The question of metrics confounds every US media company planning to enter the Chinese market. By all accounts they are from 10 to 20 years behind us in the sophistication of measurement that Americans take for granted. Where we have CPM refined to the third decimal point, the question of cost per m, or eyeballs in Beijing is often met with a shrug. But, according to the 5th largest advertising company in China, Beijing Public Traffic Advertising Co. Ltd, there are metrics a sophisticated US advertisers can employ, provided their counterparts on the ground in China understand the need, and have the depth of data to supply it In a unique partnership with Firestone Media Group, in NYC, Beijing Public Traffic has perfected a flow of eyeball information for their outdoor fleet that makes buying buses in Beijing as easy as buses in Brooklyn.

This despite dealing with a nation of 1.3 billion people, whose political, educational
and cultural capital is Beijing, a city that almost doubles its population daily with an influx of
diplomats, business executives and students who congregate along the “Star Route” the inner
city zone that sweeps past Tianiman Square, the foreign embassies, the cluster of business
related skyscrapers and the high end shopping streets.
According to Jeff Wolfman, president of Firestone Media Group, buying outdoor on
the “Star Route” is equivalent to reaching Madison Avenue, Wall Street and the Beltway in
one loop. The highly sophisticated GPS dispatch systems on the Beijing buses enables
advertisers to track their ads with pinpoint accuracy, and the Beijing Transit data pool is
deep, with breakouts by age, occupation and income. “Thanks to the Firestone Media
Group/Beijing Traffic relationship, Chinese media metrics are available painlessly in the
US, in real time,” Wolfman says.
This is not to minimize the difficulties of gathering demographic information if you
try to study the country as one large market though it spans 56 ethnic groups and almost as
many dialects. Not only is nationwide credible information hard to find but the pessimist
always point to the fact that 150 million Chinese people live on less than a dollar a day. Of
course the converse is also true. More than 200 million Chinese have annual incomes
approaching $50,000 (USD), which creates very substantial buying power.

When you understand that China is a series of extremely healthy individual markets,
the picture comes into focus.. Most of those 200 million (with big annual incomes) can be
found in three cities: Shanghai, Beijing and Guangjo. The new Chinese millionaires, (and
there are more of them every day) are fueling a growth of buying for luxury goods not seen
since the rise of Japan in the 80’s. There are a million autos in Beijing alone, and massive
traffic jams. So everybody, rich and poor, rides the bus. Here again, a distinction must be
made. In Beijing’s 20,000 bus fleet, roughly half are air conditioned luxury buses that charge
a premium for riders.
Unlike the attitude in the Western world, which tends to think of outdoor as an affront
to nature, the Chinese are very positive about outdoor advertising. They love it According to
surveys conducted by Beijing Traffic, the average rider looks forward to reading outdoor
signs while he waits, it’s an entraining and educational way to pass the time. In a sample from
a 2000 database of street corner interviews:
1. 92.7% wish to see new ads.
2. 83.4% think public transportation advertising has a strong fashion sense.
3. 74.8% think public transportation advertising is interesting
4. 81.% like bus exterior ads and 72% like bus stop ads.
You wouldn’t find figures like that anywhere in the developed world. Mainland Chinese
also find outdoor ads more acceptable than TV or print commercials, surveys find. 83% say
they notice advertising on the inside of public transportation vehicles, while only 16% say
they pay attention to TV commercials at all. Another surprise aspect of outdoor in China,
55% of residents say outdoor advertising makes their cities look more prosperous.
Spending on advertising is increasing at a far greater multiple than other media. In 2003
outdoor surged 126% over 2002. In 2004 it jumped another 153% to a total of 7.8 billion
yuan. The rate of increase is bound to accelerate with the Olympics in Beijing approaching in
2008.
With 55.9% of Beijing’s 8 million people relying on Public Transportation daily, the
Beijing system serves more riders than other transit system in the world. Here are a few more
data points: Most riders are between the ages of 24 and 34. They spend an average of an hour
a day in public transportation. 98.7% of the population of Beijing has some contact with
public transportation within a month. That means pretty much everybody sees the outdoor
ads.
International companies like Nike and Dairy Queen are joining local advertisers in
outdoor in increasing number. So far the major advertising groups mimic our own, with
telecommunications, property development, services, finance, entertainment and leisure,
transportation, home appliances, beverages, food and personal care ranking the list. Very
little is prohibited by the government except categories like gambling and politics.
China-land of mystery metrics will be a 2 trillion dollar economy before the end of the
decade. Too large to ignore, too difficult to navigate, China is still so a risky venture for
American companies that many want to wait and see, and risk the loss of marketing position
in this still fluid consumer culture. “ If you want to play but don’t want to invest in your own
marketing arm before being sure that the venture will pay, your best bet is to find a local.

ttp://www.greatoutdoornetwork.com/GON/BMCNY

Contact

Contact Person:	Jeff Wolfman
Skype:	jwolfman
Direct Phone:	718-921-5889

About

Jeff Wolfman, President of Broadcast Marketing Corp., is a 25-year veteran of the media buying, media sales and trade industries. BMC has executed trade transactions with over 5,000 media facilities for placement of over half of the top 100 LNAs in the U.S., including one third of the Fortune 500.

Company

Company:	Broadcast Marketing Corp.
City:	Brooklyn
State:	NY
Zip Code:	11209
Country:	USA
Address:	8306 Third Avenue
Phone #:	718-921-5889
Fax #:	206-350-0335

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Previously Released

Tuesday, 13 May 2008

A New Of Viewing Trade

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