MELBOURNE: Adshel and JCDecaux, the two main street furniture providers, will go head-to-head in pitching for the Melbourne CBD street furniture precinct, currently out to tender.
Adshel is the dominant street furniture provider in Melbourne, having held the multimillion-dollar contract for the past 15 years and also holds a majority share of the Melbourne tram line advertising.
The Victorian Department of Infrastructure contract will be for 10 years, with a six-year option, compared to its previous 15-year length. The department failed to return calls on the expected timeframe for the tender, but it’s likely to take at least two months.
If JCDecaux is successful in securing the contract, it would be in addition to its estimated 30% share in tram line advertising.
Adshel recently won the ACT street furniture contract, and will expand advertising coverage with the installation of an additional 200 bus shelters in the territory, taking the infrastructure to more than 400.
Street furniture was the highest growth category in the out-of-home sector in 2006, attracting $149.9 million in revenue with a rise of 14.9% on 2005, and commanding 39.5% of out-of-home advertising revenue.
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