Dr. Anita Leung Fung Yee, CEO of QJY said, “Hebei City Channel is the fifth channel to join the QJY TV-focused cross-media advertising platform. We expect to further boost the advertising value of Hebei City Channel by deploying promotional efforts, and the establishment of a new advertising planning scheme with the help of our professional media placement team. This will enable Hebei City Channel to achieve increased viewing rates and to extend its reach to the country’s 4A advertising agencies and large mainland brokers, thereby advancing its advertising income. We expect Hebei City Channel to achieve a year-on-year advertising income growth of not less than 20%, which is in par with the average annual growth rate of TV advertising expenditures in China for the past three years.”
The latest acquisition enables QJY to build up an advertising asset of RMB3.3 billion, half a year ahead of schedule. Dr. Leung targets to achieve a total advertising asset of RMB10 billion on its cross-media platform by the end of 2008, which will represent a major leap forward from RMB200 million of financial year 2007.
Dr. Leung also announced that, “In view of the outstanding performance of Mr. Bernard Yiu who joined the Group last August, the Board of Directors had approved the appointment of Mr. Yiu as an Executive Director with effect from November 26, 2007. Mr. Yiu has recruited eight high-calibre advertising professionals to head up the core operations of the Group’s new advertising business - advertising planning, programme and channel promotion, advertising sales, programme packaging and conception, channel business network and computer management. The Group will outsource Hebei City Channel’s advertising operation to second-tier agents to tap local talents and connections, but will deal directly with international and local name-brand customers. The capacity of our existing professional advertising team is sufficient for the management of the six TV channels.”
China’s open up of the advertising market has fuelled the rapid development of the local advertising industry and the continuous growth of advertising expenditures on Mainland media channels. Local advertising practices have improved substantially to match international standards and codes, but on the other hand, local advertising companies have retained a unique management style which combines the best of the East and West. Due to policy reasons, QJY is also able to enjoy a unique advantage of profiting from TV advertising monies without the need to invest heavily in the infrastructure of TV channels. QJY is confident of sustaining its niche and leading position in China’s multi-media advertising industry.
About Qin Jia Yuan
Qin Jia Yuan Media Services Company Limited (HKEx: 2366) is a China-focused one-stop shop for TV media services, providing integrated programme, distribution, advertising and marketing and public relations services to production houses, advertising agencies and advertisers. The Group was listed on the main board of the Stock Exchange of Hong Kong on June 30, 2004 following a successful initial public offering. Its strategic shareholders include Aegis Group plc, a public company listed on the London Stock Exchange and one of the world’s five largest media groups.