Transport for London (TfL) has selected Exterion Media as its media partner for the world's largest outdoor advertising contract. The partnership will see advertising spaces being sold on trains and at over 400 stations across TfL's extensive network, which supports over 30 million journeys a day.
For the first time, the new contract will combine advertising space across London Underground, London Overground, Tramlink, Docklands Light Railway, Victoria Coach Station and, once it is operational, the Elizabeth line.
The decision to combine the advertising assets into one rail contract is part of TfL's commercial plans to maximise its assets to generate non-fares revenues, which it will reinvest in the transport network for the benefit of Londoners. TfL currently aims to generate £3.4bn in commercial revenue by 2023, with this contract alone contributing an estimated £1.1bn.
Graeme Craig, Director of Commercial Development at TfL, said: `We had highly competitive bids from the leading outdoor advertising companies in the world, reflecting the quality and value of our estate. We are delighted to be able to confirm that Exterion Media is our new media partner.
`We believe this partnership can be a catalyst for transforming our stations and the wider industry. The new contract will move away from the traditional concessionary approach to working together to deliver innovation and value on the best station network in the greatest city in the world.'
Shaun Gregory, CEO, Exterion Media, said: `This is a ground-breaking new partnership and together with TfL, we have a bold vision for the London Rail and Underground estate that will transform the look and feel of advertising in the Capital, and the way that brands engage with consumers. We look forward to making this vision a reality using our expansive industry expertise, advanced data and insights, and our innovative network of partners, all of which has contributed to making this one of the best monetised, and most valuable advertising contracts in the world.'
London's population is growing rapidly from 8.6 million today, to 10 million by 2030. TfL's commercial development programme also involves developing its land to provide the homes, offices and retail spaces that London needs. TfL has already announced that it will release more than 300 acres of land across 75 sites in the Capital for the development of over 10,000 new homes.
Advertising is constantly evolving and the new partnership will see the installation of responsive digital screens, which will be able to carry different campaigns according to the time of day enabling advertisers to target their campaigns more effectively.
TfL aims to sign the contract in April 2016 with services under the new contract beginning on 1 October 2016.
Notes to Editors