Ilsur Metshin: “We cleared the historical center of Kazan and did not lose the advertising market”

(KZN.RU, June 20, Ksenia Shvetsova). The city budget income in Kazan from advertising activities for 5 years amounted to 1.4 billion rubles. The outdoor advertising market continues to evolve, moving from outdated structures to modern technologies. The terms for concluding advertising contracts have doubled from 5 to 10 years. Kazan is a pioneer in this direction and an example for other large cities of Russia. Ilsur Metshin, the Mayor of Kazan, said this at the meeting of the XXXIV session of the Kazan City Duma today in the City Hall. He instructed to hold a meeting with the advertising market of the capital of Tatarstan and outline the prospects for its further development, taking into account their views.

Askar Bagautdinov, the head of the Department of Outdoor Advertising and Information, reported on the main results of the development of the advertising market in Kazan. Outdoor advertising is not only a source of revenue for the budget, but also one of the primary visual components of the urban infrastructure, he noted. In 2006, a new federal law was adopted in Russia that regulates many aspects of this activity in detail. Based on it, its regulations governing the placement of advertising structures are developed in the capital of Tatarstan, taking into account the preservation of the architectural appearance of the city.

“Since 2006, the Executive Committee has been advocating a gradual reduction in outdoor advertising”, said A. Bagautdinov. “As a result, large-format advertising is completely withdrawn from the central part of the city”.

The number of advertising equipment in the city decreased from more than 2200 units in 2006 to 1125 units at the end of trading in 2012-2016. According to the results of trades in 2018, the total number of advertising spaces decreased by another 33% to 898 places. The number of advertising Euro-billboards decreased by 42% to 597 places.

“By optimizing the advertising space, we calculated what the budget would be. We think that we managed to achieve the optimal amount of advertising, with which there is a balance of interests of the municipality, citizens and residents”, said the speaker. Until 2006, the budget from advertising activities received about 14 million rubles a year. Today the city’s revenues from this sector have increased more than 20 times. According to A. Bagautdinov, this is primarily because now, the installation rights to the advertising structure are being played out at highly competitive procedures: electronic auctions.

At the beginning of 2018, the terms of 5-year contracts for the installation of advertising structures, concluded at the end of the 2012 bidding period, ended on a massive scale. According to the results of these 5 years, the city managed to organize a stable advertising market. The income of the city budget from advertising activities over 5 years amounted to 1.4 billion rubles. The average annual budget income was 280 million rubles.

New trades in 2018 were held according to the amended rules. According to the results of the tenders, the contracts were concluded for 10 years. “This allowed advertising companies to invest long-term in the installation of high-tech structures, primarily with an electronic-digital surface”, said A. Bagautdinov.

Despite the significant reduction in electronic structures, the budget revenues from advertising activities in 2018 were increased from 280 million to 320 million rubles a year. Thus, the total budget revenue for 10 years will amount to 3 billion 220 million rubles.

“The first payment in 2019 has already arrived on time in the amount of 62.4 million rubles”, said the speaker.

Firms from other cities appeared on the Kazan advertising market: Moscow, Samara, Krasnodar. However, according to A. Bagautdinov, according to the results of the last year's trading, Kazan was able to press the feds on the outdoor advertising market.

Thanks to the constant monitoring of outdoor advertising, cases of the appearance of illegal structures in Kazan became isolated, noted A. Bagautdinov. According to the results of trading, the Executive Committee forcibly dismantled 600 shields in 2012, and 2018 – only 16.

“Earlier, we were aimed at identifying and dismantling illegal structures. Today, when this problem is solved, we pay more attention to monitoring the compliance of the type of structures with the permits”, explained the speaker.

Advertising companies are increasingly investing in the purchase of modern equipment and structures, such as video screens, said Ilya Fomin, an adviser to the president of one of the largest advertising companies in the city “Larisa City Sales”. “Kazan is a reliable partner. A lot is being done in the city in the advertising market. All this led to great results being achieved; there is a competition”, he said.

Improving the advertising market has a beneficial effect on the appearance of the city. But there are also disadvantages, added I. Fomin. “Media facades are a problem. I don’t know how much they decorate the city’s appearance, but they don’t do anything good to the city”, he said. “The owners of media facades do not pay rent. They only receive permission and compete with legal players of the outdoor advertising market that deduct a significant portion of the total income to the city budget. Now, according to the most modest estimates, media facades are taking 25-30% of the market from the outdoor advertising”.  Today there are 21 media facades in the capital of Tatarstan, added the businessman.

“We don’t govern it; the city does not give permits. House owners are coordinating the installation of a media facade with all residents; they have the right to do so”, noted the Mayor.

The city administration can introduce specific measures to the improvement rules that will prohibit the installation of large-format media facades in the central parts of the city, said I. Fomin.

“We heard you. This issue must be considered and solved. I ask you to gather all the market participants, once again weigh the pros and cons in this matter. We will move on. We always work together, we hear the questions that are put before us”, said I. Metshin.

For 10 years, Kazan has gone a long way in improving the advertising market, marked the head of the city. “Our city is a trendsetter in many areas in the advertising market of Russia. We have implemented pilot projects. Together we cleared the historical center. At the same time, we not only did not lose the market, but we are in the top five cities-leaders in this sphere”, said I. Metshin. “Kazan has changed its appearance; this is noted by both citizens and guests of the city. I thank all market participants for it. Let's continue to work together, develop new directions so that the advertising market keeps pace with global trends”.