NEW YORK, Oct. 29, 2020 /PRNewswire/ -- Clear Channel
Airports (CCA), the Americas-based airports business of Clear
Channel Outdoor Holdings, Inc. (NYSE: CCO), and one of the nation's
leading airport media providers, announced today the Port Authority
of New York and New Jersey (PANYNJ) awarded it the largest
airport advertising and sponsorship contract in the U.S. The
12-year deal will see Clear Channel Airports reimagine the media
program with new digital displays and sponsorship opportunities for
brands at the coveted PANYNJ airports, including; John F. Kennedy
International (JFK), LaGuardia (LGA), Newark Liberty International
(EWR) and New York Stewart International (SWF) Airports.
Contingent upon execution by both parties, which we expect to
occur in mid-November, CCA anticipates the new contract will go
into effect December 30, 2020, and
the advertising platform transformation will begin with EWR's
Terminal One redevelopment project and in conjunction with new LGA
facilities. CCA plans to modernize the entire advertising program
across PANYNJ airports with a proposed 95% of the overall
investment going into highly impactful digital media. These
world-class airports represent major travel hubs that historically
welcomed over 140 million passengers annually, providing attractive
opportunities for brands to reach valuable international, business
and leisure travelers throughout the greater metropolitan
region.
Moreover, in addition to modernizing the passenger and brand
experience at PANYNJ, the partners aligned their interests with
contract terms that set the stage for both parties to achieve
their goals under the current conditions and for years to come and
could become the new industry model. The deal contains a two-year
transition period to account for the impact of COVID-19 and the
traffic recovery at Port Authority facilities. The actual MAG due
each year, as well as capex spend, after the two-year transition
period will be dependent upon passenger traffic at JFK, EWR, LGA
and SWF.
"We are confident in the audiences these world-class airports
will deliver to our advertising partners over the longer-term as
business and leisure travel ramps," said Scott Wells, CEO, Clear Channel Outdoor Americas
(CCOA). "The PANYNJ airports are gateways to the world, and, as the
region recovers, we believe our team is best suited to lead this
historical transformation that will reimagine and modernize the
brand experience for travelers. We believe this contract is a
win-win for both organizations and provides an innovative approach
to large-scale transit media deals against the backdrop of a
difficult current reality."
"These contracts advance two key priorities for the Port
Authority: increased ad revenue and significant investment in
modern digital infrastructure at our facilities," said Rick Cotton, Executive Director of the Port
Authority of New York and
New Jersey. "Moving forward, these
contracts will enable the Port Authority to better sell advertising
rights to generate hundreds of millions of dollars in revenue,
while travelers will benefit from the latest in digital display
technology that allows for real-time alerts."
With the addition of these high-value, marquee airport assets,
CCOA will have one of the greater metropolitan region's most
extensive Out-of-Home (OOH) advertising networks. As a result,
brands will have the unique "one-stop-shop" ability to execute
campaigns that reach consumers as they "drive, walk or fly"
throughout the NY/NJ metro area including all major airports,
highly desirable suburbs, major arterial roadways and the boroughs
of New York City.
Additionally, we anticipate the new partnership will offer
brands the OOH industry's most comprehensive audience targeting and
measurement solutions available to help them optimize their OOH
spend: CCO RADARĀ®. This includes access to the new industry
standard audience impressions methodology from Geopath.
Through this data integration, CCA has brought to bear, for brands
in airports, the only OOH third-party validated impressions
currency which factors in a travelers' movements through an
airport, time spent in an airport and opportunity to see and
consume advertising in an airport.
About Clear Channel Airports
Dedicated to airport advertising for close to 45 years, Clear
Channel Airports is the leading airport advertising, sponsorship
specialist and innovator in the U.S. Clear Channel Airports (CCA),
the Americas-based airports business of Clear Channel Outdoor
Holdings, Inc. (NYSE: CCO), is one of the world's largest outdoor
advertising companies and operates more than 260 airport media
programs across the globe and has a presence in 28 of the top 50
U.S. markets with major airports. More information can be found on
Clear Channel Airports and Clear Channel Outdoor Americas by
visiting www.clearchannelairports.com and
www.clearchanneloutdoor.com.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains forward-looking
statements based on current Clear Channel Outdoor Holdings, Inc.'s
management expectations. These forward-looking statements include
all statements other than those made solely with respect to
historical fact. The words or phrases "believe," "expect,"
"anticipate," "estimates," "forecast" and similar words or
expressions are intended to identify such forward-looking
statements and include statements about plans or intentions related
to the PANYNJ contract, potential benefits of the PANYNJ contract,
our capital commitment to the partnership with PANYNJ and our
results of operations. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of Clear
Channel Outdoor Holdings, Inc. and its subsidiaries and/or
businesses to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. These risks, uncertainties and other
factors include, but are not limited to, whether or not the
agreement with the Port Authority of New
York and New Jersey will be
executed and transaction described in this press release will be
consummated on the terms contemplated or at all, our ability to
deploy the digital display platform in the anticipated time frame
or at all, unanticipated costs of deployment, our ability to fully
realize the expected benefits of the contract with PANYNJ and other
factors described in our filings with the Securities and Exchange
Commission, including the section entitled "Risk Factors" in our
Annual Report on Form 10-K for the year ended December 31, 2020 and our Quarterly Report on
Form 10-Q for the quarter ended June 30,
2020. Many of the factors that will determine the outcome of
the subject matter of this press release are beyond Clear Channel
Outdoor Holdings, Inc.'s ability to control or predict. You are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date stated, or if no date
is stated, as of the date of this press release. Clear Channel
Outdoor Holdings, Inc. undertakes no obligation to revise or update
any forward-looking statements, or to make any other
forward-looking statements, whether as a result of new information,
future events or otherwise.
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SOURCE Clear Channel Airports