O2 agrees £11m deal to sponsor travel for Capital Radio Group

O2 is to sponsor the traffic and travel reports across the whole Capital Radio Group Network as part of a deal with a media value of £11 million.

As part of the agreement, O2 will target specific promotions to the audiences of Capital FM, Century FM, Capital Gold, Xfm and Choice FM. The deal will run for one year.

The £11 million figure incorporates not just radio coverage but also add-ons, such as DJ appearances and outside broadcasts. Capital is also exploring opportunities to develop tailored editorial content for the brand. The deal was brokered by Drum PHD.

In addition, Capital has announced that Pizza Hut is to renew its sponsorship of Neil Fox's Drive Time. The deal, which has a media value of £1 million, extends the brand's relationship with the DJ, who has appeared in, and provided voiceovers for, recent Pizza Hut TV commercials.

Capital has also signed an as-yet-unnamed sponsor for its London Party in the Park concert and is in talks with other prospective clients regarding the Brighton, Kent, Oxford, Southampton, Birmingham and Cardiff versions of the summer event.

The deals follow a recent increase in investment in Capital's sponsorship division. In the eight months since Mike Hope-Milne became the head of sponsorships and promotions, the department has grown by 25 per cent.

Hope-Milne said: "Advertisers have realised the ability of editorial partnerships to deliver powerful advertising messages. This has meant more demands are being placed on this form of activity. We are in a healthy position to be able to deal with this demand."