(AOF) – JCDecaux, a specialist in outdoor advertising, announces that it has won, following two different calls for tenders, the contracts for bus shelters in Toulouse Métropole (796,203 inhabitants) and street furniture for the City of Toulouse (471 941 inhabitants), fourth largest city in France and capital of the Occitanie region. For Toulouse Métropole, this contract renewal covers 1,638 bus shelters, including 20 equipped with digital screens and 10 green shelters.
The Pink City also renewed its contract relating to street furniture, for 15 years with JCDecaux. This covers 559 2m2 Street Furniture for Information, 55 8m2 furniture, 66 2m2 digital furniture, 40 event furniture, 52 free display media and 30 cultural columns
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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 that contribute the most 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.
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A healthy global market
According to Magna (Interpublic Group), the growth of the global advertising market was limited to 1% over one year during the first quarter against a dynamic start to the year in 2022. However for the full year, the company expects growth much higher, driven by digital. This performance is the result of China’s economic rebound since the end of the “zero Covid” policy. In the first quarter, advertising spending jumped in this country by 6% over one year. Elsewhere, the expected performance is lower for 2023: 4.2% growth in Europe (including 2.8% in France) and 2.5% in North America (4.2% if we exclude political advertising falling without an election). The good results of the three world leaders (the French Publicis, the British WPP and the American group Omnicom) in the first quarter reflect this market development.