Partner Article

Transport for London invites media companies to bid for £1bn contract

Transport for London is seeking a media partner for a £1bn contract to oversee advertising across the capital’s Underground network, according to the Financial Times.

TfL, which operates the city’s public transport system, is inviting media companies to bid for the £1bn contract to develop new advertising technology on its system, which currently sees 30 million individual passenger journeys each day and spans across 400 stations.

Graeme Craig, director of commercial development at TfL, said: “Advertising is at the centre of our plans to innovate in order to raise revenue that we can reinvest in London’s transport network.

“We know that commercial media will change dramatically over the next few years, and we want TfL and London to be at the forefront of that revolution. We have huge footfall on a daily basis and the best assets in London, and are keen to find a partner who shares our ambitions.”

Currently, the London Underground’s advertising is managed by Exterion Media, a European advertising company owned by private equity company Platinum Equity.

Exterion is expected to be challenged for the eight-and-a-half year contract by several rivals including JCDecaux and Clear Channel Outdoor.

Mr Craig said that the deal would be a partnership, which will enable TfL to think “more imaginatively” about its advertising space.

He said: “We’re now willing to accept a much greater degree of risk. TfL has woken up to the fact that it’s more than just a transport business.”

TfL expects the tender process to be completed by April next year with the winning partner being in post by October 2016.

This was posted in Bdaily's Members' News section by Ellen Forster .