| Title |
Strategies to Revitalize Bus Exterior Advertisement for Enhancing Bus Transportation Profits: Focused in Seoul |
| DOI |
https://doi.org/10.12652/Ksce.2024.44.3.0361 |
| Keywords |
버스;버스외부광고;재정지원;운임수입;광고수익 Bus;Bus exterior advertising;Subsidy;Fare income;Advertising revenue |
| Abstract |
Advertising on the exterior of buses was initiated in 1985 with the aim of generating operational funds for the 1988 Seoul Olympics.
However, despite numerous technological advancements, the regulations governing the method (sheet attachment), area, and placement
of exterior advertising on buses have remained unchanged to date. This has constrained the potential for profitability and efficiency in
bus exterior advertising. According to Seoul Metropolitan Government, metro usage increased by 23 % in 2019 (prior to the COVID-19)
compared to 2006, while bus usage decreased by 10 %. Consequently, financial subsidy for buses surged significantly over the past five
years (2018-2022), averaging around KRW 450 billion, which is approximately 1.27 times the average for the preceding decade
(2013-2022). The majority of revenue for bus transportation agencies is derived from passenger fares (81.1 %) and subsidies from Seoul
City (17.5 %). Hence, it is imperative to enhance the share of revenue from sources other than fares. This study proposes an expansion
of the role of bus exterior advertising by increasing the advertising area as a means to increase non-fare revenue. Two alternatives were
proposed to expand the advertising area by 17 % and 94 %, respectively, compared to the current level, and their potential impacts were
analyzed. The findings indicate that advertising revenue could increase from a minimum of KRW 3.2 billion to a maximum of KRW
53.9 billion, and public subsidies could be reduced by as much as 11.9 %. The bus exterior advertising can serve as an effective approach
to diversify transportation revenue and decrease public subsidies. |