Outdoor advertising in Moscow

2019: Mail.ru Group enters outdoor advertising market

At the end of August 2019, it became known about the entry of VK (formerly Mail.ru Group) into the outdoor advertising market. Her company will sell in collaboration with Gallery through its myTarget platform. In addition, the Internet holding is going to start selling digital cityboards and supersites. Read more here.

2017: Receipts three times lower than plan

Outdoor advertising operators in December 2017 transferred 3.3 billion rubles to the budget of the city of Moscow for the next year of operation of billboards played at auctions 2013-2014. As noted, revenues from outdoor advertising were three times lower than the plan adopted in 2013. Then in Moscow, the policy in the field of outdoor advertising was radically revised: its volume was reduced and distributed through auctions.

According to Konstantin Gorokhov, a representative of the Moscow Department of Advertising and Media, only the Olympus operator paid off under the contracts concluded after the second auction in 2014. The TRK company, as of January 2018, has not yet contributed the required 1.4 billion rubles. Contracts with it are terminated if the company does not pay until January 16, 2018 inclusive. Formally, termination occurs on the 11th working day with the receipt of a notice of the need for payment by the shopping and entertainment complex, that is, from January 23.

In 2013, according to the results of the auction, most of the places for advertising for a period of ten years were divided among themselves by seven operators - Russ Outdoor (RussOutdor), Gallery, Niké, Rasvero, Olympus, TRK and Rouen, which pledged to pay 7.5 billion rubles a year. At the same time, Rouen contributed 1.45 billion rubles in five years at once. The remaining advertising places were played in 2014 with the expectation of helping out another 2.18 billion rubles a year for them. Most of the seats were then bought by the shopping and entertainment complex. Thus, according to preliminary estimates, within 10 years, advertising spaces were supposed to replenish the budget of Moscow by 100 billion rubles.

However, the operators were able to fully pay for advertising space only in the first year after the auctions. Then some of the billboards were excluded from the contracts due to the urban planning situation, when it was impossible to establish them, so payments decreased, Gorokhov explained.

Thus, the operator "Nika" could not pay 1.3 billion rubles in 2014, when there was a crisis in the advertising market, and the mayor's office terminated contracts with him; the company went bankrupt. Problems with payment arose at Olympus, which sued the city for about a year, but eventually restored the agreements. Finally, TRK, one of the major participants in the Moscow outdoor advertising market, in 2017 did not timely contribute 1.9 billion rubles to the capital's budget. The mayor's office terminated all eight contracts with the operator, but then, after transferring 1.33 billion rubles to the shopping and entertainment complex in February, it restored five out of eight contracts.

The city received what everyone predicted: as a result of auctions, the economic conditions of the market turned outdoor advertising into an industry where profitability was in great question, "said Andrey Berezkin, general director of ESPAR Analyst.

In December 2017, operators were given discounts. According to the mayor's office, Russ Outdoor paid 1.8 billion rubles, although it won shields worth 2.5 billion rubles, Gallery - 0.7 billion rubles, while the basic payment involved the payment of 1.4 billion rubles.

According to Andrei Berezkin, with the departure of Nika and the possible departure of the shopping and entertainment complex, about a fifth of the inventory will disappear from the Moscow market, but this is not critical for building advertising campaigns. For the remaining players, this situation is a serious help, he believes:

If the shopping mall leaves, it will redistribute demand, and its customers will continue to place on other shields.

Representatives of advertising agencies are convinced that if the shopping mall leaves, it will be difficult to provide the required coverage.^[1]

1930

Main article: History of Moscow

Petrov Street

in 1925-1930]]

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