(AOF) – JCDecaux announces that its Norwegian subsidiary, JCDecaux Norge AS, has signed an exclusive 6-year contract (plus a 2-year extension option) with Sporveien Media AS, the company in charge of the network’s advertising concession public transport in the region of Oslo, the capital of the country, which has more than 1.3 million inhabitants. The outdoor advertising specialist specifies that this contract concerns the advertising operation of “all buses, trams and the metro” in Oslo – concerning both trains and stations.
The Oslo metro represents the most digitized OOH (out-of-home) contract in the Norwegian market, with a total of 345 digital devices and more than 100 million passengers each year.
According to JCDecaux, this contract represents more than 20% of the Norwegian OOH market share and will position JCDecaux as the leader in OOH and DOOH (non-digital home) in the Norwegian market.
This call for tenders was evaluated according to financial and extra-financial criteria – including sustainable development criteria, on which JCDecaux ranked first.
“This is a concession that JCDecaux operated until 2012, and which enabled us to launch the digital transformation of the Norwegian outdoor advertising market,” says Jean-François Decaux, Chairman of the Management Board and co-Chief Executive Officer of JCDecaux. “We aim to further develop the contract with new digital concepts and a well-positioned media offering for local, national and international advertisers.”
AOF – LEARN MORE
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
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.