VisionChina Media Inc. (”VisionChina” or the ”Company”) (Nasdaq: VISN), one of China’s largest out-of-home digital television advertising networks on mass transportation systems, today announced that it has signed an exclusive agreement expanding its network coverage to include Tianjin, a city of 11 million people, approximately 85 miles from the capital city of Beijing.
The two-year exclusive agreement that went into effect on February 15, 2009, grants VisionChina the right to sell a minimum of 114 advertising minutes per day to national advertisers (i.e. non-Tianjin-based companies) during 17 hours of daily programming supplied by the local Tianjin TV station to buses in that city. The mobile digital television platform in Tianjin is currently available on 1,500 buses and will be extended to another 1,500 buses by May 2009. The Tianjin network currently features 2,486 screens, with 2,700 more planned by May 2009. These additional 5,186 screens significantly expand VisionChina’s footprint in northern China.
”Tianjin has China’s sixth-highest GDP and hosts one of China’s largest and most affluent populations. This is a market that national advertisers are eager to engage,” said Mr. Limin Li, VisionChina’s chief executive officer. ”With our entry into Hangzhou last month and this new contract in Tianjin, we continue to demonstrate our execution capabilities while staying true to our expansion strategy. Tianjin meets our strict investment criteria and we are confident it will bring great value to our shareholders.”
Mr. Alfred Tong, VisionChina’s chief marketing officer commented, ”Large, Tier II cities such as Tianjin, with sophisticated audiences, large commuting populations and high GDPs, are particularly appealing to large domestic and international brands. Tianjin is an expensive city to advertise in and as such, we are well positioned to offer a cost-effective alternative for national advertisers targeting the Tianjin audience.”
According to the Tianjin Bureau of Statistics, in 2007 Tianjin had a total GDP of RMB502 billion, or approximately US$73 billion, ranking sixth in terms of GDP among all cities in mainland China.