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Regional Economics: Theory and Practice
 

Pricing in the regional market of advertising structures: Location of the facility as a major factor in its value

Vol. 14, Iss. 9, SEPTEMBER 2016

PDF  Article PDF Version

Received: 21 January 2016

Received in revised form: 11 February 2016

Accepted: 22 March 2016

Available online: 19 September 2016

Subject Heading: SPATIAL ECONOMICS

JEL Classification: D40, M37, R12

Pages: 4-16

Suvorova A.V. Institute of Economics of Ural Branch of RAS, Yekaterinburg, Russian Federation
gotika.bell@mail.ru

Subject The article discusses the issues of pricing in the market of advertising constructions related to the assessment of object localization in a region's space.
Objectives The research aims to propose an approach that allows taking into account the location factor of advertising structures when determining the cost of their installation and operation.
Methods The study uses an analysis of scientific literature, regulatory and legal sources, approaches to allocate different zones in space of the region that are important for study, and an empirical analysis, as well.
Results I propose an approach to adjusting the cost of installation and operation of advertising constructions using data about the peculiarities of their location. The case of the Sverdlovsk oblast's market shows a possible way to allocate the plots in the space of the region, possessing different promotional value, that directly affects the cost of advertising location within their borders. In addition, I present the territory zoning and identify the most attractive for advertisers highways.
Conclusions Determining the best price in the market of advertising constructions requires a specific placement of facilities consideration, by adding a correction factors system to the calculation method. It is necessary to take into account the distance of the facility from large settlements and habitats with high population density, as well as the level of capacity and congestion of the roads and highways along which the advertising constructions are supposed to be placed.

Keywords: regional market, advertising constructions, pricing, localization factor, zoning

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