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LADOT reports revenue from transit vehicle advertising; new contract will allow ads on electric vehicles
Summary
LADOT told council committees it is finalizing a new advertising contract that will allow ads on about 150 newer electric vehicles; the department reported receiving $423,000 last fiscal year (60% share) and $97,000 through September of the current fiscal year, funds deposited to Proposition A accounts.
Los Angeles Department of Transportation staff told the Transportation Committee on Oct. 22 that LADOT is finalizing a new transit-vehicle advertising contract and that the new agreement allows advertisements on recently added electric vehicles.
Jana(n) Smith, supervising transportation planner over transit operations, told the committee LADOT released a request for proposals in December 2023 and is moving forward with a contract with the same provider that held the prior agreement. Under the contract terms described by Smith, LADOT receives 60% of advertising revenue negotiated by the contractor, which the department deposits into its Proposition A revenue account for transit uses.
Key figures provided to the committee: LADOT reported receiving about $423,000 for the prior fiscal year (the department’s 60% share) and about $97,000 through September of the current fiscal year. The renewed contract expands allowable advertising to roughly 150 additional electric vehicles added to the fleet.
Smith said there are currently 79 rear advertisements, 96 "queen‑size" side ads and 73 "king‑size" side ads on Commuter Express vehicles; availability varies by vehicle type and not every vehicle carries an active ad. The department also noted advertising revenue peaked pre‑pandemic at roughly $1 million annually and declined during the pandemic; the contractor’s minimum annual guarantee was suspended in 2020 and is not included in the new contract.
Committee members asked whether the contract would be backdated to the previous contract’s expiration; Smith said the city attorney and mayor’s office must complete final reviews before contract approval and any backdating would depend on final approvals. Members also asked whether any of the advertising revenue goes to the general fund; Smith said the revenue is deposited into LADOT’s Proposition A account and not the general fund.
Action: The committee voted to note and file LADOT’s report on transit vehicle advertising. LADOT said it will finalize contract details with the city attorney and mayor’s office and continue to collect and deposit its share of advertising revenue pending final contract execution.
Next steps: LADOT will finalize the contract with city legal and the mayor’s office and continue to monitor advertising revenue and fleet availability for ads.
