Monday 17 May 2010
NETWORK RAIL ANNOUNCES £260M ADVERTISING CONTRACTS
- Region & Route:
- National
Network Rail today announced the award of two new advertising contracts for its rail and roadside advertising estate. The contracts are expected to generate revenue of around £260m over the next five years.
JCDecaux has been awarded the £162m rail contract which covers all advertising in Network Rail’s 18 managed stations, including major transport hubs such as Waterloo, Euston, Liverpool Street and Manchester Piccadilly. Over 650m passengers pass through these stations every year, and these figures are expected to see significant growth across the contract period.
Meanwhile, Primesight has been awarded the £100m roadside contract which accounts for approximately 8% of all large format advertising within the sector. Network Rail has over 3,000 advertising sites at over 2,000 locations across Britain, including prime advertising locations such as Western Avenue, Royal Mint Street and High Street Kensington.
All profits from the advertising contract are reinvested into the railway.
David Biggs, property director for Network Rail, commented:
“This is great news for passengers and advertisers alike. JC Decaux and Primesight share our commitment to innovating and investing in our unique advertising estate. Together we will better reach people who pass our roadside adverts every day, as well as improve the journeys of the millions of passengers we serve every day through eye-catching and exciting new advertising.”
Jeremy Male CEO UK and Northern Europe JCDecaux said: “We are delighted to be working in partnership with Network Rail to develop this exciting franchise. The main stations provide a unique environment to create new products, with the potential for a significant digital roll-out. With the planned transformation of stations such as Kings Cross and Birmingham New Street, there is a new vision for main station advertising that will provide a show case for out of home advertising.”
Naren Patel CEO, Primesight said: “We are really excited to be working with Network Rail over the next five years to help market this fantastic portfolio of locations. We have grown revenue by over 20% since we took over the marketing of the portfolio and look to continue improving our performance levels. With consumers spending more time out of home the portfolio of sites provides us with the perfect way of reaching consumers on the move
This new agreement will give us the tenure necessary to properly develop the portfolio though the introduction of new formats and digital. We promised to revitalise the billboard market when we purchased Titan’s roadside assets and with the security of this contract we can now focus our attention on making billboards famous again.”
Notes to editors
- Network Rail is the owner and operator of Britain’s railway
- Network Rail will generate over £1bn from commercial activities in the next five years. This would pay to transform New Street and King’s Cross stations, or put in place 5,000 km of new railway.
- JCDecaux is the No.1 outdoor advertising company in Europe and in the Asia-Pacific region and the No.2 outdoor advertising company worldwide.
- JCDecaux’s employs 9,940 employees and has a presence in 3,500 cities worldwide. The company’s 2009 revenues were £1.918m.
- Primesight is one of the leading outdoor businesses in the UK, marketing over 20,000 advertising sites across the United Kingdom.
- Primesight has been one of the faster growing media businesses in the UK primarily through organic growth, and more recently through the acquisition of Titan Outdoor’s roadside advertising estate.
- Primesight remains the only major independent British business in the UK Outdoor market, successfully competing against global outdoor players. The company employs 140 staff with offices in London, Manchester and Glasgow.
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We own, operate and develop Britain's railway infrastructure; that's 20,000 miles of track, 30,000 bridges, tunnels and viaducts and the thousands of signals, level crossings and stations. We run 20 of the UK's largest stations while all the others, over 2,500, are run by the country's train operating companies.
Usually, there are almost five million journeys made in the UK and over 600 freight trains run on the network. People depend on Britain's railway for their daily commute, to visit friends and loved ones and to get them home safe every day. Our role is to deliver a safe and reliable railway, so we carefully manage and deliver thousands of projects every year that form part of the multi-billion pound Railway Upgrade Plan, to grow and expand the nation's railway network to respond to the tremendous growth and demand the railway has experienced - a doubling of passenger journeys over the past 20 years.
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