Union Railways: Selling Advertising Rights on Trains and Stations

Abstract

Continuous losses had forced Union Railways (UR) to look for possible sources of incremental revenues, and selling advertising space on UR trains and stations seemed one such lucrative option. However, despite multiple attempts, UR was unable to receive reasonable bids from the market. The team tasked to execute the auction was at a loss to understand why the market had shown little interest when everyone knew that UR assets had substantial passenger footfall and time exposure. Not only this, UR faced greater disappointment when it arranged a brand conference where top multinational brand executives participated and shared scepticism for the project. An added source of confusion was the fact that few other organisations, both in the public and private sector, were able to execute similar projects with substantial success. Realising the gravity of the situation, UR solicited the help of external consultants to evaluate the process and identify reasons and corrective measures so that advertisement space rights could be auctioned off.