TfL advertising revenue

Meeting: 
MQT on 2014-02-26
Session date: 
February 26, 2014
Reference: 
2014/0609
Question By: 
Richard Tracey
Organisation: 
GLA Conservatives
Asked Of: 
The Mayor

Question

Why does TfL's forecasted advertising revenue drop off a cliff in 2015/16, only to recover to current levels in 2022/23?

Answer

Answer for TfL advertising revenue

Answer for TfL advertising revenue

Answered By: 
The Mayor

The current advertising contract, which is due to run until spring 2015, was agreed and signed at a point when the advertising market was expected to keep growing as it had done in the preceding years.

The economic crisis of 2008, however, resulted in a major reduction in global advertising revenues. TfL has been protected from this thanks to a series of guaranteed payments which were set out in the current contract.

From 2015, TfL's advertising revenues will have to adjust to market demand, and TfL believes there is a significant risk that the revenues from any new contract will be substantially reduced, at least initially.