I. Metshin: “A good financial result has been obtained with a decrease in the number of advertising structures by one third”

(KZN.RU, August 6, Alsu Safina). One of the factors that influenced the increase in the final value of lots in the auction under the new scheme for placing advertising designs was the introduction of new formats of structures with an electronic-digital surface. Ilsur Metshin, the Mayor of Kazan, said at the Business Monday that thanks to the new scheme, it was possible to ensure transparency in the outdoor advertising market and equal accessibility for its participants, both local and nonresident.

The number of advertising structures in the capital of Tatarstan has been declining since 2006. The total number of advertising slots decreased by 33%, from 1353 to 898 places. The number of places for the main advertising inventory, which is euro-shields, decreased by 42%, from 1037 to 597 places. In 2016-2017, 205 out of 898 lots were sold from the auction, mostly they were small format ones: pylons, stop pavilions, posters. At the end of 2017, 13 euro-shields were sold as test auctions. In the spring of this year, another 686 places were sold from the auction: 584 euro-shields, 4 super-sights, 11 super-boards, 11city-boards, 60 pillars, and 16 pylons. In autumn, two more remaining places under the super-sight and super-board would be sold. After that, the new scheme will be fully implemented. The bidding takes place in electronic form.

The starting price of lots increased by an average of 2.2 times. Following the auction, it is expected that the aggregate income for 10 years will be 3 billion 193 million rubles. Thus, Kazan will receive annually from advertising activities 319.3 million rubles, 25% more than in the previous auctions in 2012. One of the factors that influenced the increase in the final value of lots was the introduction of new formats of structures with an electronic-digital surface. For today, the city has already installed 4 super-boards and 8 euro-shields with an electronic-digital surface. Up to the end of the year, it is planned to install about 60 euro-shields with an electronic-digital surface. Now the owners are solving complex technical issues on connecting digital structures to power networks.

Ilsur Metshin, the Mayor of Kazan, noted the effectiveness of the Department of Outdoor Advertising. “For a long time, we fought together with representatives of the advertising market for transparency, we heard each other. We have traveled a long way, today the results speak for themselves”, believes the Mayor. He drew attention to the fact that from the moment when the city began to put things in order in the field of outdoor advertising, the number of advertising structures decreased by several times, while revenues, on the contrary, increased. “A good financial result has been obtained with a decrease in the number of advertising structures by one third”, marked the Mayor.

I. Metshin thanked the Prosecutor's Office of Kazan, the Federal Antimonopoly Service, and other departments for cooperation within the framework of the work on the organization of bidding. “Legislation is constantly changing. We consulted before start of the bidding”, said the Mayor. “As a result, we have transparency, equal accessibility, and an increase in the number of participants in the competition”.

The companies from St. Petersburg, Novosibirsk, Samara, Krasnodar, Orel, Moscow, and other cities took part in the auction, while the main participants were the Kazan companies. “There were other cities, new participants in the Kazan outdoor advertising market. We welcome them all”, said the head of the city. “I am glad that the Kazan participants grew so strong that they won major federal players, and Kazan businessmen are in the lead by the number of advertising space”.

Askar Bagautdinov said that on the eve of the World Football Championship, the work was carried out to dismantle the territory that was not included in the scheme of construction and landscaping. Only 16 euro-shields out of more than 400 large-format structures were dismantled forcibly, and four uncovered foundation blocks were removed. All other designs were dismantled voluntarily by the owners or transferred to new ones.

In addition, there are new rights that oblige new winners not to install new designs, but to buy out the rights for the already established ones from the old owners.

The Mayor of Kazan urged the Committee for External Improvement and Road Services strictly to observe the terms of the concluded contracts for outdoor advertising. “No demolitions or movements, it is a private property for the traded period. Therefore, one should respect the results of the competition, observe the established rules”, marked the head of the city. The Department of Outdoor Advertising must monitor compliance with the terms of the contract relating to the appearance of advertising structures, lighting, and other issues. “So that no one spoils the appearance”, said the Mayor of Kazan, adding that this issue will continue to be given much attention.

“We are pleased with the results, including financial ones. The city will look in a new way after all these new designs. Keep it up, let's continue this work with mutual respect”, said Ilsur Metshin.