Out Of Home Giants Set To Battle It Out For $500M City Of Sydney Tender
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.
The advertising assets will stay under the ownership umbrella of JCDecaux once the contract ends, leaving it up to an alternative provider to install new infrastructure.
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