Outdoor LED screen survey: Where is the way out?


Once upon a time, the New York era widened the taste of Tokyo Ginza, Hong Kong Central, bright and bright LED display ads, unscrupulously teasing passers-by, giving people unlimited imagination.

Soon, this advertising model was also copied to China.

Since 2005, a number of outdoor LED large-screen media companies such as Tulip and Champs have gradually displayed their terminal tentacles in the iconic architectural business districts or transportation hubs of major cities in China such as Beijing, Shanghai, Guangzhou and Shenzhen.

According to public information, up to now, France's JCDecaux Group, Huaping Fund and Credit Suisse have invested a total of 70 million US dollars in tulip; Softbank Safran invested 30 million US dollars in Xianglili Media; Phoenix Satellite TV and Zhongyu Group to Phoenix Metropolis Media Capital injection of 157 million Hong Kong dollars.

But it seems that the humiliation is only in an instant.

Now who wants to cast outdoor LEDs, it may not have come out in the cave for 5 years. A VC smiles.

From hot frying to cold basin, Han Xue Capital Chairman Qian Xuefeng described the situation of outdoor LED in PE/VC.

It is considered to be a large-input, large-output outdoor LED big screen. After absorbing a large capital investment, under the industry adjustment cycle in 2009, what is its current status and future way? The reporter recently conducted relevant interviews. .

Sprint sequela

One investor believes that outdoor LED large screens are expensive, but because business owners and investors are too optimistic about future advertising, they are willing to pay for these advertising spots; but with the economic down cycle The aftereffects have arrived.

Fighting is speed. Two years ago, when an advertising company entrepreneur turned and entered the outdoor LED big screen market, he thought that in the outdoor LED big screen market, the speed of the enclosure is the most important, with the fastest speed and circle. More advantages of the standard position, forming a certain scale of advertising network.

In fact, in China's outdoor new media field, the staking is almost the primary development strategy of each company.

According to the reporter's understanding, at present, domestic media companies with LED screens as carriers are mainly concentrated in two major categories: transportation and business circles. Tulip, Champs and Phoenix City Media aims to reduce rents in the business district, CBD, and urban landmarks; high-speed rail media focuses on high-speed rail media operations; Gaoyue Media is an LED media operator in the subway; The media is dedicated to the LED media of the airport.

However, the cost of LED displays is very high. It is said that a screen itself will cost tens of millions or even tens of millions of yuan, plus the listing of municipalities, leasing, and approval, and each channel will cost money.

For media companies that do LED screens, it’s not necessarily profitable to sprint, and some companies have dragged it down. Independent investor Chen Hao had previously told reporters that Chen Hao was one of the early investors of Tulip Media.

For LED outdoor large screens, it is calculated according to whether a single screen is profitable. According to Zhao Xiaobing, managing director of Hanergy Investment, the number of large screens is not important. Because the location is not good, there is no way to make money.

Shi Qiwei of Wangju Weiye believes that from 2005 to the first half of 2008, it was not a good time for outdoor LED companies to take the land. The cost of land acquisition by most companies was not low.

Their expectations for future advertising are definitely high, so they are willing to pay to buy out these advertising spots. Han Xue Capital partner Qian Xuefeng believes.

However, when the economic downturn period brought about by the financial crisis emerged, the outdoor LED big screen, which was first based on the high output expectations of future advertising, had a high impact on its investment return period and return on investment. The tightness of cash flow is even more anxious for entrepreneurs and investors in outdoor big screens.

According to a recent analysis report by Analysys International, the economic cycle adjustment brought by the financial crisis has reduced the marketing budget of its main advertisements. Luxury goods, autos and real estate advertisers have reduced their marketing investment. In the short term, LED-screen media dominated by such customers has a great impact.

The reporter had previously visited the LED screens of Shanghai Xintiandi, Huaihai Road, Paris Spring and other places.

In Xintiandi, the security guard told reporters that the most popular LED screens there were the movie films of Xintiandi UME Studios; at present, in addition to the flowers, the number of times that the number of repetitions is more is the advertising of a certain media company.

During the half-hour stay of the reporter, the LED screen of Huaihai Road Paris Spring played 3 times of a media company's own advertisement within 3 minutes.

Another person familiar with the matter told this newspaper that a relatively high-ranking outdoor LED media and the investor signed a common gambling agreement, which promised to reach a net profit of 4 million US dollars in fiscal 2008, but its sales this year will be about 40 million yuan. It is also necessary to pay the position fee, the screen and the depreciation fee, etc., and certainly did not meet the gambling requirements.

In the view of Zhou Haiquan, the new media analyst of Analysys International, in addition to the impact of the economic crisis on the advertising of outdoor LED screens, the factors of poor media location are not excluded.

According to the market monitoring report of CTR, the advertising market in China was active in 2008, with a total growth of 15% year-on-year, reaching RMB 441.3 billion. Tian Tao, vice president of CTR market research, believes that due to the market's pessimistic expectation of the macroeconomic situation will be concentrated in 2009, the overall warning of the Chinese advertising market in 2009 is a foregone conclusion.

A recent report from Analysys International said that the automotive industry. Outdoor LED large-screen media is very dependent on these two industries, and it is the two largest customers. At present, these two industries have entered a calm adjustment period, which brings new development to the outdoor LED large-screen media in 2009. The challenge.


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