JCDecaux will take over what TfL describes as the world’s biggest bus shelter advertising contract from Clear Channel, which has held the account since 2005.
Campaign revealed last month that JCDecaux had been selected as TfL's preferred partner subject to a formal appointment being made. TfL kicked off the contest to install and operate its street furniture in September last year.
JCDecaux will sell ad space across 4,900 of TfL’s bus shelters. London’s public transport provider said the new contract, which begins on 1 January 2016, will provide more digital ads, and more interactive advertising and local information for customers.
Leon Daniels, the managing director of surface transport at TfL, said: "Our bus network carries 6.5 million people every day, and with almost 5,000 bus shelters in some fantastic locations across the capital, this is a great opportunity for advertisers to reach out to our customers.
"The new contract with JCDecaux represents good value for fare and taxpayers and will generate revenue for us to invest in delivering better services for our customers."
The contract is part of TfL’s commercial strategy to generate £3.4 billion in non-fare revenue over the next decade, which it said will be reinvested into the capital’s London’s public transport and road network.
Jean-François Decaux, the chairman of the executive board and co-chief executive at JCDecaux, said: "JCDecaux is delighted to have been awarded the prestigious TfL advertising contract, the world's largest bus shelter advertising concession.
"London's economy and population is booming. The city is changing at a rate not seen since Victorian times and it will have a population of 10 million by 2030 increasing its value as a market for advertisers.
"This award consolidates London’s bus shelter contracts into a single proposition of 15,000 back-lit 2 sqm panels, paving the way for a significant digital transformation.
"The company plans to make London the global showcase for digital out-of-home with more than 50 per cent of its UK advertising revenues forecast to be coming from digital by 2017."