Commuter Advertising

Katie Hill ’01

Katie Hill ’01 and her husband Russ were on the “L” in Chicago coming back from a White Sox game when inspiration for their company Commuter Advertising hit.

“When the train stopped at Chinatown we thought it would be neat to hear a brief message about a local restaurant or shop nearby—something that would encourage people to get off the packed train and visit a business they may not have known about,” explained Hill. “Since the CTA was facing funding challenges, Russ and I thought it seemed like an interesting way to generate additional revenue for public transit too.”

The couple began researching public transit around the world, studying dozens of maps and schedules and crunching numbers to determine the potential size of the program they envisioned.

“Of course we thought extensively about technology requirements, potential advertisers, creative possibilities, pricing, and packaging too,” added Hill.

The more they learned the stronger their conviction became that a location-based audio commercial system for public transit vehicles would work.

With 29 patent claims filed and the Commuter Advertising concept well in hand, they began talking to transit agencies and won their first contract with the Greater Dayton RTA in Dayton, Ohio. The company has since expanded to Champaign; Kansas City, Missouri; Toledo, Ohio; Rockland County, New York; Pace Suburban Bus in the Chicago suburbs; and Seattle.

“Today Commuter Advertising reaches over 88 million transit rides annually. We have hundreds of advertisers and passed the milestone of $1 million in revenue earlier this year,” said Hill.

How does Commuter Advertising work?

Using proprietary technology, Commuter Advertising leverages existing on-board GPS and annunciation systems to play 15-second location and time-based audio/visual sponsorships inside public transit vehicles. Advertisers can target exact locations along bus and train routes where they want a message to play, for example, just as the transit vehicle is passing their business, or they can pick a time of day when a message will play on every transit vehicle in the fleet. With either approach, the messages are brief, creative, and often include a special offer or discount for public transit riders.

With the fragmentation in today’s media, Hill believes it is essential that audio, text scrolls on LED signs inside vehicles, and even mobile messaging capabilities designed for Commuter Advertising clients are carefully integrated for maximum impact. Drawing on her background serving international clients at Leo Burnett advertising agency in Chicago, Hill is well-equipped to bring significant expertise to her clients.

“We try to think of every way to make the advertising successful—even limiting the frequency of ads to ensure an enjoyable commute!” she explained.

In return for access to bus and train audio systems, the Commuter Advertising shares revenue with budget-strapped transit agencies, potentially relieving commuters of fare hikes and service cuts. And with out-of-home (OOH) media spending in the U.S. exceeding $10 billion in 2010, the company is poised for rapid and significant growth.

Working the plan

“One of the most important things Russ and I did when we were considering this venture was participate in multiple business plan competitions. Creating a business plan was a critical exercise that forced us to think through every detail,” explained Hill.

Winning the DePaul University New Venture Challenge provided early validation of their idea and some start-up capital from the prize money. Further momentum was gained by winning the University of Dayton Business Plan Competition which provided visibility and entry to the Draper-Fisher Jurvetson-Cisco Business Plan Competition.

The competitions encouraged the pair to continuously improve their concept, provided access to important advisors, and even helped secure the eventual investment by Draper Triangle Ventures.

Hill says one of the most important foundations of Commuter Advertising’s success was her preparation at Illinois State University.

“My concentration was marketing, but launching and growing Commuter Advertising has required me to apply knowledge in accounting, finance, strategy, planning, sales, management, law—the whole gamut. I credit the College of Business at Illinois State University for preparing me across all business functions,” she explained.

“One of the classes I refer to regularly is Marketing Research, which I took with Dr. Jill Attaway, because Commuter Advertising often conducts surveys and studies. Dr. Linda Showers has been a big supporter from the beginning. She believes in me and my business. Very early on I was put in touch with Norris Porter who has been not only a wonderful resource, but also a great source of encouragement. He has linked me with alumni who have shared a wealth of knowledge and advice,” added Hill.

An additional Redbird connection for Hill was the recent hiring of Adina Salah ’04, who joined the company as director of operations.

Advice for budding entrepreneurs

“My advice to anyone who wants to launch a business is to create a solid plan and use it to build momentum. There will be plenty of nay-sayers along the way, so you have to create your own positive energy from your belief in your concept and take a thoughtful approach to executing your plans. Carry each small win into the next, bigger win and keep on building. It’s up to you and no one else to get your business off the ground,” said Hill. “I believe there are opportunities and challenges in every economic environment and though I launched a business during in a recession, my sense is, it’s a lot of hard work no matter the economic circumstances!”

Next steps

Commuter Advertising has four main focuses for the immediate future: launching a Chicago office as an extension to the Dayton-based headquarters; growing its sales team who work with advertisers to design targeted, relevant campaigns; continue refining its proprietary AdMapper technology and software; and actively expand into new markets domestically and internationally.

So the next time you ride a city train or bus, be sure to stop, look, and listen for the ads!

Katie and her husband and business partner, Russ, will welcome their first child in November.