BVB and BLT establish joint advertising sales company

From April 2016, the company will market advertising space on and in streetcars and buses from a single source. For advertisers, this should result in easier access to Basel's public transport advertising spaces as well as greater reach for their advertising.

BVB previously marketed its advertising spaces on its own, as media spokesman Benjamin Schmid explains in response to an inquiry from Werbewoche.ch. BLT's indoor advertising was previously marketed by APG|SGA Traffic. BLT itself was responsible for the outdoor advertising - namely the roof advertising. However, BLT director Andreas Büttiker told Werbewoche, the company did not actively manage this source of revenue, nor did it rent out the advertising space at market rates. "Our core business is transportation, not advertising marketing," Büttiker said. This untapped potential is now to be tapped with a joint entity that is fully focused on the advertising market.

"Relief for the public sector"

Together, the two companies currently generate sales of just under eight million Swiss francs per year from transport advertising. BVB and BLT expect significant synergies from the new organization and the joint use of advertising booking systems, and thus significant increases in revenue from this ancillary business. According to Büttiker, additional revenues of around three million francs are expected over the next five years, which will benefit public transport. "In this way, we are helping to finance the public transport service, thus relieving the public purse and reducing the pressure of having to make tariff adjustments," says Büttiker. "It is our responsibility to generate additional revenue".

The joint advertising sales company will be structured as a stock corporation with a shareholding ratio of 66.6 percent (BVB) to 33.4 percent (BLT). The company is expected to have around five employees when it is completed. The new company will be set up over the next few weeks. The two governments of Basel-Stadt and Basel-Landschaft have been informed about the approach of BVB and BLT and welcome the establishment of a joint advertising sales company, according to the statement.

The current contracts between APG|SGA Traffic and BLT, respectively BVB, will continue until at least the end of 2016, as Daniel Flück, Head of APG|SGA Traffic Switzerland, says in response to an inquiry from Werbewoche. Discussions are currently planned on the form of further cooperation, he said. "APG|SGA Traffic is the market leader in the marketing of public transport advertising and is present at nine locations throughout Switzerland. Both in the Basel area as well as in the rest of Switzerland, the two marketing companies complement each other well." This is also confirmed by Andreas Büttiker - they are open to continuing the partnership and cooperation with APG|SGA Traffic, for example through additional offers. (hae)