(AOF) – JCDecaux, the world leader in outdoor advertising, today announces that its Norwegian subsidiary “JCDecaux Norge AS” has won the advertising street furniture contract (including digital) for Stavanger, the oil capital and third largest city in Norway, for 10 years. JCDecaux has worked closely with Stavanger for over 20 years.
This new contract, effective from July 2023, covers the supply, installation and maintenance of 150 bus shelters, 10 self-cleaning toilets and other equipment such as free-standing furniture, interactive kiosks, cleanliness terminals and benches.
Jean-François Decaux, Co-Chief Executive Officer of JCDecaux, said: “We are proud to continue this long-standing partnership with the city of Stavanger, where we started from scratch to launch our Norwegian company in 1999. As part of the public procurement process, 60% of the evaluation focused on non-financial criteria such as the functionality, quality and durability of products and services, for which JCDecaux proposed the best offer. asset that will allow us to strengthen our advertising offer to local and national advertisers, and to increase the market share of outdoor advertising in Norway.”
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Key points
– World leader in outdoor advertising created in 1964;
– Inventor group of the street furniture concept (52.4% of sales), present in transport advertising (32%) and large format billboards (15.6%);
– Worldwide presence, with revenues of €2.74 billion, split between continental Europe for 49%, Asia-Pacific for 25% (including China, 1
er
group market), the United Kingdom for 9% and North America for 6%;
– Business model broken down into 3 advertising activities with street furniture (52.5%), land and airport transport networks (30%) and large-format billboards as supports, with diversification into bike-sharing ( No. 1 worldwide);
– Capital held at 64.67% by the holding company of the founding family, with a supervisory board of 12 members, the management board being co-chaired by Jean-François and Jean-Charles Decaux;
– Solid financial position with net debt of €977m at the end of June against €1.6bn in equity.
Challenges
– Three-pronged strategy: internal growth through contract wins, strategic acquisitions and combined use of digital, data and programmatic;
– Innovation strategy integrated into the business model (portfolio of 1410 patents), open and focused on: a unique and proprietary solution for the management and distribution of digital campaigns / the use of innovative technologies for the development of platforms -Data Solutions , OOH Planner, OOH Measurement, VIOOH / secure cloud-based infrastructures; ;
– Proactive environmental strategy, activities in France being carbon neutral since 2021: electricity consumption 100% from renewable energies, eco-design and circular economy, LED electricity consumption and intelligent lighting by modulation according to presence humans;
– Strategic and capitalistic alliance, with Displayce (Demand Side Platform) leader in complete and combinable programmatic solutions with DOOH inventories;
– Long-term contracts (15 years on average) ensuring recurring revenue, independence from advertisers, the top 10 representing less than 13% of turnover and presence in 12 of the 15 cities most contributing to global GDP estimated 2030;
– Acceleration of digital growth (more than 1/3 of revenues) driven by the deployment of the VIOHH programmatic sales platform, connected to 36 DSP platforms.
Challenges
– Resistance to continued lockdowns in major Chinese cities and the global economic downturn due to the Russia-Ukraine war;
– After the return of Street Furniture activities to pre-Covid levels, expectation of the full recovery of the Transport branch, still impacted by the confinements in China.
Sector analysis Communication and Advertising
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