JCDecaux strengthens its visibility in Tallinn (Estonia) – 02/21/2023 at 18:06


(AOF) – JCDecaux announces that its Estonian subsidiary JCDecaux Eesti OÜ has won an exclusive 21-year advertising street furniture contract in Tallinn, the capital of Estonia with a population of 452,000. This contract includes the installation and maintenance of 1,200 bus shelters, 34 self-maintaining toilets and 141 standing street information displays (MUPI). In the bustling city center of Tallinn, part of the media offer will be digitalised.

Jean-François Decaux, Co-Chief Executive Officer of JCDecaux, said: “Tallinn is a major hub combining technology and modernity, as well as a popular tourist destination and the green capital of Europe in 2023. We are delighted to strengthen our long-term partnership with Tallinn. Our collaboration began in 2007, offering high quality products and services to citizens and visitors to the city. This partnership will allow us to increase our market share, which amounts to currently at over 5% of total media spend in Estonia.”

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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

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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

Growth of online advertising slowed down

After a record year in 2021, advertisers are now more cautious. In the first quarter, online advertising recorded growth limited to 7% for Meta, the lowest level since its IPO in 2012. The ex-Facebook is particularly impacted by Apple’s new system which restricts the ad targeting. Indeed, applications in iPhones must now ask their users if their data can be shared with third parties for advertising purposes. According to an industry expert, the shortfall for Facebook, YouTube, Twitter and Snapchat could approach $16 billion in 2022.



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