Cincinnati Bell buys streetcar naming rights
Cincinnati Bell has signed a 10-year deal worth $3.4 million to put its name on the Downtown and Over-the-Rhine streetcar, a major milestone for a project that has long been seeking support from the corporate community.
The streetcar will be known as the "Cincinnati Bell Connector," and its colors and logo will be changed to fit the company's branding. Boarding stations also will be branded by Cincinnati Bell, whose logo features blue and green. Exact details of the new look will be released later, most likely before the streetcar's much-anticipated opening to the public on Sept. 9.
"A lot of the yellow will be gone. People who don't like the Steelers' colors should be happy," said City Councilwoman Amy Murray, chair of Council's Transportation Committee, referring to the Pittsburgh-based rival of the Cincinnati Bengals. A majority of the naming rights space will be above the streetcar windows where the yellow -- actually a shade of orange -- currently is, she said.
The naming rights deal, first reported Thursday evening on Cincinnati.com, is a significant step for the Greater Cincinnati corporate community, which had remained mostly silent since the streetcar idea was first floated nearly a decade ago. The region's major companies had been unwilling to support the streetcar, which has politically divided City Hall and the local Democratic Party.
“The Cincinnati Bell Connector will play an important role in connecting residents, workers and visitors to their jobs and the tremendous entertainment opportunities from The Banks to Over-the-Rhine,” Cincinnati Bell CEO Ted Torbeck said in a statement. “Our mission at Cincinnati Bell is to connect people with what matters, whether it’s through our technology, or through projects like the Cincinnati Bell Connector that will enhance Cincinnati’s thriving urban core.”
Cincinnati Bell has been embracing Downtown's renaissance in recent years. In 2014, the communications and technology company moved 600 employees from Norwood to a Downtown office tower at Fourth Street between Broadway and Main streets. Cincinnati Bell now has 1,100 employees based in Downtown.
“We look forward to a long and productive partnership with Cincinnati Bell on the Cincinnati Bell Connector and thank them for their continued commitment to the city,” City Manager Harry Black said in a statement.
The third party that sells the streetcar's advertising and naming rights, Advertising Vehicles, helped broker the Cincinnati Bell deal. For its troubles, it will receive 38 percent of the $3.4 million from the communications and technology company -- as per a 2015 contract between SORTA and Advertising Vehicles. That amounts to nearly $1.3 million.
The deal nets $211,869 per year over the 10-year contract for the streetcar budget.
That commitment by Cincinnati Bell could save taxpayers on operating costs, which have been a big concern for Mayor John Cranley and other critics of the streetcar. In February, streetcar officials told City Council they hoped naming rights could generate up to $6.5 million over 20 years. Bell's deal is an important step toward meeting those expectations.
Many streetcar supporters have long been calling for Cincinnati corporations, including Procter & Gamble and Kroger, to support the 3.6-mile rail system. Supporters have promoted the streetcar as an economic development project, saying it could help the city draw new residents to the urban core and companies attract young workers.
Nonetheless, it is rare for U.S. companies to buy naming rights to public transportation projects. According to Enquirer research, Cincinnati Bell is one of only two big corporations known to buy naming rights specifically for a streetcar project. In March, Quicken Loans agreed to pay $5 million over 10 years for naming rights of the Detroit streetcar.
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How much marketing value might the move have?
"I look at old-school companies like Cincinnati Bell, they have to go out and spend money to remind people why they matter and why they're valuable," said Drew Boyd, a marketing professor at the University of Cincinnati. "Putting your name on a transit line is probably not going to do that. It's more about general awareness. I'd rather them spend money to remind people why they matter and why they improve people's lives and make them more convenient or safe. Just putting your name on something doesn't do a lot. You have a have a message behind it as well."
Anti-streetcar rhetoric has quelled significantly at City Hall in recent months as city officials believe they have a solid plan to cover the approximately $4 million annual operating cost. Cincinnati Bell's decision comes after several small businesses and restaurants have signed deals to advertise on the streetcar. The advertising space inside the streetcar vehicles is nearly sold out.
Will Cincinnati Bell's decision prompt other corporations such as Procter & Gamble, Kroger and Macy's to jump on board the streetcar and buy advertising?
Over-the-Rhine resident and streetcar advocate Derek Bauman believes it will.
"This is an opportunity to reach millions of local eyeballs annually and be associated with a project that is a catalyst to the continuing renaissance of our city – and the most technologically advanced light rail vehicles in the world," he said.
"Once you start seeing a few companies, that opens the way for other companies," said Councilwoman Murray, a former Procter & Gamble employee.
Enquirer business reporter Bowdeya Tweh contributed to this report.