Ilsur Metshin: “Kazan remains one of the most attracting cities in Russia for advertisers”

During the coronavirus pandemic in Kazan, the outdoor advertising activities reduced to 25% on billboards and to 0% on posters. However, the capital of Tatarstan, according to Ilsur Metshin, remains one of the most attracting cities in Russia for advertisers. The average annual revenue of the Kazan budget from advertising is about 300 million rubles, which significantly exceeds the income of other million-person cities in this area.

Ilsur Metshin emphasized that the advertising business is an important component of the city economy, and at the same time a vulnerable industry. “The outdoor advertising market still remains a litmus test of the city economy, as well as the economy of any country. Unfortunately, representatives of the advertising business are the first to feel any crisis, any fall in consumer demand of the population negatively affects this industry”, - the head of the city said today at a meeting of the headquarters for combating the spread of coronavirus infection at the Executive Committee.

“64 licenses were issued for the installation and operation of advertising structures”

Head of the Department of outdoor advertising and information Askar Bagautdinov said that 64 licenses were issued for the installation and operation of advertising structures in 2019. 17 permissions were canceled. In addition, 20 auctions determined 59 contracts for the right to install advertising structures for a total amount of 21.6 million rubles.

There are also new sites for advertising in Kazan. “In 2019, the advertising layout was supplemented with 48 public transport stops combined with advertising areas. The number of such pavilions has increased to 120. This year, we plan to hold auctions for another 70 transport pavilions”, - A.Bagautdinov said.

During the self-isolation period, the occupancy rate of city advertising structures reduced to 25%

The favorable development in the advertising in 2019 and the progressive rates of the industry in early 2020 should have led to an increase in revenue, but coronavirus made changes.

The fall in occupancy rate on digital structures was from 61% in March to 28% in April and to 13% in May. On static billboard stands - from 51% to 25%. Due to the complete cancellation of concerts, sports and entertainment events, the occupancy rate on billboard structures has decreased to zero. “Due to the gradual removal of restrictions, the situation is gradually improving, but it is still hard to reach pre-crisis rates”, - A.Bagautdinov said.

As a measure of support for the advertising business, it was decided to postpone payment for the second quarter of 2020. The total amount of deferred payments is about 78 million rubles.

I.Metshin noted that the fall in demand for advertising happened across the country and at such a time, it is crucial for the city to support it. “We are one of the first who met and discussed with entrepreneurs possible ways to implement support measures and agreed to postpone payments”, - I.Metshin said. The Mayor expressed hope that the market will gradually begin to recover. “Today we see a gradual end of the crisis situation, and we believe this development will increase. We hope that we will return to the previous rates. And even despite all the difficulties, Kazan is still one of the most attracting cities in Russia for advertisers”, - he noted.