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What are the conditions for making a screen to make money? The first is the location. Chen Yong, general manager of Guangzhimei Advertising Co., explained that the best position is “Golden Corner Silver Sideâ€, which means that the corner of the road is the best position for building the screen at the central intersection. This position can radiate at least three roads. For example, Xinbaikou Xinbai, which is called “Nanjing First Screen†in the industry, is facing the Sun Yat-sen image. Every day, people passing through this intersection can see it, so its price is also in Nanjing. higher. Zhang Wei said that the current price of this "Nanjing First Screen" is calculated according to the time of 15 seconds a day, 60 times a week. The external price for one week is 120,000, and the highest is 180,000 a week. This price is "in the middle and high level" in Nanjing. It is understood that the LED screen of Zhujiang Road, which is only one section away from the "Nanjing First Screen", is only half of the price of the road, which is the so-called "silver side". The screen at this location radiates up to two roads, and the value is not as good as the screen at the "corner" position. Followed by the height. Generally, the height of 6 meters to 10 meters above the ground is the best height. The height of the screen is 20 meters, which is the best angle with the line of sight of the crowd. There are also sections, where traffic and traffic are the primary reference factors. Again is time. The screen invested a few years ago can earn money compared to the screens of the past two years. The screen of early investment has been operating earlier, and the cost has gradually recovered. It can be profitable in the past two years. It has become more and more difficult for the screens invested in these years to be profitable. Chen Yong believes that some screens with earlier cost recovery have begun to make profits, so they have the strength to attract customers at low prices. In order to be competitive, the new screens have to lower the price and “competeâ€, and the cost recovery time is delayed indefinitely. The profit is even more distant. For an advertising company, you must have at least one space factor and time factor to be profitable. At present, the prime location has become a resource. For example, Xinjiekou, Zhujiang Road, Shanxi Road, Central Gate, and the airport are all distributed in the golden section, and the price is higher than that of the peers. In addition, the policy is also the key to determining the survival and persistence of a screen, and the premise of profitability. "Sometimes the situation is that the government-restricted areas are often valuable to advertising companies. The approval planning system of government regulatory agencies sometimes contradicts the market demand of advertising companies." Vice President of Dengfeng Culture Communication Co., Ltd. Manager Xie Dayong said. Xie Yuhui, general manager of Jintang Advertising Co., Ltd. also believes that “the decision is whether the profitability of a screen and the development of the company is critical.†At the end of 2009, the regulatory authorities began to rectify the billboards in the main city of Nanjing. At the beginning of 2010, large-scale demolition of the roof advertising. At that time, many advertising companies that mainly engaged in outdoor big-name cards complained in this wave of "shuffle", and some even closed down. Wang Yi of Nanjing Zhongcheng Advertising Co. said, “At that time, everyone couldn’t make money.†The big brand of their company on the Pearl River Road was demolished because of the new urban construction plan. "It was really sad during that time." At the beginning of this year, the city appearance department drafted a "Nanjing Outdoor Advertising Setting Rules", which stipulated the scope of Jianping. At the beginning of this month, the "Nanjing Outdoor Advertising Management Measures (Draft for Comment)" was issued and publicly solicited opinions. Before the final implementation of the management measures, "in addition to dismantling, in principle, basically no billboards were approved." Ma Liangqi, director of the Nanjing City Management Bureau City Appearance Department said. According to reports, these new billboards are now approved by 2008. In fact, this year, LED screens are also approved in a small area, but the positions of these screens are generally in the business district. "Make sure it won't conflict with the regulations that will be introduced in the future." Ma Liangqi said. That being said, but until now, Xie Dayong, Xie Yuhui, they are still worried about the regulations that will be officially introduced in the future. "I hope that after the policy is determined, the market can be regulated." This is their common wish. What do companies want to make money? In 2009, Nanjing Sanzhong Road was rebuilt, and large-scale outdoor dismantling was carried out. A group of poorly-performing advertising companies closed down and changed. In the words of Xie Yuhui, most of the "winners" who have been left behind by the big waves are probably around 20. "Because there is no strength, you can't do LEDs at all." The cost of a screen is millions, and the benefits will not be seen until a few years later. Nowadays, most of the companies that have survived have chosen to “make a group integration†or “transfer and lease†to survive and profit. Through the "integration of inter-bank resources", an organization of the nature of "union" is established. That is to say, two or three advertising companies are combined to make use of different screens and different distribution areas to complement each other's advantageous resources. For example, if a customer wants to advertise in Xinjiekou, Zhujiang Road, and the airport, then if he contacts an advertising company in the “Unionâ€, the advertising company will replace the customer and the “Allianceâ€. Other companies in the company negotiated prices and made advertisements. The advantage of this is that it compensates for the small advertising company's lack of screens and the inability to retain customers. Similarly, other advertising companies in the "Alliance" can get more customer resources. The companies in these alliances all have a unified reserve price. Everyone follows the principle of “holding the reserve price†to prevent the vicious competition of price wars. “Nanjing First Screen†is solely the construction of Lianzhong Media in Guangzhou; a vertical screen on the Tianshi Building in Xinjiekou is self-built by Dengfeng Media, and Phoenix Media buys out; a screen at the intersection of Changle Road and Zhonghua Road is the government. Funding, used for public welfare propaganda, is now outsourced to advertising companies to do commercial advertising; Jintang Advertising cooperates with Jiangsu Cable and Zhangzhang Advertising to sell Zhujiang Luping and Huaihai Road Daping. Now, advertising companies can build screens and operations in four modes: outsourcing, joint venture construction, sole proprietorship, and buyout ownership. The advantage is that outsourcing can collect rents, joint ventures can reduce costs, sole proprietorship ownership and all subsequent profits, buyouts can have profits and save costs. When he called Zhang Wei, the general manager of Guangzhou Lianzhong Media Nanjing Branch last week, he was rushing to pick up a customer at the airport. In recent years, their tentacles have gradually extended outward. This industry is not suitable for speculation. "Many advertising companies currently use LED screens as long-term strategic projects, because it is difficult to see the results within two or three years," said Chen Yong, general manager of Guangmei Advertising. Chen Yong’s company has a screen on New World Plaza. Now, the business focus is moving towards the rolling of subtitles in the network and the subway. Dengfeng Media currently has a large number of LED screens in Nanjing. For them, the LED industry is still the future direction of their company. "In addition to advertising, we don't understand other industries." This is Xie Dayong's general view: It is not easy to change careers. In order to enter the bus, the subway advertising market, the threshold is extremely high. The subway bidding fund is 700 million yuan and the bus is 70 million. "We don't have that great strength. Relatively speaking, a million billboards of LED billboards, even if everyone joins together, can still afford it." Xie Yuhui said. Other ways of survival "at least not yet." In addition, in recent years, for the beauty and modernity of the city, the policy trend has gradually tilted toward the LED. For the future development of the LED market, Xie Dayong believes that there is no lack of possibility. However, certain conditions are required. First, resources are gradually transferred to powerful companies, and weak companies gradually lose market. Nanjing outdoor large-screen advertising is in its infancy and lacks an orderly market. Xie Dayong believes that "due to regional reasons, resources are not evenly distributed, so it is more difficult to integrate resources." Advertising companies of all sizes are still able to coexist now. “The big companies have the ability to choose a good location, but the price is high, and the small company can choose a screen that is not so good, but the price is low.†Zhang Wei said, “The resources of each lot are irreplaceable. But maybe after the development, there will be acquisitions." Xie Yuhui said. Still like the monopoly game we mentioned earlier, people with more money can buy more land and collect more rent. In the end, a single screen costs millions of dollars, hundreds of thousands of operations, not a small advertising company can afford. For the next step of the outdoor advertising big name, the regulatory department plans to publicly auction the pure public property advertising space. For example, on both sides of the viaduct, on both sides of the road, etc. And the government holds more than 50% of the property rights, "will be discussed in the next step." For the time being, the future development direction of the market is still vague, Chen Yong believes. And sticking to it may be the best way. The prospects of the Nanjing market can be thanked that Da Yong believes that the most important thing is "market issues, not competition issues." He explained that this is a market for flexible demand. The most popular real estate advertisements a few years ago have shrunk, and the proportion is declining, while car advertising is showing signs of rising. The customer's needs directly determine the weight of each advertising company in the LED market. The advertisers of outdoor advertising are similar to TV stations. They are mainly in the “dynamic balance†of developers, automobiles, finance, and cinema. For advertisers, they are not worried about market demand. "Every large company has outdoor publicity expenses, but sometimes it is sometimes more and less, which is a long time." Moreover, Nanjing has some advantages in outdoor advertising. Xie Yuhui said that in addition to the “first echelon city†of “Northern Guangzhou-Shenzhen†and Nanjing, which is in the “second echelonâ€, even when the amount of advertising is shrinking, customers will not significantly reduce the release of Nanjing. Nanjing is their Value the market. Another is that outdoor advertising has a relatively high cost performance. As a provincial capital, the price of outdoor advertising in Nanjing is currently lower than those in Ningbo, Jinan and Shaoxing. "LED is still the mainstream of urban outdoor advertising." Enterprises and regulators think so. Gao Yong, general manager of Barco China, was impressed by the LED big screen in Manhattan Square. “The design of the screen reflects a stunning aesthetic.†He believes that China’s LED large screen has a lot of room for development. In March 2010, Nanjing City Office and Nanjing University Planning and Design Institute, Nanyi, Nanshi and other research institutes drafted a "Nanjing Outdoor Advertising Setting Rules", which divided the setting areas of advertising big cards. They are divided into three areas: control area, forbidden area and display area. At the beginning of this month, the "Nanjing Outdoor Advertising Management Measures" publicly solicited opinions. "It is expected that the planning will be officially introduced early next year." Ma Liangqi said. Compared with the large-scale outdoor advertising that is forbidden to approve, the government's supervision of LED big brands is still slightly loose. The person in charge of the regulatory department said, “The outlook for LEDs is promising.†In fact, under the current strict control, only the LEDs that can pass the approval are LEDs. "LEDs can be more in the future approval," said the relevant person in charge.