Siberian firms say OOH ratecard hike deters advertisers
A dramatic increase in digital-signage advertising rates in the Siberian city of Novosibirsk has upset local car dealers which host screens and earn revenue from them.
Several members of the Siberian Association of Automotive Dealers (SAAD) are seeking an urgent review of the charges after DizayMastera, the media company that controls digital-signage content in all auto dealerships in Novosibirsk (pictured), decided to sell screen and billboard advertising in packages of ten or 15 displays from 1 January.
And the effective per-display price has approximately doubled, says Russian media watchers, from 10,000 to 20,000 roubles ($363-726) per screen per month.
SAAD claims the new charging system will deter a number of long-standing advertisers – many of whom have, until now, preferred to use single sites.
According to Irina Kharin, a spokesperson for Avtolend-C, a major car dealer handling Ford, Hyundai, Jaguar, Rover, Mazda, Mitsubishi and Volvo, DizayMastera canvassed the dealership about the new charging structure, but did not take any notice of its rejection of the 2009 charging proposals.
Tatiana Vashchenko, a spokesperson for Sarmatian, a KIA and GAS dealer in Novosibirsk, said she had sent in an official letter of complaint.
DizayMastera, she said, had rejected the complaint, saying that the new system does not require individual agreements from the dealerships concerned.
Constantine Shapiro, the manager of SLK Motors, meanwhile, called the proposed changes absurd, on the basis that DizayMastera’s term “packet” implies a cost reduction for buying in bulk, not a doubling of charges.
DizayMastera has defending its price hike and introduction of the “packet” system, saying that they will bring in more revenue for the dealerships concerned.
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