City of Vaughan | Economic Development Department
What is the goal or purpose of this project and how did you accomplish it?
The goal of the Digital Billboard Revenue Project is to lease small parcels of City-owned land to out-of-home advertising companies to operate digital billboards that generate non-property tax revenue for the City. The project involves assessing City-owned sites, developing a multi-year plan for Council approval and selecting a third-party vendor to design, construct, operate and maintain the billboards at no cost to the City.
Phase 1 of the public-private partnership is already generating over $6 million throughout a 15-year term and the program continues to grow. This groundbreaking initiative and the first partnership of its kind in Vaughan support City programs and infrastructure while managing financial pressures.
Phases 2 and 3 are in the approval stage and will begin installation and generating revenue in 2025.
Describe the roles and relationships of everyone involved in the project.
The participants in the Digital Billboard Revenue Project include:
1. City of Vaughan: As the project owner, the City of Vaughan is responsible for overseeing the initiative, setting goals, and ensuring alignment with the City’s strategic priorities. The City provides the land for the digital billboards.
2. Selected Vendor: Pattison Outdoor Advertising designed and constructed the billboards and currently sells all advertising, operates, and maintains the digital billboards through a lease agreement with the City. Their role includes designing, building, financing, and managing advertising sales. They bear all costs associated with the billboards and share the revenue with the City in a revenue share model of an annual guaranteed amount or 30% of ad sales whichever is greater, indexed over time and increases with the CPI.
3. Council and Committees: The City Council approves the project and provides policy direction.
4. Residents and Public: Public consultation is essential for site selection and community engagement. Residents provide input on proposed billboard locations and potential impacts.
5. City Staff: Various City departments collaborate, including Legal, Finance, and Communications. They ensure compliance, financial viability, and effective communication.
Overall, Pattison Outdoor along with the City, Council, residents, and staff work together to achieve the project’s revenue goals while enhancing communication and services for Vaughan’s community.
How effective has it been in furthering economic development in your community? Any spin-off or intangible outcomes? Include metrics when possible.
The impact of the project has been substantial, significantly contributing to economic development in our community. Key outcomes include job creation, increased revenue, and improved infrastructure. Here are some metrics:
1. Job Creation:
o The project supported the workforce in various sectors such as construction, advertising sales, and maintenance.
2. Revenue Growth:
o Direct revenue from Phase 1 of the project exceeded $6M and Phase 2 and 3 are expected to generate an additional $9M approximately given market research.
3. Infrastructure Enhancement:
o Upgraded communication networks in public spaces resulted in improved quality of life and made city information more accessible for local businesses and residents.
4. Spin-off Benefits:
o Advertisers experience a boost due to increased brand awareness.
o City programs and services benefitted from the additional revenue.
5. Intangible Outcomes:
o Communication channel modernization and cohesion strengthened city messaging with digital advertising and reduced static signage clutter throughout the City.
In summary, the project’s positive impact extends beyond economic metrics, fostering a vibrant and resilient community.
This project initiated by the City of Vaughan’s Economic Development Department in partnership with a larger, private partner; Pattison Outdoor Advertising, was creative and innovative, even drawing the attention of neighbouring municipalities because of the following:
1. Dynamic Content: Creative billboards incorporate dynamic elements for city messaging and third-party ads through changing visuals, interactive displays, or real-time data. For instance, billboards that adjust their content based on weather conditions or time of day can capture attention and engage viewers.
2. Location-Based Targeting: Innovations in geolocation technology allow advertisers to display relevant content based on a billboard’s location.
3. Eco-Friendly Designs: Innovations in materials and energy-efficient lighting have led to eco-friendly billboards. These sustainable designs not only reduce environmental impact but also convey a positive brand image.
4. Data-Driven Insights: Creative billboards leverage data analytics to optimize content. By analyzing traffic patterns, demographics, and viewer behavior, advertisers can tailor messages effectively.
5. City Messaging: the project also allows the City of Vaughan to display its own messaging and is given 10% uptime in-kind. This not only helps us to reach the community at large with its programming but also provides the City with another communication vehicle for emergency messaging such as extreme weather events, public health and safety notifications and amber alerts.
Creativity and innovation in billboard advertising continue to evolve, and the City of Vaughan is planning on expanding the program to new locations this Fall.
How did you overcome them? Did you face any community opposition with this project? If so, how did you address these concerns?
Obstacles and Barriers:
1. Zoning Regulations: One significant challenge in billboard projects often involves navigating local zoning regulations. The City has a Sign Bylaw that dictates where billboards can be placed, their size and content.
2. Technical Challenges: Implementing digital billboards on city property involves various complexities. Issues may arise with bylaw compliance, permitting, construction, display technology, connectivity, and maintenance. Working closely with the private partner is essential to address these hurdles.
3. Cost Fluctuations: Billboards can be expensive for the vendor to install and maintain and the advertising market is always in flux. Creative solutions, like revenue-sharing, in-kind advertising space via partnerships, can help mitigate financial barriers.
Overcoming Strategies:
1. Stakeholder Engagement: Engaging with stakeholders—local communities, businesses, and other levels of government—is crucial. Regular communication helps address concerns, build support, and find common ground.
2. Collaboration with Experts: Consulting with the Toronto Region Conservation Authority, York Region Police, and surrounding businesses and schools provides valuable insights. External consultants also helped.
3. Flexibility and Adaptability: Openness to adjustments is essential. If a proposed billboard location faces opposition, we consider alternative sites or modify the design.
Community Opposition:
1. Visual Pollution Concerns: Some community members perceive billboards as visual pollution. We addressed this by emphasizing aesthetic design, minimizing clutter, and ensuring billboards enhance the environment.
2. Traffic Safety: Concerns about distracted driving due to flashy billboards were addressed by highlighting safety measures, like limiting animation or brightness during nighttime.
3. Environmental Impact: Billboards consume energy and materials. We address this by using eco-friendly materials, LED lighting, and minimizing light pollution.
Yes, this project has already been done. City of Vaughan (COV) staff have been contacted by several surrounding municipalities and Pattison Outdoor as well as other vendors have successfully partnered with various community Economic Development teams since the partnership began. Project adaptability to other communities depends on several factors.
Context and Needs: The specific context and needs of the target community are important. Challenges or issues?
Local Resources: Are there adequate resources (financial, human, and infrastructure as some aspects of the project may need modification based on the resources at hand?
Cultural Sensitivity: Advertising can be contentious, and municipalities should be aware of cultural differences. What works in one community may not work for another due to cultural norms, beliefs, or practices. When the COV placed billboards on city property, a policy was developed to manage the content on display citing the Canadian Code of Advertising Standards and the Charter of Rights and Freedoms.
Stakeholder Engagement: Involve local stakeholders (community members, leaders, organizations) early in the adaptation process. Their insights and feedback are crucial for tailoring the project effectively.
Legal and Regulatory Considerations: Research any legal or regulatory requirements specific to the community. Ensure compliance with local laws and regulations.
Documentation and Knowledge Transfer: Document the project thoroughly, including processes, lessons learned, and best practices. This will facilitate knowledge transfer and help the new community implement and sustain the project.
Adaptation is key; requires flexibility, collaboration, and a deep understanding of the local context.
The project stands out for several reasons:
Innovative Approach: The project leverages small parcels of unused land for revenue generation.
Community Engagement: The team actively involved the community throughout the project. Public consultations, feedback sessions, and addressing concerns demonstrate a commitment to inclusivity and collaboration.
Overcoming Challenges: Despite obstacles like zoning regulations and project delays, the public-private partnership team found creative solutions. Their adaptability and persistence deserve commendation.
Environmental Considerations: The project incorporates eco-friendly designs, minimizing environmental impact. This responsible approach aligns with the City of Vaughan’s sustainability goals.
Positive Impact: By generating revenue and promoting businesses, the project contributes to economic growth. It also enhances the visual landscape while respecting safety and aesthetics.
In summary, the project’s blend of creativity, community engagement, and positive outcomes makes it a worthy candidate for recognition.
Key benefits of this project include:
• Establishing flexible revenue-sharing models and transparent reporting, which can build trust with the community;
• Engaging in public consultations and gathering ongoing feedback ensures the project meets local needs;
• Integrating billboards with Smart City initiatives and using advanced analytics allows for precise targeting and broader smart infrastructure connections;
• Billboards can be utilized for public education campaigns and emergency alerts, enhancing their value to the community;
• Ensuring aesthetically pleasing and culturally relevant designs, and collaborating with local artists, can enhance community acceptance;
• By considering these factors, each community can effectively tailor the project to maximize benefits and the type of support provided.
“Pattison Outdoor is proud to support initiatives like the City of Vaughan Digital Billboard Program, as it aligns with our commitment to innovative, sustainable advertising solutions that benefit communities by generating crucial non-property tax revenue, while also enhancing public engagement and increasing support for local businesses.
Out-of-Home is, first and foremost, a local, community-based medium. Digital billboards help municipalities generate awareness of important, timely messaging and have demonstrated a proven ability to boost civic engagement and deliver important messaging to a diverse audience.”
Nathan Jankowski, Manager, Legislation & Permits at Pattison Outdoor
Program webpage - https://www.vaughan.ca/residential/alternative-revenue-generation
Public Consultation Forum - https://haveyoursay.vaughan.ca/digital-billboards
Frequently Asked Questions - https://www.vaughan.ca/sites/default/files/2023-10/Digital_Billboard_FAQ_FINAL.pdf?file-verison=1718380002711