Question NW1655 to the Minister of Transport
29 August 2016 - NW1655
Hunsinger, Mr CH to ask the Minister of Transport
(1)What are the normal rates for the renting of the various spaces available for advertising at Cape Town International Airport; (2) what amounts were (a) invoiced to and (b) received by the Airports Company of South Africa from all political parties and/or their agents for each of the first eight months of 2016 in respect of advertising space rented at the specified airport ahead of the 2016 Local Government Elections; (3) do the invoices issued to political parties reflect a discount on the normal rates for advertising at the specified airport; if not, what is the position in this regard; if so, what were the (a) discount rates and (b) reasons for these discounts; (4) whether any agencies acted on behalf of any political parties to advertise in the specified airport in the specified period; if so, which agency or agencies was or were involved in each case?
Reply:
Airports Company South Africa SOC Limited (ACSA)
1. Advertising rates are not generic but rather a function of:
(i) Medium used e.g. Digital vs static vs banners etc.
(ii) Zone or area used e.g. Security check-in before international departures;
(iii) Size of structure;
(iv) Seasonality and demand;
(v) Importantly, the number of passing foot traffic and
(vi) Assessment of the passenger behaviour and Living Standard Measure (“LSM”).
The rates per site range from R15 000,00 per site per month to as much as R150 000,00 per site per month – the factors noted above determine the rental negotiated.
2. (a) Airport advertising sites are concession to the out of home media owners from one month up to 5 years, these entities pay ACSA monthly rentals irrespective of securing an advertiser. The advertising concessionaire in-turn secures advertisers.
(b) Airports Company South Africa is however aware of one political party advertising at the three National Airports (OR Tambo, King Shaka and Cape Town International Airport) for the period June 2016 to end August 2016 through advertising concessionaire called Provantage Pty Ltd (“Provantage”). The amount invoiced by Airports Company South Africa to Provantage for the sites is R346, 619.00 per month excluding VAT.
(3) (a) Invoices were issued by Provantage to the political party’s Advertising Agency i.e. Ogilvy. Provantage confirmed that no discounts were considered. ACSA did not discount the sites to Provantage.
(b) In terms of the response in (a) above; this is not applicable to ACSA.
4. No, ACSA did not act on behalf of any political parties to advertise in the specified airport in the specified period. The appointed Advertising Concessionaire is Provantage Pty Ltd, and the Political Party Advertising Agency is Ogilvy.