CBS Corp.’s Viacom Outdoor wins London Underground contract
World’s largest Out of Home advertising contract secured for further 8.5 years
CBS Corporation’s UK division Viacom Outdoor has today been awarded the contract to sell advertising media on London Underground. The contract, believed to be the largest out-of-home contract anywhere in the world, commences August 2006 and runs for 8.5 years. It includes management and maintenance of all advertising locations across London’s Tube network, which comprises 275 London Underground stations, 33,000 poster sites on stations and 88,000 panels inside Tube trains. Viacom Outdoor is expected to generate revenues of around £1.5bn over the contract lifetime.
A substantial investment programme, worth in excess of £50m, will underpin a complete transformation of the asset. A highlight of Viacom Outdoor’s bid is the digital development plan, which will enable advertisers to run moving imagery and tactical daypart advertising, targeting consumers more effectively. This combination of innovation and substantial investment will ensure that Viacom Outdoor can continue to drive advertising revenues aggressively. Additionally, London has been chosen to host the 2012 Olympics, which bodes well for future returns.
Viacom Outdoor has been responsible for managing advertising across London’s Underground system for the last twelve years, during which time it has generated advertising revenues well in excess of growth in the UK outdoor sector generally. The company’s reappointment consolidates the group’s position as the world’s number one transport advertising company.
Leslie Moonves, President and CEO of CBS Corporation said, “We are very proud that after a comprehensive 18-month bid process London Underground chose Viacom Outdoor for its strategic and innovative approach, its logistical capabilities, strong safety record and ability to maximise advertising returns. London Underground is the cornerstone of our European media. This appointment underlines our pre-eminent role in selling advertising on world class metro systems.”
Tom Goddard, CEO of Viacom Outdoor International, said: “This is a defining moment in the development of outdoor media. The London Underground set itself the challenge of being a world-class transport system. We in turn are committed to delivering a world-class advertising asset. This will mark a fundamental change to the advertising landscape in London and the UK, and significantly enhance the passenger ambience.”
For further information, please contact:
Mike Baker, Viacom Outdoor (UK) 44 2074282827
• Viacom Outdoor is part of the newly-formed CBS Corporation, the NYSE-listed global media and entertainment company whose assets include CBS Television, new national network CW, Paramount TV, CBS Outdoor and Viacom Outdoor, CBS Radio (formerly Infinity Radio), Simon & Schuster, Paramount Parks and cable channel Showtime. CBS Outdoor is the leading outdoor company in North America, while Viacom Outdoor operates in six European markets and in Beijing, China.
• The Tube is the principal public transport system in London carrying 3 million passengers a day (1 billion per year). It is the most commercial valuable mass transit metro system in the world in terms of revenue per journey. Viacom Outdoor now sells and maintains 33,000 sites across a network of 275 stations and a further 88,000 sites on the Tube trains themselves.
?X Viacom Outdoor represents 23% of the UK Outdoor advertising market.