Item - 2025.TTC11.4

Tracking Status

This item will be considered by Toronto Transit Commission on December 10, 2025.

TTC11.4 - Procurement Delegation of Authorization to CEO - In-Tunnel Motion Advertising Concession

Consideration Type:: ACTION

Confidential Attachment - information about a trade secret or scientific, technical, commercial, financial or labour relations information, supplied in confidence to the City or local board, which, if disclosed, could reasonably be expected to prejudice significantly the competitive position or interfere significantly with the contractual or other negotiations of a person, group of persons, or organization.

Origin

(December 10, 2025) Report from the Chief Strategy and Customer Experience Officer

Recommendations

It is recommended that the TTC Board:

1. Delegate authority to the Chief Executive Officer to approve and execute a contract award to adtrackmedia Canada LP for a 15-year term, subject to terms and conditions deemed acceptable by the TTC General Counsel.

2. Authorize the information in the Confidential Attachment to remain confidential until such time as the final negotiations with adtrackmedia have been completed.

Summary

Staff recommend delegating authority to the Chief Executive Officer to approve and execute a contract award to adtrackmedia Canada LP (“adtrackmedia”) for the implementation of in-tunnel motion advertising within the TTC subway network. This delegation is required as the proposed contract term exceeds five years – a length of time necessary to accommodate installation timelines and allow adtrackmedia to recover its upfront capital investment.

The initiative supports the TTC’s Non-Fare Revenue Strategy by introducing a new advertising medium and diversifying concessions beyond the existing Pattison agreement. Subject to acceptable terms and legal review, up to six Tunnel Advertising Systems (“TAS”) are targeted for installation by summer 2026, a timeline that is strategically aligned to optimize advertising revenue opportunities during FIFA World Cup 26™ Toronto. Further details are provided in Confidential Attachment 1.

This report requires Board approval as the contract term exceeds five years.

Financial Impact

The TTC is currently engaged in contract negotiations with adtrackmedia, including financial and operational terms. At a minimum, the final agreement will incorporate the following key financial models:

Revenue share model including a Minimum Annual Guaranteed (MAG) revenue per TAS installed and annual variable top-up revenue to the TTC.
Associated expenses/costs related to the implementation of the in-tunnel advertising solution are the responsibility of adtrackmedia.

Specific financial terms are outlined in Confidential Attachment 1 to preserve the integrity of ongoing negotiations.

The Interim Chief Financial Officer has reviewed this report and agrees with the financial impact information.

Background Information

(December 10, 2025) Report and Appendix 1 from the Chief Chief Strategy and Customer Experience Officer on Procurement Delegation of Authorization to CEO - In-Tunnel Motion Advertising Concession
https://www.toronto.ca/legdocs/mmis/2025/ttc/bgrd/backgroundfile-260684.pdf
Confidential Attachment 1