When we think of out-of-home (OOH) advertising, massive roadside billboards or eye-catching posters often come to mind. However, one form of OOH experiencing a significant resurgence is transit advertising.
After a pandemic-induced decline, transit ridership is now experiencing substantial growth, recovering to nearly 80% of pre-pandemic levels, according to The American Public Transportation Association (APTA). The same report found that transit riders took 7.1 billion trips on public transportation in 2023, a 16% increase over 2022, despite office occupancy remaining stagnant.
This revival is closely linked to the increasing number of consumers opting for public transportation, which presents advertisers with a prime opportunity to engage with a diverse and dynamic audience. In this blog, we’ll explore why transit OOH remains a smart choice for marketers and how it can effectively reach and impact audiences.
Why transit OOH still captivates audiences
Transit advertising refers to the placement of ads on or within public transportation vehicles, like buses, trains, subways, and taxis, as well as in transit stations and terminals. This form of advertising leverages the high visibility and daily foot traffic of public transit systems to reach a large and diverse audience effectively.
While the medium might seem old-fashioned to some modern marketers, it remains effective and seamlessly integrates into consumers’ daily lives. In fact, the Out-of-Home Advertising Association of America (OAAA) found that transit ad spend was the fastest-growing OOH category early this year, growing 18.8% in the first quarter of 2024.
Whether through bus ads that traverse cities, subway ads that reach a captive audience, or in-car and on-platform messaging targeting rail commuters, transit advertising connects brands with communities. With 62% of jobs in the U.S. located within 0.5 miles of a transit stop, transit ads are perfectly positioned to reach a large, engaged audience. And as cities continue to recover and rebuild post-pandemic, OOH advertising, particularly transit OOH, plays a vital role in reviving major urban areas.
Types of transit advertising
Transit advertising effectively reaches a large and diverse audience, especially in cities like New York, where public transportation is the primary mode of travel for many residents. Reflecting the diversity of public transit users, the types of transit OOH advertising are equally varied and expansive. Here are some key types of transit OOH advertising:
- Airports: Airports offer high dwell time and often attract an affluent audience, making them a prime location for impactful ads. Examples include displays in arrival and departure areas, backlit posters along walkways, branded installations in baggage claim areas, ads on shuttle buses, interactive kiosks, and sponsorship of airport amenities like lounges or charging stations.
- Buses: Bus advertising can include full wraps, posters, and interior cards. Buses are particularly effective due to their long dwell time, with commutes ranging from minutes to hours. Their constant travel around communities ensures that ads are seen by riders, pedestrians, and other drivers, significantly expanding their reach.
- Subways and Trains: Advertising in or on subways and trains can include posters, wraps, interior cards or screens, and branded cars. Operating in high-traffic areas with lots of footfall, subways, and trains offers excellent opportunities for ads to be seen by large and diverse audiences. Long dwell times during commutes also allow for deeper engagement and ad recall.
- Transit Stations: Ads on subway station walls and trains, whether static or digital, are great for catching attention thanks to their intermediate dwell times. Riders usually spend a few minutes waiting, which gives them plenty of time to engage with the ads. Advertisers can even purchase all the ad space within a transit station or terminal, known as a “domination,” to create a highly visible and impactful campaign.
- Taxis & Rideshares: Ads on taxis and rideshare vehicles move through city streets, reaching pedestrians and other drivers. Taxi and rideshare advertising can include vehicle toppers, wraps, and in-car screens. This type of advertising leverages these vehicles’ constant movement and visibility to maximize brand exposure.
- Mobile Billboard Advertising: Mobile billboards, like screens on the side of commercial vehicles, can target specific neighbourhoods, events, or busy streets, ensuring your message reaches a wide and diverse audience throughout the day. This type of advertising is beneficial as it combines the high visibility of traditional billboards with the flexibility of reaching different areas and demographics.
The strategic advantages of transit OOH
Considering transit OOH advertising can provide significant advantages for your marketing strategy. Here are the unique benefits that make them a smart choice for any campaign.
Long dwell-time
Transit advertising leverages the extended time commuters spend on public transportation. Whether it’s a long bus ride or waiting for a train, individuals have plenty of time to view and absorb ads, boosting brand recall and campaign effectiveness. Commuters often face delays and lengthy waits, creating multiple touchpoint opportunities. According to Statistics Canada, the average daily public transit commute time was 42.9 minutes in 2021. In dense urban cities around the world, like New York City or London, these averages can be even higher.
Cost-effectiveness
With its extensive reach and visibility, transit advertising is an efficient and cost-effective way to target audiences. A 2022 Solomon Partners study found that transit shelters had the lowest estimated median CPM (cost per thousand impressions) among all surveyed media options, at just $2.18 per 1,000 impressions. Additionally, the ability to tailor transit campaigns to specific routes and timeframes allows businesses to optimize their spending and achieve a higher return on investment (ROI). By placing ads in high-traffic areas and during peak travel times, advertisers can ensure their messages reach a broad and diverse audience, driving brand awareness and engagement.
Consistent reach, frequency, and adaptability
Most transit methods follow the same daily routes, particularly buses, trains, and subways. This provides opportunities for repeated exposure, increasing the likelihood of audiences recalling your ad. Digital screens, like those common on bus shelters or transit terminals, offer increased flexibility where ads can be adjusted to reflect conditions like time of day, weather, traffic updates, transit schedules, and more. This adaptability allows for more targeted and relevant messaging, enhancing the campaign’s overall effectiveness. Interactive content can further engage commuters, like scanning QR codes for exclusive offers or information.
Geographic & community targeting
Transit ads are highly effective for geographic and community targeting and engagement. By placing ads on specific transit routes in neighbourhoods, businesses can target local audiences and tailor their messages to resonate with community interests and needs. Advertisers can also leverage creatives in different languages depending on the neighbourhoods, ensuring messages are culturally relevant and accessible. This localized approach fosters a sense of connection by featuring local events, services, or cultural themes, building stronger ties between brands and the communities they serve.
Expanding audiences beyond riders
The reach of transit advertising extends far beyond just the riders. Ads on the exterior of buses, trains, and taxis travel through busy streets and neighbourhoods, capturing the attention of pedestrians, cyclists, and drivers alike. This mobile visibility ensures that even those not using public transportation are exposed to the advertisements. Additionally, transit hubs and stations are often located in high-traffic areas where people gather, like shopping districts and business centers, further expanding the reach of these ads.
Transit OOH advertising offers a versatile tool for reaching a diverse audience with high visibility and flexibility. Its extended dwell times and strategic placement ensure your message is seen by commuters and non-riders. At the same time, cost-effectiveness and high ROI make it appealing for businesses of all sizes. By targeting specific geographic areas and communities, transit advertising connects brands with consumers in impactful ways, making it an essential component of modern marketing campaigns.
