Guaranteed annual income of over £1million will be received by Birmingham City Council for the next decade thanks to a new deal to market its advertising more strategically.
Following a recent tender process, Signature Outdoor Ltd has been appointed as a Commercial Advertising Partner and awarded 10-year contracts to develop five “iconic “ and 25 “landmark” sites within the city, all of which would be new, along with a further five locations for digital media opportunities.
The city council launched the tender process in recognition of the importance of advertising in promoting economic activity and the substantial revenues that can be generated from assets positioned in prime locations.
In common with all local authorities, Birmingham has to meet challenging reductions in public spending and the strategic use of its advertising assets could help mitigate the impact of some of those spending reductions.
Under the terms of the new deal, the council will receive a guaranteed lump sum of over £1million, and a share of any profits. Initial projections suggest that in the ten-year lifespan of the contract, the council could earn up to £18million.
Cllr Paul Tilsley, Deputy Leader of Birmingham City Council, said: “This is a significant early win when it comes to the council's aim to open up all channels of income generation.
“The city is home to many sites which are attractive from an advertising perspective, and our new strategic approach ensures we will maximise revenue, which will be reinvested into services for the people of Birmingham and will achieve the £1million income target set.”
Steve George, Managing Partner at Signature, the winning bidder, said: “Birmingham is a vital marketing area for so many advertisers and we’re delighted to have won this tender and enter into such a long-term relationship with the city, with the objective of bringing world-class facilities to areas of the city where there is no large-scale outdoor currently.
“By establishing industry-leading standards of site presentation and service, we’ve grown to be Birmingham’s largest Backlight media owner and demonstrated that an independent can more than compete with the big national and international outdoor players. We can’t wait to get started on this new development programme.”
James Harrison, Sales Director at Signature, added: “Within the new programme, the additional platform that digital will give us is very exciting. Our intention is very straightforward. We’ll develop best-in-class opportunities and consult with outdoor specialists, agencies and advertisers to ensure they can maximise flexibility and their return on investment.”
Council officers will now be looking at further opportunities to exploit other assets.
For more information contact Kris Kowalewski on 0121 303 3621