US. The Port Authority of New York and New Jersey (PANYNJ) has awarded Clear Channel Airports the country’s biggest airport advertising and sponsorship contract. The agreement covers John F. Kennedy International (JFK), LaGuardia (LGA), Newark Liberty International (EWR), and New York Stewart International (SWF) airports.
The 12-year deal will see Clear Channel Airports, the Americas-based airports business of Clear Channel Outdoor Holdings, reimagine the media programmes across the PANYNJ airports by deploying new digital displays and sponsorship opportunities for brands.
New contract model
In an important note, Clear Channel Airports said that the contracting parties “had aligned their interests with contract terms that set the stage for both parties to achieve their goals under the current conditions and for years to come and could become the new industry model”.
Critically, the deal contains a two-year transition period to account for the impact of COVID-19 and the passenger traffic recovery at Port Authority facilities. The actual MAG due each year, as well as capex spend, after the two-year transition period will be dependent upon passenger traffic at JFK, EWR, LGA and SWF.
However, as reported, departing incumbent JCDecaux has slammed the Port Authority’s approach to contract negotiations. JCDecaux, which has held the contract for over 30 years, said the proposed agreement “does not make financial sense in the current climate”.
Subject to contract execution, expected to occur in mid-November, Clear Channel Airports anticipates the new contract will come into effect on 30 December. The advertising platform transformation will begin with EWR’s Terminal One redevelopment project and in conjunction with new facilities at LGA.
95% digital installations
Clear Channel Airports plans to modernise the entire advertising programme across PANYNJ airports with a proposed 95% of the overall investment going into digital media.
These world-class airports represent major travel hubs that historically [i.e. pre-COVID-19] welcomed over 140 million passengers annually, Clear Channel Airports noted. It said that the airports offer attractive opportunities for brands to reach valuable international, business and leisure travellers throughout the greater metropolitan region.
Win-win contract model
“We are confident in the audiences these world-class airports will deliver to our advertising partners over the longer-term as business and leisure travel ramps,” said Clear Channel Outdoor Americas CEO Scott Wells.
“The PANYNJ airports are gateways to the world, and, as the region recovers, we believe our team is best suited to lead this historical transformation that will reimagine and modernise the brand experience for travellers.
“We believe this contract is a win-win for both organisations and provides an innovative approach to large-scale transit media deals against the backdrop of a difficult current reality.”
“These contracts advance two key priorities for the Port Authority: increased ad revenue and significant investment in modern digital infrastructure at our facilities,” said Port Authority of New York and New Jersey Executive Director Rick Cotton.
“Moving forward, these contracts will enable the Port Authority to better sell advertising rights to generate hundreds of millions of dollars in revenue, while travellers will benefit from the latest in digital display technology that allows for real-time alerts.”
With the addition of these high-value, marquee airport assets, Clear Channels Outdoors Americas said that it will have one of the greater metropolitan region’s most extensive Out-of-Home (OOH) advertising networks. As a result, brands will have a unique “one-stop-shop” ability to execute campaigns that reach consumers as they “drive, walk or fly” throughout the NY/NJ metro area, including all major airports, key suburbs, major arterial roadways and the boroughs of New York City.
[Above: The digital ribbon welcomes arriving passengers to John F. Kennedy International Airport with the words written by American poet Emma Lazarus and cast on the Statue of Liberty:
Give me your tired, your poor,
Your huddled masses yearning to breathe free,
The wretched refuse of your teeming shore.
Send these, the homeless, tempest-tost to me,
I lift my lamp beside the golden door!]
Critical ROI analytics
The new partnership will offer brands what Clear Channels Americas claimed to be the OOH industry’s most comprehensive audience targeting and measurement solution – CCO Radar. This includes access to a new audience impression methodology from Geopath, for which a partnership was announced on 23 October.
Clear Channels America said that through this data integration, the company has brought to bear in airports the only OOH third-party validated impressions currency which factors in a traveller’s movements through an airport, time spent in an airport, and the opportunity to see and consume advertising in an airport.
Note: The Moodie Davitt Report also publishes the Sight Lines eZine, dedicated to airport advertising and communications.
