Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksVodafone Share News (VOD)

Share Price Information for Vodafone (VOD)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 68.44
Bid: 68.44
Ask: 68.46
Change: 0.00 (0.00%)
Spread: 0.02 (0.029%)
Open: 68.00
High: 68.98
Low: 67.86
Prev. Close: 68.44
VOD Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Advertising spreads onto landmarks in crisis-hit Spain

Mon, 24th Jun 2013 12:07

By Clare Kane

MADRID, June 24 (Reuters) - Big business is taking advantageof recession-hit Spain's hunger for cash, striking advertisingdeals for landmarks that have seen a Christopher Columbus statuedressed in a Barcelona soccer shirt and a metro station namedafter a telecoms company.

With local councils and transport authorities across Europefeeling the squeeze as governments battle to cut deficits, thesedeals could be a taste of things to come.

"Advertising seeking controversy isn't anything new ...what's different here is the inventive ways local authoritiesare coming up with to make money," said Manuel Martin,communication theory professor at Spain's University of Navarra.

Some Conservative politicians in Britain, for example, havesuggested allowing sponsorship of London Underground metro linesand stations to raise money that could keep down fares.

But allowing brands to associate themselves with publicservices and famous places is not without its detractors.

Protest group Ecologists In Action, for instance, says metrostations should be used to promote cultural activities and thatit is unfair to advertise to consumers where they might not beable to distinguish between publicity and information.

REVENUE RAISING

For supporters, opening up more landmarks to advertising isa win-win situation at a time when money is tight for bothgovernments and companies.

Spain is in the grip of a protracted recession that has left27 percent of the workforce jobless. Many of its 17 autonomousregions and councils are shouldering large amounts of debt andmost regions - though Madrid is an exception - have been lockedout of debt markets and must seek alternative funding.

For them, new advertising revenues could be a big help.

Barcelona city council received 114,000 euros ($150,200)from Nike to preview soccer club Barcelona's new shirton the 60-metre high statue of Columbus.

In the capital, Vodafone will pay subway companyMetro de Madrid 3 million euros over three years to rename thestation in the historic Sol plaza at kilometre 0 of Spain's roadnetwork and the focal point of anti-government protests. The Solstation is now called Vodafone-Sol.

Line 2, used by more than 122,000 people every day and whichstops at Sol, will also be renamed Linea 2 Vodafone inSeptember. It is the first time a company has sponsored anentire metro line in Europe. New maps of the metro system willbe made and distributed with the new name for the line andVodafone will foot the bill.

Metro de Madrid said the money raised would go to improveservice, while the regional government described Madrid'stransport network as "a shopfront for 1.5 billion journeys ayear" and said such advertising campaigns could help fund publictransport.

BRAND BACKLASH

Companies are also looking to save money, and create more ofa buzz when they do spend on advertising.

Consultancy Zenith says firms in Spain are expected to spend10.9 percent less on publicity this year.

Choosing a controversial location can be money well spent.

Marta Coll, director general at Havas Media's Barcelonaoffice, which was behind Nike's Columbus campaign, said themedia coverage generated by the stunt was valued at between 7million and 8 million euros.

Barcelona city council is currently reviewing its urbanlandscape regulation, making it unclear whether more such dealswill be permitted. The Columbus promotion was only allowedbecause it was for a short period of time and the statue wasbeing restored, according to the council.

A spokeswoman said while urban planning rules would bemodernised, nothing had been officially decided on advertising.

"The idea first came up seven years ago but the council wasmuch more restrictive and we weren't allowed to do it. Perhapsit was because of the current economic crisis and the factrestoration work was being carried out that they let us do it,"said Havas Media's Coll.

Vince Mitchell, consumer marketing professor at CassBusiness School in London, said companies would be keen tostrike advertising deals over other landmarks.

"Virtually every other form of advertising is so saturated,so marketers are constantly looking at new ways to engagepeople," he said.

But opponents are vowing to put up a fight.

In Spain, a group called "Cover The Brand" has set up awebsite with instructions on what size of paper is needed tocover the "Vodafone" brand on metro signs and uploads picturesshowing the brand papered over and covered by stickers.

In Barcelona, the council's decision to allow the Columbusstatue to wear the new FC Barcelona shirt also sparked fury atother clubs in the area, such as Espanyol, whose presidentdescribed the move as "the straw that broke the camel's back".

More News
2 May 2024 07:03

Swisscom posts steady Q1 profit, says Vodafone Italia deal on track

May 2 (Reuters) - Telecoms group Swisscom reported a slightly lower first-quarter core profit on Thursday, but beat market expectations, as business in its core Swiss and Italian markets continued to develop positively.

Read more
2 May 2024 06:35

Swisscom plans completion of Vodafone Italia takeover in Q1 2025

May 2 (Reuters) - Swiss telecoms group Swisscom said on Thursday its takeover of Vodafone Italia is on track and expected to be completed in the first quarter of 2025.

Read more
16 Apr 2024 08:41

Vodafone appoints SAP's Marika Auramo as CEO of Business arm

(Alliance News) - Vodafone Group PLC on Tuesday said Marika Auramo has been appointed as chief executive of Vodafone Business.

Read more
16 Apr 2024 07:46

Vodafone taps SAP executive to lead business division

(Sharecast News) - Vodafone announced the appointment of Marika Auramo as chief executive of Vodafone Business on Tuesday, effective from 1 July.

Read more
4 Apr 2024 15:58

London close: Stocks manage gains ahead of US payrolls report

(Sharecast News) - London markets closed higher on Thursday, driven by a robust showing from the mining sector and as investors contemplated the UK services sector's latest figures.

Read more
4 Apr 2024 08:47

LONDON MARKET OPEN: Shares rise despite US interest rate unease

(Alliance News) - London's FTSE 100 edged higher on Thursday morning, despite lingering US interest rate worries hanging over equities, while gold notched another record high in earlier trade.

Read more
4 Apr 2024 07:43

LONDON BRIEFING: Vodafone-Three deal faces deeper UK probe

(Alliance News) - London's FTSE 100 is called to open higher on Thursday, despite remarks from Federal Reserve Chair Jerome Powell failing to soothe lingering interest rate worries.

Read more
4 Apr 2024 07:37

CMA to launch in-depth probe into Vodafone's merger with Three

(Sharecast News) - The Competition and Markets Authority said on Thursday that it will launch an in-depth investigation into the planned £15bn merger between Vodafone and CK Hutchison's Three that was announced last year.

Read more
28 Mar 2024 15:05

Directors dealings: Vodafone chairman follows in CFO's steps, buys shares

(Sharecast News) - Vodafone's chairman bought a big batch of shares in the telecommunications outfit just ahead of the Easter break.

Read more
28 Mar 2024 13:54

IN BRIEF: Vodafone Chair Boxmeer buys GBP570,000 in shares

Vodafone Group PLC - Berkshire, England-based telecommunications provider - Chair Jean-Francois van Boxmeer buys 823,500 shares at GBP0.69 each, worth GBP568,215, in London on Wednesday.

Read more
27 Mar 2024 09:40

LONDON BROKER RATINGS: Sainsbury's, Petershill Partners upped to 'buy'

(Alliance News) - The following London-listed shares received analyst recommendations Wednesday morning and Tuesday:

Read more
26 Mar 2024 11:21

Vodafone Germany to cut 2,000 jobs in revamp

FRANKFURT, March 26 (Reuters) - Vodafone Germany aims to save around 400 million euros ($434.48 million) over the next two years as part of a restructuring that will hit some 2,000 jobs, the company said on Tuesday.

Read more
26 Mar 2024 11:15

UPDATE: Vodafone Germany cuts 2,000 jobs as part of savings programme

(Alliance News) - Vodafone GmbH is cutting and relocating around 2,000 jobs in a bid to save EUR400 million in the next two years, the Dusseldorf, Germany-based subsidiary of Vodafone Group PLC announced on Tuesday.

Read more
26 Mar 2024 10:43

Vodafone Germany: 400-mln-eur restructuring to affect 2,000 jobs

BERLIN, March 26 (Reuters) - Vodafone Germany said on Tuesday that it aims to save around 400 million euros ($434.48 million) over the next two years as part of a transformation programme that will affect some 2,000 jobs.

Read more
26 Mar 2024 10:42

Vodafone Germany cutting 2,000 jobs as part of savings programme

(Alliance News) - Vodafone GmbH is cutting and relocating around 2,000 jobs in a bid to save EUR400 million in the next two years, the Germany, Dusseldorf-based subsidiary of Vodafone Group PLC announced Tuesday.

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.