London Gatwick brings multi-million-pound airport advertising estate in-house

Moodie Davitt Snapshots

– The UK’s second-busiest airport parts company with its long-time advertising concessionaire, Global.

– The transition, effective 1 April next year, brings the whole business in-house.

– The move is optimally timed following government approval to progress the Northern Runway Programme.

– London Gatwick says the change will allow it to work more directly and creatively with brands and agencies.

– The development will be closely monitored by the airport and OOH sectors worldwide, especially given VINCI Airports’ status as the world’s leading private airport operator

UK. In big breaking news, London Gatwick is to bring the management of its airport-wide advertising estate in-house, giving brands a direct route to one of the UK’s largest and most valuable travel audiences.

The business is currently managed by British OOH and radio company Global Media & Entertainment Limited (Global), which retained contract for Gatwick Airport for five years in 2022, consolidating its position as the UK’s largest airport media owner.

The transition, effective 1 April 2027 will enable London Gatwick to work more closely with advertisers and agency partners, the airport company said.

This will drive the creation of campaigns that better connect with the airport’s 40 million-plus global passengers and “make the most of the airport environment”, London Gatwick added.

Over recent years, London Gatwick has invested heavily in its media estate, expanding a portfolio of more than 250 premium digital screens, high-impact advertising sites and passenger engagement opportunities throughout the airport.

As its passenger numbers continue to grow, London Gatwick said it offers brands access to a large, diverse and highly engaged audience at key moments in their journey, whether travelling for business, leisure or visiting friends and family.

The move comes at an exciting time, the company noted, as the airport has received government approval to progress its Northern Runway Programme. This will enable London Gatwick to welcome up to 80 million passengers a year upon completion.

Never far from the madding crowd: The Jet2 messaging reaches a huge and diverse audience each day. “Dwell time is the single most important number in airport advertising, and the primary reason the format commands a premium over most other outdoor media,” notes leading UK OOH advertising agency Loud! OOH.

London Gatwick Head of Airport Access, Marketing & Commercial Products Oliver Bedford said: “London Gatwick gives brands the opportunity to reach millions of consumers in a unique environment, at a time when they’re engaged, making decisions and preparing for their journey.

“Bringing our advertising estate in-house will allow us to work more directly with brands and agencies, develop more creative opportunities and build partnerships that deliver value for everyone involved.

“We would also like to thank Global for their support and partnership in managing the airport’s advertising estate over many years.” ✈

London Gatwick seeks top line and bottom line benefits

Comment: This is an intriguing move by London Gatwick, especially considering its ownership base – VINCI Airports owns a 50.01% stake in the airport, with Global Infrastructure Partners managing the remaining 49.99%, writes Martin Moodie.

The transition to an in-house operation is a big deal – with some 42.9 million passengers served last year, the airport is the UK’s second busiest, ranking a heady ninth across Europe.

The airport, located 28 miles south London, is well-placed in more senses than one. A six-year, £2 billion (US$2.67 billion) sustainable growth programme (which includes plans to be a net zero airport by 2030) will and increase capacity by bringing the airport’s existing northern runway into routine use, alongside its main runway.

Clearly the airport owners and leadership have decided the time is therefore right to claim 100% of the advertising spoils rather than  dilute through the services of an external party.

While the specific revenue-share percentage, minimum guarantee or concession fee structure between Global and Gatwick Airport Limited is confidential, at stake is a big business.

As renowned independent UK OOH and digital out-of-home (DOOH) advertising agency Loud! OOH Founder Jamie Roberts notes of airport advertising, “Passengers are waiting, browsing, eating and killing time in a secure, contained environment, not rushing past a panel in two seconds.

“In many locations mobile connectivity is inconsistent. Your ad is not competing with a phone screen in the same way it does everywhere else.

“That dwell time is the single most important number in airport advertising, and the primary reason the format commands a premium over most other outdoor media.”

And there in three punchy paragraphs you have much of the logic behind London Gatwick’s decision. While it does not have total control over dwell time (airline check-in, immigration and security are all managed by external parties), the airport knows its estate’s potential and placements better than anyone.

It is now backing its management to nurture a closer relationship with brands and agencies to grow the top line while delivering significant cost savings through the in-house model.

It’s a move that will be closely monitored by the airport and OOH sectors worldwide, especially given VINCI Airports’ status as the world’s leading private airport operator, managing the development and operation of more than 70 airports located in 14 countries.  ✈

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