The largest outdoor advertising contract in the State, believed to be worth €12- €15 million a year, has been awarded by CIÉ to a British outdoor advertising specialist.

The contract has been held for the last five years by Viacom Ireland, but CIÉ has decided to move the account to Maiden Outdoor, the largest outdoor specialist in the UK. The company operates at 500 rail stations across the UK and thousands of supermarkets.

Under the deal Maiden will offer space on buses, the DART, mainline rail carriages and train stations to advertisters throughout the Republic. Advertising on public transport has started to generate strong revenues for Dublin Bus and Irish Rail over recent years. The Luas has also been a big beneficiary because of its proximity to the Dundrum Town Centre.

CIÉ reviews its outdoor advertising contract every five years and the loss of the contract represents a significant blow to Viacom. A spokesman for CIÉ said a preferred bidder had been chosen following a tender process, but he declined to name the winner. He said bus shelters were not part of the deal and this contract continued to be held by Clear Channel.

Some €106 million was spent on outdoor advertising last year, which was up on the previous year. Viacom remains one of the largest players, alongside French company JC Decaux. There are now seven companies offering space on outdoor advertising sites. This year has started well for the outdoor industry with the motoring and media sectors significantly increasing their spending. However alcohol advertising is not allowed on rail carriages and is meant to be discrete at rail stations. These rules are included in a voluntary code agreed by the industry.