Outdoor advertisers fight new fees

Windhoek advertising companies are up in arms about new regulations on outdoor advertising currently before the City Council, which include higher fees. Under the new regulations the fees will be increased by 50% or more and advertising companies will have to pay application and approval fees on top of a one-year licence fee. City spokesperson Lydia Amutenya has pointed out that the fees have not been adjusted since the regulations were gazetted in August 2008. Amutenya said it is therefore a reasonable expectation that the fees need to be adjusted in line with inflationary increases and current market conditions. She further said the revised policy document aims to create a financially and environmentally healthy industry for everyone involved. A letter signed by representatives of Primedia, Ad Outpost, Alliance Media, Media Solutions, Eishisha, Rama Media, Continental and Ants Media objects to the tariffs imposed on them. “We acknowledge that it’s important to pay these fees if we need services offered. However, besides the fees not reflecting the economic realities on the ground we are not getting commensurate services,” the letter reads. The letter further states that the council constantly reminds the industry that decisions are taken to represent the city’s residents and the advertising industry alike, but no report has been given to them on surveys conducted. It is alleged that the market is dominated by foreign companies which make it difficult for locals to penetrate the market. Amutenya admitted that many outdoor advertising companies are owned by foreigners but said the companies are based in Windhoek and have local staff, so they contribute to capacity building in the local advertising industry. “It is also important to acknowledge that the outdoor advertising industry is an expensive and capital-intensive industry to enter for any business,” she said. The owner of Ants Media, Bebe Huseb, told Namibian Sun that higher tariffs are not the only problem they face. The new regulations would also make it hard for locals to penetrate the market, he said. Huseb, who specialises in trailer advertising, said he currently pays the council N$1 725 per month for one trailer. Under the new regulations, he would have to pay N$4 278 per month. Added to that, he has to pay a security company N$3 410 per month to guard his trailers. At the moment he charges his customers N$5 000 per month. He would have to drastically increase that – and risk losing customers. Huseb further complained about the N$15 000 one-off payment to the council if a company wants to place an advertisement on the corrugated-iron fence around a construction site. “I do not know why I should pay the council if I have to make an agreement with the contractor who might charge me a reasonable price,” Huseb charged. He said it could cost more than N$100 000 to get the necessary environmental impact assessment needed for every outdoor advertising site. The processing of the application could take a year, and eventually the application might be rejected, meaning it is money down the drain. Amutenya said the council needs to balance the interests and expectations of the advertising industry with those of all the residents of the city, hence it is essential that policy reviews take place periodically in order to ensure that the evolving interests of all stakeholders are equally acknowledged. KENYA KAMBOWE