The Moscow metro will remain without advertising

Pre-term breach of contracts with Moscow is becoming the norm on the advertising market. As it became known to RBC, the Moscow Metro is willing to break with its advertising partner, Auto Sell.
Origin source
On August 1, 2015 LLC "Auto Sell" temporarily suspend accepting applications for advertising in the Moscow metro, written notice of its partners General Director of "Auto Sella" Gul Kogan. RBC has a copy of the letter, dated July 14th. The message received official dealers "Auto Sella" and advertising agency, collaborating with the company.

Contract "Auto Sella" with the State Unitary Enterprise "Moscow underground" has not yet p astorgnut, but it is only a matter of time, say managers of two advertising agencies. The reason they are called the debt "Auto Sella". Advertising contractor must pay to the subway on a quarterly basis, it follows from the draft agreement, published in the tender documentation. The next payment is "Auto Sell" should have done in the first days of July.

Kogan told RBC that, "according to her information," the company has no debts to the subway. But it is known that the PMU may terminate the contract with the "Auto Sella", so to COMP ANIES to not let customer and stops accepting applications.

The "Auto Sella"Is a debt to GUPom, insists the press service of the Moscow Metro, did not, however, size. That debt was the main reason for which the PMU has decided to terminate the contract with the "Auto Sella", RBC reported in the press service of the subway.

LLC "Auto Sell" in June 2011, won the auction for the selection of the Moscow Metro advertising contractor for 2011-2016. The starting price of a five-year contract was set at 1.587 billion rubles. in the first year, followed by an annual increase in the amount of inflation, but not less than 8.3%. No one in the advertising market is not well-known "Car Cell", the structure of auto holding "Gema" Alexander Geller on trades undertook to pay the subway for the first year almost 2.38 billion rubles. Thus, in five years the company has promised to transfer GUPu more than 14 billion rubles.

Doubts that the business "Auto Sella" will be successful, there were at the outset, but the company's management, and the capital's officials have always argued that the "Auto Sell" regularly pays the subway. The database SPARK are financial resultsLLC "Auto Sell" only for the year 2012: revenues at 2.385 billion rubles. profit from sales amounted to 198.2 million rubles, net profit -. 107 million rubles.

What makes a Moscow outdoor advertising

2-2.5 bln. - Moscow's annual income from outdoor advertising in 2010-2012

15.9 billion rubles. listed the winners of auctions in 2013, in December of that year

Since 2011, held public auctions for advertising in Moscow

7.3 thsd. For outdoor advertising have been played at auction in 2013 for the next ten years

75.2 billion rubles. - The final cost of all contracts, played out in 2013. Their starting price was 22 billion rubles.

470 million rubles. - Duty to "Mosgortrans" agency "Boulevard Ring" won the auction for the placement of advertisements on land transport in 2011

250 million rubles. - This should be a minimum annual income from advertising auction "Mosgortrans" party, scheduled for August 5

839 million rubles. They plan to make the city authorities on advertising on land transport to the nearestie five years

At 27% fell on outdoor advertising spending in Russia in the first quarter of 2015 compared to the same period of the previous year

Source: Department of the media and advertising in Moscow

Games to increase

Outdoor advertising auction in Moscow were held after the 2010 mayor of the capital was Sergei Sobyanin. The initiator of such trading became the media and advertising department, which was created in December of 2010 by the merger of the Telecommunications and Media Committee Committee with advertising, information and decoration. The new agency was headed by Vladimir Chernikov.

The first auction for the media department, and advertising has become the choice of the advertising contractor SUE "Mosgortrans" controlling all public land transport of the capital. Those bids won anyone in the advertising market is not well-known real estate agency "Boulevard Ring". With a starting cost of a five-year contract 442 million rubles. "Boulevard Ring" has promised to pay "Mosgortrans" almost 2.2 billion rubles. In January of this year, the PMU has terminated its contract with the advertising contractor "becauseunfair execution conditions and obligations ", and then through the court unsuccessfully attempted to recover from the" Boulevard Ring "is almost 470 million rubles. debt. Now "Mosgortrans" looking for a new advertising partner.

The second auction was bid Moscow metro, when she "Gema" in the advertising market.

And in August 2013 at three auctions media advertising department and I played for the next ten years, more than 7.3 thousand. Spaces billboards, the design of small size (the so-called street furniture) and Poster stands. In the auction involved and "Gema", actively playing on the increase. As a result, at the starting price of lots almost 22 billion rubles. officials have gained more than 75.2 billion rubles. But the structure of the "gems" - the company's SEC - then got only 160 seats in total for 2.17 billion rubles.

But at the last auction, when in September 2014 were played next 1.4 thousand. Spaces billboards and street furniture, "Gema" in the majority of the lots was the only participant in the decade. As a result, Avtoholding received more than 1.3 thousand. Places at a starting price20.4 billion rubles. and thus became the second after the owner of Russ Outdoor advertising structures in Moscow.

At the auctions in 2013-2014 it was also recorded non-fulfillment of the winners of its obligations. In December last year the payment for the next year of 1.3 billion rubles. I was unable to make the company "NIKÈ", which in 2013, for 13.2 billion rubles. He won more than 800 seats under the billboards. Media and Advertising Department has terminated the contract with "NIKÈ" and canceled all issued her a permit for the installation and maintenance of structures. After that, the structure of "NIKÈ", which was issued the contract, initiated its own bankruptcy.

There were problems with payments and "gems". In December last year, she had to transfer 2.04 billion rubles in the budget of Moscow. financial support for the won in September contracted by 1.3 thousand. people. But Avtoholding asked department officials to delay payment until February and gave the bill. Officials went to the concession "heme". In February this year she still paid the required amount. Contracts with the winners of the auction did not provide for the payment ofustoyki for each day of delay, but as evident from the official response director Vladimir Chernikov department at RBC request, in the case of "Gemoy" reasons for delay penalties officials have not been found.

In March, Chernikov left the media and advertising department and headed the department of national policies, regional relations and tourism.

"We do not want to publicly comment on the dispute between two business entities," - said a spokesman for the Department of Media and Advertising Konstantin Gorokhov on RBC's request about the situation c "Auto Sella".

Budget revenues increased

After the auction the capital budget revenues from advertising increased by several times, has repeatedly stressed Chernikov. For example, the company "Tekhprogress" predecessor "Boulevard Ring", in 2006-2010 listed "Mosgortrans" only 270 million rubles. (Initially promised to pay in five years, more than 1 billion rubles., But these obligations were not fixed in the contract). "Boulevard Ring" only in the first year of the transferred "Mosgortrans» 284 600 000 py., In the second -. 350.3 million rubles in the third - 437 800 000 rubles.

The company "Olympus", who worked in the capital's subway From 2002 to June 2011, listed the subway in 2010 783 million rubles. Come after "Auto Sell" in the first year paid 2.38 billion rubles.

Asked collect if "Boulevard Ring" and "Auto Sell" money from the market, or simply attract loans to make another mandatory payment Chernikov in 2012 in an interview with "Kommersant" said, "It will take time to realize profitable or not business. And I do not have to ask it. Our task - to make sure that in the normal receipt of money in the budget of Moscow to develop this industry. "

In 2010-2012, the annual income of the capital budget of the outdoor advertising (rent payments that pay the city the owners of advertising constructions) was 2-2,5 billion rubles. After the auction in 2013, seven of the winners in December of that year transferred to the Moscow budget more than 15.9 billion rubles. (Under the terms of contracts, in addition to payment for the first year of operation it was necessary to also add in the form of financial support for the settlement amountLednev year). In December 2014, these same companies had to transfer the next 7.2 billion rubles., But due to the default of "NIKÈ" amounted to only 5.9 billion rubles. In addition, the city was delayed more than 2 billion rubles. according to the results of the auction in 2014.

Upcoming auctions, which can participate anyone - the only possible form of trading, was convinced the head of the media department, and advertising. Market participants believe that to participate in the auction should only professionals. "But here there are restrictions on the admission of new players on the market, - objected Chernikov. - And why should we not be allowed to market a serious investor, if he wants to do outdoor advertising "?

"The financial component of the [trading] is very important, but it is not the only condition for the success of a long period, - he explained in an interview with" Kommersant "a year ago, the managing director of Russ Outdoor Maxim Tkachev. - No one in fact does not occur to choose their own dentist, architect or lawyer solely on price. And the advertiser is also not necessary, cost is more expensive ... Rental income, appearance MountainsOde and quality of service - these are the three criteria that must be considered during any trading ".

The city authorities seem still to hear the arguments of market participants. As announced last week a new auction "Mosgortrans" for choosing the advertising contractor will be able to take part, only those who already manages the advertising constructions with a total area of ​​at least 1.3 sq. M. m and whose annual income from the placement and distribution of advertising exceeds RUB 250 million. However, this documentation "Mosgortrans" has consulted with the Department of media and advertising.

environment has changed

Actively playing on the increase, the participants ad auction did not take into account that the market situation could rapidly deteriorate. "In August [2013, when Moscow hosted the largest advertising bidding] we lived in a slightly different macroeconomic reality" - was recognized last year in an interview with "Kommersant" the managing director of Russ Outdoor Maxim Tkachev (left the company in May this year). In 2013, the total cost of outdoor advertising across the country, to assessRussian Association of Communication Agencies, rose 8%, to 40.7 billion rubles. without VAT. At the end of 2014 growth was not, costs have remained at the level of 40.7 billion rubles. And in the first quarter of this year the cost has fallen by 27%, to 7 to 7.3 billion rubles.