"When an advertising firm sought approval in 2018 for a deal to plant touch-screen video kiosks on Berkeley's sidewalks, it claimed the city would receive nearly $830,000 per year in proceeds from ads displayed on the devices. The company, Orange Barrel Media, told the city that each of its IKE Smart City kiosks would generate more than $26,000 annually in revenue for Berkeley."
"Berkeley has instead received just $75,000 per year from the kiosk program in the three years the devices have been active. That's due in part to a slow roll-out of the kiosks. But the devices also have not generated nearly as much money as Orange Barrel Media claimed they would when the City Council signed off on a 15-year contract with the company. Each kiosk generated $4,967 on average across 2024 less than one-fifth of the company's 2018 projections, without taking inflation into account."
Orange Barrel Media projected in 2018 that Berkeley would receive nearly $830,000 per year from touch-screen IKE Smart City kiosks, estimating each kiosk would generate over $26,000 annually. In practice, Berkeley received about $75,000 per year across the three years the kiosks have operated, partly due to slow roll-out. In 2024 each kiosk averaged $4,967 in revenue, under one-fifth of the original projection, and the $75,000 reflected the contract's minimum guarantee; without the guarantee Berkeley would have averaged $1,997 per kiosk. Other cities received higher guarantees, and company and city officials declined interviews.
Read at www.berkeleyside.org
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