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Outdoor advertising operators may receive the right to renew their lease without bidding…

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Outdoor advertising operators can receive right without bidding, renew the lease of municipal and state-owned advertising space for a 10-year period. And Moscow will lose billions of rubles to the budget.

The initiative of the deputies is beneficial to the regions: thanks to the bill, they will be able to receive a guaranteed income from renting out space. The bill is viable if it is not extended to Moscow and limited to the constituent entities of the country.

If the bill is passed, competition in the capital’s outdoor advertising market can be forgotten. As well as about the increase in contributions to the Moscow budget. The capital’s income potential from leasing advertising surfaces is estimated at 15 billion rubles. In fact, revenues are declining every year, reaching 3.1 billion in 2022: municipal and state lands for advertising structures are used ineffectively.

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It turns out that Moscow does not need income from advertising surfaces and new players with budgets for another 10 years.

The beneficiary of the project is also clear. In 2023, the Russ Group became the largest player in the advertising market by absorbing the Moscow operator Gallery. Which, by the way, has existing lease agreements in Moscow ending this year.

Deputies proposed prolonging municipal and state contracts for outdoor advertising

For this, operators will be required to allocate 10% of the annual volume of placements for social advertising

“ВЧК ОГПУ”