A $500m street furniture contract is up for tender in Sydney which is slated to see OOH giants Ooh!media, Adshel and APN Outdoor battle it out for the mammoth deal.
The contract had previously sat with French outdoor firm JCDecaux for some twenty years, and it is understood the deal will expire in early 2018.
Industry insiders claim the tender is valued at around $30m annually and will last for 10-15 years. The current contract was drawn up in the years leading up to the 2000 Sydney Olympic Games, a booming period for street furniture advertising in the CBD and greater suburbs.
The spaces owned by the city to sell advertising include bus stops, telephone booths and benches.
[Related: Out-of-home media a booming industry]
The deadline for outdoor companies to express interest in the lucrative contract is Friday June 10, with extensive planning for infrastructure needed for the 2018 start.
News of the tender follows a stellar period of consecutive growth for the Australian outdoor media industry.
The Outdoor Media Association (OMA) revealed industry net revenue for last month hit $63.4m, an impressive 19.6 per cent jump on last year’s $53m. 2016 year-to-date earnings have already hit $295m, up $45m from the same time last year.
Street furniture tracks as the second largest category for profit, generating $18.4m in revenue, trailing close behind roadside billboards which represent $23.2m.
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