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Off-Board Advertisement In Moscow

The revenues of the capital operators of external advertising increased by 16 per cent in the first quarter of 2016, compared with the same period last year, from 2,6 billion to 3 billion roubles, and spoke to the “Vedomies” by Andrei Berezkin, CEO. Advertising costs for the promotion of shields in the regions were estimated to be slower by only 5 per cent compared with the same period last year.

Two previous years were not easy for operators. In 2014, the market for external advertising in Moscow fell by 3.1 per cent to 15 billion roubles over the previous year. Last year, advertisers spent another 11.4 per cent less on boards in the capital, or 12.9 billion roubles. This is the largest regional market in the country. In general, in 2014, the results were better for operators: in that year, according to the Russian Association of Communications Agencies (ACAR), the market remained at a level of 40 billion roubles. In 2015, however, advertising costs for boards across the country decreased by 21 per cent to 32 billion roubles.

Operators ' revenues in the capital began to grow only at the end of the year. In general, in Russia in the fourth quarter of 2015. foreign advertising market kept falling. In the first quarter of 2016, the market rose by 7 per cent to 8 billion roubles, according to AKAR.

This dynamic of the capital market is primarily linked to the policies of the authorities. In 2013-2014, they completely closed the market when they redistributed places for advertising between operators, reduced the total number of such places, but at the same time increased payments for them. In total, in 2013-2014, the Moscow authorities auctioned 90 per cent (8806) of the places intended for external advertising. Eight of the auction winners promised over 100 billion roubles in the urban budget for 10 years, i.e. six times more than the city had received in the previous 10 years.

In order to calculate with the authorities, operators had to raise the prices of external advertising in Moscow by 70 to 75 per cent. Many advertisers who have already begun to cut budgets because of economic problems have reduced the cost of moving the streets of the capital.

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