Outdoor ad companies are lining up and getting prepped to fight for the mammoth $500 million street furniture contract for City of Sydney.
In what’s considered the sector’s biggest advertising deal ever, it’s one all agencies will want to snag, with French-based group JCDecaux currently holding the 20-year contract.
Facing fierce competition from other outdoor players APN News & Media’s Adshel, APN Outdoor and oOh! Media, the tender poses a bit of a threat for JCDecaux given the City of Sydney contract is its biggest revenue driver.
The contract is also used by the French folk as a drawcard for selling its other sites of Melbourne and Brisbane.
The contract is apparently set to expire early 2018, however given the amount of planning required, a pitch is expected to kick off this year. Industry sources quoted in The Australian place the contract at around $30 to $35 million per year, with a signing for 10-15 years.
JCDecaux has three separate contracts signed with the City of Sydney, the South Sydney and Inner West (formerly Leichhardt) councils.
“As a result of changes in government boundaries over the 20-year contract term, the city has three separate contracts with JCDecaux signed by the City of Sydney, South Sydney council and Leichhardt council,” a City of Sydney spokesman told The Oz.