Viacom Doubles Rail Business With First Group Win
Viacom Outdoor has doubled its national rail advertising business by snatching the £9 million First Rail contract from rival Maiden Outdoor.
The lucrative five-year contract represents a major coup for the company, giving it the exclusive rights to sell all outdoor poster formats on the full range of stations owned and operated by First Group Trains in the UK.
The deal includes key commuter points such as Oxford, Maidenhead and Slough on the FGW link, as well as Middlesbrough, Hull and Manchester Airport on the TransPennine Express. Viacom will also run the advertising on all other rail routes acquired by First Group, including Scotrail from 17 October.
In a separate deal, Viacom has also secured the lucrative First Great Western advertising contract, which covers London Paddington, Reading and Cardiff Central stations. However, this will not change hands until 2006 when Maiden’s existing deal expires.
Commenting on the win, Andrew Oldham, joint managing director at Viacom Outdoor, said: “This contract gives us a significant geographic footprint in the rail market is a great show of confidence in our ability to drive revenues better than anyone else. We have some exciting ideas for our national rail business, with plans to introduce a number of new opportunities that have previously been under-utilised.”
Paul Johnson, group purchasing manager at First Group, added: “We are delighted to award Viacom Outdoor a five year group contract. Having seen their ideas and the strength of their resources, we believe that they offer the best avenue for revenue growth to First. Our confidence is further established given the strong track record they have demonstrated in growing our bus advertising revenue income over the years.”
The latest deal represents the fifth major rail contract to be secured by Viacom in the last six months in a move that significantly straightens its position in the market. However, rival Maiden Outdoor recently shored up its business by securing two major deals to provide advertising at 17 Network Rail stations across the UK (see Maiden Clinches £477 Million Rail Contracts).
The latest figures from the Outdoor Advertising Association show that confidence in the sector continued to go from strength to strength in the second quarter of this year with revenue increasing by an impressive 14.2% year on year to £211 million (see Outdoor Adspend Climbs By 14% In Second Quarter).
Viacom Outdoor: 020 7478 5240 www.viacom-outdoor.co.uk
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