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Outdoor advertising into the LED era

Saudi Pavilion “Moon Boat” on the children around the world smile, the Chinese Taiwan Pavilion in the “sky”, the national power grid “box” in the 720 degrees of illusion space … … with excellent performance and excellent Plasticity, LED display technology during the Shanghai World Expo shine. Today, this technology in Shanghai outdoor advertising field to flourish. Today, Phoenix TV’s main LED display advertising Phoenix City media, specially selected Shanghai held its fifth anniversary celebration; and Shanghai Trade and Industry Bureau announced the latest 2011 city outdoor media company list, the main outdoor LED display Screen advertising Shanghai tulip media to 364 million in operating income among the top three. It is reported that the current outdoor LED display advertising market share, there are 60% of the hands of the two companies.

Does this indicate that Shanghai has become a military strategist outdoor LED media “high ground”? All kinds of new media enterprises on the outdoor LED display ads so eyebrows, but also means that the rise of an outdoor advertising LED era?

LED is like a duck

Whether it’s a walk to New York’s Times Square or Tokyo’s Ginza, Causeway Bay in Hong Kong, it’s hard to imagine how the world-famous night scenes are eclipsed if there is no dotted with LED lights and billboards.

Outdoor media, the application of new technology to stimulate the global LED display advertising growth. Different from the traditional outdoor media, LED display manufacturing is not limited by the area, and thin, can be attached to a variety of public places, showing large-scale text, images, animation, plus high brightness, full color The convenience of quick and easy detection and other unique features, can make advertising more attractive and shocking. US outdoor advertising market, outdoor video accounted for 80% of the share, which LED display is a new profit growth high.

Data show that in 2011 China’s outdoor advertising totaled 51.5 billion yuan, an increase of 14%, while the LED outdoor electronic screen advertising market reached 1.215 billion yuan, an increase of 35.5%. According to Analysys International forecast, from 2008 onwards, China’s LED outdoor electronic screen advertising market for 7 years to maintain an average annual growth of more than 28% in 2017 reached 1.55 billion yuan in 2017 will grow to 2.76 billion yuan.

LED display in the rise of China’s outdoor advertising industry is not accidental. The 2008 Olympic Games, the 2010 World Expo, the Guangzhou Asian Games and other activities to promote the local government to urban lighting project as a beautification and publicity of the city’s important measures to allocate special funds to support shopping malls, streets and other high traffic flow area to transform. In all kinds of media, LED display features the most fit this demand, you can carry out the city image publicity, public service advertising and urban emergency information dissemination. At the same time, the new LED technology to improve the luminous tube brightness, can ensure more energy-saving on the basis of better image saturation and reduce light pollution. In addition, China is the world’s most important LED lighting production base, the domestic LED industry in 2011 the size of the output value has exceeded 150 billion yuan, LED outdoor advertising in a large number of applications to meet the inherent advantages, thus driving the relevant industries to further upgrade.

A set of data can explain the domestic market for LED outdoor display of the favor, the Beijing Olympic Games and the Shanghai World Expo, Beijing and Shanghai were removed outdoor billboards were up to 30,000 and 47,000, LED outdoor display was hot, But occupy the Beijing Wangfujing, Zhongguancun, Shanghai Jing’an Temple, People’s Square, Guangzhou Tianhe, Shenzhen Huaqiang North and other urban centers. As of the end of last year, the country’s 15 major cities have nearly 500 outdoor LED advertising screen put into operation.

Aimed at the “2.0 era” of competition

Recently, the Hangzhou department store on a piece of more than 500 square meters of LED display fame, away from its 100 meters away the audience as long as the arm, you can remotely control the screen on the beverage bottle, to flip or even pour out, Live the eyes of all visitors. This screen can be networked at any time, instantly update the content.

According to industry, this interactive LED display has entered the “2.0 era.” But the actual situation in terms of the market, the vast majority of LED display still stuck in the “1.0 era” empty large chunks of broadcast area and the content needs to rely on manual upload, form is not flexible, the lack of communication with the audience.

No matter what the “era”, there is no doubt that the good market prospects have attracted a large number of media operations company influx. “After nearly seven years of rapid development, LED media industry has entered the” hot period. “” Phoenix City Media President Liu Zuogeng frankly, the entire industry profits from the early highs have been “diluted” to a very low level. From the country’s market growth in recent years, the growth rate in 2009, the chain grew by only 15% in 2010 with the World Expo growth rate was 62.8%, and last year dropped to 35.5%.

Not only low profits, some of the company’s survival is a problem. According to incomplete statistics, the current national outdoor operation of nearly 500 LED display year can only produce 10 billion or so turnover, the average daily turnover of each screen is not even 6000 yuan. LED display is different from the traditional print media, huge investment costs, a standard basketball court area of ​​the cost of the display will be tens of millions of dollars, the operation process also need to pay additional electricity, operating costs, maintenance costs. Rough estimate to the industry’s current average level of revenue, to recover a “basketball court” cost at least four or five years, there is no strong financial support, the operator unsustainable.

In fact, very few companies can play this “protracted war”. According to industry insiders, the current domestic LED outdoor display advertising market mainly by the Phoenix City, tulips, Champsie three companies carved up, the three companies accounted for more than 70% of the national market share, leaving only 26.9% to other small and medium-sized counterparts , Highly competitive. Most of the small and medium operators do not grasp the property rights of the screen, only the sales agent, the customer requirements to play advertising schedule will often conflict with the screen owner, a direct impact on the quality of service operators and revenue. Insiders worry that if there is no strong company to carry out mergers and acquisitions and resource integration, LED media industry, the situation will be more and more intense.

Some LED media operators have begun to try to move into the “2.0 era.” Liu Zuogeng said that consumers in the media during the spread of the process has been reluctant to pass the message, but hope to direct the media, this is a major trend, so the future of LED media must interact with consumers. At the same time, the location, construction, broadcast, and ownership of all screens must be owned by the carrier, so that the inventory can be configured consistently and flexibly. In addition, different from the “selling screen” of the traditional sales model, more and more operators must also focus on follow-up services, some of the company’s screen set up a surveillance system, you can watch the advertising crowd real-time video, and the formation of Research materials, so as to help enterprises more targeted to select the timing and location of advertising.

The market also needs to be regulated

kolkata high court display board


Increasingly advanced technology for outdoor advertising into the LED era provides an opportunity, but in most outdoor media practitioners view, into the real LED era is too early, the current market is still buildings, mobile TV, public transport and other carriers of the world The China’s outdoor electronic screen advertising market in 2010 amounted to 6.23 billion yuan, compared to last year’s domestic 51.5 billion yuan of outdoor advertising, only 12%. Similarly, the outdoor advertising industry developed in Shanghai, although the main LED display business into the outdoor advertising company top three, but its operating income is still difficult and the first two. And the airport, subway stations and other carriers compared to the LED display of the gold is still difficult to look back.

To open an era, there must be sound market rules. However, as a new media, outdoor LED display ads do not have reference to industry trade standards or standards. At the same time, some LED media even began to commit the traditional outdoor media in the past, low prices dumping, vicious competition. But the LED media is actually a high-cost industry, a single low-cost strategy will only make the industry into a vicious circle.

In addition, regulatory bulls are also a problem. For the LED outdoor display advertising market, due to its media form and the physical location of the particularity of the location of the settings, advertising content and other acts relative to other media platform by more constraints, regulators, including SARFT, business Administrative departments, as well as the provinces and cities of the municipal city management, transportation, quality supervision and other departments. But the departments issued by the relevant management practices and standards are not uniform, it is difficult for enterprises to form a viable binding, especially in some second and third tier cities, because the regulation is relatively loose, the operator opened the screen lack of approval, Advertising content is not reviewed on the screen of the events have occurred frequently. City Trade and Industry Bureau announced the latest advertising market conditions show that in 2011 the city investigated and dealt with all kinds of illegal advertising cases 2226, of which 180 cases of illegal outdoor advertising, the number of cases after the Internet, print and newspapers and other advertising media, fourth. With the impact of the spread of LED screen gradually broad, once the lack of supervision, its social impact will be greater.

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