Increased cost without advertising

Written by admin on March 4th, 2010

authorities Kiev significantly increase the cost and the tight conditions of outdoor advertising in the city. According to the signed in late December last year, the order of placement of outdoor advertising, now in the process of issuing a permit will be more participants, and the price for the rental of construction will include adjusting margins. Market participants are outraged opacity of the decision and are ready to defend their interests in court.

at their disposal was a copy of "The Order of placement of outdoor advertising in Kiev" № 1423, dated 23 December last year. This is the base document for the industry, but, according to market participants, it is not held public hearings, moreover, the document has not yet been published. Head of Kyiv City State Administration on Advertising Olga Schepak confirmed that the document had been signed. Asked why the decision was not published, she did not answer.

document establishes a new agency that is involved in making decisions on issuing permits for the installation of advertising structures. The competence of the commission on advertising will include conclusions on the issue and renewal of permits and issues of pricing, while still its decisions were advisory in nature. In this case the main control on advertising at the Kyiv City State Administration will consider the applications and decide on the priority of the applicant for the installation design, and manual "Kievreklama - sign contracts and make payments.

new order of placement of outdoor advertising is also changing pricing policies city state administration. In particular, they introduced correction coefficients, for example, untidy state of the advertising design, raising the cost of rent in 1,75-2 times. "In addition, the operator must negotiate permission with the management of improvement works that had also been optional," - says the head of the coordinating council of the Association of Outdoor Advertising Ukraine Artem Bidenko.

market participants are outraged by the actions of city state administration. "It is not clear why decisions are made in secret. In the city administration are some processes, but their results are not published," - says CEO BigBoard Group Askold Shestunov. He noted that the adopted amendments not only nulf79lify last year"s reduction in tariffs, but also increase the prices of some construction. Recall, in April last year, Kyiv City State Administration published a draft executive order to lift introduced in October 2008, 30 per cent tariff increase for rental construction. The decision was made in connection with the fall of outdoor advertising by 50-65% in I quarter of 2009.
 

According to general director of the agency Luvers "Alexander Noschenko, some of the requirements for the maintenance of order is practically impossible to fulfill. "For example, post-it ad - it is a huge problem. We have already tried several times to solve it, but for all the structures can not follow. Instead of fining the operators, would be better if the service went on these ads and the company fined for illegal advertising", - said Noschenko . However, operators are hoping that more will be able to influence the position of city authorities. "We will meet with the city administration, argued falsify some items," - says Noschenko. "And if necessary we are ready to defend their interests in court," - adds Askold Shestunov.

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