Russian Space Agency Displays Commercial Ads on Rockets to Boost Revenues

Original article on OddityCentral.com – a blog on oddities and wacky news http://www.odditycentral.com/

A bill introduced in the Duma (Russia’s Parliament) last year has allowed Roscosmos (the Russian Space Agency) to charge major brands for displaying their logos and custom slogans on rockets. The agency has already completed its first advertising campaign for several national brands, including PSB Bank and Kofemaniya.

Ever wonder why NASA never displays ads on its rockets? How about private companies like SpaceX or Blue Origin? At first glance, it seems like a no-brainer, right? After all, rocket launches are exciting events that millions of people from around the world tune in to watch. And with rocket launches being extremely expensive affairs, it seems like an easy way to cut costs.

In reality, there are several reasons for not plastering rockets with logos and commercial slogans. In NASA’s case, it’s a U.S. government agency and is not allowed to generate funds, but in the case of private companies, the risk of rockets exploding during launch is still pretty significant. The last thing companies want is to have their names or logos associated with a disastrous rocket launch, and rocket operators just cannot guarantee that it won’t happen.

However, just because it’s not a common practice in the West doesn’t mean it’s not possible. Since January of this year, Russia’s Roscosmos has been displaying ads on its space rockets, reportedly generating hundreds of millions of rubles from private companies. The cost is calculated using a special formula that takes into account the advertising area, the rocket’s surface size, and the campaign duration.

It is believed that the effect of these marketing efforts is not direct sales, but rather high-profile PR. The format is particularly attractive to major brands, as its exclusivity allows them to grab the attention of millions without worrying about the competition.

Russian media reports that Roscosmos has launched four rocket launches with advertising placements from the Baikonur space base since the beginning of the year, with RU.TV, PSB Bank and Kofemaniya being the largest clients.

Interestingly, in 2001, Pizza Hut paid for an advertising campaign to have a pizza delivered to the ISS via a Progress rocket with the company’s logo painted on it. It reportedly paid over a million dollars for the stunt, but it was a one-off event.

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