ComfortDelGro subsidiary to manage ad spaces across S’pore’s public bus network in $150m deal

SINGAPORE – Advertising spaces across Singapore’s public bus network will be progressively managed by a single operator from Nov 1, after a subsidiary of transportation giant ComfortDelGro was awarded the contract in a $150 million deal.

Moove Media, ComfortDelGro’s advertising arm, will manage and operate the ad spaces on all public buses and at all bus interchanges for seven years, with the possibility of a two-year extension.

It is the first time that the Land Transport Authority (LTA) is consolidating advertising operations for the public bus sector under a single operator – a move that is expected to give advertisers a wider reach and allow the ad operator to reap economies of scale.

There are about 5,800 public buses and 28 bus interchanges here.

Currently, public bus services in Singapore operate under a contracting model, where public transport operators bid for bus packages and are paid by LTA to run services.

Under this model, LTA keeps the fares, while the operators get to pocket non-fare revenue, which includes income from advertising and renting out commercial spaces in interchanges.

Advertising on buses and at bus interchanges is today managed by the four respective public bus operators – SBS Transit (SBST), SMRT, Tower Transit Singapore and Go-Ahead Singapore.

While they each can appoint their own ad partners, in reality, the market is a duopoly – SMRT’s advertising arm Stellar Ace handles its bus ads, and Moove Media does it for the remaining three operators.

With the consolidation of ad operations, Moove Media will now pay LTA about $150 million in fees over the seven-year term to manage ads for the entire public bus sector instead.

These fees will go towards subsidising public bus services. Moove Media, in turn, will keep the ad revenue that it generates.

The management of ad spaces at bus stops comes under a different contract, which LTA in 2023 awarded to SMRT subsidiary Stellar Experience.

Experts

previously told The Straits Times

that the consolidation of advertising operations will help to boost public transport sector revenues amid rising costs. In the financial year ending March 31, 2024, LTA ran an annual deficit of $852 million to keep public bus services here running.

But the move could also lead to reduced competition and potentially lead to higher advertising rates, which may be more detrimental to small and medium-sized companies on a limited budget, experts added.

LTA called a tender in 2024 to appoint the new bus advertising operator.

Aside from Moove Media, there were two other bidders for the contract – JCDecaux and Hong Kong outdoor advertising firm Bravo Media.

The three proposals were assessed based on their ability to generate non-fare revenue from public bus assets. The evaluation used a two-envelope process, where the price proposals were opened only after tenderers had passed the quality evaluation, LTA said.

According to LTA, Moove Media submitted the strongest overall proposal with a competitive bid, proposing a wide range of ideas to generate ad revenue, such as dynamic displays on buses.

LTA added that Moove Media has plans to expand its digital footprint, too, through “high-impact cinematic” content that will be displayed on screens installed at bus interchanges islandwide. The company also demonstrated what LTA said was a strong sense of collaboration with stakeholders.

LTA said Bravo Media’s bid over the same seven-year period was $59 million, and JCDecaux’s price proposal was not opened as it did not pass the authority’s quality criteria.

With the awarding of the new consolidated bus advertising contract, Moove Media will take over advertising operations for nine of the 14 bus packages from November.

The company will then take over advertising operations for the remaining packages progressively, as these packages expire over the coming years until August 2030.

In a statement on May 19, ComfortDelGro said the latest tender award solidifies Moove Media’s position as a leading out-of-home advertising company by significantly expanding its advertising inventory.

“We are honoured to be entrusted with the responsibility of managing advertising across Singapore’s public bus network,” said Moove Media chief executive Jeffrey Kwek.