Benefiting from the accelerating urbanization process, China's outdoor advertising industry has developed rapidly in the past few decades. However, with the gradual maturity of mobile Internet technology, the traditional industry is constantly suffering, and the outdoor advertising industry, which is well known to the public, has not been spared, and has begun to show obvious changes and is moving in a new direction.
Ya Shiwei (2.7, 0.00, 0.00%) Chairman Lin Dexing said in an exclusive interview recently that the traditional outdoor advertising industry has just made up for the shortcomings of the “new impact” of the new economic Internet companies. Among them, the form of cooperation between the Internet and outdoor advertising online and offline will become the mainstream, "any industry can not be independent."
Online and offline cooperation will become mainstream
1. Since the beginning of this year, new economic companies have been listed in Hong Kong. Has the traditional advertising industry been affected by new economic enterprises or the Internet industry? How do you see the future development of the outdoor advertising industry?
Lin Dexing: The new economy is often subversive and has greatly changed people's way of life. In the past, when I read newspapers, newspapers were worth the money; when watching TV, TV was worth the money. If the public does not read or read newspapers, mainly through the Internet, then the Internet is worth the money.
I think that outdoor advertising will not die, but the prospect will be better. The reason is that people's daily outdoor activities will be more and more. Since outdoor activities are more and more, outdoor advertising is more valuable. In addition, many new economic Internet companies are willing to advertise in the outdoor, the largest customer of outdoor advertising, in fact, is a new economic enterprise.
2. Is there any case of Yashiwei's cooperation with new economic enterprises?
Lin Dexing: Alibaba, Jingdong, Tencent, Iqiyi, and Hungry are all our customers. Internet companies have no choice but to place outdoor advertising because they have a competitive relationship and will not place advertisements on the other party's platform.
Why do new economic companies like to place outdoor advertising? This has a lot to do with the characteristics of the new economy. The advantage of the new economic enterprise lies in making full use of Internet thinking and reaching out to a wide range of Internet people. However, the disadvantage is that the impact is not enough. To make up for this shortcoming, it is only possible to rely on outdoor advertising.
Of course, the flaws in outdoor advertising also exist, that is, no one will really stand outdoors and watch advertisements for a long time. The public receives the information conveyed by an advertisement for about two seconds, so outdoor advertising cannot deliver very detailed content. However, through modern technology, it is possible to transmit long and complicated information to the mobile phone for detailed and repeated reading by scanning the QR code and “shaking”. The role of outdoor advertising is to allow the audience to accept and identify with the audience, which is enough. I think that the future form of O2O will become the mainstream, and no industry can be immune to it.
Large-scale infrastructure business value needs to be excavated
3. At present, Yashiwei has exclusive franchise rights for major media resources of 28 airports and 16 subway lines in the Chinese market, covering 39 cities across the country. What is the strategic layout of Yashiwei in the future? Is there a business transformation?
Lin Dexing: I am very optimistic about the industry prospects of outdoor advertising. At present, in the field of outdoor advertising, Yashiwei's coverage can be said to be the most comprehensive and wide-ranging, and our management is quite perfect.
Yashiwei currently has an average distribution in various cities in China. It is not only covered in the first-tier cities in the north and the south, but also has outdoor advertising services covered by Yashiwei from Hainan to Xinjiang. Because of our wide coverage, we need superior management skills. After years of tempering, Yashiwei has a set of effective management methods. In the past 25 years, we have not merged with any business, and the performance is purely natural growth. In the past seven years, our compound growth has been 21.15%, which also shows the speed and strength of Yashiwei.
China is currently at a historic moment, and we have entered a new era of Chinese characteristics. The most prominent of these is the rapid development of infrastructure. In recent years, both the speed of construction of airports and high-speed railways can be described as “a qualitative change and a leap forward”. In the face of such huge infrastructure projects, in addition to operational needs, commercial value needs to be explored.