In recent years the agency has been working to boost its commercial income through sponsorship and property deals, which sit alongside its traditional display advertising business, both in order to help fund Mayor Sadiq Khan’s fares freeze, and to offset a reduction in Government funding.
With 31million journeys taken each day, TfL is already one of the country’s largest advertising forces, accounting for 40% of all advertising value generated in London and 20% across the whole UK.
The installation of hundreds of digital screens at bus shelters and on the Tube has allowed TfL to offer advertisers new ways of communicating with passengers, further boosting its estate’s attractiveness to brands.
An eight-year partnership with Exterion Media, which has already seen screens installed Canary Wharf Tube station, is expected to generate £1.1bn, all of which will be reinvested in passenger services.
The growth in revenue has been achieved despite the adoption of tough new rules governing the content of adverts and banning campaigns which promote unhealthy body images.
Publishing TfL’s first-ever Annual Advertising Report, Val Shawcross CBE, Deputy Mayor for Transport, said: “The Mayor has worked hard to make TfL more commercially-minded as money made from advertising can be directly used to improve the capital’s transport network.
“That’s why there has been a 20 per cent increase in revenue in the last year and why TfL continues to look at further creative opportunities, while ensuring that all advertising is fitting for a modern city.”
Graeme Craig, Director of Commercial Development for TfL added: “We continue to invest in transforming our advertising estate, which is already the most valuable in the world, to make it even more attractive to advertisers.
“This enables us to generate revenue which is used to modernise transport in London. At the same time, we are taking great care to ensure that the advertising we carry is appropriate for our diverse and growing city. “
