Kommersant: The cost of rental of advertising space in Kiev will reduce by 32%
By admin at 19 June, 2009, 6:41 am
About the Kiev authorities to cancel plans to write in October last year, 30 per cent increase in rental rates for construction of outdoor advertising became known in April. Once in the I quarter of the market decline was 50-65%, the operators turned to goradministratsiyu with a request to lower tariffs. Then at KSCA was published, a draft notice.
Yesterday, industry associations - the Association of Outdoor Advertising Ukraine (ANRU) - reported that the KSCA have agreed to reduce the basic rates for basic formats of outdoor advertising to 32%. Negotiations on the market participants were more than five months, said the head of a coordinating council ANRU Artem Bidenko: According to our information, Leonid Chernovetsky signed on reducing tariffs, and these days it will be published. I. on. Chief of the General Administration KSCA on advertising Yuri Freydinov yesterday was unable to comment on the statement of association. Order must sign Leonid Chernovetskiy. But I do not know, whether the document is signed, because I was not in Kiev, - he said.
According to the director of the agency News Outdoor Ukraine Valery Kulikov, market participants in the talks insisted on 50 per cent reduction in tariffs. In the end we agreed on 30%. This is a significant decrease, but, alas, unable to cover our losses, - he said. Director RTM-Ukraine Oleg Nevelchuk stressed that the front is very difficult for the market in summer. Now it is very important, what is traditionally a low season for the advertising market. Typically, in high season occupancy advertising market structure is 85-90%, while in summer - no more than 60% - said they .- But this year, even in the most profitable months of occupancy does not exceed 60%, and if the fall in the summer will be comparable with previous years, many operators to cross the line return. Now the operator is the accumulation of debts.
At the end of 2008 in Ukraine, according to the UMM, was found about 83 thousand structures (of which 28% - in Kiev). The volume of the market in the capital in financial terms, is estimated at $ 95-100 million (about 45% of the country). According to expert estimates, the income of the gorbyudzhet in 2008 totaled about 100 million UAH.
reduction of tariffs in Kiev could become a model for authorities in the fields, say operators. The decision of the Kiev authorities - a precedent for the market. We hope this will serve as an example to local authorities in other cities, - says Mr. Nevelchuk. However, according to Mr Bidenko in other cities, officials still pretend that did not hear of operators.
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