Winners and Losers in the Sao Paulo Billboard Ban
December 14th, 2006
Sao Paulo Vista Today

The Same Sao Paulo Vista in Two Weeks

On Jan. 1 the ban on outdoor advertising in São Paulo will begin. And, everything from roadside billboards to neon store signage will be suject to censure.
(For more on São Paulo’s advertising ban, read our previous article on the recently passed legislation )
The ban in brief:
- All billboards will have to come down. All of them. Advertisers will lose more than an estimated million display opportunities.
- All other forms of publicity in public spaces, distribution of fliers, and posting of movie bills will also stop.
- The law also regulates the dimensions of store signs, and will force many well-known companies to reduce them substantially by a formula based on the size of their facades.
- Another provision, much criticized by owners of transportation companies, outlaws advertising of any kind on the sides of the city’s thousands of buses and taxis.
- Violators of the above regulations will be subject to strict fines and penalties, including fines as high as 4800 USD per placement on both the advertiser and the media group holder.
The immediate effects:
The Biggest Losers:
- The City of Sao Paulo will lose millions of dollars worth of advertising share as advertising moves to TV, Radio, print, alternative, non-traditional venues, and private spaces.
- Outdoor media giants like ClearChannel, Viacom and others will lose access to 10s of millions of dollars in revenue. An estimated 133,200,000 million in city income.
- Local Workers: Printers, installers, and billboard frame makers will soon find themselves unemployed due to lack of demand.
- Small Entrepreneurs: Small local businesses will miss fair opportunities to compete with established brands for local consumers.
- Building Owners: Out of home media companies spend millions on maintenance of buildings and external space. Firms improve external facades, often apply external coverings, patch walls, painting buildings. Without advertising dollars, many building exteriors will further degrade, making Sao Paulo’s polluted concrete appearance even less.
- Safety of Residents: Loss of outdoor billboards and signage means a significant loss in lighting, that the municipality has no plans to replace.
- Citizen’s Rights: Free expression is certainly challenged by this government initiative. Should citizens want to buy advertising space to make a social statement, would they be denied? Are we returning to a dictatorial Brazil?
- Urban Identity: The City of Sao Paulo is about to lose some of its chaotic charm. As Dalton Silvano, the one city councilor who cast the single vote against the ban stated - “I think this city is going to become a sadder, duller place.” We agree. Sao Paulo does not have the natural or traditional beauty of cities like Paris and Rome. Its beauty and energy come from its chaos, its worn concrete, and its stark and futuristic architecture. Will Sao Paulo look like Pyongyang or a North Korean city?
The Biggest Winners:
Surely there must be some…
- Graffiti Artists and Vandals: Expect an upsurge in outdoor graffiti as a vast number of inviting empty spaces make themselves available. And while talented artists do have the potential to brighten a space, most business owners will find themselves bearing the cost to keep their facades clean of tags and vandalism.
- Creativity Marketing Firms: To reach their audiences, marketing firms will simply have to target individuals in more novel and unconventional ways. Those with the best ideas, will win. Expect newspaper, print, and other media to get upsurges in ad sales. Expect private space advertising to boom. And, pay attention for a spark in mobile marketing with SMS spam and more inviting MMS and integrated mobile marketing.
- The City of Sao Paulo - The city will indeed become a blank canvas. It’ll be up to the city to ensure that the potential to create a more peaceful, relaxing, attractive, and interesting municipal appearance is met. We’re hoping that public art will fill the void.
- Flora Lovers: With a blank slate, city planners will have a great opportunity to fill the streets with more trees and beauty. But will the municipality have funds? Will public beautification project be a priority? Or will a void be left by lost advertising spaces?
- Big Corporations - Sizable corporations, with deep pockets will win exclusive contracts for limited spaces. Mayor Kassab, the original author of the law has proposed that strictly regulated advertising at bus stops, newsstands, outdoor street clocks and public bathrooms will be explored after an trial ban of the law. But, who will win these contracts? Expect some difficult turf wars and some interesting under the table pay-offs to manifest as the fight to gain rights to limited outdoor advertising opportunities ensues.
What about Aap!Global?
Will non traditional media projects like Aap!Rails be banned? Is MetroVISTA at risk?
Nope - Our products slip through the cracks. Since the ban, more and more Brazilian firms have approached us to introduce some of our fun, non invasive, and legally allowed formats into the city. And, that demand is very telling. Businesses just won’t settle for being silenced. There is simply too great a demand, both on the corporate and consumer side, for product messaging, communication, and advertising. So for now, public expression still has a medium with us.
The only thing we want to know: Will an advertising ban really make Paulistanos happier? Will we work less and settle to slower pace, like our brothers in Rio? Or is this a model of things to come - will this ban spread to other global cities?
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April 16th, 2007 at 1:07 pm
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