agreement with Streetseen Media continued on a month-to-month basis while Transit Windsor waited to determine a better time to release the RFP.
As the pandemic unfolded, advertising for many corporations came to a halt. The one month shut down of transit, meant that the advertising that was on our buses had no exposure in the community. Streetseen Media closed operations until late June, 2020 with very limited advertising revenues to date due to the ongoing pandemic. Streetseen has recognized our month-to-month agreement and have begun making their monthly payment to Transit Windsor effective for the month of August 2020. Streetseen Media has requested Transit Windsor to consider the waiving of the required payment of $15,833.33 plus applicable HST for the months of April, May, June and July, as they have been excellent partners, with on time payments for many years. The requested amounts were eligible costs to be used from the Safe Restart Agreement with funding from the Provincial and Federal governments.
Ongoing discussions with Streetseen Media have also taken place with regards to the timing for a Request for Proposal. It is recognized that it will take some time after the pandemic ends to rebuild transit, and the advertising component that comes with the exposure of transit advertising.
Administration is recommending an extension to the current agreement with Streetseen Media to allow for the advertising market to improve. It is felt at this time, potential revenue could be lower based on current market if the RFP were to be released at this time. It is in the best interest of Transit Windsor to wait and allow the markets to improve. Transit Windsor is recommending a two-year extension to the current agreement with all the same terms and conditions.
It is further recognized that an additional two-year, optional agreement be included to bring the current agreement end date to December 31, 2024, which would line up with the current Bus Shelter Advertising Agreement. In 2024, a single Request for Proposal would then be issued for all transit advertising. Before the initial expiry date of the agreement, Administration will fully investigate with a benefit analysis as to whether the two agreements should be combined in 2024.
Risk Analysis:
If Administration were to go to the Request for Proposal at this time, it is very possible that the revenue levels could be considerably lower than what is currently under the current agreement with Streetseen Media.
Failure to extend the current agreement could potentially result in Streetseen Media putting Transit Windsor on notice to cease the month-to-month agreement.
An extension will allow for economic recovery of advertising and would aid in establishing a stronger opportunity for Transit Windsor when the advertising agreement goes to the Request for Proposal process.