AT Partners With MediaWorks To Grow Out-Of-Home Media Revenues

Auckland Transport (AT) has entered into a new partnership with MediaWorks that will help keep public transport affordable by unlocking the full potential of advertising assets across the transport network.

AT has awarded MediaWorks a ten-year contract to manage the full portfolio of about 2,000 advertising assets across AT’s network – ranging from bus shelters and bus wrap advertising to display screens at public transport stations.

“We are thrilled to announce our partnership with MediaWorks to manage what is New Zealand’s largest out-of-home asset portfolio, following a very competitive process,” says AT Chief Financial Officer Mark Laing.

“The out-of-home media industry is experiencing exciting growth and MediaWorks’ proposal demonstrated strong delivery capability and alignment with AT’s strategic objectives.”

Revenue boost to offset public transport costs

Mr Laing says the partnership with MediaWorks will deliver a substantial increase in advertising revenues and is an excellent outcome for ratepayers.

“Under the new agreement AT expects to receive a minimum of $220 million revenue over the next ten years. Revenue will be higher than this if the market continues to grow as forecast.”

AT currently receives around a quarter of the gross advertising revenue generated from its Out of Home media assets. Under this new partnership AT will receive more than half.

“Last year AT earned $7 million in advertising revenue. This coming year this will more than double,” says Mr Laing.

“Every additional dollar brought in through advertisements across the public transport network helps to offset the costs of operating our services and gets Auckland closer to meeting the Government’s ‘private share’ targets for public transport.

MediaWorks CEO, Wendy Palmer, says “We are absolutely thrilled to have been appointed as Auckland Transport’s partner to develop and grow Auckland’s most prestigious and important out-of-home assets.”

“This win is a game changer and re-shapes the way New Zealand out-of-home will be planned and bought by advertisers.

“Our team approached the tender strategically to demonstrate the value and growth we can provide both Auckland Transport and our clients with a new exciting offering that sees street furniture integrated into our existing Auckland Transport portfolio.”

Innovative advertising a win-win for advertisers and passengers

AT Media Partnerships and Experience Lead Simon Soulsby says “After an incredibly competitive process we are very pleased with the outcome. This is New Zealand’s largest ever single media pitch and the appointment brings certainty for the industry as well as great outcomes for Auckland ratepayers.

“MediaWorks has delivered numerous high profile client campaigns across our public transport assets over the past few years that have captured headlines and captivated our customers.

“Whether it’s the ‘Barbie bus’ or the fleet of Police recruitment buses and trains patrolling our city, unique advertising on our public transport network has created huge cut through and been a hit with our customers whilst bringing excitement to our public transport network,” Mr Soulsby says.

Acknowledging oOh!media’s contribution and other bidders

Auckland Transport would also like to acknowledge oOh!media, which managed bus stop advertising as part of the ‘street furniture’ portfolio for over 20 years and helped AT build what has become the largest portfolio of its kind in New Zealand.

“oOh!media played a vital role building advertising assets and much-valued bus shelters for over 20 years, and I’d like to thank them for their contribution,” Mr Laing says.

“We would like to thank all bidders who participated in this procurement process, which was extended at the end of last year. The quality of bids was high and we appreciate their interest and engagement during this process,” says Mr Laing.

Notes:

• MediaWorks has been awarded contracts for managing all four of Auckland Transport’s out-of-home media asset portfolios:
  • Street furniture (including approximately 970 bus shelters)
  • Transport hubs (covering train, bus and ferry stations/terminals and ‘experiential’ promotions in these spaces)
  • Vehicular (exterior and interior advertising on buses, trains and ferries)
  • Billboards (covering five digital and 14 static billboards)
• AT’s assessment of proposals used a ‘Price Quality Method’, balancing the commercial value of proposals with ‘quality’ attribute such as the company’s capability and strategic alignment.
• AT assessed proposals for each of the four portfolios separately and carefully considered the implications of partnering with a single provider.
• AT will work closely with MediaWorks and oOh!media to ensure there is a smooth transition for the street furniture portfolio. Under the new partnership model these assets are now publicly owned.

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