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JCDecaux: A large of population and the new route will bring the business opportunities consequentially of the advertisements in Metro
Interviewing Stephen WONG, CEO of JCDecaux Peal & Dean, Greater China, the leading outdoor advertising company in Europe
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China Business Journal: The price of the metro in Beijing has reduced to 2 yuan to encourage more people to take part in the public traffic. Whether can the reduction of the ticket price influence the business crowds who are locked by the advertisements in metro or not?
Stephen: The government encourages more people to take part in the public traffic, at the same time, more and more people go out by metro instead of driving the private car, if like that, the quantity of the people who take the metro becomes more and more, including more and more business man, therefore, it is favorable for the development of advertisement in metro.
China Business Journal: Following the acquisition of the famous outdoor advertising agency Media Nation, Media Partner was also utilized for clamor. How should the statement “to be underground Focus” be looked upon? Whether it is necessary to build the concept framework for Focus?
Stephen: The concept of Focus “life circle media group” creates its own image surrounding the audience’s life trajectory. However our investment values the form of the media, the effect of the media and the space for the future development. On this basis, establish a broad network of extensive coverage to let the local media learn from each other for the development experience and even international experience and to further create a cost-effective synergy in the development.
China Business Journal: No longer before, the purchasing makes the advertisement a poise of JCDecaux, but the development of metro in China is limited, thenwill the advertisement has a bright future?
Huanghanzhao: In the international world, the important target of evaluating the modern city is the development of the railway in almost all the big cities. Compared with the European countries, in which the metro has almost one century history, and the railways are perfect covering the whole city, there are just 7 cities in which the metro has been built and opened, the metro in more cities are being built or to be built.
So many people and the development future of the new route brings a lot of business chances for the advertisements in metro in China. Take Shanghai for example, the 11th Five years program on the integrated traffic development indicates that during the 11th Five years program, Shanghai will have built the basic railway traffic network and the network working scale will reach about 400 kilometers to guarantee citizens’ average time of going out as an hour in the downtown and the ratio of taking metro accounts for over 40% of public traffic. It is obvious that the developed future of the advertisements in metro is bright along with the room of it.
China Business Journal: With the development of the metro routine, the local advertisement companies also want to get some shares, will the contest in the resources and capital become more and more intensive? Which one is the determined element?
Stephen: The contest in resources always exists, and with the development of more cities and more routes, this contest will continue. But the contest in capital is not the big problem, the companies make the choice according to the ratio of the return.
China Business Journal: The advertisements in metro are always stratagem of JCDecaux, what’s the future of the advertisements in metro in China?
Stephen: With the increasing of the cities in which the metro is being built, the flow of passengers and the metro lines, the value of advertisements will be increased. The advertisement in metro also has the characteristics of the large creative room. This is also our stratagem angles of exerting the competitive advantages.
China Business Journal: How to test the result of the advertisement in metro? And how to take care of it?
Stephen: The ubiquitous form existing is that we can evaluate the results of the advertisement in metro through the number’s analysis of the ratio of covering and arriving and the sample of the ratio of memorizing the advertisement of the third person. There are some professional protective groups from JCDecaux in China to take care of it with the modern equipment according to the global quality standard.
China Business Journal: How to make the business advertisement originality exhibited mostly on the advertisement in metro?
Stephen: From the design advertisement menu, it should develop a lot not only in the metro but also in all the outdoor advertisement, which has a big room in developing. From the future tendency, with the improvement of electronic technology application, the media form interactive with the city actively will be popular.
In fact, the purchasing in network is becoming the main means of buying the advertisement in metro, not a point or a station, but a network.
The potential of the intending development is tremendous, because with the increasing of the metro line, the range of covering becomes larger and larger. The advertisement owner chooses the investing place, most probably in Beijing, Shanghai, Guangzhou etc, to purchase or invest. In some sense, the developing of more metro lines strengths the ability of marketing of the advertisement in metro. E.g, the advertisement owner can purchase 5 cities one time, but it is impossible to do like this.
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