Astral Out-of-home has added Canada’s largest airport to its portfolio, after landing the contract to provide advertising services for Toronto Pearson International Airport.
Pearson is the country’s busiest airport, attracting more than 41 million passengers each year. The eight-and-a-half year contract, which officially commences Aug. 29, grants Astral exclusive advertising rights for both in-terminal and non-terminal concessions. The contract was previously held by Clear Channel Outdoor Canada.
Benjamin Mathieu, general manager, airports for Astral, said the company had achieved its objective of becoming the leader in the airport advertising sector. The six airports under its control – a group that includes Vancouver International Airport, Ottawa Macdonald-Cartier International Airport and Halifax Stanfield International Airport – attract a combined 87 million travellers each year.
Astral is “by far” the leader in the airport advertising category said Mathieu, and also becomes the first out-of-home company to control advertising inventory in the country’s three largest markets. He said airport advertising would account for about 20% of the company’s annual revenue when the Pearson contract takes effect.
The company plans to convert between 60% and 70% of Pearson’s existing static inventory to digital within the next three years, said Mathieu. It will also switch out Clear Channel’s CBC News Express product in favour of its AeroTV platform – a series of screens that combine video advertising with content from Astral parent Bell Media.
He told Marketing the company planned to introduce an assortment of products including landmark advertisements, video walls and vertical boards, while promising “big surprises” that are currently being finalized with Pearson’s administrative operator the Greater Toronto Airport Authority (GTAA).
Mathieu said Astral had no plans to add to its inventory in Pearson, saying instead the company might reduce the number of faces. “We believe that less is more,” he said. “Our vision in airports is reducing the number of faces, transforming the faces into digital [or] bigger, more spectacular. By doing this we usually increase the revenue.”
Michael Ross, director of commercial development for the Greater Toronto Airports Authority (GTAA), said Astral’s proposal exceeded its expectations in terms of both innovative media and revenue optimization.
Mathieu said Astral currently had no plans to pursue new airport advertising contracts, but indicated the company would “definitely” bid on the contract for Calgary International Airport when it comes up for tender.
“It’s a major airport and we believe that we can do a good job,” said Mathieu of the contract, which is currently held by Pattison Outdoor Advertising. “If a tender is happening then we’ll participate, but we will not be running after any new business,” he said.
