① Today, the news that “Meituan wants to enter the elevator advertising market” is rapidly fermenting in the secondary market. Affected by this, Fanzhong Media closed down 4.65%; ② According to reports, Meituan plans to recruit elevator media advertising franchisees (video elevator media) in the sinking city; ③ analysts say that elevator media is an effective way for local lifestyle businesses to reach surrounding customer groups. Cooperation between Meituan and Fanzhong Media will also help the latter expand the market in non-Tier 1 and 2 cities.
Financial Services Association, July 11 (Reporter Cui Ming) Today, news that “Meituan wants to enter the elevator advertising market” quickly fermented in the secondary market.
Regarding the impact of Meituan's entry into the elevator media market, Fanzhong Media (002027.SZ) replied on Interactive Easy tonight that the company and Meituan are working together to promote elevator video media operation cooperation in low-tier cities, hoping to use the advantages of both parties to provide more comprehensive and high-quality services to small and medium-sized enterprises in the sinking market.
According to news released on the WeChat account of “Meituan Takeout Partner City” this morning, Meituan is currently planning to recruit elevator media advertising franchisees (video elevator media) in the sinking city. The Meituan side will provide equipment and business support; the franchisee side will be responsible for matters such as equipment installation, sales, and advertising production.
Meituan also listed qualification requirements for franchisees. First, they are currently engaged in offline advertising business, with at least 2 years of experience; second, they have community/business district property resources, advertising sales, advertising sales experience, etc. in any sinking city in the country to quickly expand the elevator media business; third, they have sufficient start-up capital and company strength, and are willing to set up more than 500 video platforms in a single city.
At the same time as posting the news, Meituan collected information on interested franchisees through a questionnaire, including personal data and relevant advertising experience, and how much money they are willing to invest. A CIFA reporter noticed that the questionnaire has now been hidden.
It may have been affected by this. The stock price of the leading edge media of Ladder Media once fell by nearly 7% in the intraday market today, down 4.65% by the end of the day.
An agency source told the Financial Federation reporter that Meituan is focusing on the sinking market this time, and there is a big gap between the point value and revenue generation capacity of the sinking market and the Tier 1 and 2 markets. Over a long period of time, FanZhong Media has accumulated rich and high-quality point resources in the Tier 1 and 2 markets. The first-mover advantage and competitive barriers are obvious in the Ladder Media market. Meituan's entry had limited impact on the fundamentals of mass media.
Another market analyst said that Ladder Media is an effective way for local lifestyle businesses to reach out to surrounding customers. Cooperation between Meituan and FanZhong Media also helps the latter expand markets in non-Tier 1 and 2 cities.
According to the financial report of Focus Media, in the first quarter of this year, the company achieved revenue of 2.73 billion yuan, a year-on-year increase of 6.02%; net profit to mother was 1.04 billion yuan, an increase of 10.5% over the previous year. As of March 31, 2024, the company's total number of elevator media in Tier 1 and 2 cities was 2.18 million, accounting for 89% of the number of domestic self-operated media.
It is worth noting that since last year, a large number of advertisers have expanded the third-tier and fourth-tier market, causing advertising budgets to gradually sink, and there is an increasing trend in the number of locations in third-tier cities and below.
(Source: Focus Media's 2023 Annual Report)