Annual income of Azerbaijan from advertising can reach 1B manat

By Azernews

By Amina Nazarli

The advertising market is, perhaps, one of the most dynamically developing markets in the world, which brings huge profits to advertising corporations.

Advertising is regarded as the engine of trade, and a company’s advertising policy depends on the sales volume, interest of consumers in goods or services provided by them.

As for Azerbaijan, the advertising market is not as developed as in western countries however, there has been some progress in recent years.

Head of the Union of Advertisers of Azerbaijan Hajiami Atakishiyev claims that in two or three years, Azerbaijan's annual income from the advertising market can reach 1 billion manats ($591 million).

He told Trend that this forecast is based on the calculations of public organizations. To increase revenue, it is necessary to expand the market and increase volume of the advertising, he said.

Atakishiyev reminded that recently President Ilham Aliyev signed a decree on the establishment of State Advertising Agency of Azerbaijan and this agency will be able to expand it, controlling the entire advertising market of the country.

Until now, Azerbaijan did not have a structure controlling the advertising market. The State Agency will be engaged in placing advertising media in the open space on the territory of the country, applying unified regulation in the sphere of production and distribution of advertising intended for placement in the open space. "The agency will not engage in advertising on television and in the press," he said.

For today the main problem of the advertising sphere is connected with prices and advertising standards, he said.

Earlier, the Parliament’s Committee on Economic Policy, Industry and Entrepreneurship Vahid Ahmadov said that the state budget annually receives about 55 million manats [$32.3 million] from the advertising.

However, he added that this figure can be 10 times higher, further adding that transfers to the budget from advertising can be equal to 450-500 million manats [$264.4-$293.7 million].

Azerbaijan has the law on Advertising, adopted in 1997, with several amendments and additions made afterwards.