Responding to questions from MTI, Bauer said the advertising market's transformation could take several forms, all carrying significant risks.

The best-case scenario would see the redirected spending appear in other domestic media, keeping the money within Hungary's economy and media market.

Far worse, he said, would be a reduction in overall ad spending or a shift of funds to international digital platforms, which would mean losses for Hungary's economy, domestic media market, and tax revenues.

He argued that outdoor advertising "is an effective, well-plannable tool with a strong local impact" for many Hungarian small and medium-sized businesses.

The advertising market would adapt to the new regulations in one way or another, Bauer said, but the question was how much economic damage would occur, how much domestic spending would disappear, how much would migrate to foreign platforms.

International examples suggested that where big changes to outdoor advertising regulations have taken place, the transition typically takes years, not months, to measure, he added.

Bauer said the Hungarian Advertising Association's OOH division remains open to professional consultations regarding the adopted decree, as their opposition is not to regulation itself but to the lack of preparation, impact studies, or stakeholder involvement in the decision-making process.

No substantive consultation requests were received before or after the decree's adoption, he added.

"We believe every local government should take the responsible path: before introducing any new regulations, wait for the final national legal framework, initiate substantive professional consultations, prepare an impact study, and simultaneously examine urban, economic, municipal revenue, competition, and business security aspects. The goal is not to have no regulation. The goal is to have good regulation," Bauer said.

MTI Stock Photo

Source: MTI – Hungary’s national news agency since 1881.

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