"The Status and Development Trend of the Advertising Industry of Civil Airports" (3)
[ professional classification ] airport operation [ Article ID ] 37-2009-0028
The development trend of civil airport advertising industry
Where will the civil airport advertising industry go?
What changes have occurred in the business role of civil airport advertising companies?
What are the representative of the business model of civil airport advertising companies?
What are the factors that affect the international development of airport advertising?
Why is there an alliance in the civil airport advertising industry? How will the alliance appear?
What changes have occurred in the status of the civil airport advertising industry in the development of airport operations?
What are the factors driving the rapid development of the civil airport advertising industry?
What changes have occurred in the operation of the capital strength of the civil airport advertising industry?
I. Changes in the business role of civil airport advertising companies
1. Changes in the business role of airport advertising companies
For a long time, most of the civil airport advertising companies mainly operate their own media, which is compatible with their business positioning and products (advertising media). The advantageous media resources they possess are their own core competitiveness. After several years of development, the business model of civil airport advertising companies has gradually evolved. At present, there are two representative business models: one is the â€œBeijing modelâ€; the other is the â€œShanghai-Guangzhou modelâ€. Its main manifestations are:
Â· "Beijing mode"
The advertising business model of Beijing Airport is the separation of ownership and management rights. The Beijing Airport Advertising Management Department is responsible for the management of the airport media. The â€œmanagement rightâ€ is transferred through open tendering, invitation to tender, and internal negotiation. The airport authorities are only responsible for media planning, investment, daily management, etc. Beijing has achieved great success. We believe that the vast majority of civil airport advertising operations in China will gradually evolve into this model.
Â· "Shanghai Guangzhou Mode"
Shanghai and Guangzhou Airports were transformed from the original advertising operators into â€œadvertising agency companiesâ€ and â€œairport media managersâ€. This kind of advertising business model is determined by their strong business strength. Among them: Shanghai Airport's advertising agency is a joint venture with foreign capital, while Guangzhou Airport is a joint venture with domestic investment, engaged in the operation of airport media through the form of advertising agency; airport media managers are mainly responsible for media planning, Daily management and coordination work, this model has achieved great success in Shanghai and Guangzhou. We believe that this business model must first solve the problem of independent operation of "advertising agency enterprises" and "media managers". The agency price and agency conditions should be strictly arranged according to marketization, improve transparency and accept market inspection. Otherwise, It may cause the loss of state-owned assets.
2. Factors affecting the changes in the role of airport advertising operations
In combination with the operation and management of airports at home and abroad, the following factors need to be considered in the selection and use of the "Beijing model" and the "Shanghai-Guangzhou model":
One of the factors is the nationalization of products and services of local enterprises
The nationalization of local enterprises' products and services promotes the separation of advertising media management rights and ownership. In order to open up the national market, local enterprises' products and services must rely on domestic advertising agency enterprises. At the same time, airport media must also find these customers through advertising agency companies. This inevitably requires adaptation to the business management model, which will lead to civilian use. The separation of management rights and ownership of airport advertising media.
Factor 2: Globalization of products and services of Chinese companies
The globalization of Chinese companies' products and services promotes the separation of advertising media management rights and ownership. In order to open up the global market, Chinese companies' products and services must rely on international advertising agencies, and airport media must also find these customers through international advertising agencies, which inevitably requires adaptation to the business management model, which will lead to The separation of management rights and ownership of advertising media in civil airports.
Factor 3 Economic globalization, informationization, marketization
Economic globalization, informationization, and marketization promote the separation of advertising media management rights and ownership. Economic globalization, informatization and marketization have increased, and the era of large-scale standardized production has come. With the increase of international routes in airports, local companies have moved to national markets, international markets, large-brand customers for national and regional advertising, and The increase of customers in different places will lead to the expansion of the target audience of advertising, which inevitably requires adaptation to the business management model, and promote the separation of advertising media management rights and ownership.
Based on the above situation, due to the lack of market competitiveness of airport advertising companies and the lack of market competition means, in order to give full play to the core advantages of airport-owned media resources, the vast majority of civil airport advertising operators will evolve into the role of "media managers". A very small number of strong civil airport advertising operators will split into two roles: â€œmedia managerâ€ and â€œadvertising agencyâ€.
Second, the international development of civil airport advertising enterprises
1. The international development trend of airport advertising enterprises
With the development of China's market economy and opening up, the development of airport advertising has seen a new trend, and the airport advertising media has been increasingly favored by the society and favored by enterprises.
2. Factors affecting the international development of airport advertising
Urban exhibition effect
The urban exhibition effect promotes the further internationalization and further prosperity of the airport advertising industry. Since airports are generally distributed in capitals, municipalities, provincial capitals, and regional central cities, important political, economic, and cultural exchanges in countries or regions are often closely related to airports. Canton Fair in Guangzhou, World Expo in Kunming, Shenzhen High-Tech Fair, Dalian Fashion Festival, Shanghai International Art Festival, Nanjing Golden Autumn Festival, China Golden Chicken Flower Festival, etc., as well as Beijingâ€™s â€œOlympic Gamesâ€ and Shanghaiâ€™s â€œWorld Expoâ€ "The "Asian Games" in Guangzhou, etc., are closely related to the airport. Internationally renowned brands come to China for publicity and nationally renowned brands for national publicity. The airport is regarded as the most important release area. Internationally renowned enterprises and well-known domestic enterprises compete to occupy the important image â€œwindowâ€ of the airport. Therefore, the urban exhibition effect will promote the further internationalization and further prosperity of the airport advertising industry.
Factor 2 flight international effect
The international effect of flights promotes the further internationalization and further prosperity of the airport advertising industry. The airport is the first channel for â€œforeignersâ€ to enter China, and it is also a hot spot for Chinese and foreign companies to display their image. From the international flights of the three major airports, in 2007, Beijing's international destinations increased to 107, international flights reached 101,110, an increase of 16.5%; Shanghai's international destinations increased to 94, and international flights reached 118,010. It increased by 17.9% year-on-year; Guangzhou's international destinations increased to 50, and international flights reached 31,295, an increase of 22.7%.
Figure 9 - Comparison of international flight schedules of the three major airports
Figure 10 - Comparison of growth rates of international flights between the three major airports
The rapid growth of international flights and the international effect of flights have made overseas and domestic advertising companies and advertising producers value the advertising media of the airport. The advertising and advertising of civil airports has become more and more important in their minds. They have stepped into the advertising field of civil airports. With the new advertising concept and advanced advertising production technology, with the influx of domestic and international product advertisements, this will inevitably promote the further internationalization and further comprehensive prosperity of the airport advertising industry.
Third, the emergence of civil airport advertising industry alliance
1. The trend of alliance in the airport advertising industry
Tang, the father of the world's integrated marketing communication. In answering the question "How to look at the prospects of Chinese advertising companies in today's world", Schultz said: " Bright future! the key is that you should find the heroes around you and develop with them together ." The brightest thing is that you have to find the heroes around you and then develop with them.)
Taking the road of alliance is to take the road of brand and take the road of resource optimization. Integrate a large number of unnamed enterprises with uneven talents and resources into a strong competitor who can stand out from many local companies and can not lose from outside.
(1) The emergence of the advertising industry alliance
Â· The market environment has led to the emergence and development of alliances.
In the past, one of the basic concepts of enterprises was to be a big company and a big market. The goal was to achieve a certain degree of monopoly by expanding and sharing monopoly profits. This era has passed. Today, as profits become more and more average, monopoly operations and thus monopoly profits will not work. On the contrary, enterprises seek joint operations and establish strategic alliances to compete and cooperate to develop a competitive economy, jointly build an industrial chain, jointly operate an industrial chain, and divide the industry.
Â·The scale of advertising companies promotes the emergence and development of alliances
Advertising companies are accelerating the pace of integration in various fields and pursuing large-scale survival. There have been two phenomena: First, the international advertising group has carried out a larger merger and alliance on a global scale; second, the international advertising group has â€œacceptedâ€ local advertising companies. In the mid-to-late 1990s, multinational advertising companies were committed to finding a place in the mainland advertising market by integrating media resources. In addition to the huge scale of these large advertising companies, it is the globalization of operations, and â€œscale expansionâ€ is the supporting force for their strong growth.
(2) Advantages brought by airport advertising alliance
Â·The alliance creates brand influence
Brand is a sign that a product and even a company are different from other products and enterprises. For an advertising company, it represents a potential competitiveness and profitability, which is completely opposite to the competition to reduce profits; for advertisers It is a guarantee of quality and capital, which reduces the investment risk of advertisers. Therefore, the benefits brought by the brand to the enterprise are inherent and lasting. Brand management and brand strategy should become the fundamental task of enterprise development. The economic and cultural impact of the alliance will inevitably lead to the brand influence of the alliance company.
Â·The alliance optimizes the rational allocation of resources
The development of the civil airport advertising industry has been going on for some time, and there have been many advertising professionals and management talents. However, the overall situation still needs to be improved. In some small companies, due to a certain aspect, the production level cannot be further improved, and the superior talents are difficult to do their best. Through the alliance, talents and material resources can be fully utilized, and unnecessary unnecessary labor expenditure can be cut and efficiency can be improved.
2. Factors and methods of airport advertising alliance
The competition of civil airport advertising enterprises will inevitably lead to the emergence of media integration effects; the layout of China's airports and the flow between passenger airports will inevitably lead to the emergence of airport network benefits.
(1) Factors arising from the Airport Advertising Alliance
One of the factors of media integration benefits led to the emergence of ad networks
The development trend of the civil airport advertising industry will be from the customer competition upgrade to the resource competition, and further develop into profitable innovation competition, that is: the competition in the civil airport advertising industry will rise from the technical level (strategic, creative) competition to the capital resources level. Competition, from the competition of a single service experience to the all-round competition of talent, technology and management. The powerful large airport advertising company will gradually integrate the advantages of advertising, media, culture and internet in other small airports to carry out large-scale and group operations. The traditional commission system and agency fees will be affected. The innovation of the profit model will finally prepare the advertising company to enter the capital market, which will inevitably lead to the emergence of the airport advertising alliance. After the localization of the airport, the formation of the airport group with the province as a unit created objective conditions for the emergence of the airport advertising alliance.
Factor 2 airport network benefits will lead to the emergence of advertising alliances
The networked layout of the airport and the networked flow of passengers will inevitably lead to the networking of customer advertising needs. The airport is a gathering point for passengers. The aircraft carries passengers between airports (as of the end of 2007, the passenger traffic of 152 civil airports nationwide has reached more than 180 million passengers). The networked flow of passengers is consistent with the networked layout of airports. Some global products, nationalized products and some regionalized products often need to be simultaneously released at two or more airports, which makes passengers networked and airport networks. The layout of the product and the networked release of product advertisements eventually led to the emergence of airport advertising alliances.
(2) The way the airport advertising alliance is generated
For the way of advertising companies in the airport, we believe that the following three methods can be used:
Several smaller but growing companies are facing the market with a consistent brand. Visual impact, and cultural momentum. This method has been tried in the fast food industry, clothing industry and other industries. At the end of the 1990s, when â€œKFCâ€, â€œMcDonald'sâ€ and other foreign fast foods landed in China and quickly won the Chinese market with more than 1,000 stores, Yonghe Soymilk began to appear in the mainland market and challenged â€œforeign fast foodâ€. To build the world's first brand of Chinese restaurant chain. And to make Yonghe Soymilk through chain optimization resource allocation, standard unified quality, establish brand image. At present, the total number of Yonghe Soymilk stores in the mainland of China has reached more than 150, including 15 directly operated stores and more than 130 franchise chain stores. In 2005, the total turnover of these stores reached 400 million yuan.
In the industry or in foreign companies, a large number of acquisitions have been annexed, and the advertising industry in China has long been artificial.
In March 2006, JW International (JWT), an international 4A advertising company, announced the acquisition of Shanghai Aoweisi Marketing Services Co., Ltd., one of the largest promotional networks in China. In the same month, Omnicom also invested in another local marketing giant. â€” Unison (Shanghai) Marketing Consulting Co., Ltd. This also confirms the development of the world's advertising industry and its embarrassment to the Chinese market. The most striking thing is that just after the New Year's Day in 2006, the largest domestic video and video media operator Focus Media purchased and acted in succession, and completed the acquisition of the largest elevator poster operator framework media in China and the largest competitor in China. The acquisition, the new Focus Media will occupy 98% of the domestic building advertising market.
Each company shares its shareholding and implements a shareholding system to form a large-scale company. This kind of alliance can solve the problem of resource allocation and competition to a certain extent, and can simplify and specialize each independent, small and comprehensive company model. Companies complement each other to create economies of scale and avoid unnecessary resource consumption in each process.
Fourth, the status of the advertising industry in the development of airport operations has changed
The airport advertising industry has become one of the ultimate sources of revenue for airport companies, along with airport business.
1. The turnover of airport advertising business continues to rise
Â·The development of Baiyun Airport advertising business
The advertising business of Baiyun Airport is mainly operated by Baiyun International Advertising Co., Ltd., which holds 75% of the company. According to the company's annual report, the company's advertising business has been in a steady growth trend (except for the year-on-year increase in 2005 due to the relocation to the new airport in 2004).
Figure 11 - Advertising business income of Baiyun Airport (in millions)
Â·The development of Xiamen airport advertising business
Xiamen Airport belongs to the domestic second-class airport. In 2006, the passenger throughput was 8.685 million, ranking 11th. In 2006, Xiamen Airport's advertising revenue increased by 51.92% year-on-year, and its advertising revenue is expected to increase by 20% in the next two years. In 2006, Xiamen Airport and Fuzhou Changle Airport jointly established Fujian Airport Port Advertising Co., Ltd. In 2007, the company's media franchise fee has contributed more than 3 million yuan to the company, and the company can also obtain 60% of the profit of the joint venture company.
Figure 12 - Estimate of company advertising business
Figure 13 - Xiamen Airport's revenue share of various businesses in 2006
Â·Other large airport advertising business development
The franchise revenue of the Capital Airport's advertising business in 2006 was 163 million yuan. Since there is basically no cost, almost all of the revenue is pre-tax profit; Shenzhen Airport Advertising Company's net profit in 2006 also reached 39.38 million yuan; and Shanghai Airport Advertising The net profit of the company in 2006 was only 28 million yuan, but considering the huge passenger flow of Shanghai Airport and the proportion of international passengers, the advertising company's profit still has much room for improvement, and should at least have little difference from the franchise income of the Capital Airport. The growth can reach more than 400%.
Figure 14 - Comparison of National Airport Advertising Revenue
2. Factors that contribute to the rapid development of the advertising industry
One of the factors in the development of outdoor advertising
Outdoor advertising, as a media that is juxtaposed with film, television, and broadcasting, has its distinctive characteristics. The main function of outdoor advertising is to establish a brand image, followed by the release of product information. The use of outdoor advertising can strengthen the corporate image and leadership position in similar products; improve the public awareness of the company's products; strengthen the relationship between corporate brands and their products.
Â· Advantages - outdoor advertising
First, outdoor advertising brings a strong visual impact
A giant billboard set up in a prime location, or a bus shelter that meets everywhere, is a must for any company that wants to build a lasting brand image. Many well-known outdoor billboards, because of its long-lasting and outstanding, have become famous landmarks in a certain area.
Second, outdoor advertising has a full-time publicity effect.
Many outdoor media are released on a permanent, all-weather basis, standing 24 hours a day, 7 days a week, and spreading the time. Online media also has similar advantages, but in the virtual world, the audience needs a series of prerequisites to get close, while outdoor media, because of the uniqueness of physical space, this advantage is more thorough. In addition, mature mass consumer brands, most need long-term brand influence and suggestive consumption, outdoor advertising is undoubtedly a good choice.
Third, outdoor advertising information has a strong impact and diverse forms.
Outdoor media can mobilize a variety of on-site expressions to create a comprehensive, rich sensory stimulus. With the advancement of technology, the creative means that outdoor media can call are more and more abundant, such as: image, sentence, three-dimensional object, dynamic, sound effect, surrounding environment and high-tech, etc., forming a three-dimensional sensory stimulation. Coupled with the exquisite computer printing, lighting and other technologies to make the value of advertising, the attractiveness of the audience is also significantly enhanced. Compared to a 15-second TV ad, a 1/4 or a half version of the ad limit, outdoor advertising can push the idea to the extreme.
Fourth, outdoor advertising can create frequency
Through strategic media arrangements and distribution, outdoor media can create ideal arrival rates and frequencies. Choosing the right time, place, and using the right outdoor media can reach the ideal range, reach people at almost every level, and even work seamlessly with the audience's life rhythm. Mr. CEOSmallWood of AsiaPoster once said that â€œoutdoor advertising is the real mass media. Not everyone watches TV, reads newspapers or surfs the Internet, but anyone who sees him leaves the house will see outdoor advertising.â€ Outdoor advertising The irreplaceable thing is that you often have access to an audience that other media cannot reach.
Fifth, the cost of outdoor advertising for thousands of people is low.
Outdoor media is probably the best value for money in the mass media. Its price varies, but its cost per thousand (that is, the media fee for every thousand audiences), according to the US Fortune Magazine: the spotlight billboard is $2, the radio is $5, and the magazine is 9 dollars, the prime time TV will be 10 to 20 dollars! But the customer ultimately depends on the cost of thousands of people, that is, the cost per thousand audience.
Figure - Various advertising media prices
In summary, the establishment of outdoor advertising in the airport as a city window can highlight the strength of advertisers, improve the public awareness of products, enhance brand contact and exposure, and establish a strong brand image. (Partial drawings are as follows)
Figure 15 - Airport Expressway Advertising Map
Figure 16 - Advertising map of the parking lot outside the airport
Â· Promote the role of outdoor advertising on the development of the airport
In the past, due to the restrictions of the Guangzhou Municipal Government, Baiyun Airport did not carry out outdoor advertising business. At present, this restriction has been canceled. The group company is preparing for the preliminary preparation of the advertising business, and this situation was changed in the second half of 2007. In the next two years, the company's outdoor advertising business will see a very significant growth, which in turn will drive the overall income of advertising. After the outdoor advertising business is launched, it will generate 3,000 and 80 million yuan of outdoor advertising revenue in 2007 and 2008 respectively.
Factor 2: The influence of airport advertising media has deepened
Â·The number of new airports in the country has increased dramatically
In 2007, the annual passenger traffic of more than 152 civil airports nationwide exceeded 180 million. On January 26, 2008, the General Administration of Civil Aviation of China announced that by 2020, China will build 97 new airports. The number of airports will reach 244.
Figure - Growth Trend of Domestic Civil Airports from 2006 to 2020
Â·The national passenger transportation total development potential is huge
In 2006, China's per capita annual air consumption was 0.122 times, only one-third of the world average. The medium-term development potential is huge. In 2008, China's aviation market demand growth rate will reach 20.11%, total transportation turnover will reach 41.8 billion tons, and passenger transportation will reach 225 million passengers. The growth rate will increase by 4.01 and 3.50 percentage points respectively from 2003 to 2007. The passenger throughput of China's international routes will exceed 20 million passengers, and the growth rate will reach nearly 30%.
Â·The advantages of airport advertising media
Civil airport advertising media has the advantage of â€œtime, location, and peopleâ€. Compared with other media, it has the advantages of wide coverage, high repetition rate and high reach. The cumulative number of advertisements, continuity, pertinence, and effectiveness The results are even better, and it is an ideal place to display corporate image and promote brand-name products. In today's fiercely competitive media era, the airport advertising media has won recognition and favor from customers with its unique advantages and deeper social influence. In summary, the development of the airport advertising industry in the future is very impressive.
V. Changes in the advertising capital strength of civil airports
1. The role of capital strength in the development of airport advertising
Â·Capital power has become an accelerated pump for the development of airport advertising companies
If creativity is the only force in advertising companies, then it can be said that capital is another important force. Capital not only plays a role in the service of airport advertising companies and product companies. In the development of airport advertising companies themselves, it is also an important thrust and acceleration pump. The power of capital has begun to flourish among airport advertising companies.
Â·The development of airport advertising enterprises requires the development of capital strength
The strength of an airport advertising company is not only reflected in its creative power but also in its capital strength. Judging whether an airport advertising company has an important standard for growing with a famous domestic brand is to see whether it has such a strength: The strength of service and the strength of capital. The strength of service refers to the service experience of airport advertising enterprises with international market, and also refers to whether it has such creative ability to control the market; the strength of capital means that airport advertising companies can keep up with his pace with the growth of customers, and always The company provides the power it needs to grow.
Suppose a brand goes international, it is oriented to a completely different market environment, and their strategy is to localize, so that their products quickly become local brands in this country or region. At the same time, it must require powerful advertising companies to serve in foreign market strategies. If this advertising company has no strength, it will miss the opportunity of development. At this time, the power of capital is very obvious. It needs to have the same anti-risk ability as a product enterprise, as well as airport advertising companies.
Â·The status of the development of capital strength of airport advertising companies is becoming more and more important
As an airport advertising company, it is also an enterprise type, and it can also be used for mergers and acquisitions. Our advertising companies are still small, with the impulse and anxiety of expansion, survival and death are questions that must be answered. Chinese civil advertising enterprises must have their own core competitiveness in order to survive. Only through industrial diversification can they become bigger and stronger. A professional force is only an individual force. As Coase said, enterprises are just various production factors. In order to reduce the transaction cost of the assembly, and the business between the collection (such as: mergers, restructuring) is a huge market, who is bigger in this market, who is the stronghouse of this market.
Shanghai Fosun is a technical company that relies on the mind to eat. In just 10 years, the wealth has soared from 100,000 yuan to 19.8 billion. This is not the result of production and operation but the operation of capital. They have adopted equity swaps to achieve a step-by-step approach to achieve their speeding development.
2. Changes in capital strength in the international market
Â·The way the capital is operated in the international market
In the international market, mergers and acquisitions are the best way to manage assets. They are the core competitiveness that a company must possess. When the capital market is good, it will increase investment. When the capital market is not good, they will accelerate the development of the industry. This is A two-pronged strategy.
Â·The development of capital strength in the international market
ã€€ Small example:
The old generation leaders of international advertising companies, Bernbach, Bena and Ogilvy, are no longer vivid. After a new generation has taken over, the entire system of the advertising industry has remained unchanged. The new generation of CEOs learned financial knowledge rather than writing a copy, and they began to change Madison Avenue from a small boutique gathering area to an industrial area dominated by a strong holding company.
WPP made a hostile takeover of J. Walter Thompson in 1987 and annexed Ogilvy & Mather advertising company two years later. DDB merged with BBDO to become the company. In addition to buying public relations companies, corporate event marketing companies and Internet startups, the new holding company has also acquired more advertising companies. In 2000, WPP acquired Young&Rubicam with a contract value of $4.7 billion. The following year, Interpublic Group also acquired True North Communication, the parent company of Foote Cone & Belding, a $2.1 billion deal. Rothenberg of Advertising Age said: "This is like an arms race." According to Veronis Suhler Stevenson, because of these transactions, coupled with the advertising fever caused by the Internet bubble, the largest seven in the United States between 1998 and 2000. The annual turnover of the public holding company has surged 44% to $23 billion. Earnings soared 65% to $2.8 billion. Their stocks also showed similar hot momentum.
Thinking and discussion:
1. In the process of studying the changing trend of the operation role of airport advertising enterprises, we found that some experts pointed out that only the "Beijing model" is the way out for the development of China's national airport advertising industry. The "Shanghai-Guangzhou model" is only temporary, and will disappear sooner or later. What do you think about this problem?
2. Urban exhibition effect and international flight effect are indeed one of the important factors that cause the international development of airport advertising enterprises. However, some scholars believe that the support of government policies, the development of economy and aviation industry are more important factors, and more attention should be paid to these. In terms of research, is this formulation reasonable?
3. While we put forward the concept of the airport advertising industry alliance, some people have questioned, what is the difference between this and the airport advertising group? Will the development of grouping be more long-term? In addition, is the three ways of the alliance we mentioned feasible? Which method is the most feasible?
4. Some people say that there are many factors affecting the increase in the turnover of airport advertising business. Some of them may be temporary. If these resources are used up, the turnover of advertising business may be stagnant or even negative. This argument makes sense. ? How is it true, how should we manage these resources to prevent this from happening?
5. In foreign countries, the development of capital strength is closely linked to the growth of advertising companies. There are numerous examples, but there are related cases in other domestic industries, but there are very few capital applications in airport advertising companies. Is there too much resistance and risk in the domestic market environment that lacks capital strength? So how do you operate in China?
"Current Status and Development Trend of Civil Airport Advertising Industry" (1)
"Current Status and Development Trend of Civil Airport Advertising Industry" (2)
Serial to be continued...