VisionChina Media Inc. , one of China’s largest out-of-home digital television advertising networks on mass transportation systems, has announced that it has expanded its exclusive agency agreement with Guangzhou Metro TV Media Company in Guangzhou to allow the inclusion of both national and Guangzhou-based businesses as advertisers on the Company’s network in Guangzhou.
In April 2008, GMTM granted VisionChina Media the right to operate advertising business with national advertisers on subways in the city of Guangzhou as well as on the platforms that service the city’s subway system. In April 2009, GMTM granted VisionChina Media the additional right to operate advertising business with local advertisers on subways in the city of Guangzhou as well as on the platforms that service the city’s subway system for a period of two years, beginning May 1, 2009. The Company’s subway network in Guangzhou included 5,363 screens by the end of the first quarter of 2009, including 5 large LED screens that VisionChina Media operates at the major intersection platforms of the Guangzhou subway system.
Limin Li, VisionChina Media’s chairman and chief executive officer, said, “With two-thirds of China’s advertising dollars spent in Tier 1 cities, strategically, Guangzhou remains a very important part of our national network. Guangzhou has a large and attractive pool of local advertisers, and the new agreement allows us the flexibility to bring advertisements from both local and national advertisers to Guangzhou’s subways and subway platforms. Our extensive network allows our strong and expanding base of national and local advertisers to connect with China’s growing middle class through well-targeted and cost-effective advertising placed between live broadcasts of content that commuters enjoy. We are excited about the valuable opportunities presented by our increased operations in Guangzhou, and with the city hosting the upcoming 2010 Asian Games we look forward to leveraging the experience gained from our success during the 2008 Beijing Olympic Games.”
Guangzhou, the capital city of Guangdong province has 10 million residents and will host the 16th Asian Games from November 12-27, 2010. Approximately 1.5 million people ride the Guangzhou subway each day and 75% percent of subway platforms and stations are located in major business centers and densely populated areas in the city, allowing companies who advertise on VisionChina Media’s network to reach large audiences. According to official national statistical data, Guangzhou’s GDP reached RMB821.6 billion in 2008.