Empty Times Square Building Generates $23 Million a Year From Digital Ads

dryriver writes "Advertising things at the right place is proving to be a cash cow, as electronic ads earn about $23mn each year for an empty building at One Times Square – the iconic tourist destination in the New York City. A 25-story Manhattan office building that has long been empty keeps on bringing in millions to its owner as a billboard. Michael Phillips, CEO of Atlanta-based Jamestown Properties, bought One Times Square through a fund in 1997 for $117 million, as the Wall Street Journal reports. More than 100mn pedestrians pass through the square each year, which is 90% more than 16 years ago, says the Times Square Alliance, a non-profit business improvement organization. And this is what makes a price tag for having a company's name placed on the building the highest in the world, even above such crowded tourist destinations as Piccadilly Circus in London. Dunkin' Brands Group Inc. pays $3.6mn a year for a Dunkin' Donuts digital sign on the One Times Square building, with Anheuser-Busch InBev paying another $3.4mn a year for its advertisement. Sony and News America pay $4mn a year for a shared sign."

Comments

Building is decades obsolete

[kriston]

The One Times Square building is decades obsolete for an office building. However, as a mounting point for the multimedia signs, it is very functional. The empty floors provide power and space for the equipment required to run the signs and the massive equipment required to cool the equipment that runs the signs.

Plus, it's at the crossroads of the world.