Over the past decade, we’ve witnessed China’s significant economic expansion. The country’s middle class has grown, disposable income surged, and consumerism followed. China’s economic growth last year was fueled mainly by consumption growth. And with the Chinese market gaining importance, companies are willing to spend more on advertising.
Advision Media Holdings, a forerunner to introduce the concept of large format, outdoor digital media network in China, has acted promptly and established itself as a premier outdoor digital signage company.
Last year, Advision placed outdoor LED advertisement screens in a number of major cities in China and purchased numerous key locations, such as New World Mayfair Hotel on the Huaihai Road of Shanghai. Earlier this year, the company received the “Annual Award for Highest Investment Value” from www.cnad.com and CTR. The company recently raised US$30 million in financing from SAIF Partners.
Massive LEDs aren’t cheap. (Okay, that’s an understatement.) The latest investment would allow Advision to accelerate its expansion plans. The company hopes to set up about 35 LED advertisement screens by the end of 2008. These screens would span more than 20 large cities across the country and would display advertisements at the central business district, airports, shopping centers and expressways.
The financing agreement concluded in Shanghai marks SAIF Partners’ entry into digital media. Having over US$2 billion under management, SAIF is among the largest venture capital firms investing in Asia. The firm invests in high-growth industries and favors enterprises with mature management teams.
The outdoor digital media market caught the attention of venture capitalists across the globe after companies like Target Media and Airmedia went public on the NASDAQ. Now that the Chinese economy is growing in leaps and bounds, as compared to a general slowdown in the West, the Asian nation’s outdoor digital media market has become an attractive option for large investors.
* For series, references are published in the last installment of the series.
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