Is the outdoor LED display market opportunity coming?

[Source: Gaogong LED 's " LED Research Review" magazine January issue reporter / Tang Guirong]

Recently, the latest information on the initial public offering (IPO) stock declaration enterprise (hereinafter referred to as the “information form”) published by the SFC website shows that the tulip media has entered the preliminary examination list.

As the media company with the largest LED large-screen network in China, Tulip Media and Phoenix Metropolis Media and Champs Media have promoted the rapid expansion of outdoor LED large screens in the past few years.

According to public data, China's emerging media has experienced rapid growth in the past three years, and the growth of LED large-screen advertising media bears the brunt. Take Phoenix City Media, which has a leading market share, as an example. Its outdoor media business has grown at an average annual growth rate of 227% in the past three years. The proportion of new media businesses including LED business in Phoenix TV’s total revenue was rapidly increased by 2008. Less than 8% of the year, up to about 43% in 2011.

At present, the coverage of the above three companies in the provincial capital city has not been completed, and the outdoor large-scale LED advertising market is still in a stage of rapid expansion, with a large room for growth.

“A successful IPO listing of tulips will accelerate the integration of the Chinese outdoor media market and will also rapidly increase the penetration of LED displays in outdoor media carriers,” said an industry source.

According to the statistics of the High-tech LED Industry Research Institute (GLII), as the main carrier of outdoor media, LED display currently accounts for more than 30% of the market share, while the demand for display screens used in outdoor media is growing at a rate of 25% per year. .

“The LED display adds audio and makes it possible to broadcast ads across the country.”

Chen Xiaochao, manager of Mairui Optoelectronics Marketing Department, said that this is an inevitable trend in the development of the outdoor media market.

Since last year, some large outdoor media companies have begun to expand into second- and third-tier cities, which has undoubtedly brought more market opportunities to display companies. Chen Xiaochao said: "As the strength of the media company grows, there will be more and more large-scale procurement opportunities in the future."

However, Shi Yaozhong, the general manager of Shenzhen Ruituo Display Co., Ltd., poured a cold water. “Everyone expects to make a profit from it, but outdoor media is also the market that tests the company’s financial strength and risk assessment capabilities.”

Second and third tier cities infiltration

At present, domestic outdoor media carriers are mainly divided into inkjet, LED display, two-sided flip, three-sided flip, LCD screen and so on. According to the GLII report, by 2015, China's outdoor LED display advertising market will exceed 2.7 billion yuan. The rapid expansion of LED outdoor advertising will further squeeze the living space of flat outdoor advertising.

In recent years, the growth of outdoor LED advertising rate has also led to the growth of LED display output.

Statistics show that in 2012, the domestic LED display output value was 24.1 billion yuan, a year-on-year increase of 10%.

Li Huanqiang, manager of Huahai Group's marketing department, said that the traditional outdoor media carriers such as inkjet and two-sided display have already had very low advertising prices, and the corresponding profits have also fallen to the bottom. On the contrary, with the LED display as the carrier, the profits from operating advertisements are much higher than the traditional carriers.

“In the same location, through the LED display, the advertisers received more attention.” Chen Xiaochao said that some powerful outdoor media companies have begun to pre-empt the LED display network in the country.

After renting a huge screen in Times Square in New York last July, Xinhua News Agency has thrown a big shot in the outdoor LED field. On November 13, 2012, China Xinhua TV (CNC), a Hong Kong-listed company under the Xinhua News Agency, announced that the company officially launched the “Global Wanping Business News Broadcasting” project, which plans to develop about 100 commercial real estate projects in one year. In the middle, Alto Electronics is responsible for the construction and installation of a total of about 200 LED displays. The estimated total contract amount is 160 million yuan to 220 million yuan.

“In addition to the first-tier cities, outdoor LED displays are still in a blank in second- and third-tier cities, and the demand in the future is amazing.” Li Huanqiang said, “Only last year, Xi’an City, Shaanxi Province installed 600 outdoor LED displays in the city. The screen has a total area of ​​more than 30,000 square meters. In the future, these large-scale media companies will gradually infiltrate into second- and third-tier cities, especially the newly opened subway stations, commercial buildings and prime locations with large traffic volume will become media companies. The next robbing focus.

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