6g supp
ITEM NO: ____6g_Supp_____ MEETING DATE: November 22, 2016 Airport Advertising Request for Proposal Authorization Request November 22, 2016 Sea-Tac: Welcoming, Informing & Advertising This RFP is a unique opportunity to: Sustain and grow advertising revenues; Upgrade advertising displays to accommodate digital advancements; Promote economic development through enhancing the Port's ability to partner with communities and non-profit economic development organizations; Instill a "Northwest Sense of Place." Advertising RFP helps accomplish multiple goals 2 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; and Significant changes in technology in the last 10 years affecting the advertising industry. Advertising lease has significant impact on non-aeronautical revenues 3 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 4 Economic Development through Partnerships with Communities and Non-profit Organizations Developing a cohesive program to promote economic development and tourism as well as celebrate our state's unique features: Allocate up to 10% of the total advertising inventory for Port or community/non-profit economic development organization use at market rates; 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; and Special displays. Port, community and non-profit organization promotion opportunities 5
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