It will see a streamlining of the current multi-concessionaire approach in a bid to retain major brands and further attract advertisers to the airports.

“Our new advertising portfolio model illustrates the constant innovation that is a feature of how Airports Company South Africa does business. We continue to seek optimal ways of achieving maximum efficiencies that deliver value to all our stakeholders,” said Airports Company South Africa’s Group Executive: Commercial, Haroon Jeena.

Airports Company South Africa’s strategy is to build an efficient and customer-focused business, in line with its vision of being a world-leading airport business. The overhaul of the company’s indoor, outdoor and experiential advertising business goes a long way towards achieving this goal and is informed by global best practice and local market research. It will see a streamlining of the current multi-concessionaire approach in a bid to reverse the migration of major brands from airports.

Stakeholders in the airport advertising value chain have highlighted several issues that were preventing airport advertising from realising its full potential. Examples include the difficulty of differentiating airport advertising from other Out-Of-Home categories and certain structural problems related to the multi-concessionaire approach.

Airports Company South Africa critically assessed the current advertising model through a consultative process with key stakeholders, and in line with its transparent and progressive approach to doing business, has now developed a world-class advertising model. One of the key principles of this transformation is to ensure complete objectivity and critique. In this regard, a commercial media specialist consultancy was enlisted to become part of the project team to share their insights and expertise.

The main objectives of the revised model are to increase Airports Company South Africa’s market share of the Out-Of-Home advertising spend from 7% to 10% in the next five years, facilitate corporate transformation objectives by increasing the participation of emerging entities in the advertising value chain, and to create unique advertising solutions that are integrated into the traveller’s journey and experience.

“Going forward, the media buying process will be simpler and more effective as the number of contact points for media agencies in buying media at the airport will be reduced. This will be supported by clearer, consistent and sustainable pricing policy. Another benefit is the advertising solutions that will be integrated into the passenger experience. We are looking forward to seeing these improvements elevate airport advertising to premium positioning and thereby growing this non-aeronautical revenue stream,” concluded Jeena.