Photo source @ Visual China
Your time is very valuable. You can hold up a media company with a market value of 100 billion in a fifteen-second stay in the elevator.
Focus Media, a legendary company, has almost monopolized the elevator advertising market in China's first- and second-tier cities. Most domestic emerging Internet companies have more or less been associated with this company.
On May 17, 2019, Ruixun Coffee will be listed in the US, and its crazy marketing during the rapid expansion will be supported by Focus Media. In fact, the founder of Focus Media, Jiang Nanchun and Rui Zheng Coffee, Lu Zhengyao, joined forces to bring China's car rental to the industry first 10 years ago.
Jiang Nanchun invisible behind the scenes to do high ginseng, for more and more new economic companies to advise.
In 2018, Youxin, Hunting, Xiaomi, Meituan Review, Yingke, 51 Credit Card, Duoyi Network and Tongcheng Yilong were listed. On the eve of the bell, they did not have an intensive advertising campaign in Focus Media.
You may not have heard the bells of these Internet companies listed, but they must have been bombarded in their office elevators. "Machine used cars, there is no middleman to make a difference", "People car ~~~", "Hungry, don't call mom, hungry?"
Elevator advertisements constitute millions of levels of marketing expenses for these companies and translate into billions of dollars in revenue. In 2018, the revenue of the group was 14.551 billion yuan and the net profit was 5.828 billion yuan.
The advertising screens distributed in the elevators of thousands of office buildings are like the barometer of the Chinese Internet market. Through the frequency and volume of the advertisement bombing on this screen, you can see which companies have raised funds, which ones have been fought, and even found out which one has closed down.
In the wave of innovative economy, every player who wants to make a come out will find Jiang Nanchun and pay a “passing fee” in the elevator when he just sprints and fights with his opponent when he is just out of the way.
However, with the rise of the new wave media, the situation of the past dominated the world has been broken. In the fierce competition and large-scale expansion, in the first quarter of 2019, the revenue of the group was 2.611 billion yuan, down 11.78% year-on-year, and the net profit was 340 million yuan, down 71.81% year-on-year. But looking at the entire Internet industry, there are not many companies that can achieve 80% market share and 70% gross margin.
Although Jiang Nanchun has new troubles, he is still the harvest king of China's New Economic Company.
Contest against harvest
In 2015, a brainwashing slogan appeared in the elevator screen of a domestic first- and second-tier city office building. Variety star Wang Zulan turned into a small brother, yelling "Hungry, don't call mom, hungry?", exaggerated expression, funny action.
Since the beginning of May that year, the slogan has been broadcast more than 960 times a day in elevator rooms in 25 cities across the country until the end of July.
The plan of elevator advertisement for ele.me
In August, Wang Zulan's hissing cry had not yet calmed down, and another advertisement began to dominate the screen again. "Guazi sells the net directly, there is no middleman to earn the difference," this later widely circulated propaganda language, in the major cities of the elevator cycle broadcast.
Focus Media official website shows that during the advertising period, ele.me 's trading volume surpassed Meituan takeout and Baidu takeout, becoming the first in the industry. Rising star Guazi, also began to pose a threat to the market position of everyone's cars.
It's like a race, and players who are unwilling to fall behind have joined the capital game.
The business model of focus Media is very simple, rental property building elevator advertising space, as well as cinema pre-screening advertising space, through the focus of their own or join the cooperation of the media to publish business advertisements.
What is interesting is that the competitors in the industry, but at the same time in the focus elevator advertising, become an office elevator a strange landscape. Ele.me 's biggest competitor, Meituan, has also advertised in focus media. The most typical is the used car industry, Guazi set off an advertising war, everyone car, Youxin used car in varying degrees in the focus of the elevator screen for a large-scale launch.
The urban white-collar workers in the shuttle elevators will see such a scene: Sun Honglei, Huang Wei, and Wang Baoqiang respectively endorsed the melon seeds used cars, Renren cars, and the excellent used cars, and the passengers were subjected to homogenization and serious audio-visual bombing.
A business person who accepted the investment of Focus Media told the Finance News that “industry competition has driven the advertising revenue of the Focus. Several used car brands are desperately trying to buy advertisements in order to grab the market. How much do you buy when you buy? For some time, other Brands can't buy good-position ads because they are bought out by used cars."
According to the information disclosed by Focus Media, in addition to the used car companies to push the launch, Ctrip, Tuniu, Tongcheng, these head online travel companies also use Focus Media as an important battlefield. In addition, the e-commerce brands such as Taobao, Suning Tesco and Honey Bud Baby also appeared on the list.
Part of Focus Media's customer list Finishing / Burning Finance
A business manager of Guangchi Media told the Finance and Economics that the annual Spring Festival, the June college entrance examination, the 618 and the Double Eleven are the peak seasons for Internet companies to place advertisements in elevators. In addition, new financing, new products, and IPOs are concentrated. The point in time of delivery.
In the killing game of the peers, Jiang Nanchun completed a game in another game. According to the Focus Media Annual Report, its 2018 revenue, elevator building media contributed more than 80%, gross margin as high as 70%. Among the customers, there are many big gold owners who have strong funds: the number one customer is 1.2 billion yuan, and the top five customers have a total of 3.6 billion yuan.
In 2015, 2016 and 2017, focus Media also experienced rapid growth, with revenue of 8.6 billion yuan, 10.2 billion yuan and 12 billion yuan, an increase of 15.1%, 18.4% and 17.6%, respectively. Net profit was 3.4 billion yuan, 4.5 billion yuan and 6 billion yuan, an increase of 40.4 percent, 31.3 percent and 34.9 percent, respectively.
Behind the scenes high ginseng
Jiang Nanchun was a shrewd Shanghai man after 70. As early as 1994, Jiang Nanchun, who was a junior at East China normal University, founded an advertising agency and made the first bucket of gold.
Focus Media landed on NASDAQ in 2005, setting a record of fund-raising at that time, and Jiang Nanchun was financially free from that time. What is often ignored is that Jiang Nanchun has been the top 50 richest man on the Hurun Rich list for many years in a row.
Jiang Nanchun's major is Chinese language and literature, but he is very business-minded. He is good at abstracting the underlying business logic into a set of methodology. The most famous concept is saturation attack and preemption of the mind.
In the book "Seize the Mind" written by Jiang Nanchun, the case of orange is mentioned. After the founder Yu Huafeng found the Orange Project, he found Jiang Nanchun and discussed how to use the only 10 million yuan to start the new brand. The prescription given by Jiang Nanchun is, "If you want to succeed, you must first make hype on social media, and then the advertisement will land. In addition, there is no other way." It turns out that Jiang Nanchun's method works well.
In 2009, China’s car rental was still the third in the industry. Founder Lu Zhengyao found Jiang Nanchun and plans to invest advertising fees on television. Jiang Nanchun drew a picture to Lu Zhengyao, telling him that he should get through the three scenes of apartment building, office building and airport, so that more people know the brand. So Lu Zhengyao invested 75% of the advertising expenses in the Focus Elevator media. After half a year, he overtook his opponent and became the industry leader.
After a lapse of nine years, the familiar formula was used again on Ruixun Coffee. The marketing of Ruixing Coffee at the beginning of the cold start in 2018 was detonated by the advertising of Focus Media. This is exactly the same as the marketing method of renting cars in China that year.
Another example that is often taken by Jiang Nanchun is hungry. Hungry? Before the large-scale launch in 2015, the valuation was only 700 million US dollars, while the US group valuation has been 7 billion US dollars, in addition to Baidu take-out. At the time, Jiang Nanchun believed that Baidu was equal to search in the mind of consumers. The group purchase and tour of the US group were strong. If you are hungry, you can put on the label of takeaway.
According to Jiang Nanchun's suggestion, ele.me put in 92 million yuan elevator ads on focus media, rose from more than 100th to more than 20 in Apple's App Store ranking, and formed a polar opposition to Meituan's takeout in the takeout market.
Wang Jia, the person in charge of the market launch of a second-hand car company, told Jiangcai that Jiang Nanchun was a particularly powerful salesman. He exported the brand methodology to the outside world. This method has some truth. People who believe in methodologies can easily advertise in the segment. This is very A form of media sales that has rarely appeared.
"In the fiercely competitive business environment, Jiang Nanchun launched this detonation theory or a competitive formula, which is easy to promote because it is the absolute boss in the field where the focus is located." One was too big in Focus Media Liu Xia, an insider of the Internet company that advertised the scale of advertising, told the Finance.
Why is it the focus?
The companies that came to the docks continued, but no one could accurately calculate the advertising conversion rate of Focus Media. Because it is an offline channel, online advertising conversion effects, it is difficult to accurately measure by data.
In fact, for emerging Internet companies, conversion itself may not be the primary consideration.
In the workplace, the elevator is a very important scene that can reach the city's Internet consumers accurately. Internet companies are interested first because of the elevator scene, followed by the media in the scene. The crowd occupied the elevator scene, which is the core of its ability to win.
"very few people turn them into users by scanning QR codes in elevator ads." Wang Jia spoke bluntly. In her view, using pure data logic to look at brands can lead to a misconception-undervaluing brands, because brands do not immediately bring consumer scenarios.
In recent years, the emerging Internet companies in focus investment show the common characteristics are: high competitive industry, low product differentiation, venture capital support.
"the intensity of homogeneous competition in China's Internet industry is unprecedented, which has led policymakers to be more radical in any possible access to users because of the short time window and competition cycle." Wang Jia said.
When product homogeneity is very serious, you need to play a heavy marketing campaign. Whoever has a loud voice will have the opportunity to get more users.
When Wang Jia’s second-hand car company invested in elevator advertising, he chose a video advertisement with sound from the beginning. She believes that for start-up brands, voice advertising channels must be better than voiceless advertising channels, because more people know that the new brand is the first appeal.
This has made Focus a bastion that most emerging Internet companies need to capture. The form of advertising is more and more exaggerated, the voice is getting more and more noisy, the screen is exploding, and the eyeball is earned.
This is somewhat irrational. Liu Xia does not advocate the way to spend money on advertising, but she still voted for elevator video ads in Focus. She summed it up as "defensive actions that have to be done under intense competition." Because when the competitors adopt this kind of delivery strategy, she will worry that the user's mind is occupied in advance and the market is eroded.
"If you cast it, you don't necessarily have the same percentage of data growth, but you at least keep your position, so the focus is on the fully competitive industry." Liu Xia said.
Liu Xia's decision logic coincides with the communication theory of Jiangnanchun's saturation attack. The channel of the focus has hit the pain point of the enterprise.
In the past, for a long time, in the building media market, the focus is almost in the position of “living and earning”, because there are not many companies that can achieve 80% market share and 70% gross profit margin in the entire Internet industry.
But the focus is also facing new challenges. With the rise of the trendy media, the situation of the past dominated the world has been broken.
Between July 2017 and June 2018, trendy media actually saw sales growth of more than 400 percent, rising from eight cities to 80, according to Huachang Securities. Zhang Jixue, founder of trendy media, has said he will invest 10 billion in the next five years to break the industry monopoly and reduce industry profits to 15 percent to 25 percent.
Some of the new media advertising cases
In the face of the aggression of the trendy media, focus began a large-scale expansion in 2018. Since the second quarter of 2018, focus began to seize elevator media resources, self-owned elevator media and self-owned poster media growth of 134 percent and 60 percent, respectively. The price paid was a slowdown in revenue growth and a decline in profits in 2018.
In the first quarter of 2019, both focus revenue and net profit fell from the same period last year, of which revenue was 2.611 billion yuan in the first quarter, down 11.78 percent from the same period last year, and net profit was 340 million yuan, down 41.81 percent from the same period last year. Shares fell 6.97% the next day.
Compared with Luckin Coffee, Guazi, Kuaishou, Meituan, Douyin, Ctrip and other companies in 2018, the speed of Internet companies has slowed down significantly since 2019. "it feels like it's stopped in the elevator this year." The above Guangchi Media Business Manager said.
At the same time, last year's all the way to the market boom, but also this year pressed the pause button. Those that echo the listing of advertising, has also slowed down. These factors more or less affect the focus of the financial data.
Despite the challenges, the focus elevator screen has never stopped. Old brands step down, new brands rise, a group of companies in the wave of innovation economy, in the process of moving from weak to strong, in the gap that has not yet been killed by competitors, will face the choice of how to market. And in the building elevator track, Jiang Nanchun lived in the rear steadily, witnessed a new round of fighting, completed a new round of harvest.
At the request of the interviewees, Wang Jia and Liu Xia were pseudonyms.