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Tucson_Proposal Main6

Published by Leonard Loffler, 2020-10-09 10:12:52

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TABLE OF CONTENTS Cover Letter I. Signed Offer and Acceptance Form II. Proposal Response A. Method of Approach B. Qualifications & Experience C. Revenue Proposal III. Signed FTA Certifications IV. Amendments V. Contract Provision Exceptions VI. Copy of Request For Proposal No. 202523 DISCLOSURE STATEMENT Certain contents of this proposal are identified as “Confidential — Not Public” and are confidential, proprietary, privileged and otherwise protected from disclosure by applicable law. This proposal is being submitted to City of Tucson solely for the purpose of evaluation. Clear Channel Outdoor expressly retains all rights of ownership to all creative concepts, design and business processes outlined in this proposal, as well as to all hard copies of the proposal. The disclosure or dissemination of any portion of the proposal identified as “Confidential — Not Public” outside of the official proposal review process without the advance written consent of Clear Channel Outdoor is strictly prohibited. Nothing in this Disclosure Statement shall be deemed a condition of this proposal. All corporate marks, names, identities and/or likenesses utilized within these materials are for display purposes only. There exists no association between any third party and Clear Channel Outdoor unless explicitly stated. Any potential association, agency relationship or copyright infringement created or perceived herein is neither intended nor implied, and hereby expressly disclaimed. © Copyright 2020 Clear Channel Outdoor CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 2

COVER LETTER Greetings from Tucson, By Victor Ving and Lisa Beggs, Photo by Laura Sharp October 16, 2020 Dan Longanecker, CPPB City of Tucson Business Service Department 255 W. Alameda, 6th Floor Tucson, AZ 85701 Re: Requisition No. 202523 — RFP for Transit Advertising Services Dear Mr. Longanecker and Evaluation Committee Members: Clear Channel Outdoor, LLC (CCO) is pleased to present our response to Requisition No. 202523 RFP for Transit Advertising Services for the Tucson Department of Transportation and Mobility (DTM) for a Period of Eight Years (Initial Two Years+ 3, 2 Year Options). Our team has carefully reviewed the proposal and understands that as stated in the RFP, the “DTM is seeking a concessionaire with significant media advertising sales experience to develop and maintain sales efforts for transit advertising on Sun Tran buses and Sun Van vehicles. Additionally, DTM, as an option, may choose to have the Contractor include advertising sales at transit centers and on Sun Link streetcars and Sun Link stops. The Contractor will be responsible for all functions of the sales cycle including client contact, production, posting and removal of advertising, billing/revenue collection, compensation payments and reporting to the City of Tucson and other customary business practices.” CCO commits to our capability to provide all of the services detailed within the RFP with the highest quality and customer service. It is our desire to secure advertising opportunities for the Sun Tran, Sun Van and Sun Link properties. Our focus will be on maximizing revenue, working efficiently within the DTM operations, and protecting the image and commitment the City of Tucson has made to the community. Having proudly served the Tucson advertising community since 1962, CCO, is uniquely positioned to exceed the expectations of the Tucson Department of Transportation and Mobility. Our Tucson team takes pride in living and working in our community and looks forward to the opportunity to build a remarkable partnership with DTM. As requested, our proposal will strive to outline CCO’s experience in out-of-home, transit, and other media sales, as well as our specific plan for the Tucson market. We will discuss our 120-year history as a cutting edge, leader in the out-of-home industry. Additionally, we will demonstrate our first-hand experience of managing bus, shelter, and rail municipal agreements for decades across multiple markets throughout the U.S. We will also address CCO’s relevancy and growth in today’s dynamic, advertising platform through integration of data analytics into our customer experience. Additionally, we speak to our intent to minimize the distraction of transitioning this agreement by maintaining the relationship with the current maintenance and installation team, Trans 1 Graphix. CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 3

COVER LETTER Greetings from Tucson, By Victor Ving and Lisa Beggs, Photo by Laura Sharp In addition to the presentation of our proposed Minimum Annual Guarantee (MAG) and Revenue Share (%), CCO will propose the opportunity for the DTM to utilize advertising space on CCO’s out-of-home advertising displays throughout the City of Tucson. These campaigns could be used to influence and inform the ridership of the Sun Tran, Sun Van and Sun Link services. We will outline the details within the Revenue Proposal. We have chosen to integrate the famous Tucson murals throughout this presentation as a reflection of the heart and culture of the Tucson community. CCO recognizes the value of the transit properties as an integral part of that culture and would be honored to work in partnership with DTM to maximize the value of this opportunity for the community. Proposer information includes: CCO Tucson Team Company: Clear Channel Outdoor Authorized to negotiate contract and respond to questions: Diane Veres Title: Regional President – Southwest / Tucson, Phoenix, Las Vegas, Albuquerque, El Paso Address: 2325 E. Camelback Rd, Suite 400, Phoenix, AZ 85016 Office: 602-381-4770 Mobile: 602-284-0801 Fax: 602-381-4770 Thank you for the opportunity to respond to this Request for Proposal. Sincerely, Diane Veres P. 4 Regional President - Southwest CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523



Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp METHOD OF APPROACH “ Over the past several years, Rite Way has enjoyed an excellent working relationship with Clear Channel ... an important factor in growing our company” Simon Smart Marketing Manager Rite Way Heating, Cooling & Plumbing

A. METHOD OF APPROACH Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp A. Method of Approach 1. Provide a narrative that describes the Offeror’s overall approach to the Scope of Work Scope of Work Clear Channel Outdoor (CCO) is pursuing the opportunity to partner with the Tucson Department of Transportation and Mobility (DTM) on these key advertising assets because we recognize their value in the marketplace. The Sun Tran, Sun Van, and Sun Link offer advertisers the ability to connect with target audiences that are increasingly challenging to reach. Traditional outdoor advertising’s reach throughout the downtown and core of Tucson is limited. As well, traditional television, radio, and print continue to see rapidly diminishing audiences. The mobility and penetration of the City of Tucson Bus Services properties offer advertisers a unique opportunity that no other advertising vehicle in the City can provide. CCO’s approach to the Scope of Work will be built from the successful best practices learned through the operations of our other bus advertising platforms across the country. Additionally, our existing local sales, operations and real estate and governmental affairs teams will have direct responsibility to the day to day operations of the agreement. The pillars to success for this relationship will be as follows: • Maximize revenue across the entire transit platform. • Drive operational efficiency, communication, and transparency. • Establish clear and structured communication with the City of Tucson staff. • Work collaboratively with City of Tucson Contract Manager to provide concise financial reporting documents and processes. • Safeguard the public image of the City of Tucson throughout all aspects of the operation. Project Management Jennifer Nunn, Vice President of Sales for CCO Tucson, will serve as the Project Manager for the agreement and be the point person for communication with the DTM. Jennifer can be reached at 520-908-7607 (O) 520-975-4455 (M). Local Staffing/Office CCO will continue to maintain an office at 441 E 25th Street, Tucson, Arizona which became its home in 1962. Maximizing Revenue From day one, the first goal for our Vice President of Sales, Jennifer Nunn and her talented local sales team, will be to protect revenue from existing advertisers. At the same time, Jennifer and Rita Rabbani, CCO’s Regional Marketing Leader, will build outreach strategies to begin to grow new revenue opportunities locally, regionally, and nationally. Jennifer and her team will serve as the chief sales advocates for the City of Tucson concession supported by CCO’s 20 national account executives and more than 300 local/regional account executives in markets across the country. Together, our comprehensive sales force will grow a diverse and profitable portfolio of national, regional and local advertisers. CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 7

Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp A. METHOD OF APPROACH The revenue for CCO’s existing out-of-home displays in the Tucson market comes from a mix of 60% local businesses and 40% from our team of sellers across the U.S. We understand the importance of leveraging all of our resources to drive revenue. Marketing Our Southwest marketing team, led by Rita Rabbani, is comprised of five (5) individuals dedicated to creating customized materials that focus on the DTM’s value proposition, and key benefits and solutions for potential advertisers. These team members work with our sellers and customers through the implementation of CCO RADAR, our proprietary, data-driven suite of analytical tools that help advertisers buy OOH media with confidence. Maintenance For maintenance and installation efficiencies, CCO has proactively reached an agreement with the current installation vendor, Trans 1 Graphix, to continue their work under CCO, if it is granted the agreement with the City. CCO has a prior relationship with Trans 1 Graphix that will allow the team to easily continue to meet both the City and advertisers’ expectations and needs. Trans 1 Graphix will report directly to our Tucson based Operations Manager, Mike De la Ossa. Additionally, all installation and maintenance efforts performed by Trans 1 Graphix will be tracked through CCO’s electronic productivity portal, POST. POST allows CCO to track all installations and review the quality of the workmanship, so that data can easily be shared with the City and our advertisers. The system requires the installer to take a photo of the completed work which is then time stamped and uploaded and captured in the CCO network. Revenue Development Opportunities Cody Rutschman, the Vice President of Real Estate and Public Affairs for Clear Channel Outdoor Tucson has worked with the City of Tucson’s Planning and Development office since 2005. Cody has an intimate knowledge of the City’s zoning and signage regulations. Cody will be the key driver of the management and oversight of all potential additions to the product portfolio. Communications and Financial Reporting CCO will maintain books and records in accordance with generally accepted accounting principles and will follow all related procedures as outlined in the agreement. CCO will meet with DTM within the first 30 business days of the Notice to Proceed to review and confirm necessary requirements. As is standard practice with CCO’s other transit operations, CCO would expect to meet with the contract manager at regular intervals to be established by the City of Tucson Transit team. Communication is the key to building a successful partnership. CCO would work with the City to establish an understanding of the points of contact within the City, as well as the type of reporting, updates, and creative approvals that would meet the City’s expectations. A copy of the types of monthly advertising contracts and revenue reports CCO provides to the City of Phoenix and the San Diego Metropolitan Transit System can be found in 10. Contract and Billing Report and 11. Compensation Report later in this section. CCO has found that most municipalities have a preferred structure of reporting and these reports can be tailored to meet those needs. CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 8

Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp A. METHOD OF APPROACH Insurance Requirements Clear Channel Outdoor will provide documentation of proper insurance coverage under the new agreement. Advertising Ordinances Clear Channel Outdoor will ensure that all advertising local, state, and federal advertising guidelines are adhered to throughout the life of the agreement. Municipal Agreements CCO manages advertising displays within more than 200 municipal agreements across the globe. From buses and transit shelters to trains and planes, we understand the intricacies of municipal agreements. The City of Tucson Transit Advertising Services agreement carries with it the weight of both the City of Tucson staff and council and the Federal Transportation Authority’s oversight. Financial reporting must be clear, accurate, and timely. The nature of CCO’s interwoven operations requires the team to be professional, efficient, and highly transparent. While driving revenue is key, it cannot be achieved at the cost of the City’s goodwill and public opinion. 2. Demonstrate understanding of the ridership population of each of the transit systems and discuss the methods by which the sales of campaigns on the lines will take the sensitivities of the individual ridership populations into account. The Sun Tran fleet is made up of 239 vehicles that consist of 48 routes and three transit Centers: Ronstadt, Roy P Laos and Tohono Tadai. We understand ridership in 2019 was 14,262,758 passengers. The Sun Tran provides mobility on a regional scale targeting commuters from Tucson, City of South Tucson, unincorporated areas of Pima County, City of Marana, Town of Oro Valley, the Tohono O’Odham nation, and the Pascua Yaquai Tribe. The Sun Tran primarily attracts those who commute for their job, school, or events. Additional opportunities for exposure to commuters and pedestrians are possible since the Sun Tran routes cover approximately 400 square miles. Given these broad demographics, many products/services with broad appeal would be a great prospect and benefit from exposure to advertising on transit. The Sun Link fleet is made up of eight Streetcars and serves a 3.9- mile corridor that links major centers of social and economic activity, including the UArizona area, 4th Avenue and Downtown Tucson. We understand ridership in 2019 was 896,991 passengers. The Sun Link primarily attracts individuals commuting to work or school or those that want to visit any of the downtown, 4th Avenue or University restaurants, shopping, events or the various entertainment venues. Business categories that would benefit from exposure to these individuals using the Sun Link are products/services related to but not limited to lifestyle, dining, food and beverage products, green energy and products, events/shows, and products /services targeted to students, young professionals and millennials. CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 9

Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp A. METHOD OF APPROACH The Sun Van fleet is made up of 137 paratransit vehicles for individuals who are unable to use the Sun Tran’s fixed route service due to disability. We understand ridership in 2019 was 543,246 passengers. Business categories that would benefit from exposure to these individuals are products/services related to but not limited to medical, health, insurance, housing, support organizations, retirement, financial, pharmaceuticals. Examples of category development targets by platform are listed below: • Personal Care – Heavy users of transit includes fitness, spas, salons that can pull from a small geographic area (Sun Tran, Sun Link and Sun Van). • Education – Those educational institutions including preschools, charter schools, private schools, traditional colleges, continuing adult education programs, on-line and technical schools have a great opportunity to reach a large, diverse audience on transit (Sun Tran and Sun Link). • Medical –The medical category presents a substantial opportunity due to the “greying” of the population and several retirement communities that surround Tucson, plus six major hospitals and many medical specialties in Tucson (Sun Tran & Sun Van). • Banking –Transit offers a platform for local and regional banks and credit unions to compete with big banks given its cost-effective options (Sun Tran, Sun Link). • Professional Service Providers – Such providers including real estate and insurance agents plus local attorneys, financial advisors and accountants can reach more targeted audiences by focusing on the neighborhoods reached by Tucson Transit (Sun Tran and Sun Van). • Entertainment, Events & Festivals - Ideal for attracting advertisers looking for maximum exposure during major city events. Advertisers could also consider coordinating buses to these events (Sun Tran and Sun Link). • Recreational / Tourist – People are staying closer to home and are opting to travel in their vehicles at times rather than planes. Targeting destinations and attractions within the state, nearby states, and local attractions for staycations (Sun Tran). • Retail (Products & Services) – Many locally owned businesses that can benefit from mass exposure (Sun Tran, Sun Van and Sun Link). • Top Advertising Agencies – Connecting current OOH assets with top key accounts to bundle special frequency and reach packages. CCO Bus and Transit Mockups P. 10 CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523

Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 A. METHOD OF APPROACH CCO Bus and Transit Mockups P. 11

Confidential – Not Public A. METHOD OF APPROACH 3. Transit Centers (indicate any interest in the option Transit Centers. If interested, provide a description of the proposed approach to each location. If the proposed plan requires modifications to Terms and Conditions of the RFP, such as the term of the contract, include proposed modifications.) CCO believes there is great potential in installing digital advertising kiosks at the Ronstadt Transit Center along 6th Avenue as well as Congress Street. The following illustrations are CCO’s proposed renderings of the digital kiosks and map view showing proposed locations. Ronstadt Transit (W - Congress) Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp Potential digital kiosk at The Ronstadt Transit Center on the corner of 6th Ave and Congress Street, Facing South Potential digital kiosk at the Ronstadt Transit Center on Congress Street, east of 6th Ave, Facing East Aerial Photo showing 3 potential digital Kiosk sites at Potential digital kiosk at the Ronstadt Transit Center on the Ronstadt Transit Center 6th Ave, North of Congress St., Facing South CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 12

Confidential – Not Public A. METHOD OF APPROACH CCO has installed digital kiosks in other markets such as San Diego, San Francisco, and Washington, D.C. with great success. The digital format provides the most time-sensitive and flexible form of outdoor advertising for advertisers. Digital signs provide advertisers with creative flexibility allowing them to change messaging throughout the course of a day to influence purchasing decisions. Digital sign capabilities include social media integration, countdowns, live updates, and conditional content (i.e. weather, temperature). This format would also allow a portion of the digital advertising space to be utilized by the City of Tucson to promote various city projects, news updates, and events throughout the course of the year. These displays would gain great exposure to the Ronstadt Center passengers and downtown pedestrians given the heavy traffic flow. They would also reach commuters from the roadway along 6th Avenue and Congress Street extending the reach significantly and adding even greater value to advertisers. Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp Aside from traditional advertising, these digital displays can be used for various “sponsorships” such as: • A “pollen report” sponsored by an Allergist or a Pharmaceutical drug like Zyrtec • A weather report for the week sponsored by Mr. Carwash or a sunscreen product • Current mortgage rates sponsored by NOVA Home Loans, a Mortgage Broker, a Credit Union or Financial institution • Sponsors of large events in downtown Tucson • Weather sponsorship in summer months for cooler destination and staycation places • Monsoon tips sponsored by TEP • Countdown sponsors for grand-openings, breaking news, and holidays sponsored by retailers • Weekend guides sponsored by a theater company or downtown arts organization • Recruitment ads • Salutes or thank you messages to various organizations • Adoption or Pet of the Month messaging from P.A.C. or Humane Society • Companies active on social media extend the reach of conversations occurring on their social media channels to commuters by leveraging the digital display social integration capability CCO anticipates that these digital kiosks could bring in an average of $50,000 per year per digital face. Therefore, we believe $150,000 in gross revenue could be generated per year. CCO would share a percentage of those revenue amounts with the City of Tucson. The proposed percentage share amount would be 66.0% in years 1-2, 66.5% in years 3-4, 67.0% in year 5-6, and 67.5% in years 7-8. However, because of the capital expense CCO would undertake, we will need to recover our capital expenditure out of the revenue share prior to payment to the City of Tucson until all of our capital expenses are repaid. The MAG for the digital shelter faces would-be set-in year 2 at 40% of revenue from year 1. Please see the following example to help explain the proposed digital kiosk revenue share: Year Revenue MAG Revenue Share Paid to City CCO Capital Recovery Year 1 $150,000 $0 $99,000 $0 $99,000 Year 2 $160,000 $60,000 $105,000 $60,000 $45,600 (40% of YR1 Rev) This will continue every year thereafter until CCO recovers 100% of their capital expenses CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 13

Confidential – Not Public A. METHOD OF APPROACH Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp CCO recommends that this digital kiosk opportunity be reviewed in more detail with the City of Tucson to research if installation of digital kiosks is achievable. These digital kiosks would require a sizeable capital investment by CCO; therefore, in order to justify the installation of digital kiosks we will likely require a mutual agreement to add a longer term than the existing term of two years with (3) two-year renewal options. 4. Sun Links Streetcars (Indicate any interest in the optional Sun Link Streetcar. If interested, provide a description of the proposed approach.) The Sun Link fleet is made up of eight Streetcars and serves a 3.9-mile corridor that links major centers of social and economic activity, including the UArizona area, 4th Avenue and Downtown Tucson. The Sun Link primarily attracts individuals commuting to work or school or those that want to visit any of the downtown, 4th Ave or University restaurants, shopping, events or the various entertainment venues. Business categories that would benefit from exposure to these individuals using the Sun Link are products/services related to but not limited to lifestyle, dining, food and beverage products, green energy and products, events / shows, and products / services targeted to students, young professionals and millennials. CCO would seek opportunities to work with local, regional and national clients that are seeking exposure to students, young professional, millennials, and/or commuters that want to catch a show or dine out downtown or at any of the restaurants on University Blvd. or 4th Ave. The Sun Link’s 3.9-mile route grants a valuable option for these clients in that it offers such great exposure to pedestrians, commuters and vehicular traffic along the 3.9-mile route that traditional OOH advertising formats cannot capture. 5. Sun Link Stops (Indicate any interest in the option Sun Link Stops. If interested, provide a description of the proposed approach to each location) CCO would seek opportunities to work with local, regional and national clients that are seeking exposure to students, young professional, millennials, and/or commuters that want to catch a show or dine out downtown or at any of the restaurants on University Blvd. or 4th Ave. The Sun Link’s 3.9-mile route grants a valuable option for these clients in that it offers such great exposure to pedestrians, commuters and vehicular traffic along the 3.9-mile route that traditional OOH advertising formats cannot go. The Sun Link stops include ten median stops and 13 curb stops starting at Campbell & Helen at UArizona, through Main Gate Square, to 4th Ave., through Downtown, to west of freeway on Congress at Avenida del Convento. Additional revenues could be generated from sponsoring and naming rights for each stop on the actual creative – bundle and dominate the target market of students, young professionals, millennials and frequent commuters who work or “play” in the downtown, 4th Avenue and University area. CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 14

Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp A. METHOD OF APPROACH 6. Other advertising Opportunities (Describe the firm’s ability to work with potential advertising opportunities through Intelligent Transportation System (ITS) technologies, transit websites, mobile apps, Sun Tran Ride Guide (schedule and map book), other printed transit information. Identify any other potential opportunities. CCO developed RADAR, a proprietary suite of data driven solutions based on mobile location data, to afford local advertisers more opportunities to leverage today’s innovative marketing strategies in association with their OOH campaigns. With RADAR, advertisers can more effectively plan, amplify and measure their campaigns. CCO sales teams are fully trained on RADAR solutions and actively represent these additional advertising solutions to clients. The two solutions noted below (RADARConnect and RADARProof) represent the saleable solutions. A description of each is noted below. With RADARConnect, advertisers can take their offline campaign online. CCO will set up a campaign to retarget audiences exposed to the OOH campaign on their mobile devices, ultimately generating additional awareness and action. RADARProof, CCO’s campaign attribution solution, allows CCO to partner with advertisers to measure campaign outcomes. CCO continues to blaze the trail in the OOH industry by offering industry first attribution options. 7. Business Plan (Provide a proposed Business Plan. The Business Plan shall detail the proposer’s experience in out-of-home, transit or other media sales, and specific plans for the Tucson market. The Business Plan shall address how the Offeror plans to sell available space available at highest possible rates. The Business Plan shall describe how the Offeror will manage the business plan on a day-to-day basis.) The CCO team is ready to hit the ground running and to provide a seamless transition upon signing of the new agreement. Clear Channel Outdoor is a leader in the out-of-home industry. • Industry leader for 120 years • $2.7 billion in global revenue in 2019 • Extensive reach of millions of people monthly in 43 top-50 U.S. markets • More than 200 municipal contracts • Approximately 510,000 print and digital displays in 31 countries across North America, Latin America, Europe and Asia • U.S. digital platform of more than 1,900 displays including more than 1,400 digital billboards, and more than 3,000 airport digital devices • More than 10,000 Shelter and Kiosk Displays as well as 8,000+ bus advertising displays across 14 U.S. markets. • Shelter, bus, and rail displays across 22 countries throughout Europe, Latin America and Asia Pacific. CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 15

A. METHOD OF APPROACH Clear Channel Outdoor - Tucson CCO has successfully operated outdoor advertising structures in the Tucson community for nearly 60 years. CCO’s current Tucson market advertising portfolio consist of 778 printed displays across Southern Arizona, as well as the management and revenue generation for the City of Tucson Airport Advertising displays. Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp As discussed previously, CCO has a strong foundation of long-standing relationships with major and minor business owners and advertising agencies throughout the community, many that span the entire period of operation. These local sales efforts, combined with a well-established network of sellers across large and medium markets throughout the U.S., will work collaboratively to leverage all possible revenue opportunities. CCO’s goal is to enhance and extend the current base of advertisers. We have a great track record of successfully commanding a wide range of advertisers who already have great results with out-of-home and will recognize and invest in the power of transit advertising. CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 16

Confidential – Not Public A. METHOD OF APPROACH Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp Sales CCO approaches the development of advertising revenue and customer relationships from a holistic approach. Today’s marketers know that one size does not fit all. They look to their media partners to build effective campaigns by blending a variety of products and services. While many outdoor advertising vendors segment their sales teams by product, CCO takes a different approach. The CCO sales team represents all products offered across the company. This approach means that advertisers can work with one sales representative to build strategic campaigns that leverage various products to meet the campaign objective. Also, with this approach, all 300+ sales representatives will have the opportunity to pursue revenue generation opportunities for the City of Tucson Transit Advertising displays. Local Tucson Team The local Tucson sales team consists of five Tucson-based sellers, all of whom have strong relationships within the local business community. Prior to joining CCO in 2019, the Vice President of Sales, Jennifer Nunn, built her career in media sales in Tucson with the community’s leading radio and television stations. Additionally, Jennifer is recognized as a Tucson Advertising Federation Hall of Fame recipient for the impact she’s made on the community throughout her career. Regional Import Sales Across CCO’s entire organization, local sellers, like the Tucson team, work with regional and national businesses based in their home markets to secure advertising in Tucson. We refer to this type of revenue as Import Sales. Examples of this type of revenue generation for the Tucson market are Rafi Law Firm, Goettl, and Raising Canes. National Sales Group Additionally, CCO has a team of designated national sellers who work with major advertising agencies and large national businesses in key markets like New York, Chicago, Los Angeles, Minneapolis, Seattle, and Dallas. Examples of this type of revenue generation for the Tucson market would be Humana, Banner Hospital, and Carl’s Jr. CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 17

Confidential – Not Public A. METHOD OF APPROACH Getting Results As we have addressed in previous sections of this response, CCO has built a highly collaborative and multi-layered sales approach across its enterprise. While Tucson may be 65th in DMA ranking, 40% of CCO’s current revenue generation for the Tucson market comes from organizations outside of the local Tucson business community. For this reason, a wide- reaching sales effort is critical to the health and vitality of this revenue opportunity. “I am grateful to Clear Channel Outdoor as a media partner and value our relationship because they care about my business and me personally.” K.C. An, Owner Mr. An’s Teppan Steak and Seafood Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp Marketing At CCO, sales and marketing are unified partners. Our marketing team, led by Regional Marketing Leader, Rita Rabbani, and her team of four marketing professionals, bring the data and support behind our sales efforts in the Tucson market. They will bring this powerful messaging to the DTM advertising product offerings to leverage greater results for our customers and our revenue development efforts. Creative Creative is key to the success of our transit operations nationwide. Our creative team, led by Regional Creative Leader, Todd Broeker, and his team of three designers work one-on-one with our advertisers to craft their compelling messages. In the advertising industry, out-of- home displays are often thought of as the most difficult design challenge a graphic artist has to tackle. Our team works diligently to simplify the process, not only for our direct advertisers but also as a partner/collaborator with all of the advertising agencies. Revenue Management CCO employs a team of seven revenue managers within the corporate finance team. The goal of these managers is to work with their designated CCO region to help drive yield on all of its product offerings. Similar to the airline industry model, the process takes into consideration historical data such as rate, occupancy, timing and economic conditions to evaluate proper pricing levels and ultimately drive revenue. For CCO, pricing needs to be fluid based on current trends. For this reason, we do not offer published rate cards. Out-of-home product inventory is a limited commodity and therefore price must increase with increasing demand on inventory. An example of our success with CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 18

Confidential – Not Public A. METHOD OF APPROACH Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp this pricing model can be demonstrated with the CCO Tucson Poster product. An average rate for CCO Tucson for this product is $812 per location vs. $619 on average per location for all other CCO markets. Tucson has a limited out-of-home product offering in comparison to many markets and therefore can demand a higher rate. A strong selling proposition is the primary driver of rate. Healthy and robust sales efforts will drive demand for the product. The demand for the product will then allow CCO to gradually increase the product rates. Rate discounts will apply for advertisers who commit to long term agreements on large format products. This will help to build a consistent cash flow base and build a foundation upon which to elevate demand and then rate. The outcome is greater overall yield. For CCO, while we are respectful of the value transit ridership, our primary sales focus is on the geographic segments of the community that is viewing the traveling transit vehicle. As stated in the Scope of Work and later in the Sales Plan, CCO recognizes the value of the DTM advertising opportunity because it allows advertisers to reach portions of the Tucson community that are difficult to impact via traditional advertising methods. Additionally, for products like the Sun Van our focus is on the destination of the traveled route. The secondary revenue opportunity is created by focusing on the make-up of the ridership within the vehicles. Also, as we will share in the Sales Plan, accountability of the sales team and its leadership is a key factor in the success of any advertising media platform. CCO’s sales efforts are highly structured, with weekly training and development for all representatives. Our local team is held accountable to specific product goals and all efforts are tracked through Salesforce. Additionally, a strong product mix gives our representatives the opportunity for greater access to customers rather than being limited to a single offering. This continuous presence with our customers allows us to better understand their changing needs and match our variety of product offerings to their goals. Scheduling Communication As we have addressed, clear and concise communication between CCO or DTM is imperative for efficient operation of this opportunity. Similar to other municipal partnerships, CCO understands that due to the nature of bus operations and the safety measures required, the Contractor is obligated to contact DTM’s designees, Sun Tran, Sun Link, and Sun Van a minimum of 48-hours prior to installation or maintenance of advertising materials. A list of ad types and quantities to be installed will be provided during traditional business hours. Operations/Installation/Maintenance CCO believes that installation and maintenance is part of the sales process. Outstanding sales efforts must be matched with outstanding product delivery. Customers expect their advertising campaigns to be delivered on time with high-quality product presentation throughout the life of the campaign. CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 19

Confidential – Not Public A. METHOD OF APPROACH For this reason, we set high expectations on our in-house operations teams as well as all independent contractors such as Trans 1 Graphix. The best way to ensure quality delivery is through consistent inspection of the delivered product. This is why CCO developed its POST and POP applications described in 8. Maintenance Plan. Managers at the local, regional, and corporate level routinely inspect all installation photos. Additionally, our local operations team will inspect the work being done at the bus yards on a bi-weekly basis. “When they promise, we know that they will deliver.” Douglas Martin, President Good News Communication Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp CCO’s communicating efforts with multiple garages and staff is imperative to not only our success but that of the City as well. We pride ourselves on maintaining consistent and strong communication via email as well as phone conversations throughout the installation and removal process of all products. We know that the most important step in all transit fleets is rollout and maintaining an on-time schedule. Trans1 Graphix has been a partner of ours in the PHX transit market and they maintained a very strong rapport with our transit garage staff. Our focus would be to continue that same level of communication and collaboration with the City of Tucson staff. CCO is protective of its reputation as a leader in the out-of-home industry. Our focus will be on maximizing this opportunity for all parties and delivering a product and service that our customers and the City of Tucson will be proud of for the life of the partnership. 8. Maintenance Plan (Provide a proposed Maintenance Plan in the proposal. If subcontracting for these services, the Offeror must present qualifications of proposed firm or individuals that will execute these duties and include their services within the Maintenance Plan.) Maintenance In accordance with the Contractor’s Responsibility within the RFP, CCO’s Maintenance Plan shall ensure that all advertising will be installed, rotated, and removed in a professional manner. As was shared in our Business Plan, for maintenance and installation efficiencies, CCO has proactively reached an agreement with the current installation vendor, Trans 1 Graphix, to continue their work under CCO, if it is granted the agreement with the City. CCO has a prior relationship with Trans 1 Graphix that will allow the team to easily continue to meet both the City and advertisers’ expectations and needs. Trans 1 Graphix will be required to meet CCO’s standards and like all other contractor’s their performance will be reviewed on a regular basis to ensure all expectations are met. CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 20

Confidential – Not Public A. METHOD OF APPROACH Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp Trans 1 Graphix will report directly to our Tucson based Operations Manager, Mike De la Ossa. Mike, in addition to the management and oversight of Trans 1 Graphix performance, will perform bi-weekly inspections of the installs at the yards. All installations, maintenance, and inspections will be reported to the appropriate individuals 48 hours in advance as stated within the Contractor’s Responsibilities. As we have stated previously in this offering, communication with the DTM and the supervisors of the bus yards will be imperative due to the collaborative demands of this agreement. CCO’s Proprietary Reporting and Management Tool Additionally, all installation and maintenance efforts performed will be tracked through CCO’s CCO.IO. This proprietary reporting and management tool ensure that each media program is effectively implemented and managed throughout the term of our agreement. CCO.IO is an internal reporting system with web-accessible applications that provide visibility and functionality throughout the sales cycle from proposal to fulfillment. In addition to keeping data moving across all of Clear Channel Outdoor’s systems, it manages the movement of photos, documents and other required materials and is heavily used by our operations department. All applications within CCO.IO provide robust reporting on the history, status and content details of each campaign. All work performed by Trans 1 Graphix, CCO employees, and any other registered contractor for the Tucson Department of Transportation and Mobility will be input into the CCO.IO system. • CCO Post: The Post web application is the scheduling tool CCO’s Operations leadership uses to schedule and track all installations in real-time across the platform. Post captures all installation activity to ensure proper documentation and to safeguard on-time delivery to meet contractual obligations. CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 21

Confidential – Not Public A. METHOD OF APPROACH • CCO Pix. The CCO Pix web application makes it easy for CCO employees to view and access photos of any display. Photos are searchable by tags and common groupings and are easy to upload, share and archive. Pix Mobile allows access anytime, anywhere supporting even the most deadline-sensitive sales efforts. Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp • CCO Pop. At the click of a button, Proof of Performance (POP) provides employees and clients instant access to all photos of posted media for all orders booked through CCO.IO. Photos can be located by order or advertiser/agency. POP also allows sellers and advertisers access to campaign marketing photos through a reporting user experience (UX) design accessible by all. CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 22

Confidential – Not Public A. METHOD OF APPROACH Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp Contractual Customer’s Commitments to On-time Execution: To ensure the complete success of our advertisers’ advertising campaigns, Clear Channel Outdoor adheres to the following posting schedule: • Post all printed materials inclusive of bus advertising displays within five (5) business days of contract start date. (Printed materials must arrive at facility five (5) business days prior to contract start date.) Installation will not be scheduled until all materials arrive. • Deliver a completion photo within five (5) business days of the initial posting. • Repair display defects within two (2) business days of notification. Collaborative Relationship: The CCO Operations team and our contractors are committed to performing at the highest level of service. Our teams must work efficiently within the confines of the bus yards, maintain a professional and collaborative decorum, and keep the area of operations clean and free of debris. As was addressed in the Business Plan, CCO respects the fact that our team works closely with the garages, inclusive of maintenance, fuel yard, night and day-time staff etc. While the bus advertising displays bring significant revenue to the City, we know that the most important step in all transit fleets is rollout and maintaining an on-time schedule. 9. Sales Plan: Provide a sample Sales Plan. The Offeror shall describe the sales strategies to be implemented to meet the goal of achieving inventory sell-out at maximum rates. The Sales Plan shall describe how revenues will be maximized from a mix of local, regional and national sales. The Sales Plan: a. describe the different demographic profiles and service characteristics of each transit provider b. describe any special opportunities c. identify staff responsible for local and regional sales d. if management of national sales accounts is proposed, the Offeror shall specify staff and/or subcontractor Offerors shall propose a minimum annual amount of revenue guaranteed to the City. The Sales Plan shall address the methods the Offeror will employ to meet or exceed the annual guaranteed minimum amount. Sales Plan Comprehensive Sales Approach Yields Maximized Revenue Return Every day, CCO advertisers connect with key target audiences in the right place, at the right time, with measurable results. This impact translated into advertising sales of $2.7 billion in 2019 with more than 20,000 advertisers and sponsors globally and maximized revenue return for our partner transit authorities, cities and airports. CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 23

Confidential – Not Public A. METHOD OF APPROACH As addressed in our Business Plan, CCO has a highly structured approach to revenue generation across our varied platform of products and services. We designed our successful sales organization with the focus on pursuing revenue development at the local, regional, and national level. Regardless of the market or the make-up of the products every segment of our business benefits from this multi-layered approach. Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp Local Sales Our Tucson-based team of sales representatives have long standing relationships within the market. We work directly with from Tucson Medical Center to Rite Way Cooling and Plumbing Services to The Humane Society of Southern Arizona. Our core value is partnership and it is our goal to help local Tucson businesses grow and ultimately elevate the community’s economic development. Import Sales CCO has more than 300 sales representatives (account executives) across 35 large, medium, and small markets across the U.S. These sales representatives are dedicated to selling all of CCO’s products across all markets. Working with businesses like New Mexico State University, Panera Bread, or Ambetter Health Insurance these representatives are focused on uncovering opportunities with business based in their home markets that have a regional or national marketing focus. National Sales Group (NSG) CCO’s NSG team is made of 20 sales professionals dedicated to working with large advertising agencies and direct customers in the major advertising hubs of New York, Chicago, Los Angeles, San Francisco, Seattle/Portland, and Dallas. These representatives work with advertisers like Coca Cola, Verizon, and Geico. CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 24

Confidential – Not Public A. METHOD OF APPROACH Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp Often, these three groups work collaboratively within the various levels of a customer’s organization to assist in the development of a campaign. Historically, for the Tucson market, the revenue from CCO’s printed displays is generated at a level of 60% from the local sales team and 40% from the combined efforts of the Import Sales and National Sales Group. The latter number includes business from local Tucson companies that utilize advertising agencies outside of Tucson. Sales Accountability To ensure the success of your media program, CCO’s corporate management sets branch sales goals that are reviewed regularly. Jennifer Nunn, Vice President of Sales, will work closely with the local sales team to ensure sales goals are met and exceeded. At the start of each year, each account executive will be assigned a budget, key accounts and new business targets. Accounts are tracked on a weekly basis to ensure accountability, effective management and business growth. Sales management also conducts individual meetings with account executives to develop an account plan and discuss new business strategies and attend key account client meetings. Our client relationship management tools track, measure and manage the client relationship and every step of the sales cycle to confirm that our team is providing the utmost in customer service leading to an uptick in sales. Sales Launch Upon signing a new agreement with DTM, CCO will launch its multi-faceted sales effort to ensure a smooth transition without jeopardizing the substantial, existing advertiser revenue. • Market sales blitz: The local account executives will contact current advertisers to ensure a smooth transition to your new program and an on-going revenue stream. They will also reach out to target local, regional and national businesses in the Tucson market to expand the sales base. • Import sales: During regularly scheduled sales calls, your account executives will champion the Tucson market offerings leading to sales from outside the market by brands that want to reach the various demographics • National Sales (NSG): Simultaneously, our national account executives based in major media markets across the U.S., will promote this media program with their key accounts across the country, representing Fortune 500 and other large companies. Sales Structure CCO approaches the development of advertising revenue and customer relationships from a holistic approach. Today’s marketers know that one size does not fit all. They look to their media partners to build effective campaigns by blending a variety of products and services. While many outdoor advertising vendors segment their sales teams by product, CCO takes a different approach. The CCO sales team represents all products offered across the company. This approach means that advertisers can work with one sales representative to build strategic campaigns that leverage various products to meet the campaign objective. Given CCO’s sales team approach, all 300+ sales representatives will have the opportunity to pursue revenue generation opportunities for the City of Tucson Bus advertising displays. CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 25

Confidential – Not Public A. METHOD OF APPROACH Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp The local Tucson sales team consists of five Tucson-based sellers, all of whom have strong relationships within the local business community. Prior to joining CCO in 2019, the Vice President of Sales, Jennifer Nunn, built her career in media sales in Tucson with the community’s leading radio and television stations. Additionally, Jennifer is recognized as a Tucson Advertising Federation Hall of Fame recipient for the impact she’s made on the community throughout her career. Across CCO’s entire organization, local sellers, like the Tucson team, work with regional and national businesses based in their home markets to secure advertising in Tucson. We refer to this type of revenue as Import Sales. Examples of this type of revenue generation for the Tucson market are Rafi Law firm, Goettl, and Raisin Canes. Additionally, CCO has a team of designated national sellers who work with major advertising agencies and large national businesses in key markets like New York, Chicago, Los Angeles, Minneapolis, Seattle, and Dallas. Examples of this type of revenue generation for the Tucson market would be Humana, Banner Hospital, and Carl’s Jr. CCO will maximize revenues through the appropriate utilization of the skills and experience of the team of 300+ Account Executives through the U.S. with 5 hyper localized account executives based in Tucson (a 6th seller to be added in 2021). CCO’s unique sales approach begins with strong relationships – with advertisers, media agencies and the business communities where our outdoor partners are located. Our account executives approach every sale with a strong customer focus that translates into key benefits: • Sales depth and breadth - The local Tucson team spends substantial time cultivating relationships with advertisers and prospects before and after the sale. That means each account executive develops a deep familiarity with their clients as well as a breadth of knowledge of the market to continually drive sales. CCO’s account executives use SalesForce to manage customer relationships for greater efficiency and maximizing deals. • High Retention – Relationship selling leadings to upselling and retention. Our account executives are highly trained in relationship sales techniques to ensure media program has a robust portfolio of advertisers with maximum retention. • Increase Market Visibility – We understand the important role that DTM plays in the economic development of Tucson. The CCO team will continue to work to further expand DTM’s economic influence and keep the DTM media program uppermost in the minds of advertisers and business leaders. Our goal is to continually grow DTM’s sales pipeline and drive sales revenue. The importance of relationships in the Tucson market cannot be understated. Our local team takes voluntary roles in key Tucson organizations to develop strong business and community relationships, but more importantly, to contribute to the City of Tucson. CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 26

Confidential – Not Public A. METHOD OF APPROACH Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp In maximizing revenue, several factors will go into best practices for yield management. To drive rate, there needs to be demand and high occupancy which the local sales team understands and is known for having rate integrity. Additionally, CCO employs structured revenue management practices across the organization. CCO’s revenue managers use historical rate and occupancy data married with current trends to establish pricing guidelines that maximize yield. Also, the duration of a campaign is important when it comes to pricing. CCO will build a strong foundation by creating long-term offerings for local businesses to fill inventory and keep occupancy high. This is important for two reasons: (1) generate consistent revenue month after month, and (2) by filling the inventory and creating urgency for the product. Given these reasons, we are able to better drive and maximize rate and demand for unsold inventory. This plan of action maximizes the local revenue base, while avoiding a degradation of the image of the product. In many ways CCO’s sales team operates as airlines do, continually seeking opportunities to maximize occupancy and revenue through dynamic pricing changes and a multi-pronged sales effort filling gaps and special programs and creating higher occupancy. CCO’s mission is to drive revenue for its transit partners via a proven track record of proactively soliciting advertisers that have never used transit advertising products. Additionally, the CCO team understands the importance of educating existing and prospective customers regarding the positive effect on campaign metrics by shifting a portion of non-OOH media budgets into OOH. With a media savvy sales team who understands the strengths and weaknesses of the competition, this practice helps grow revenue opportunities by taking budget away from broadcast (TV & Radio), digital and print. Strategies on growing revenues/rates: 1. Focus on selling more large-scale graphics; garnering higher rates for same space such as full wraps, ultra-wraps and super kings. 2. Identify new opportunities including but not limited to Michelangelo ceiling ads, interior wraps and interactive transit stop ads. 3. Create “domination” packages to target brands looking to reach a specific target audience such as college students, young professionals, millennials, or seniors. Domination packages can include transit station assets, mobile and bus wrap packages, and possibly billboards. 4. Evaluate pricing by product quarterly and adjust when necessary. 5. Manage renewals minimum of 120 days in advance and enforce RFR’s. 6. Create special packages to fill gaps. 7. No bonusing or added value to existing campaigns. CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 27

Confidential – Not Public A. METHOD OF APPROACH Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp CCO’s reputation as innovative leaders extends to how leadership manages and develops internal teams. CCO has cultivated a staff of experienced, trusted professionals to be your advertiser’s internal support team for every application, process and project – handling all matters on the advertiser’s behalf, end to end, start to finish. As your transit partner, CCO will guarantee the best, most experienced team to grow and maximize revenue. The local sales team consists of veteran outdoor advertising media sellers and former Broadcast TV, Radio, and Newspaper/Print sellers who all live in Tucson…a couple of them were actually born at Tucson Medical Center! CCO’s inventory management, real estate and public affairs, and operations team members have all been with the company for an average 15 years. Marketing As we shared in our Business Plan, CCO’s marketing team works hand in hand with sales. Today’s marketers demand data solutions and insights to justify advertising spends. Our team of highly skilled marketing professionals help to deliver these insights and build compelling, effective campaigns. CCO RADAR Unlocks True Potential of Out-of-Home CCO RADAR, our proprietary, data-driven suite of analytical tools, allows advertisers to more effectively plan, amplify and measure the impact of out-of-home advertising, making a strong case for increased out-of-home media budgets. This key sales tool is a CCO exclusive. Clear Channel Outdoor has invested immense resources to deliver these next-generation, data- driven solutions to ensure advertisers reach their target audience and our outdoor partners enjoy maximized revenue. Launched in 2017, CCO RADAR arms advertisers with critical data so they can better plan and target campaigns, amplify those campaigns across other forms of digital media and assess impact on business metrics by leveraging privacy compliant, aggregated mobile data. CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 28

Confidential – Not Public A. METHOD OF APPROACH Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp CCO RADAR unlocks sophisticated audience segmentation, targeting and insights that up until now have not been available in the out-of-home space. Privacy-compliant, third-party data providers anonymously observe, and aggregate consumer data generated from digital consumer activity. Using this data, RADAR has the unique ability to map real-world behaviors and consumer habits. Our most recent addition, RADARSyncTM, allows advertisers to integrate their unique data sets into the ad campaign planning and analytics process. Bottom line — brands reach the right consumers with the right message, based on proximity, demographics, behavior and/or media type. Consumer and Media Research Our account executives are trained to use a variety of research tools to assist advertisers in developing a targeted out-of-home campaign that delivers the results they need to meet their business goals. This approach maximizes return on investment and helps to build strong retention and a robust advertising portfolio for our out-of-home partners. We regularly use the following consumer and media research tools to help advertisers target key consumers: Audience and Consumer Targeting • Geopath OOH ratings. Using its industry-standard audience location measurement protocols, Geopath generates demographic-specific impressions, rating points, and research and frequency data for more than a million pieces of out-of-home inventory. • Census data. Clear Channel Outdoor is a licensee of Alteryx, which provides annual estimates to reflect ethnic and growth trends from census data. This includes basic demographic categories as well as travel time and method to work. • Scarborough. Scarborough Research measures the lifestyle, shopping patterns, media behaviors and demographics of American consumers locally, regionally and nationally. Scarborough’s consumer travel insights are especially helpful to planning out-of-home buys. • GfK MRI MediaMark Research. GfK MRI’s vast database of demographic, psychographic, consumer behavior and media usage data is a powerful resource for penetrating insight into the actions and motivations of American consumers. Media and Budget Planning Resources • RADARView: CCO’s planning tool that leverages mobile location data to understand consumer mobility and behavior for more efficient planning, amplification, and measurement of OOH campaigns. • Kantar Media Intelligence. Kantar Media Intelligence is the leading provider of competitive media spending and occurrence data providing powerful insights on brand and category advertising expenditures in the top 100 DMAs. • Telmar TOPS4TAB. Telmar TOPS 2.0 provides efficiencies and return on investment on campaigns for all audience vendors, DMAs and inventory formats. Based on Geopath’s data, the program provides reach, frequency, impressions, cost per thousand (CPM), cost per point (CPP) across a wide range of consumer targets and campaign timeframes. • SRDS and Local Market Audience Analyst. SRDS, now integrated with Kantar CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 29

Confidential – Not Public A. METHOD OF APPROACH Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp Media, is the largest and most comprehensive database of media rates, contact data and opportunities in the world. It catalogs more than 125,000 U.S. and international media properties and serves as a powerful tool in planning and managing successful campaigns. This resource is often used to demonstrate how out-of-home can best fit into a particular media mix. • ZoomInfo. This industry-leading advertising database provides information regarding key decisionmakers, budgets and opportunity timelines. Out-of-Home Effectiveness • Proposal generator. CCO’s proposal generator software includes real-time inventory availability, rates for all divisions and markets, and campaign delivery for all audited products. This program also contains maps, product sheets, market information, shipping information, product specifications and additional features so account executives can provide clients with comprehensive out-of-home solutions to address any marketing objective. • MapInfo. MapInfo, a desktop mapping system, pinpoints outdoor inventory in combination with a variety of client targets such as business locations, demographic and psychographic concentrations, zip codes and trade areas, market hotspots and more. When combined with a variety of other research resources, MapInfo helps to demonstrate how a tailored out-of-home program can meet a variety of client marketing objectives. • RADARProof®. RADARProof® offers a variety of attribution solutions to help advertisers evaluate out-of-home impact for their unique marketing goals including visitation, brand affinity, TV tune in, mobile app usage, and more. Advertising Guidelines We place strong emphasis on the out-of-home consumer experience and remain ever mindful of the content we present to the communities and commuters we serve. CCO’s internal guidelines and copy review protocols exceed those established by the Outdoor Advertising Association of America and promote uniform, reasonable and viewpoint-neutral standards for the display of advertising on assets under management by CCO. Where our standards differ, CCO will comply with the standards established by the terms of this agreement as well as all state and federal regulations. The following is a list of subjects that are generally considered unacceptable content: • Nudity/Revealing clothing. Nudity, revealing clothing and the display of undergarments are not appropriate. • Sexual reference. Depiction of sexual activity, sexual gestures, symbolic sexual references, sexual dialogue or innuendo is not acceptable. • Violence. Intense or realistic-looking violence is not permitted. Content containing extensive and detailed instruction in the use of harmful devices/weapons or that describes imitable techniques is not appropriate for use. • Drugs. Illegal drugs, drug use, drug paraphernalia, symbolic gestures that may refer to drug use or the symbols that represent illegal drugs are not acceptable. Images or overall themes that may be considered insensitive, crude, irreverent or shocking are not acceptable. • Language. Strong language, including offensive slang, suggestive dialogue, innuendo and double entendre, is not acceptable. Also, the hand gestures that CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 30

Confidential – Not Public A. METHOD OF APPROACH Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp represent various offensive words are not permitted. References of a personal nature (i.e. body or bodily function) are not appropriate. Words of questionable taste are not acceptable. • Religion/Sacrilege. Content is strictly evaluated with sensitivity toward the religious beliefs, views and diversity of the largest possible audience. Blasphemy, mockery, aggression or irreverence toward religious institutions or the icons or symbols that represent them are not acceptable. • Symbols of the occult. Satan, 666, pentagrams and so forth, are not acceptable content. • Disparaging or demeaning. Content that may be considered offensive, demeaning and/or hurtful to a particular individual or group of people is not acceptable. • Gross or tasteless. Images, dialogue or overall themes that may be considered insensitive, crude, irreverent or shocking are not acceptable. • Tobacco and alcohol. Depiction of tobacco and alcohol use and signage is highly restricted and requires special approval. • Anti-social behavior. Content that involves a strong depiction of illegal, reckless or problematic behavior without negative consequences, punishment or proper resolution will not be used. In addition, elements that are highly imitable and pose a health risk will not be used. Clear Channel Outdoor Custom Marketing Collateral CCO’s marketing team blends a balance of corporate supported marketing materials as well as creating customized materials to match the culture and business climate of each market’s needs. CCO’s Sales and Marketing Resource Center is an internal portal that houses hundreds of documents ranging from market specific media kits to product and customer case studies. The following collateral examples demonstrate the quality and presentation that separates CCO from the competition. These examples represent a client-facing media kit and proposal template that, if granted the opportunity, we can immediately begin using to drive revenue for the Tucson transit products. Sample CCO Media Kit P. 31 CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523

Confidential – Not Public A. METHOD OF APPROACH Sample CCO Media Kit Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 32

Confidential – Not Public A. METHOD OF APPROACH Sample CCO Sales Proposal Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 33

Confidential – Not Public A. METHOD OF APPROACH   10. Contract and Billing Report (Sample of Contract and Billing Report) SAMPLE CCO CONTRACT AND BILLING REPORT Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 34

Confidential – Not Public A. METHOD OF APPROACH 11. Compensation Report (Provide a sample revenue) SAMPLE CCO COMPENSATION REPORT Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp 12. Propose any additional possible adverting formats and locations and describe how these will enhance the overall program and maximize revenue. SPECIAL OPPORTUNITIES As we duscussed in Scope of Work, 3. Transit Centers, CCO believes there is great potential in installing digital advertising kiosks at the Ronstadt Transit Center along 6th Avenue as well as Congress Street. The following illustrations are CCO’s proposed renderings of the digital kiosks and map view showing proposed locations. Potential digital kiosk at The Ronstadt Transit Center on the corner of 6th Ave and Congress Street, Facing South CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 35

Confidential – Not Public A. METHOD OF APPROACH Potential digital kiosk at the Ronstadt Transit Center on Congress Street, east of 6th Ave, Facing East Aerial Photo showing 3 potential digital Kiosk sites at Potential digital kiosk at the Ronstadt Transit Center the Ronstadt Transit Center on 6th Ave, North of Congress St., Facing South Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp CCO has installed digital kiosks in other markets such as San Diego, San Francisco, and Washington DC with great success. The digital format provides the most time-sensitive and flexible form of outdoor advertising for advertisers. Digital signs provide advertisers with creative flexibility allowing them to change messaging throughout the course of a day to influence purchasing decisions. Digital sign capabilities include social media integration, countdowns, live updates, and conditional content (i.e.: weather, temperature). This format would also allow a portion of the digital advertising space to be utilized by the City of Tucson to promote various city projects, news updates, and events throughout the course of the year. These displays would gain great exposure to the Ronstadt Center passengers and downtown pedestrians given the heavy traffic flow. They would also reach commuters from the roadway along 6th Ave. and Congress St. extending the reach significantly and adding even greater value to advertisers. Aside from traditional advertising, these digital displays can be used for various “sponsorships” such as: • A “pollen report” sponsored by an Allergist or a Pharmaceutical drug like Zyrtec • A weather report for the week sponsored by Mr. Carwash or a sunscreen product • Current mortgage rates sponsored by NOVA Home Loans, a Mortgage Broker, a Credit Union or Financial institution. • Sponsors of large events in downtown Tucson • Weather sponsorship in summer months for cooler destination and staycation places • Monsoon tips sponsored by TEP • Countdown sponsors for grand-openings, breaking news, and holidays sponsored by retailers • Weekend guides sponsored by a theater company or downtown arts organization • Recruitment ads • Salutes or thank you messages to various organizations • Adoption or Pet of the Month messaging from P.A.C. or Humane Society • Companies active on social media extend the reach of conversations occurring on their social media channels to commuters by leveraging the digital display social integration capability CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 36

Confidential – Not Public A. METHOD OF APPROACH CCO anticipates that these digital kiosks could bring in an average of $50,000 per year per digital face. Therefore, we believe $150,000 in gross revenue could be generated per year. CCO would share a percentage of those revenue amounts with the City of Tucson. The proposed percentage share amount would be: 66.0% in years 1-2, 66.5% in years 3-4, 67.0% in year 5-6, and 67.5% in years 7-8. However, because of the capital expense CCO would undertake, we will need to recover our capital expenditure out of the revenue share prior to payment to the City of Tucson until all of our capital expenses are repaid. The MAG for the digital shelter faces would-be set-in year 2 at 40% of revenue from year 1. Please see the following revenue example below to help explain the proposed digital kiosk revenue share: Year Revenue MAG Revenue Paid to City CCO Capital Share Recovery Year 1 $150,000 $0 $99,000 $0 $99,000 Year 2 $160,000 $60,000 $105,000 $60,000 $45,600 (40% of YR1 Rev) This will continue every year thereafter until CCO recovers 100% of their capital expenses Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp CCO recommends that this digital kiosk opportunity be reviewed in more detail with the City of Tucson to research if installation of digital kiosks is achievable. These digital kiosks would require a sizeable capital investment by CCO; therefore, in order to justify the installation of digital kiosks we will likely require a mutual agreement to add a longer term than the existing term of two years with (3) two-year renewal options. Bus Shelters after 2023 CCO has a strong interest in the City’s Bus Shelter contract in 2023. Bus shelters and benches provide excellent exposure to pedestrian and vehicular traffic with eye level visibility. These products reach specific audiences within neighborhoods that traditional OOH cannot go. This affords advertisers the opportunity to reach a specific geographic area, specific demographic or point of purchase locations. Additionally, we could target super key accounts that have the ability to spend in multiple forms of outdoor media to purchase long-term multi-product “domination” campaigns that would include Buses (interior & exterior), Transit Kiosks, Bus Shelters and Billboards. Clear Channel Outdoor is committed to working with DTM to balance the City’s needs to promote the well-being of the ridership and public image of the City of Tucson while driving results from a valuable revenue resource for the community. CCO is proud of our record of maximizing revenues in Tucson and looks forward to replicating that strong success with City of Tucson Bus Transit. We feel we are best suited to grow the current client and revenue base in the near future as outlined in our response. Under this new agreement, we will provide robust and highly effective sales, marketing and operations team dedicated to delivering results. CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 37

A. METHOD OF APPROACH 13. Provide samples of any training manuals provided to employees including but not limited to safety, materials application, maintenance, etc. CCO’s operations staff is highly trained and is committed to adhering to all OSHA regulations and Operations leadership hosts weekly Safety Meetings with all operations team members. Our local service personnel receive rigorous training regarding operation policies and procedures pertaining to our comprehensive service and maintenance protocols. CCO’s operations personnel are experts at designing, building, installing and maintaining digital and static advertising assets. All employees are provided and follow the attached Personal Conduct and Safety Manual. CCO also provides numerous Safety and Training Manuals related to all aspects of our operations. For the sake of file size, CCO is happy to provide full documents in a separate file submission.   Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 38

Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 A. METHOD OF APPROACH P. 39

Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 A. METHOD OF APPROACH P. 40

Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 A. METHOD OF APPROACH P. 41

Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 A. METHOD OF APPROACH P. 42

Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 A. METHOD OF APPROACH P. 43

Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 A. METHOD OF APPROACH P. 44

Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 A. METHOD OF APPROACH P. 45

Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 A. METHOD OF APPROACH P. 46

Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 A. METHOD OF APPROACH P. 47

Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 A. METHOD OF APPROACH P. 48

A. METHOD OF APPROACH 14. Provide images of the badges and any apparel to by worn by employees while on City property. CCO will follow all City guidelines in regards to employee badging and apparel. Our employees will wear badges similar to those wore by our staff working in Phoenix. All CCO Phoenix employees and contractors must pass a background check prior to receiving a badge. Mayahuel (Goddess of Agave), By Rock “CyFi” Martinez, © 2016 Rock Martinez/Tucson Arts Brigade, Photo by Laura Sharp Example of vest worn by Trans 1 Examples of badges worn by CCO Phoenix Graphix employee staff for the purpose of access to the City of Phoenix Transportation yards. CITY OF TUCSON TRANSIT ADVERTISING SERVICES #202523 P. 49

Epic Rides, By Joe Pagac, Photo by Laura Sharp QUALIFICATIONS & EXPERIENCE “ We have had great service and results... I highly recommend Clear Channel Outdoor and their team being led by Jennifer Nunn!” Douglas Martin President Good News Communications, Inc.


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