Viacom takes bite out of Maiden's rail market share

by Daniel Farey-Jones, Brand Republic 26-Jan-06, 11:00

LONDON – Outdoor advertiser Maiden is to lose a rail contract estimated at £4m a year to Viacom Outdoor when two rail franchises change hands in April.

The franchises will go to train operator FirstGroup, which in 2004 signed a five-year deal with Viacom Outdoor after a competitive pitch against Maiden.

The news pushed Maiden's shares down this morning, down 1.8% at 69.75p.

As part of that deal, FirstGroup agreed to hand the ad sales contracts for any further franchises it landed to Viacom.

Maiden remains dominant in the rail market, but industry observers believe the transferral will take Viacom Outdoor's market share from around 25% to 30%.

The expansion increases Viacom Outdoor's presence on commuter routes into London, within London, in the West Country and the M4 corridor.

Jason Cotterrell, national rail franchise director at Viacom Outdoor, said: "We see rail, and transport media as a whole, increasing its share of advertising budget over the next few years on the back of investment made."

Maiden is currently considering putting itself up for sale after experiencing disappointing performance in 2005. Viacom Outdoor is expected to show an interest if the "for sale" sign does go up.

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