District 196 School Board Chooses Company to Coordinate New Ads in School Facilities

The Rosemount-Apple Valley-Eagan School District is looking at a leaner 2011-12 budget, so district officials are looking to another source of revenue—allowing advertisements in schools and other district facilities.

A 5-1 district board vote Monday night will permit the company School Space Media to facilitate advertising, which students and community members could start seeing as soon as September, said Jeff Solomon, District 196 director of finance and operations.

"The current budget process we're undergoing really stimulated the review of the advertising policy," Solomon said.

School Space Media will give the district a 23 percent revenue share on all net proceeds from the advertising, with a guaranteed $40,000 payment up front, Solomon said. Apple Valley, Eagan, Eastview and Rosemount high schools each will get $10,000 for their budgets, and will split any revenue evenly, at 25 percent each.

Solomon said locations for the advertisements, and what type of media the ads could be (including still signs and LED projections), were specifically stated in solicitations for companies to help with advertising. Generally, advertisements will be placed in common spaces for public events, such as theaters and in athletic facilities.

"The concept is for [them to be located] in the public areas and not the student academic areas," Solomon said.

Board member Art Coulson voted against the measure because he felt the 77 percent sales commission for School Space Media was too high. Board member Rob Duchscher said he agreed with Coulson, but he voted in favor of the item, saying, "Let's do a little fishing [for other companies] next year."

What attracted district administrators to School Space Media was the guaranteed revenue for the first year, Solomon said. After that, the district will have two renewal options.

"Even five years ago, we wouldn't have been having this discussion," said Tony Taschner, District 196 communications director. "The schools weren't wrestling with such serious budget questions and there wasn’t the interest from national advertisers to reach into local schools. This isn’t the solution to the district’s budget challenge, but it is a part of the solution."

Last year the board created advertising guidelines for the district that defined restrictions on the types of businesses that will be able to advertise, and the way the ads can be integrated into the district facilities.

"I can't say that we have had many problems with content in the past, but as schools continue to search for more revenue, we felt the timing was right for these guidelines," Taschner said.

The district will have the final say about the advertising content and vendors, Solomon said, and the board can deny an advertiser. Alcoholic beverage advertising, for example, is banned.

In addition, the district plans to grandfather in agreements with companies that previously had ads at some of the schools, so "nobody will be left in the cold," Solomon said.

The board must sign off on the agreement with School Space Media, and then the vendor can start soliciting ads, Solomon said.

School Space Media also has agreements in the Lakeville, Burnsville, Prior Lake and Woodbury school districts.