Saturday, March 7, 2009

Overcoming the Economic Climate, in China

The current economic climate isn't isolated to the British Isles and America. Unfortunately the situation is global. However, many Asian business are looking to overcome the current market conditions by expanding their businesses and growing new promotional channels.

Market Research firm Analysys International have just completed their annual advertising white paper on the state of the advertising landscape in Asia. Statistics from the research show that the size of China's outdoor digital display market has grown to €755 million in 2008 from €127 million in 2005, the compound growth rate exceeding 80 percent, making it the fastest growing sector on China's advertising market.

Fu Xinghua, new media analyst from Analysys International, said, “China's out-of-home digital display market is showing a tendency of robust growth and development. We [Analysys International] expect the market to reorganize and merge at the same time with leading enterprises inclined to join hands in dominating sub-markets, by stretching their businesses to other media, including traditional media, the internet and handset media, paying more attention to two-way communication.”

As an example, VisionChina, the leading operator of outdoor digital TV advertising networks on mass transpiration systems in China, recorded total revenues of €27.2 million in the fourth quarter of 2008, hiking 185.1 percent year on year. Its net profit soared 158.6 percent to €11.7 million. For the whole year of 2008, the company's total revenues and net profit amounted to €82.4 million dollars and €37 million dollars, respectively, up 254.2 percent and 398.4 percent.

This growth has been driven by positive market outlook and a move that saw the company partnered with Hangzhou New & Mobile Media in January; signing an exclusive advertising agreement to expand its network coverage to Tianjin.

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