Metro mulls greenlighting ads

The red-and-blue stripes on Metro’s buses and trains soon could be joined by advertisements for Red Lobster and Blue Bell, a nod to the agency’s efforts to seek new sources of revenue.

Transit officials are considering changes to Metropolitan Transit Authority policies that would allow advertising inside and outside buses and trains, at bus stops and stations, at parking garages and perhaps even in the station names.

“We’re making our way through it, forming a plan, and then we’ll go from there,” Metro CEO Tom Lambert said, acknowledging he expects staff to recommend paid ads on and in the agency’s buses and trains.

Transit officials initially were poised to approve some of the changes this month, but held back in favor of more discussion. Authority board members and observers said several matters would need to be resolved before any changes can be made, notably the need for clear rules of what Metro will and will not accept and how large ads can be.

“Part of my concern is not so much doing it, but when you mix a bunch of ads, it looks awful,” Metro board member Jim Robinson said.

Metro Chairwoman Carrin Pat-man said officials plan to consider an ad policy as early as next month. If approved, agency staff can begin to solicit proposals from firms interested in overseeing the advertising — essentially selling the space — and dividing the revenue between the company and Metro.

Allowing ads on its fleet would be a major change for Metro, which has toyed with the idea periodically but always backed away because officials wanted to preserve the clean look of buses and trains. Even when some pressed for ads as a way to raise revenues when the agency faced financial hard times in the early 1990s, the board and advocates for Houston’s sign ordinance limiting billboards and commercial ads stood firm.

As a result, Metro in 1993 restricted advertising, noting “the board of directors is of the opinion that the appearance of Metro facilities is enhanced by the absence of commercial advertising.”

Later boards even eschewed corporate brands in the names of bus and train depots. The Red Line stop at NRG Park, for example, was changed when the name switched from Reliant to NRG to “Stadium Park/Astrodome.” Officials also turned down a request by the University of Houston to incorporate stadium sponsor TDECU into the name of the rail stop at the campus.

Metro does allow certain sponsorships and wraps its own buses and trains for internal marketing efforts. The changes under consideration would open up many avenues of for ads.

“Basically, inside and outside all our assets,” said Debbie Sechler, Metro’s executive vice president for administration.

Ads could accompany the log-on if Metro offered Wi-Fi, or even the agency’s website, where many riders go for schedule and customer service information.

The goal, Sechler said, would be to use the revenue to improve the system, primarily in enhancements for riders.

Patman said officials are open to ads “in light of our need to look at all conceivable funding sources” as Metro looks to expand bus and rail offerings in city.

Because Metro excludes commercial advertising, companies have been reluctant to discuss how much revenue the system could expect, Sechler said. At a meeting Wednesday, she estimated all types of advertising could generate in excess of $10 million a year, though it is likely an advertising firm handling the marketing of Metro’s buses, trains and shelters would take a portion of that.

Metro’s yearly operating budget is around $700 million.

The decision board members face is whether the financial gain is worth whatever sacrifice could come with paid ads.

“My concern is the difference between what we bring in and what we are obligated to — that may not be enough to justify changing the look of our brand,” board member Lex Frieden said.

A plan for placards on buses and trains that travel along most major Houston streets is likely to draw attention from some neighborhood and beautification groups. Scenic Houston, which helped push for Houston’s billboard laws to curb their proliferation across the city, still is gathering information on Metro’s proposal and will finalize a formal response, said Anne Culver, the group’s president.

“There needs to be a lot of thought of whether Metro wants to be the delivery mechanism to bring billboards all over the city,” Culver said.

In the past, Scenic Houston has opposed advertising on buses and at stops, noting that current city rules preclude ads in the public right of way, where most of Metro’s 2,200 bus shelters are located. The group was less critical of ads within buses, space Metro now uses sparingly along the ceiling of buses and trains for public service announcements and schedule information.

Nearly every major transit agency in the nation, and most in the world, already allows ads on and in buses and trains, train stations and bus stops.

Dallas Area Rapid Transit, VIA in San Antonio and Capital Metro in Austin all accept advertising.

“Dollars generated from advertising go to the general fund and are not earmarked to specific projects,” said Capital Metro spokeswoman Mariette Hummel. “However, transit advertising has contributed to Capital Metro’s revenue stream for over 20 years. While it cannot be singled out as the reason we offer low fares, it has certainly helped sustain our ability to do so, which directly benefits our customers.”

In Dallas, the roughly $3.7 million the agency annually receives from advertising — sales are handled by a marketing company, with DART recouping a portion of the revenue, as is common — covers the cost of promotional free fares, such as New Year’s Eve, spokesman Mark Ball said.

For the past four years, DART’s free rides to ring in the new year have been sponsored by beer brewers, following a 2011 change to the agency’s policies. Ball said DART allows beer and wine advertising but still prohibits liquor, tobacco and sexually oriented business placards.

Houston is likely to do the same, Robinson said, and perhaps will go even further.

“I would certainly not want us to advertise any sort of alcoholic beverage,” Robinson said, citing the region’s issues with impaired driving.

There also could be limits to what Metro would allow. During a presentation Wednesday, Robinson reacted negatively to the image of a train entirely wrapped with an ad, while saying he could support some ads within a defined space.

“I think it looks horrible,” he said of the ad-dominated train. dug.begley@chron.com