Auckland Transport Pulls Five Outdoor Advertising Contracts

In a surprising and unexpected move, Auckland Transport (AT) has canceled five major outdoor advertising contracts that were set to begin in just weeks. These contracts, collectively worth hundreds of millions of dollars over the next decade, were seen as a major opportunity for outdoor advertising companies across New Zealand. The decision has left the industry stunned and uncertain about the future of public transport advertising in the country.

The cancellation was revealed on Tuesday through Shayne Currie’s Media Insider column in the NZ Herald, marking what has been called "the biggest media procurement in New Zealand history." This news is a significant blow to the outdoor advertising industry, which had been gearing up for a busy end of the year. The contracts were scheduled to take effect on January 1, meaning the cancellation comes just weeks before the current agreements expire.

The decision has raised questions about why such a major procurement process was scrapped so close to the start date. The contracts had been the result of a rigorous and competitive tender process, and many companies had already invested significant time and resources in preparing their proposals.

What Was Involved in the Tender Process?

The outdoor advertising contracts covered a wide variety of assets across Auckland's public transport system, with multiple categories including:

• Billboards – Large-scale outdoor billboards placed in high-traffic areas.
• Buses – Exterior advertising space on buses, including digital screens.
• Trains and Ferries – Space on trains and ferries, offering additional opportunities for advertisers.
• Bus Shelters and Train Stations – Advertising space on shelters, stations, and transport hubs.
• Promotional Activations – Opportunities for dynamic and interactive promotional campaigns.

These contracts were part of a broader strategy to refresh and expand Auckland’s outdoor advertising infrastructure. The tender process was highly competitive, with numerous companies vying for these lucrative contracts, including major players in the OOH (out-of-home) advertising industry.

AT’s sudden withdrawal of the contracts, just weeks before they were set to begin, has caused significant confusion. Advertisers were expecting a seamless transition, with new contracts in place to manage a variety of outdoor advertising spaces across the city. Instead, the tender has been left in limbo, with no clear explanation of why the process was abandoned.

MediaWorks and oOh!media Current Contracts

Currently, MediaWorks holds contracts for key outdoor advertising assets such as bus exteriors, billboards, and digital screens at transport hubs throughout Auckland. In addition, oOh!media is responsible for managing bus stops and other street furniture in the region.

For these companies, the cancellation of the new contracts will have immediate and far-reaching consequences. Many had been preparing to begin the new year with fresh advertising space to manage, along with the significant revenue that came with those contracts. Instead, they are now left to reassess their plans, as AT has stated that a new Request for Proposals (RFP) will be issued sometime in the new year. However, with new and updated criteria, the scope of the contracts may look very different from what had been previously promised.

Industry Impact: A Blow to the OOH Sector

The cancellation of such high-value contracts will have a ripple effect on the outdoor advertising industry, particularly in New Zealand. Many companies had already invested considerable time, effort, and financial resources in the tender process. Teams across the country had been preparing for the contracts to be awarded in the coming weeks, with some even anticipating a busy holiday period managing the new advertising assets.

Now, with the contracts canceled and a new RFP on the horizon, companies are left with a sense of uncertainty. The festive period, typically a high point for the advertising industry, is now clouded by the prospects of a delayed procurement process. The need for quick adjustments to the new RFP criteria may result in additional costs for those hoping to secure the contracts when they are reissued.

Moreover, the future of public transport advertising in Auckland now seems uncertain. As New Zealand’s largest city, Auckland’s advertising infrastructure has a major impact on the OOH sector across the country. The sudden halt to this tender has raised concerns about the stability and predictability of public transport advertising opportunities in the region.

Why Did Auckland Transport Abandon the Tender?

The reasons behind Auckland Transport’s sudden decision to cancel the outdoor advertising contracts remain unclear. Some industry insiders speculate that AT may have had concerns about the overall procurement process or the criteria set forth for the tender. Others suggest that AT might be reevaluating its advertising strategy, possibly due to changing technological trends or a shift in the city's transportation planning.

Whatever the reason, this unexpected move has sparked speculation about the future direction of Auckland’s advertising landscape. Many companies are now left wondering whether similar tenders in the future will be handled with the same level of uncertainty or whether new procurement processes will be introduced to address the challenges facing the outdoor advertising sector.

The Road Ahead: A New RFP and a Wait for Clarity

Auckland Transport has promised that a new RFP will be issued in the new year, with updated criteria. This news has given hope to some OOH companies, but the process remains shrouded in uncertainty. The updated criteria may alter the scope and nature of the contracts, potentially shifting opportunities away from some companies that had been preparing for a successful bid.

For now, the outdoor advertising sector must contend with this abrupt setback, trying to make sense of what went wrong and how the industry can adapt to the changing procurement landscape. As the RFP process resumes, many will be watching closely to see how Auckland Transport handles the next round of advertising contract negotiations.

In the meantime, businesses in the outdoor advertising sector will likely look for new opportunities as they await further clarity on the future of public transport advertising in Auckland.