Status quo and way out: outdoor LED large screen survey

Once upon a time, New York Times Square, Ginza in Tokyo, Hongkong central bright, beautiful LED-display.cnLEDw.com/ >LED display advertising unscrupulous to tease the past passers-by, giving people unlimited reverie.

Soon, this advertising model has been copied to china.

Since 2005, tulip, Champs and a number of large outdoor LED screen media company, will gradually show in Beijing, the terminal antenna mark of Shanghai, Guangzhou, Shenzhen and other major city China building or district transportation hub.

According to public information, as of now, France, JCDecaux Warburg and Credit Suisse, a total of $70 million to the tulip; Saif invested 30 million dollars to the champs media; Phoenix (0.66, -0.02, -2.94%) and Zhongyu group to the Phoenix metropolis media inject HK $157 million.

But it seems like only a moment.

Now who wants to cast outdoor LED, it may be in the cave for 5 years did not come out. "A VC smile.

"From the cold, stir into the" Han Li capital chairman Qian Xuefeng described the situation there in PE/VC outdoor LED.

Is considered to be a big investment, big output outdoor LED large screen, in the absorption of a large capital investment, in the 2009 industry adjustment cycle, the status quo and the future way out? This reporter recently conducted an interview survey.

"Staking" sequelae

An investor believes that the large outdoor LED screen is not cheap, but because business owners and investors are too optimistic about the future of advertising is expected, so willing to throwing money to buy these advertising; but with the arrival of the economic down cycle, "legacy" arrived.

"The fight is speed", two years ago, an advertising company founder turned into the outdoor LED large screen market, think in the outdoor LED large screen market, the speed is the most important, the fastest, circle more advantage subject, formed a certain scale of network advertisement".

In fact, in the field of outdoor new media in China, "Happy Valley enclosure" has become the primary development strategy of every company.

According to the reporter, the current domestic LED screen as the carrier of the media company focused on two major categories of areas: transportation and shopping district. Tulip, Champs, Phoenix metropolis media, is a business district, CBD, city landmark rent for the target; high iron media focus on the high speed railway media operation; the media is in the subway LED media operators; terminal media is designed to do the airport LED media.

But the LED display is expensive, allegedly, a screen itself is going to spend tens of millions or even tens of millions of dollars, coupled with the appearance of municipal, leasing, approval, each channel must spend money".

To do LED screen media companies, staking, not necessarily make money, but some companies staking it down. "Independent investor Chen Lin had earlier told reporters that Chen Lin is one of the early investors tulip media.

"For LED outdoor big screen, the screen is in accordance with the individual whether money calculation," Chinese investment director Zhao Xiaobing analysis, "so, the number of big screen is not important, because the location is not good, there is no way to make money. "

I think the Albert Shi Chi Wei, 2005 to the first half of 2008, a good time and not get to the outdoor LED enterprises, most of the company was to take the cost is not low.

They are expected to be high in the future advertising, so it is willing to throw money to buy these ads. "Qian Xuefeng believes that Chinese manage capital partners.

But when the cycle with the economic downturn caused by the financial crisis occurs, the first large outdoor LED screen advertising based on the future under high output expectations ahead of the high investment, the investment cycle and the rate of return on investment will have a serious impact on cash flow is more compact, so outdoor big screen entrepreneurs and investors feel anxiety.

Analysys International, a recent analysis report that the economic cycle adjustment brought about by the financial crisis, reduced its main advertising marketing budget, luxury goods, cars, real estate advertising in marketing investment has been reduced, the short term effect of LED large screen media for this type of large customers.

Reporters had to Shanghai Xintiandi, Huaihailu Road and other places to observe the spring LED screen.

In the new world of security, told reporters, before the LED screen where the play is the most UME new world cinema movie trailers; trailers in addition, at present, is repeated many times is a media company own advertising.

About half an hour's stay in the reporter, the Huaihailu Road spring LED screen in 3 minutes to play a media company's own advertising for the 3 time in.

Another insider told the newspaper, ranking the outdoor LED media with investors signed an agreement on gambling commonly known as "," commitment of $4 million in fiscal year 2008 net profit, but its sales this year is about 40 million yuan, but also pay a fee and position, screen depreciation expenses and so on, certainly not to on request. "

Analysys International New Media analyst Zhou Haiquan seems to remove the impact of the economic crisis caused by the outdoor LED screen advertising, does not rule out the factors of poor media position.

According to CTR market monitoring report, in 2008 China's advertising market was active, with a total increase of 15%, reaching RMB 441 billion 300 million. CTR Market Research vice president Tian Tao believes that due to the macroeconomic situation of the market