Charm Announces Strategic Breakthrough into Provincial TV Advertising
BEIJING, Nov. 30, 2010 /PRNewswire-Asia-FirstCall/ — Charm Communications Inc. (Nasdaq: CHRM) (“Charm” or the “Company”), a leading advertising agency in China, today announced that through Shangxing Media, its principal media business unit, the Company has signed a three-year exclusive agency agreement with Hubei Provincial Economic TV for the period covering 2011 to 2013. This cooperation with Hubei Provincial Economic TV signifies a strategic breakthrough into China’s provincial and local television advertising market, which according to independent market research firm CTR, comprised 33% of the total television advertising market in China in 2009.
Hubei Provincial Economic TV is one of the top three terrestrial channels in terms of both coverage and ratings in Hubei province. It is the top rated channel in Hubei’s provincial capital Wuhan and provides an influential marketing platform covering China’s central region.
Hubei province is located in central China and has a population of over 60 million.
Commenting on the announcement, Mr. He Dang, founder, chairman and CEO of Charm said, “We are delighted to enter into this partnership with Hubei Provincial Economic TV, which allows us to further expand our current client base into China’s central region. Charm has already established a definitive leadership position in key television advertising segments on CCTV and provincial satellite channels, and we see this long-term agreement as a strategic breakthrough into China’s provincial and local television advertising market.”
China’s television industry is divided primarily into two types of channels, national and local. CCTV and provincial satellite channels are broadcasted nationally while provincial and city channels are broadcasted terrestrially only in their specific province or city. From a marketing strategy perspective, CCTV allows advertisers to build their national brand and reputation due to its large viewer base and influence. Provincial satellite channels with similar national coverage are increasingly used by advertisers to promote brand image and product awareness. As international and domestic advertisers are expanding sales into China’s tier 2 and 3 cities, they are increasingly looking to provincial and local channels to drive sales through embedded product promotions.
Charm Communications Inc. (NASDAQ: CHRM) is a leading advertising agency in China. Charm operates its business under three brands: Charm Advertising, Charm Interactive, and Shangxing Media. Under the Charm Advertising and Charm Interactive brands, Charm offers integrated advertising agency services from planning and managing advertising campaigns to creating and placing advertisements. Under the Shangxing Media brand, Charm has established a portfolio of television advertising media resources through its exclusive arrangements with premium national television channels, which include not only advertising time but also opportunities for placing branded content. Charm’s clients include well-recognized brand names in China across many industries, as well as emerging domestic leading brands. In January 2010, Charm formed a joint venture with international 4A advertising group Aegis Media, its strategic investor, to operate its brand “Vizeum” in China. In October 2010, Charm also formed a joint venture with Wasu Digital Group to operate all advertising-related businesses across Wasu’s IPTV, 3G mobile TV and broadband TV network platforms. For more information please go to http://ir.charmgroup.cn.
For investor and media inquiries, please contact: Cindy Wang IR Department Charm Communications Inc. Phone: +86-10-6581-3885 Email: email@example.com
SOURCE Charm Communications Inc.