In transit? Can't miss these ads

Melbourne commuters will soon see billboard-style ads on the outside of their trains, in an advertising contract to deliver a windfall worth hundreds of thousands to Metro.

By InvestSMART · 25 Aug 2011

By InvestSMART ·
25 Aug 2011

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Melbourne commuters will soon see billboard-style ads on the outside of their trains, in an advertising contract to deliver a windfall worth hundreds of thousands to Metro.

MELBOURNE commuters will soon see billboard-style ads on the outside of their trains, in an advertising contract to deliver a windfall worth hundreds of thousands to Metro.

Following a three-month trial of ads for superannuation fund VicSuper, at least one advertiser has signed up for a contract to begin next month.

The advertising company that will be selling the space, TorchMedia, would not reveal the name of the first advertiser but said it had had strong interest from advertisers since the trial began, including several government departments.

TorchMedia's marketing director, Kirsty Dollisson, said the train advertising had huge appeal for advertisers and was successful in many other countries. ''It's such a visual medium. The trains will be virtually moving billboards, moving around from station to station and seen by not just commuters, but also cars and pedestrians.

A Metro spokesman last night confirmed that the money from the ads went to Metro but could not provide further details.

The trial, which involved VicSuper ads on three trains, was approved by Transport Minister Terry Mulder.

Ms Dollisson said ads would typically appear on six carriages of one train and advertisers would buy space on up to four trains.

Under its contract, Metro can sell advertising space on any state-owned asset it manages, as long as advertisements comply with all laws and are not offensive.

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Frequently Asked Questions about this Article…

What train advertising is being introduced in Melbourne and who is selling the ad space?

Melbourne will soon have billboard-style ads on the outside of trains — effectively moving billboards seen by commuters, cars and pedestrians. The advertising space is being sold by TorchMedia under a contract that delivers advertising revenue to Metro.

How much revenue will Metro earn from the new train advertising?

The article says the advertising contract will deliver a windfall worth hundreds of thousands to Metro. A Metro spokesman confirmed the money from the ads went to Metro but did not provide further financial details.

Who took part in the trial and which advertiser was featured?

The trial involved VicSuper ads placed on three trains. That three-month trial was approved by Transport Minister Terry Mulder.

How large are the ads on each train and how many trains can advertisers buy?

Ads will typically appear on six carriages of a single train, and advertisers can buy space on up to four trains, according to TorchMedia's marketing director.

Has TorchMedia revealed the identity of the first paid advertiser?

No. TorchMedia would not reveal the name of the first advertiser that signed a contract to start next month, though it said there has been strong interest from other advertisers, including several government departments.

What reasons do advertisers give for liking train advertising?

TorchMedia’s marketing director, Kirsty Dollisson, said train advertising is a highly visual medium and successful in other countries — trains act as moving billboards that travel between stations and attract attention from commuters, drivers and pedestrians.

Are there rules or approvals for putting ads on Metro-managed assets?

Yes. Under Metro’s contract it can sell advertising space on any state-owned asset it manages provided advertisements comply with all laws and are not offensive. The initial trial was also approved by the Transport Minister.

What should everyday investors watch for regarding Metro’s train advertising revenue?

Everyday investors should note this creates a new revenue stream for Metro (a windfall in the hundreds of thousands was reported) and that the trial attracted advertiser interest. Because Metro has not disclosed detailed financials in the article, investors should monitor future Metro announcements or disclosures for specifics on contract size and ongoing revenue impact.