Passengers at Los Angeles (LAX) and Ontario International Airports may soon notice something different when they see commercial advertisements displayed as they pass through the airport terminals.
Advertisements will be put up in interior sections of the airport terminals for the first time, under a new advertising concession agreement between the City of Los Angeles and JCDecaux Airport, Inc., a leading company in airport advertising.
The Los Angeles City Council approved the concession agreement Wednesday, October 11th, to operate airport advertising at LAX and Ontario for six years, with an option to extend for another four years.
LAX, which has more than 60 million annual passengers and is considered the world’s fourth-largest airport, was believed to be the last airport in its category without an advertising program, Los Angeles World Airports (LAWA) officials said.
Los Angeles World Airports is the city agency that owns and operates LAX, Ontario and two other Southern California airports. None of the four city airports has previously had an advertising program.
“We are very pleased the first advertising agreement for Los Angeles World Airports continues the program being taken to achieve Mayor Antonio Villaraigosa’s goal of transforming LAX,” said Patricia Tubert, LAWA deputy executive director for real estate and economic development. “The contract allows LAWA to obtain revenue to modernize our terminals, as well as provide immediate improvements to the appearance of the terminals through artistic advertising displays.”
Airport spokesman Tom Winfrey said Los Angeles World Airports receives both aviation and non-aviation revenue and the advertising contract will help boost the amount of non-aviation revenue for the agency.
The contract is expected to generate an additional $69.5 million for Los Angeles World Airports over a six-year period, airport officials said.
Other sources of non-aviation revenue include parking fees, concessions and rental cars, Winfrey said.
Airport officials said nearly all U.S. airports, regardless of their size, have some elements of airport advertising as a way to increase their non-aviation revenue.
Winfrey said airport officials have been trying to increase the number of sources that provide non-aviation revenue, which will be used toward the “overall operation of the airport.”
Los Angeles City Councilman Bill Rosendahl, who represents the LAX area in the 11th Council District, said airport advertising will also help bring in more revenue to the city.
“It’s another revenue stream that will be coming our way,” Rosendahl said.
JCDecaux has advertising rights at 35 major U.S. airports, including the three main airports in the New York City area and both Washington, D.C. airports.
The company has partnered with two local minority-owned firms, JC Promotions and J. Perez and Associates, which will be equity partners and provide local advertising sales and maintenance services for the program, airport officials said.
“This award, following the win of the advertising concession for all three New York airports a year ago, confirms JCDecaux’s leadership position in airport advertising in the United States and worldwide,” said Bernard Parisot, president and co-chief executive officer of JCDecaux North America. “We look forward to implementing a world-class and innovative program at LAX and On- tario International Airport, while generating substantial revenues for LAWA.”
Under the program, advertisements will be displayed at locations only within the interior of airport terminal buildings and within LAWA-controlled spaces.
The ads will currently not be displayed in the ticketing lobbies, baggage claim areas and holding room areas of several LAX terminals.
But in the future, advertising displays could be expanded into areas other than terminal interiors, such as building exteriors and common use areas, with approval by the LAWA executive director, according to the agreement.
Among the goals of the airport advertising program are to “generate significant revenues for LAWA,” create a presence without visual clutter, enhance the visual experience, embrace creativity, showcase technology and incorporate flexibility, airport officials said.
The commercial advertisements will be integrated into existing airport architecture and should not distract from airport signage, officials said.