6d supp
ITEM NO: ____6d___________ MEETING DATE: September 27, 2016 Airport Dining & Retail (ADR) Advertising Request for Proposal Authorization Request September 27, 2016 Current Advertising Program Background The advertising program is a critical piece of the overall generation of non-aeronautical revenue. Competed via Request for Proposal in 2006/2007 Accounted for 2.7% of the total ADR Sales ($7.3 million of the $271.5 million) in 2015 Accounted for 11% of the ADR non-aeronautical revenue to the Port ($5.0 million of the $44.7 million) in 2015 Current agreement expires on July 31, 2017 Significant changes in technology in the last 10 years affecting the advertising industry. Advertising lease has significant impact on non-aeronautical revenues 2 Advertising Request for Proposal Goals Capitalize on changes regarding how advertisers deliver their messages by: Upgrading older displays and equipment with new technologies; Reallocating a number of existing static locations to digital displays; and Providing additional space for promotional display elements. Overall RFP Goals 3 Surrounding Communities and State-Wide Industries Enhancing the ability to provide opportunities for the surrounding communities and state-wide industries to be able to promote within the Airport: Allocate 7 advertising locations (1 per A, B, C and D Concourses, N Satellite, S Satellite and Baggage Claim) Include the right of first refusal in the lease to use "filler" or unsold advertising inventory Communities or industries may purchase advertising Art Program Temporary Construction Barricades Community and state-wide industry promotion opportunities 4
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