Indiantelevision.com Team

(23 May 2006 3:00 pm)

MUMBAI: CBS Corporation's UK division Viacom Outdoor has today been awarded the contract to sell advertising media on London underground. The contract, believed to be the largest out-of-home contract anywhere in the world, commences August 2006 and runs for 8.5 years.

Viacom Outdoor is expected to generate revenues of around 1.5 billion pounds Sterling over the contract lifetime.

It includes management and maintenance of all advertising locations across London's Tube network, which comprises 275 London underground stations, 33,000 poster sites on stations and 88,000 panels inside Tube trains.

A substantial investment programme will underpin a complete transformation of the asset. A highlight of Viacom Outdoor's bid is the digital development plan, which will enable advertisers to run moving imagery and tactical daypart advertising, targeting consumers more effectively. This combination of innovation and substantial investment will ensure that Viacom Outdoor can continue to be an industry leader in advertising revenues. Additionally, London has been chosen to host the 2012 Olympics, which bodes well for future returns.

Viacom Outdoor has been responsible for managing advertising across London's underground system for the last twelve years, during which time it has generated advertising revenues well in excess of growth in the UK outdoor sector generally.

CBS Corporation president and CEO Leslie Moonves said, "We are very proud that after a comprehensive 18-month bid process London Underground chose Viacom Outdoor for its strategic and innovative approach, its logistical capabilities, strong safety record and ability to maximise advertising returns. London Underground is the cornerstone of our European media. This appointment underlines our pre-eminent role in selling advertising on world class metro systems."

Viacom Outdoor International CEO Tom Goddard said, "This is a defining moment in the development of outdoor media. The London Underground set itself the challenge of being a world-class transport system. We in turn are committed to delivering a world-class advertising asset. This will mark a fundamental change to the advertising landscape in London and the UK, and significantly enhance the passenger ambience."