JCDecaux SA (Euronext Paris: DEC), the number one outdoor advertising company worldwide, announced that it has signed a 15-year contract to extend the advertising operations of lines 1 to 13 of the Shanghai Metro as well as 5 new lines (lines 14 to 18). This contract, awarded following a tender, will be managed by a joint venture, STDecaux, 60% held by JCDecaux and 40% by Shanghai Shentong Assets Management Co., Ltd.
Shanghai Metro currently has 503 stations with an average of 11 million passengers commuting every day in 2021. The metro is currently recovering from the lockdown and has already reached 8.6 million passengers per day as of July 22nd, 2022.
This contract covers all of Shanghai Metro’s lines, with more than 12,000 backlit advertising panels on platforms and in corridors, as well as around 500 digital screens, creative solutions, advertising in trains (excluding TV advertising in trains and on platforms and 200 LCD screens).
The partnership aims to continue delivering the highest international standards of metro advertising as STDecaux will invest strongly in digital in the next years from long-term campaigns booked by brands to the digitalization of assets to create digital networks across the City of Shanghai. STDecaux will also invest in data and software to be able to automate and sell by targeted audience & impressions.
JCDecaux is present in 12 Chinese cities across metros, bus, airport and city street furniture and operates the advertising for 47 metro lines in Shanghai, Beijing, Guangzhou, Chongqing, Hong Kong, Nanjing, Suzhou and Tianjin reaching 35 million metro passengers every day in 2021.
Guangyao YU, Chairman of Shanghai Shentong Metro Group said: “We are very glad to have cooperated with JCDecaux for the past 15 years during which both sides have jointly created strong value to Shanghai Metro advertising as well as numerous excellent show cases leading to nationwide recognition for our business partners. Together, we have brought some remarkable achievements to fruition. Shanghai Metro has always been a pioneer in high quality development and promoted the strategic goal of “domestic leadership and world class standards” in all of our construction and operations endeavours. It has always adhered to the business philosophy and values of common and joint development and has supported and encouraged STDecaux, our JV with JCDecaux, to innovate and be a trend-setter on the Shanghai metro platform. In 2018, Shanghai Metro and JCDecaux took the lead in reaching a consensus on the digital transformation of outdoor advertising, and STDecaux is now clearly a pioneer in global DOOH and has become, after 15 years of cooperation with JCDecaux, a leader in the advertising industry. We have not only elevated advertising in Shanghai metro into a leading world class advertising medium, we have added extra depths and dimensions to make it an integral part of urban cultural development. Today, Shanghai Metro network has exceeded 800 kilometres and embarked on a new journey. We look forward to the renewed co-operation between Shentong and JCDecaux to once again deliver new heights in business results and achieve new developments in the pursuit of excellence!”
Junming SHI, Chairman of Shanghai Shentong Assets Management Company said: “We are very pleased to choose JCDecaux, the world’s No. 1 outdoor advertising company, as our media business partner. This further cooperation between Shentong and JCDecaux reflects our respect and recognition for JCDecaux’s professionalism. We are full of confidence for our future cooperation, and with JCDecaux’s international experience and its impressive performance, we will continue to provide high-quality services to advertisers, an even better riding experience to passengers, and bring greater returns to both Shentong and JCDecaux.”
Jean-Charles Decaux, Chairman of the Executive Board and Co-CEO of JCDecaux, said: “We are delighted to renew and extend our collaboration with Shanghai Shentong Metro for the next 15 years. This strengthened partnership underlines the success of the operational capacity of our teams in terms of commercial and extra-commercial activities including health, safety & environment and the relevance of our joint-venture business model with the Metro since 2007. As the leader in metro advertising in China, we will continue to optimise the solutions offered to our customers through innovative technologies, notably via our ambitious digitalization plan. This will allow us to enrich the passenger experience in the Shanghai Metro and guarantee maximum visibility and efficiency for advertisers and their agencies.”
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