Transport for London (TfL) has appointed JCDecaux to sell advertising space across 4,900 of its bus advertising shelters in a deal which will generate at least GBP 300m for reinvestment in transport over eight years.
The contract is part of TfL’s wider commercial approach to generate £3.4bn in non-fare revenue over the next decade, which will be reinvested to improve London’s public transport and road network for the benefit of customers and users.
With over six million journeys taken every day on London’s buses, advertising on bus shelters in the Capital gives products, brands and services a fantastic opportunity to engage millions of customers every day.
Making the most of emerging technology, JCDecaux’s new contract will provide more digital advertising shelters on TfL’s network. The digital screens offer a more interactive way for advertisers to showcase their products and will be a means to provide local information to customers.
Leon Daniels, Managing Director of Surface Transport at TfL, said “Our bus network carries 6.5 million people every day, and with almost 5,000 bus shelters in some fantastic locations across the Capital, this is a great opportunity for advertisers to reach out to our customers. The new contract with JCDecaux represents good value for fare and taxpayers and will generate revenue for us to invest in delivering better services for our customers”.
JCDecaux will be taking over the current contract which is held by Clear Channel UK from January 1, 2016.
Jean-François Decaux, Chairman of the Executive Board and Co-CEO, JCDecaux said “JCDecaux is delighted to have been awarded the prestigious TfL advertising contract, the world’s largest bus shelter advertising concession. London’s economy and population is booming. The city is changing at a rate not seen since Victorian times and it will have a population of 10 million by 2030 increasing its value as a market for advertisers”.
“This award consolidates London’s bus shelter contracts into a single proposition of 15,000 back lit 2m² panels, paving the way for a significant digital transformation. The company plans to make London the global showcase for digital out-of-home with more than 50 per cent of its UK advertising revenues forecast to be coming from digital by 2017”.
The JCDecaux contract award follows a competitive procurement process for eight individual contracts to sell advertising, manage, operate and maintain TfL’s on-street bus infrastructure, which were:-
- Advertising shelters – supply and install – awarded to Trueform Engineering Limited;
- Bus shelter advertising concession – awarded to JCDecaux;
- TfL publicity posting – awarded to Mitie Transport Limited;
- Non advertising shelters – awarded to Trueform Engineering Limited;
- Bus stops – supply and install – awarded to Trueform Engineering Limited;
- Bus shelter electrical maintenance – awarded to Skanska;
- Bus shelter painting – awarded to Dabs Limited and;
- Bus cleaning and graffiti removal at shelters, stops, LRS piers and traffic control equipment – awarded to Mitie Transport Limited.
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