Overview of China's airport advertising industry
First, the process of industrial development
The development of the domestic airport advertising industry is a microcosm of the development of China's advertising industry since the reform and opening up. In the late 70s and early 80s, only a few airports such as Beijing Capital, Shanghai Hongqiao, and Guangzhou Baiyun appeared advertisements, and the scale and number were limited. In the late 80s and 90s, the airport advertising industry has made great progress.
Second, the market business model
The airport advertising groups are mainly real estate, automobile, finance, communications, automobile and other industries, and most of them are large-scale advertisers across the country, supplemented by regional and local large and medium-sized enterprises. In addition to passengers, the airport advertising audience also includes airport pick-up and drop-off personnel, airport and staff of various on-site units, and the actual arrival crowd of advertisements is about 159 times.
Airport advertising is usually run by an advertising department or advertising agency set up at the airport. There are various ways of advertising operation, and from the perspective of domestic practice, there are generally five models.
Click here to view the analysis of the "2022-2027 China Airport Commercial Industry In-depth Research and Development** Report".
Mode 1: Set up an advertising department and operate first.
Its main features: (1) The airport (group) does not set up an advertising company, and the advertising business is responsible for the advertising department of the business department;(2) All business is tendered or negotiated to each ** company, and then operated by each ** company.
At present, the airports in practice are: Qingdao, Sanya, Jinan, etc.
The advantage of this model is that through bidding and negotiation, the principle of "the highest price wins", in order to obtain the airport advertising right in the most favorable wayThe disadvantages are that the company's acquisition cost is too high, which can easily lead to business difficulties, and the overall operational risk is large, and the multi-party mixed operation is easy to destroy the integrity of the airport's advertising release.
Model 2: Establish an advertising department and contract management.
Its main features: (1) The airport (group) does not set up an advertising company, and the advertising business is responsible for the advertising department of the business department;(2) The advertising business is contracted to a powerful ** company for overall operation through bidding or negotiation.
At present, the airports in practice are: Wenzhou Airport Advertising is contracted to Hangmei Media as a whole, Hangzhou Airport Advertising is contracted to Yashiray Media, etc.
On the one hand, this model is conducive to the overall planning of the airport, and on the other hand, it adheres to the professional people to do professional things, so that the airport can shift from practical experience to supervision and managementThe disadvantage is that it is difficult to assess the value of airport advertising itself, and it is difficult to reasonably design airport concession fees, resulting in the potential loss of airport interests.
Mode 3: Establish an advertising company and operate on its own.
Its main features: the airport set up an advertising company to specialize in the operation of ** resources.
At present, the airports in practice are: Western Airport Group (member airports: Xianyang, Yinchuan, Xining, Yulin, etc.), Sichuan Airport Group (member airports: Chengdu, Dazhou, etc.).
The advantage of this model is that the airport operates advertising resources independently, which can form an overall and orderly plan for the airport's advertising resources, have direct service opportunities for customers, and generate a variety of revenues such as design and production**. The disadvantage is that the professional ability of advertising companies is weak and they are limited by institutional constraints, which restricts them from becoming stronger after they become bigger.
Mode 4: Linkage of similar resources, establishment of joint ventures, and cooperative operation.
Its main features: a joint venture company is established with the advertising company of the Capital Airport Group, and all the joint venture airports are operated, and the advertising company of the Capital Airport Group shares its resources and manages the output, and the revenue is shared proportionally.
Cooperation model: The joint venture company jointly operates the airport advertising business, with both parties contributing 50% of the investment. The airport is stationed in the general manager, and the capital airport is stationed in the chairman and financial manager. The contract period is 10 years, and all the revenue in the first three years belongs to the airport owned by the resource, and the income in the second seven years is divided into 55.
At present, the airports in practice are: Dalian Airport - Capital Airport Group, Changsha Airport - Capital Airport Group, Shanxi Airport Group - Capital Airport Group.
One of the advantages of this model is to give full play to the scale effect, form the first linkage, and create a national first release platformSecond, with the help of the professional management output of the advertising company of the Capital Airport, the overall capacity of the cooperative airport will be improved. The disadvantage is that relying on strong development, the airport has weakened its control over the advertising of the joint venture airport.
Click here to view the analysis of the "2022-2027 China Airport Commercial Industry In-depth Research and Development** Report".
Model 5: Introduce private capital, establish a joint venture company, and operate cooperatively.
Its main features: a joint venture with a private advertising company with operating advantages in the civil aviation advertising industry, joining the advertising and marketing network of private capital in the country, accepting advanced management concepts, and distributing dividends in proportion to revenue.
Cooperation mode: Method 1: The airport does not charge the resource use fee of the joint venture company with the right to use resources and part of the cash contribution, and only participates in dividends. Method 2: The joint venture company pays the franchise fee every year (whichever is higher, the specified percentage of revenue and the fixed resource use fee), and the rest of the dividends are distributed according to the equity ratio.
At present, the airports in practice are: Yunnan Airport Group, Fujian Airport Group and Asiaray Media, Shanghai Airport and JCCO.
The advantages of this model, first, join the overall network of private advertising companies, the formation of vertical market (national airport network) and horizontal market (regional advertising market, such as airport + subway + urban area in a certain area) full coverage, through the first linkage, customer sharing, to maximize the value;2. The revenue sharing model ensures that the airport can enjoy excess commissions on the basis of basic income and maximize shareholder value3. The introduction of market-oriented decision-making, management and operation mechanisms will help airport advertising companies achieve stable and sustainable development. The disadvantage is that the ability of airports to make independent decisions on airport advertising has been weakened.
With the gradual deepening of the understanding of the scarcity of airport advertising, more airports tend to look for excellent partners to operate joint ventures, which is not only in line with the role positioning of managed airports, but also takes into account the maximization of value and shareholder benefits. The first step in taking a joint venture is a change in the mindset of airport managers.
3. Driven by the Internet
In the context of the "Internet +" era, airport display advertising has a new development direction, which makes its advertising methods and content change with each passing day. While traditional outdoor advertising still has a place, the emerging airport display advertising will play an important role in the future. This is because the new ** advertising can enhance the advertising effect and achieve the rapid development of the advertising industry. Therefore, it is necessary to follow the development trend of airport display advertising and optimize display advertising to make it play the best delivery effect and bring the greatest economic benefits to brand owners.
4. Advertising at hub airports
With the enhancement of the country's comprehensive strength, China has paid more and more attention to the development of the civil aviation industry, and has invested a lot of money in the construction and renovation of airports. Since the reform, Changsha Huanghua Airport, Nanjing Lukou Airport, Guizhou Longdongbao Airport, Zhengzhou Xinzheng Airport, Hohhot Baita International Airport and other large airport hubs have been built one after another.
Fifth, the development trend analysis
The value of airport advertising inventory is relatively high compared to others**, so more and more companies choose to run airport advertising, because chasing high profits is one of the ultimate goals of enterprises. The ultimate goal of the same brand in fair, open, competitive advertising is to help airport traffic, high-impact and high-value advertising resources to gain an advantage in exchange for brand perception among viewers.
In the future, airport advertising will continue to develop in the direction of digitalization and networking, while playing a role in advertising culture publicity and education, it will improve the convenience and comfort of passengers waiting at the airport, leave passengers with a better travel experience, and realize the maximization of China's advertising network communication efficiency and environmental resource utilization value. AI assistant creation season
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