Metro advertisement market volume in 2004

« Evaluation of the Moscow Metro advertisement market volume» - this was the name of a study conducted by «ESPAR-Analytic» Close JSC in November 2004. The project was carried out on the basis of a selective survey of Metro facilities. The selection included 17 Metro stations (10% of all stations) and 80 carriages (2% of all rolling-stock. Data was collected during the period from November 6 to 10, 2004.

Field study results indicated that the assumed market volume inside the carriages (adhesive application work) according to price-lists (incl. VAT) in November 2004 amounted to $5 168 000.

The assumed market volume at Metro stations according to price-lists (incl. VAT) in November 2004 amounted to $2 070 000.

The calculation of annual Metro advertisement market volume accounted for seasonal variations of advertisement carriers commercial application. For this purpose the following correction factors were used against November: January – 0.6; February – 0.7; March, April, May – 0.8; June, July, August – 0.6; September – 0.75; October – 0.95; November, December – 1.0.

As a result of the study the assumed advertisement volume in the Moscow Metro subject to seasonal variations in 2004 amounted to $66 592 000. This amount included advertisement inside carriages - $47 543 000, and advertisement at Metro stations - $19 049 000.

In the course of the study adjustments were also made for the discounts provided to LLC «Olimp» for the advertisement in the “underground city”. The average discount in relation to price-lists was taken in the amount of 25%.

The assumed advertisement volume inside carriages subject to discounts in 2004 set for different lines amounted to $ 32,5-35,0 million.

The assumed advertisement volume inside carriages subject to discounts in 2004 set for different station groups amounted to $ 12,5-15,0 million.

Thus, the overall volume of the Moscow Metro advertisement market subject to discount can be estimated in the amount of $45-50 million including the adhesive application work share composes 70% of the whole market and the share of station advertisement composes about 30%.

The gain in the advertisement market in the comparison with 2003 was 30-35%. By estimate, in 2005 we should expect further growth of the Metro advertisement market, however, the pace of this growth will somewhat decrease and will amount to 15-20%.