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(AOF) – JCDecaux has announced the signing by JCDecaux Côte d'Ivoire, its subsidiary jointly owned by the Bolloré Group, of a 20-year contract with SOTRA, Société de Transports Abidjanais, concerning the implementation of an advertising street furniture program (bus shelters and stopping posts), as well as the advertising exploitation of SOTRA's various transport networks (buses, train stations, bus and water bus terminals) in the district of Abidjan (nearly 5 million inhabitants).
This agreement concerns the design, installation, operation and maintenance of 300 advertising bus shelters and 300 stop posts on SOTRA's operating network, of which 200 will be produced locally, in partnership with SOTRA Industries.
It also covers the advertising of 500 buses (nearly 2,000 buses by 2020), 12 bus stations and 4 lagoon stations.
AOF – LEARN MORE [19659002] The strengths of value
– World leader in external communication present in some 60 countries with a market share of over 10%;
– Structural increase in communication external led by urbanization (39% of global GDP in cities with + 2 million inhabitants), resulting in organic revenue growth above that of the advertising market;
– Group inventor of the concept of Street Furniture (45% of the wind es) and diversified in advertising in transport (40%) and by advertising;
– Worldwide, with revenues of € 3.4 billion, divided between France for 18.5%, the United Kingdom for 11.3%, the rest of Europe for 26.2%, North America for 8%, Asia-Pacific for 24.1% and the rest of the world,
– Long-term contracts (15 years on average) providing recurring revenues and independence for advertisers, the top 10 accounting for 11% of turnover;
– Ramping up at airports and at stations / subways with a strategy "premiumisation" of advertising space and monetization of a captive audience (especially in airports);
– dynamic digital strategy, which represents at the end of 2017 16% of sales, particularly in England, the United States and France. China, in street furniture;
– Excellent financial situation, allowing the group of reinvest its industrial investments, position itself on all tenders and propose a shareholder-friendly share buyback program.
Weaknesses in Value
– Overexposure to Europe (more than half of sales), economic growth lower than that of the rest of the world
– Low visibility of the activity
– Uncertainty about relations with the city of Paris , following the non-renewal of the Vélib and the cancellation by the court of the contract MUPI;
– Delay of France in the digital;
– Growth still sluggish in France, the United Kingdom and Hong Kong
How to follow the value
– Traditionally defensive value within the advertising sector;
– Sensitivity to the Dynamism of Air and Urban Transport
– Market valuation linked to the awarding of contracts, hence the sharp increase of the security since December 2017;
– Continued expansion to Tokyo (1,250 bus shelters established by 2019), strengthening leadership in Latin America;
– Waiting for acquisitions, particularly in the United States (Outfront Media or Clear Channel Outdoor;
– Family-owned group, holding company JCDecaux holding 65.8% of the capital
Communication – Advertising
The outlook is good for the global advertising market Advertising investment is expected to grow by 4.6% this year, according to the latest Zenith forecasts (Publicis Media agency) The sector will benefit from the World Cup football, which is expected to generate 10% of global market growth this year. r 4.2% in 2019 and 4.3% in 2020. Despite this buoyant environment, the players must change their organization to become more agile. Organizations "silos" holdings are no longer performing. Publicis began decompartmentalising its activities (media, advertising, digital, design, influence …) two years ago with its "Power of One" transformation plan. As for WPP, to overcome its difficulties, it will simplify its organization.
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