Nas estradas, outdoor high-tech une Eletromidia, Motiva e EcoRodovias

Three major road concessionaires – Eletromidia, Motiva and EcoRodovias – have joined forces in a joint venture to tap into the growing market of highway advertising. The companies hope to leverage new, tech-driven versions of traditional outdoor billboards, starting with São Paulo, where state road operators can now be compensated for ads on their stretches of road.

Eletromidia's CEO Alexandre Guerrero explained to Brazil Journal that the regulatory environment previously made it impossible to monetize highway advertising, especially on state highways. The lack of standardized rules meant operators would just lease space on a hill or near a location, install equipment and broadcast it to the road.

The new venture aims to eliminate this lack of value capture by operating as a marketplace, attracting both large and small advertisers and even potential partners for other concessionaires in the future.

Guerrero gave the example of Lamar Advertising Company in the United States, which has 150,000 billboard faces on highways and trades at an EV/EBITDA multiple of 17x to 18x. This compares to Eletromidia's valuation of 11x EV/EBITDA in its 2024 acquisition deal. The CEO is confident in the potential of this project, believing it could become one of the three largest out-of-home businesses within five to ten years. Eletromidia will hold a 51% stake, with Motiva and EcoRodovias each owning 24.5%.

The transaction is currently under review by Cade, the state agency overseeing the deal. Once regulatory approvals are in place, the companies plan to launch a showroom this year at the Rodovia dos Bandeirantes, with the goal of installing over 200 ad points by the end of 2027. The initial targets include major highways like the Via Dutra, Sistema Anhanguera-Bandeirantes, Anchieta-Imigrantes, Castello Branco-Raposo Tavares, Ayrton Senna, Rodoanel Oeste, Fernão Dias, Washington Luís and Brigadeiro Faria Lima, which together handle more than 4 million vehicles per day.

For Motiva and EcoRodovias, this venture aligns with their strategy of generating ancillary revenue from their operations. The Brazilian Secretary of Partnerships for Investment defines that the state will receive 17% of the monthly gross revenue from the ads, with the remaining value going to the concessionaires. The CEO of Eletromidia emphasized that this project is intended to expand the initiative nationwide.