPTER FIVE CONTRACTING ISSUES Transit agencies that contract with an advertising sales contractor must address a litany of contract-related issues ranging from how to structure the contracts to contract length to calculation of revenues. These decisions potentially affect transit agency revenues, although it is often difficult to predict which course of action will produce greater revenues.
From page 35...
... 26 these smaller companies. Agencies wishing to pursue these opportunities must keep the door open to multiple contracts.
From page 36...
... 27 term if revenues produced would be more than for the 5year bids, which turned out to be the case. The best length of the contract depends in large part on timing.
From page 37...
... 28 TABLE 8 REVENUE SHARE IN ADVERTISING CONTRACTS Revenue Share Top 20 Media Market, Large Agency Other Transit Agencies in Top 20 Media Markets Mid to Small Media Market Total 10% -- -- 7% 3% 12% -- -- 7% 3% 18% -- -- -- 3% 25% -- 20% 7% 6% 45% -- -- 7% 3% 50% -- -- 21% 10% 51% -- -- 7% 3% 52% -- -- 7% 3% 55% 17% 20% 14% 13% 58% -- -- 7% 3% 60% 17% 40% 7% 16% 62% -- -- 7% 3% 64% 8% -- -- 3% 65% 50% 20% -- 23% 80% 8% -- -- 3% Total 100% 100% 100% 100% No. responding 12 5 14 31 Note: Percentages may not add to exactly 100% because of rounding.
From page 38...
... 29 these cases, bringing in a new contractor does not raise equipment ownership issues. An additional 15% of transit agencies retain ownership of some equipment, whereas the advertising sales contractor owns some of the equipment.

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