Over $200,000 Beyond Minimum Annual Guarantee Garnered in the Past Two Years
August 6, 2013
Albuquerque, NM – The public-private partnership between the City of Albuquerque’s Transit Department and Lamar Advertising is paying off yet again. After receiving more than $120,000 last year over its minimum annual guarantee in advertising revenue from Lamar, ABQ RIDE is receiving another $80,000 from the company this year.
ABQ RIDE has a contract with Lamar, a national advertising company, to sell advertising on city buses and most bus shelters. The contract stipulates Lamar pay ABQ RIDE a percentage of advertising revenue, with a minimum annual guarantee. This revenue helps reduce the funding ABQ RIDE receives from the City’s General Fund. This year’s $80,098, when combined with last year’s check for $124,085, means that in the past two years, ABQ RIDE has received over $200,000 ($204,183) over its minimum annual guarantee from Lamar.
"Taxpayers once again benefit because the money from this agreement helps offset some of ABQ RIDE’s costs," said Mayor Richard J. Berry. "And we anticipate even more benefits from this contract for years to come, as our local economy continues to improve."
Mayor Berry and ABQ RIDE Director Bruce Rizzieri received the check for $80,098 from Lamar Advertising Vice President/ Territory Manager of Lamar Advertising Casey Sexton at a news conference at City Hall today. Last year, Lamar successfully completed a program in which it purchased and installed 49 bus shelters and used ad revenue from these shelters to pay for the program. After the completion of this program last year, Lamar began directly paying ABQ RIDE a percentage of its annual advertising revenue, above the minimum annual guarantee.
"Lamar is proud to be a partner of ABQ RIDE and provide this service for the City," said Casey Sexton, Vice President/ U.S. Territory Manager of Lamar Advertising. “Our goal is to consistently deliver results for both the City and the advertising clients that benefit from this marketing platform."
"This revenue-sharing agreement between the two groups continues to be a win-win situation for Albuquerque," said Bruce Rizzieri, Director of ABQ RIDE. “The Transit Department is able to offset expenses by using its buses as advertising platforms and Lamar is able to consistently show its advertising to a large part of the metro area."