R.Gafarov about the outdoor advertising market: “Together with our partners, we will gradually make up for lost time”

R.Gafarov about the outdoor advertising market: “Together with our partners, we will gradually make up for lost time”

<p> From the second quarter of 2021, outdoor advertising companies will start paying deferred payments under contracts for the advertising constructions in Kazan on a monthly basis during the next two years. The decision to postpone the payments was taken due to the coronavirus pandemic. Rustem Gafarov, head of the Executive Committee of Kazan, noted today at the Business Monday meeting, the agreements on the postponement have been reached after a detailed discussion together with market participants. “This decision is acceptable to both sides and we will gradually make up for lost time together with our partners”, - he outlined. </p> <p> “The pandemic has become a challenge for the Russian outdoor advertising market. Outdoor advertising was literally “turned off” due to the lack of people on the streets,” - reported the head of the Department of Outdoor Advertising and Information Askar Bagautdinov. </p> <p> Over the past year, the outdoor advertising market in Russia decreased by 25.5%. </p> <p> Outdoor advertising in Kazan was affected by the pandemic, the speaker noted. After a good start of the year, the monitoring showed a sharp drop of commercial advertising on outdoor digital constructions from 61% in March to 27% in April and 13% in May. On billboards, the occupancy rate fell by two times – from 50 to 25%. </p> <p> “In the third quarter, after the lifting of the self-isolation regime, the market began slowly to recover. By the end of the year, the occupancy rate of commercial advertising gradually returned to pre-crisis values. However, taking into account the fact that prices on average fell by 20-30%, the industry is not fully recovered”, - A.Bagautdinov noted. </p> <p> “We are confident in the gradual recovery of the outdoor advertising industry. Even with some changes, I believe we will return to the pre-crisis level”, - Gafarov said. </p> <p> Since the federal support measures for the affected small and medium-sized businesses did not apply to outdoor advertising operators, advertising companies appealed to the Kazan Mayor's Office. </p> <p> Therefore, the decision was taken on deferred payments under contracts for the advertising constructions for the second quarter of 2020, part of the payments for the third and fourth quarters of 2020, as well as for the first quarter of 2021. The total amount of deferred payments amounted to 197 million rubles. “These decisions allowed us to calm the situation in the outdoor advertising market, to keep companies from canceling contracts with the Executive Committee of Kazan, which would lead to the loss of one of the largest non – tax sources of income in the city”, - said the head of the Department of Outdoor Advertising and Information. </p> <p> A preliminary schedule for the payment has been drawn up. </p> <p> Despite the difficult period and the support measures provided, 140 million rubles have been added to the budget of Kazan in 2020. </p>

2021-02-15T11:37:45+0300