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Digital advertising company ScreenFX has announced that it has secured a 10-year commitment from one of the world’s leading outdoor advertising contractors to supply ads across its portfolio of shopping centre screens.
In return the contractor, which is believed to be a firm of the stature of JCDecaux or Clear Channel, will obtain the rights to gain exclusive access to ScreenFX’s raft of convenience store sites. It will then install free-standing six-sheet poster displays, gain any necessary planning permission and maintain the units. ScreenFX, which is on the brink of changing its name to Vision Media Group, will receive a one-off up front payment from the undisclosed contractor, as well as “significant annual net advertising revenue” from the 10-year agreement. The deal is further complicated by a clause that should the contractor over-achieve on selling in to the portfolio of 300 ‘mall network’ screens, it will then be rewarded with shares in the business. Over the first three years this could mean that the contractor receives up to 29.9% equity in the group. ScreenFX chairman Mike Cottman commented: "This is the first time that a smaller digital company has secured the endorsement of one of the leading outdoor advertising players in the UK. The contractor has shown tremendous confidence in our shopping mall and convenience store portfolios and their expectations are exciting for what this will mean financially to us. "We believe that as a result of this contract, VMG will benefit from in excess of £2.5 million of gross margin from the first full year of operations under this contract. “ http://www.screenfxplc.com/
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