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NCN’s mission is to become a leading provider of out-of-home(OOH) advertising and other media services in China, primarily serving corporate customers with large and global brands. We are currently building a nationwide out-of-home media network that includes roadside billboards as well as large, strategically located, high-impact digital video mega-displays. The Company’s focus is primarily on its growing media platforms in Beijing, Shanghai and other major cities in China.
Media and advertising is one of the fastest growing industries in China. China’s advertising market has grown at a compound annual rate of 15.5% in the last five years, as compared with rest of the Asia-Pacific region ex-Japan at 9.2%, Japan at -0.7%, North America at 4.0%, and Europe at 2.9%.
According to BOCI, out-of-home TV advertising is the fastest-growing segment within China’s out-of-home sector even though it only began in 2003. Out-of-home TV advertising consists of flat-panel screens, some featuring sophisticated LED video displays, installed in office buildings and hypermarkets, in high-traffic outdoor locations and in vehicles such as buses and taxis.
In China, out-of-home media is concentrated in the top-tier cities, where traffic is frequent and the ad rates are sufficient to offset the higher operating expenses associated with operating a flat panel display . The competition is stiffening as new entrants explore new locations that are not yet secured by means of exclusive contracts.
根据 BOCI 数据，2003年才起步的户外电视广告已经成为户外广告领域内发展最快的一个分支。户外电视广告包括安装在写字楼和超级市场、繁忙的户外地方以及公共汽车和出租车等交通工具上的平板屏幕。
Unlike some other media assets, private ownership of out-of-home media assets such as billboards and TV display advertising panels is allowed in China. The operating rights are typically exclusive and may last multiple years. Out-of-home advertising is perhaps the least subject to content regulations in China among all the media formats. NCN plans to take full advantage of the current market situation in the out-of-home media and expand its media network as opportunities allow.
First Mover Advantage
- Limited number of premium display locations.
- Limited number of permit opportunities.
- First to market could command up to 60% of national outdoor LED display market.
- First to national outdoor display network will command premium pricing.
- Global brands prefer to contract with a single provider.
- National network commands premium pricing.
High Barriers to Entry
- Limited number of media rights and complicated approval process.
- NCN has developed strong and solid long term local government relationships.
- Limited number of prime locations.
- Consolidation in major cities – eliminating many older and non-permitted displays and replacing them with fewer, high revenue LED displays.
High Gross Margins
- 40%-50% Gross Profit Margins.
- Strengthens potential for possible cash flow.
- Enables Network CN to more effectively compete with price, if price competition materializes, and still remain profitable.
- 在重要城市的业务合并 – 拆除了许多旧的和未经批准的显示屏幕，而代之以绝对数量较少、但收入更高的LED显示屏幕。
Targets start from 2008 :
- Obtain rights to install and operate 2,000 roadside LED video panels.
- Complete installation and operate a total of 1,000 roadside panels.
- Obtain rights for ten (10) mega-size digital video billboards.
- As of January 2008, we have successfully obtained rights to install and operate more than 923 roadside LED video panels, 8 mega-size digital video billboards and 922 light boxes.
目标从 2008 年开始 :
- 获得十个大型LED屏幕的使用权 。