TFL’s advertising estate

Transport for London (TfL) is currently engaged in an ambitious programme to modernise and improve London’s vast transport system. By 2010 more than £10bn will be spent on refurbishing, modernising and in some cases extending the transport network. The vision of this programme is to not only provide a fast, efficient transport service for the 2012 Olympic and Paralympic Games but also a lasting legacy. By 2016 London’s population is forecast to grow by 800,000 people, with 900,000 new jobs, the equivalent of a city the size of Leeds. Improvements to the transport system are essential in securing London’s long-term prosperity.

The honour of hosting the 2012 Olympic and Paralympic Games has been a powerful catalyst in driving forward the programme of improvements. In some cases, due to funding from the Olympic Delivery Authority (ODA), projects have been accelerated. This will bring improvements to the transport system significantly earlier than previously anticipated.

The programme will see £5bn invested in the Tube network. This includes the refurbishment of all 252-London Underground (LU) owned stations by 2010, to date fifty have already been completed. The Piccadilly Line extension to Heathrow’s Terminal 5 will open in March 2008 and the passenger capacity of the Jubilee Line will be increased by almost 50% the following year. There will be upgrades on both the Northern and Central lines to improve capacity, signalling, communication and control systems.

The Docklands Light Railway (DLR) is a critical piece of transport infrastructure for the development of east London and work is ongoing to increase its passenger capacity by 50% by 2011. Two DLR extensions, the Woolwich Arsenal and the Stratford International, are being constructed and are due to open in 2009.

Work will begin in early 2008 on a £1bn extension of the East London Line, including the creation of new stations. By 2010 this will allow connection with the North London Line and provision of a tube frequency service across both lines.

By 2009 all of London’s 8000 bus fleet will be fitted with the innovative iBus system. This system will allow accurate monitoring of buses and ensure that a consistent service is provided, with precise information regarding the frequency of services available at bus stops. The iBus system will also provide audio and visual information to passengers. This will further improve the accessibility of the bus network across London, which is already fully wheel chair accessible.

The advertising estate

The funding of this programme of improvements is supplemented by the income generated by TFL’s advertising estate. This diverse estate consists of LU’s tube car panels, escalator panels, station platform and corridor sites, TfL roadside advertising hoardings, bus shelters and street furniture.

In 2006 a number of valuable new contracts were finalised that significantly increased and guaranteed advertising income over the next eight and a half to ten years. Revenue from the estate is contributing to the transport system improvements and directly benefitting customers.

The most significant part of TfL’s advertising estate is London Underground, which is the largest and most prestigious outdoor media portfolio in Europe. It is made up of approximately 33,000 station sites and 93,000 on-board train sites. In 2006, after a competitive procurement exercise, TfL signed an 8.5 year contract with CBS Outdoor to manage advertising on the Underground. As part of this contract CBS Outdoor will replace every advertising panel on LU stations, corridors and platforms with a new co-ordinated range of advertising panels, this will include digital advertising at 31 busy central London stations.

CBS Outdoor also won a separate contract for the management of 34 advertising spaces at Victoria Coach Station.

The contract for advertising on the 2,500 TfL-owned bus shelters across London was awarded to Clear Channel. This 10-year contract is highly beneficial for TfL, coming as it did at the end of a previous 25-year deal, it almost tripled and guaranteed TfL’s yearly advertising revenue in this area to the end of 2015. The contract also includes an asset renewal programme, that will see 2,200 shelters replaced over the duration of the contract.

Contracts for commercial advertising on board buses are managed by the individual bus companies, who operate under contract to TfL. There are currently a limited number of buses ‘wrapped’ in advertising. There is also an ongoing trial of a small number of buses featuring dot maxtix advertising on the side of the bus.

TfL’s roadside advertising portfolio, which is made up of 259 billboards and hoardings on sites across London is subject to a number of advertising contracts. The majority of sites are managed by JC Decaux, who signed an 8.5 year contract in 2006 which guarantees TfL’s income from this area. A small number of remaining sites are subject of contracts with a number of other companies.

Future growth

TfL recognises that it could further maximise the revenue potential of the advertising estate. Outdoor advertising is a significant growth area. With more than one billion people travelling on the Underground alone last year, there is a significant audience for potential advertisers to target. TfL conducted a comprehensive review and put this out to competitive tender. After a hard fought process, TfL agreed new contracts that will help benefit a transport network that has previously suffered from decades of under investment. These contracts guarantee significant advertising income to TfL and will contribute significantly to its aim of supporting London’s growth and providing a 21st century transport system for a great world city.