UAH 521 million is the amount of contracts concluded for advertising services through Prozorro last year. This is twice the amount spent in the first year of the full-scale invasion. Why have orders increased, and who spends the most? We explore these questions in this material.

The DOZORRO team has been monitoring the procurement of advertising services on Prozorro since 2020. We analyze procurements under the specific classification code 79340000-9 Advertising and marketing services, using relevant keywords. We compare both active and completed contracts.

In 2022, UAH 225 million was spent on advertising through Prozorro, almost half the amount spent in pre-war 2021 (UAH 441 million). However, in 2023 and 2024, procurement increased to UAH 315 million and UAH 521 million, respectively.

The overall trends remain unchanged. The most popular services are: 

  • services to cover the results of their activities, mainly city councils
  • development and placement of information materials on social media, on billboards, radio and television
  • conducting advertising campaigns.

As before, the top spenders have remained more or less the same over the years.

Who procures the most ads

The top 10 largest procuring entities in 2024 included three state-owned banks, Ukrposhta, and the Security Police. They spend these funds to promote their commercial services, using revenue generated from their own business activities. In other words, these procurement transactions are conducted through Prozorro but do not involve budget funds. At the same time, the top 10 also includes several city councils, the National Paralympic Committee, and the International Broadcasting Multimedia Platform. These procurement entities procure advertising at the expense of the state budget. 

PrivatBank allocated UAH 24.5 million for creating and maintaining advertising campaigns and UAH 14 million for reputation and image PR. Oshchadbank spent over UAH 40 million on advertising across the internet, radio, television, and outdoor media. An additional UAH 3 million was allocated for SMM promotion and SEO optimization

Ukrposhta spent UAH 23.5 million on TV advertising and over UAH 12.5 million on internet ads, ranking third in terms of spending.

Ukrgazbank ranked sixth, spending UAH 16 million on advertising across the internet, mass media, radio, television, and outdoor media, plus nearly UAH 2 million on marketing services.

The Center for Security Systems of the Security Police ranks seventh, spending UAH 11 million on advertising its services through search engines, website promotion, and remarketing—showing ads to users who have previously visited the website.

The Media Center of the National Sports Committee for the Disabled of Ukraine (the Paralympic Committee) ranked eighth, signing contracts worth nearly UAH 10.8 million. Most of the funds were allocated for filming, editing, and broadcasting videos about Ukrainian and international Paralympic tournaments. 

Closing the top 10 is the State Enterprise “Multimedia Platform of Foreign Broadcasting of Ukraine.” Most funds—UAH 5.7 million—were spent on creating analytical texts and promoting them to an English-speaking audience. An additional UAH 1.5 million was allocated for content promotion and the development of the state enterprise’s digital platforms on YouTube. Almost UAH 800,000 was spent on managing and promoting the English-language YouTube channel of the Multimedia Platform of Foreign Broadcasting of Ukraine. The Multimedia Platform of Foreign Broadcasting of Ukraine is a state-owned enterprise that manages the state channels DIM, FreeDom, and The Gaze (English-speaking). 

The fourth and fifth places in the ranking were taken by municipal enterprises of the Dnipro and Kryvyi Rih city councils, respectively, while the seventh place went to the Kharkiv City Council. However, in each of these cities, multiple entities spent budget funds on advertising. We will provide more details on these cities’ expenditures below.

Expenses by region

More than half of the total contract value—UAH 281 million—was allocated to the Kyiv region. However, UAH 204 million (73%) of this amount comes from state-owned banks, enterprises, and other entities registered in the capital that procure advertising using funds from their commercial activities. The Dnipropetrovsk region ranks second, with UAH 91 million spent on advertising. The largest share comes from contracts by the city councils of Dnipro (UAH 49 million) and Kryvyi Rih (UAH 18.5 million). Kharkiv region ranked third, with UAH 21 million spent on advertising. 

City councils

Dnipro has the highest expenditures, accompanied by a trail of criminal proceedings

The City Council of Dnipro is the top spender on advertising services. In 2024, it signed 30 contracts worth almost UAH 51 million. According to Prozorro, 26 contracts totaling UAH 43 million were fully executed. However, alongside fully completed contracts, there were also 4 terminated contracts totaling UAH 8.4 million. They were partially completed, with payments totaling UAH 5.9 million. 

In Dnipro, advertising services were ordered by 12 different departments and municipal enterprises.

The largest amount was contracted by ME “Organizational Analytical Service” — UAH 26 million. The company’s primary purpose is to manage relations with the public and mass media. This year, it procured services for placing information about the city council’s activities on radio, television, and print media. In the first half of 2024, the municipal enterprise managed to conclude eight contracts.

Three of these contracts are for online media coverage, totaling UAH 11.1 million:

  1. In January, the first contract, worth UAH 4.3 million, was awarded to Private Entrepreneur Oleksandr Ihorovych Khrapko for placing information on websites obozrevatel.com, rbc.ua, opentv.media, dnepr.infocentr.tvnashemisto.dp.ua, dp.vgorode.ua, dnepr.express, gorod.dp.ua056.ua, glavnoe.dp.ua, and region.dp.ua. 
  2. In April, the municipal enterprise concluded another contract for placing information in online media (the same ones, by the way) for UAH 3.5 million, this time with IT Media Dnipro LLC, the sole participant in the procurement. 
  3. And the third, in July, was with Private Entrepreneur Mykyta Oleksandrovych Skrypnichenko for UAH 3.3 million.

Two agreements for placing advertising on the radio, totaling UAH 7 million. The first, in January, was with Private Entrepreneur Oleksandr Ihorovych Khrapko for UAH 3.2 million. The second for UAH 2.7 million with IT Media Dnipro LLC in July.

2 contracts for placement of information in newspapers Dnepr Vecherny, Visti Prydniprovia and Nashe Misto received UAH 6.4 million from Gazeta Nashe Misto LLC in January and July.

Another contract for coverage on TV channels Channel 11 and Vidkrytyi for UAH 2.4 million concluded with IQ Digital Group LLC.

The rest of the amount falls on other departments and municipal enterprises, such as:

  • ME “Dnipro City Television Studio” planned to spend UAH 3.8 million: nearly UAH 3 million for the production and placement of information on billboards and an additional UAH 800,000 for SMM;
  • Department of Public Works and Infrastructure UAH 3.2 million;
  • Department of Humanitarian Policy UAH 2.2 million.

In October last year, the SSU and the National Police exposed a scheme involving the embezzlement of at least UAH 34 million in the Dnipro City Council’s advertising procurements from 2021 to 2023. According to case materials, this amount was misappropriated by three owners of local advertising agencies who collaborated with city council officials. Case materials indicate that tenders for SMM, advertising, and coverage of the city council’s activities were won by private entrepreneurs with inflated prices, who had no actual involvement in marketing activities.

In a 2023 publication, we highlighted that most advertising contracts in Dnipro were awarded to newly established private entrepreneurs who often participated exclusively in tenders announced by the city council’s structural divisions. According to the BI Prozorro Public Module, 52 different private entrepreneurs participated in advertising service procurements from 2021 to 2023, with 46 securing at least one contract. The largest contract amounts during this period were awarded to: 

Information and communication campaigns in the capital

In Kyiv, advertising contracts totaled UAH 20.5 million in 2024. The majority of this amount was directed towards developing and promoting various information and communication campaigns, mainly of a social nature. As a rule, this includes the production and distribution of print materials, placement on social media, radio, and outdoor advertising spaces. 

The largest share of these expenses is attributed to ME “Communication Center” — UAH 8.5 million, for which 20 campaigns were developed, including:

  • UAH 472,000 for promoting services in municipal open public spaces for IDPs and non-governmental organizations
  • UAH 444,000 for Informing children about the basic rules of behavior in emergency situations
  • UAH 378,000 – “Junior Academy of Sciences of Ukraine is a space of opportunities, development, and victory”
  • UAH 375,000 for Syla u Vohni (The Power of Fire) to equip a separate artillery brigade of the National Guard of Ukraine
  • UAH 374,000 for recruiting employees in key areas of the city under martial law
  • UAH 370,000 for covering key areas of work for the city’s emergency and rescue services
  • UAH 300,000 for promoting electronic services operating in the city. 

The Department of Public Communications of the KCSA procured such services for an additional UAH 5 million. Among other things, these funds were spent on the following PR campaigns: 

  • UAH 484,000 for socially important topics for Kyiv
  • UAH 480,000 for commemorating the feats of the Defenders of Ukraine
  • UAH 466,000 for explaining the support mechanisms for Kyiv’s defenders and their family members
  • UAH 438,000 “Be Yourself at the 5th Separate Assault Brigade”
  • UAH 387,000 for renaming toponymic objects and clarifying the mechanisms for installing memorial plaques
  • UAH 362,000 for clarifying the operational mechanisms of mobile emergency intervention teams
  • UAH 315,000 for fostering a culture of volunteering and promoting public activities for children and youth.

Municipal Non-Commercial Enterprise “Educational Agency of the Kyiv” spent UAH 1 million for the production of educational videos “Overcoming Losses in Education: Supporting Educational Process Participants in the War Time Conditions.”

Kyiv Zoo allocated UAH 994,000 for placing its information materials in the Kyiv Metro.

There was also one terminated contract in Kyiv. Kyiv City Information and Analytical Center of Medical Statistics spent UAH 140,000 for animated videos for its awareness raising campaigns. The contract was completed earlier than planned, paid in full, and terminated. 

Kryvyi Rih covers the activities of its city council and informs about security issues

The city spent UAH 18.5 was spent in total for advertising. Almost all the City Council’s advertising contracts were awarded by the Kryvyi Rih City Development Institute.

In February, it concluded a contract with NOVA Television and Radio Company LLC totaling UAH 12.6 million. For these funds, the contractor is required to highlight information on safety and protection for residents, the implementation of social and humanitarian programs, and the work of authorities. We are talking about 2,000 minutes on radio stations Radio Piatnytsia, Radio Chanson, Horod FM (Megapolis), Radio Kryvbas, Perets FM, Stilnoe and 5,250 minutes on two TV channels: First City and OTV

Another UAH 5.5 million was used to inform the population about the activities of the city council in the press and the Internet. Among them, on the Internet resources Kryvbas Online, Pulse: News, Facts, Comments, 1 Pershyi Miskyi.KR, Informator, and in the printed media Pulse: News, Facts, Comments, Moia Gazeta Domashnia, Vechir, and Vik. Visnyk Kryvbasu. The contract was awarded to Kryvbas Online Information Agency LLC. 

 

Advertising of the mayor and City Council in Kharkiv

The largest number of contracts is held by City Council itself, totaling UAH 12.3 million. In particular, she spent almost UAH 7 million on posting news and shows of various genres on TV. The relevant contract was concluded in March last year with Intercom-Invest LLC. More than UAH 5 million was allocated for posting and promoting information materials, for example, the official website of Kharkiv City Council, the mayor, and the Executive Committee on radio and in online media.

Kamianske—little ads for each department 

Advertising services in the community were procured by approximately 20 different departments, divisions, and municipal enterprises, UAH 13.7 in total. The largest number of contracts is held by the City Council, totaling UAH 3 million. These funds were spent to cover its activities on social media, internet, radio, and television. For example, UAH 600,000 was spent on social media and the internet, with S-Kolehiia LLC; UAH 500,000 was spent for Sterkh TV through Starlight Media; another UAH 300 for internet ads through Pylnyipohliad Information Agency LLC. 

Another UAH 2.8 million was spent by the Advertising Department of Kamianske City Council. In March, the department entered into an agreement with Private Entrepreneur D.A. Riabov to produce, place, and display social advertising and information stories on billboards for UAH 1.5 million. In May and July, an additional UAH 500,000 was allocated to cover the activities of the executive bodies of the Kamianske City Council on internet resources naspravdi.net, kamenckoe.net, ukrtime.net, dneprnews.net, and dneprlife.net. These services were provided by IA Spektr LLC. The same firm received another similar contract in March for UAH 98,000. 

The Department of Youth and Sports spent UAH 1.9 million to cover the activities of the City Council on social media, the internet, radio and television. 

ME “City Information Service” procured advertising totaling UAH 1.8 million. Almost the entire amount is spent on posting news and covering the activities of local self-government bodies in the newspaper Liubyme Misto. The contractor is S-Kolehiia LLC.

Coverage of the City Council’s activities and support for the municipal TV and radio company in Shostka

The total amount of advertising contracts in the city was UAH 4.7 million. Most of all — 3 million UAH — falls on procurement transactions by the Executive Committee of the City Council. They procured coverage of the City Council’s activities on radio, TV, outdoor media, on the internet and social media

The City Council and its subordinate enterprises ordered some of the advertising services from their own municipal TV and Radio company Accent. The number of the contracts with it totaled one million hryvnias. The Executive Committee is responsible for more than half of cost, the Department of Culture and Tourism of the Culture Administration spent UAH 280,000, and the Department of Education spent another UAH 199,000.

According the Law on Media, municipal TV and radio companies would have to exclude authorities from the list of their founders and become independent. However, it is currently on pause due to martial law. Accordingly, municipal radio and television companies continue to receive direct funding from city budgets. At the same time, in some communities, they also receive additional advertising orders from city councils through Prozorro. According to Detector Media, there are 132 municipal television and radio companies in Ukraine.

Boryspil — support of municipal TV and radio

Almost the entire amount (UAH 3.45 million) in Boryspil is spent on procurement by the City Council. The Executive Committee procured services of covering activities of local self-government bodies (production and broadcasting information materials) on TV and radio. These services were ordered from Boryspil municipal TV and radio studio. The amount of the contracts with it totaled UAH 3.1 million.

Conclusion 

We do not claim that the procurement of advertising services by local authorities is unnecessary. After all, it often involves informing citizens about available services, important changes, and other relevant information. However, excessive spending on advertising raises suspicions and prompts questions about why these funds are not redirected to support the Defense Forces.

This material is funded by the European Union. Its content is the sole responsibility of Transparency International Ukraine and does not necessarily reflect the views of the European Union.

Source: glavcom.ua