The outdoor advertising business has developed rapidly in the Chinese market in recent years. This "fastness" is not only reflected in the continuous expansion of the industry's scale in a short period of time, but also in the "rapid" launch of emerging outdoor media forms and their recognition and acceptance by the market. As the oldest form of media, outdoor advertising has strong vitality. From wood carving plaques and lantern flags to computer inkjet printing, neon signs, and LCD electronic displays, they have always followed the development of the times and innovated themselves. The market size has become larger and larger. In recent years, with the continuous improvement of LED display technology and the continuous enhancement of display effects, LED electronic displays have become the main force of LED outdoor media.
According to the "China Advertising Industry Market Foresight and Investment Strategic Planning Analysis Report" of the Qianzhan Industry Research Institute, the scale of China's Internet advertising market in 2015 reached 209.67 billion yuan, a year-on-year increase of 36.1%; while TV advertising revenue in 2015 was 121.969 billion yuan, a year-on-year decrease of 4.6%; newspapers were 32.408 billion yuan, down 35.4% year-on-year; magazines were 6.546 billion yuan, down 19.8% year-on-year; broadcasting was 13.430 billion yuan, up 1.1% year-on-year; in 2015, the sum of advertising in the four traditional media industries of radio, television, newspapers and periodicals was 174.353 billion yuan, which is lower than the scale of the Internet advertising market.
Outdoor energy-saving LED advertising screens will become a trend
In the 21st century, outdoor advertising has already broken through the single form of store sign billboards, and more new outdoor media have appeared - car body advertising, bus shelter advertising, subway station advertising, elevator advertising, high pillar advertising, three-sided advertising, wall advertising, floor advertising, neon lights, LED displays, etc. After the emergence of energy-saving LED displays, there has been a great improvement in the control of power consumption. Improvement, by using high-efficiency LED light-emitting chips without cutting corners; using high-efficiency switching power supplies to greatly improve power conversion efficiency; carrying out excellent screen heat dissipation design to reduce fan power consumption; designing scientific overall circuit solutions to reduce internal circuit power consumption; automatically adjusting the brightness of outdoor LED displays according to changes in the external environment, thus achieving the effect of energy conservation and emission reduction.
In recent years, LED display companies have focused on the research and development of energy-saving LED displays. Many display companies in the industry have launched ultra-low power consumption, energy-saving LED products, using high-efficiency and low-energy consumption chip designs to save about 50% of energy based on the power consumption of traditional displays.
China’s outdoor advertising sales development trend analysis
1. The third- and fourth-tier outdoor advertising market has huge potential
At present, in first- and second-tier cities, you will find that inconspicuous locations are covered by outdoor advertising and developed into outdoor media. The prosperity of outdoor advertising in first- and second-tier cities can be seen. Consumers are dazzled by large LED screens with exquisite images, fantastic new technologies, and multi-channel outdoor media forms. The outdoor media market structure in these areas has basically taken shape and has developed steadily. However, behind the economic boom is the embarrassing situation of "it is hard to find a screen", which has caused many companies to gradually turn their attention to third- and fourth-tier cities.
Today, with the rapid development of urbanization, third- and fourth-tier cities have made great progress in terms of population size and urban construction. This has also laid the foundation for the continuous growth of the consumption power of third- and fourth-tier cities. At the same time, residents in third- and fourth-tier cities have needs to improve their quality of life, and they have the potential to upgrade their consumption.
2. Urban LED large-screen advertising will be re-integrated
The LED advertising industry has entered a period of consolidation, and some small and medium-sized enterprises will be gradually eliminated in the next few years. In the integration stage, LED media owners with technical and capital strength are expected to achieve rapid development by leveraging the power of the capital market and the company's own technology and channel advantages. Therefore, the problems of urban LED large-screen media owners being scattered, difficult to manage, high in vacancies, and low in output will be solved.
3. Integration of outdoor advertising resources is the future direction
China’s outdoor advertising market has experienced rapid development in the past 10 years, and media resources have gone through a series of development, financing, and mergers and acquisitions, forming some network-based outdoor media groups. The resources have gradually increased in scale, but the level of concentration and scale is limited, and there is still a lot of room for development. In the future, integration will still be the main theme of China's outdoor advertising market.
At the same time, there are still many problems with outdoor advertising. Due to the low entry threshold for outdoor advertising, more and more companies have entered in recent years, resulting in the phenomenon of small, scattered, chaotic and slow outdoor advertising. The specific manifestations are:
Small - small size, most media owners do not own more than 50 pieces of media. Some media owners even only have one or two media outlets.
Scattered—distributed. There are tens of thousands of outdoor advertising companies in 35 provinces and cities across the country. Resources are very scattered and effective integration is not enough.
Chaos - Standards are chaotic, because each media owner operates independently, and media prices in the same location belong to different companies, so the price difference is huge, creating a chaotic situation in the market.
With the increase in people's travel and leisure activities and the widespread use of high-tech, outdoor media has become the new favorite of advertisers, and its growth rate is much higher than traditional TV, newspapers and magazine media. As the main force of outdoor media, the market size of LED display screens will surely expand further.
ANNA