Li Limin: How Can A Layman Do A Good Job In Vision China?

After deciding to take the mobile TV media as his two venture, Li Limin began to use his appeal and incitement: Liu Haijun, the chief development officer of the initial entrepreneurial team, spent the whole morning with him in one night, and flew to Jilin two days later to expand the market. Chief strategist Chen Xiaowei worked in real estate, consulting, wireless communications and many other industries. He was impressed by his vision and was willing to be the general manager of the first pilot company in Chengdu; and the first CFO Liu Dan was just having lunch with him. Less than a week later, the Baidu IPO auditor and Ernst Young's young female partner flew to Shenzhen with his family.

At this time, Li Limin has made a name for himself in the real estate sector by virtue of the "Champs Elysees garden" project, but he knows little about advertising.

The layman and several of the same half of the gang started the Vision China Group Co., Ltd. (Vision China) in April 2005, and landed on the NASDAQ after two and a half years. In 2008, the financial crisis was rampant in 2008, and then the old rival digital media group (hereinafter referred to as "DMG") was bought in 2009.

After the "myth of splitting up", Vision China has achieved another legend in the industry.

In Li Limin's view, Jiang Nan Chun, the founder of Focus Media, who founded the market of outdoor TV media, is a business minded advertiser, and he is an advertising businessman with a commercial eye.

Integrating radio and television resources

Li Limin's idea of entering the advertising circle is very clear. To make new media, new things must be made.

At this time, Focus Media is listed on Nasdaq, and experience tells him that he must never go on and seek another opportunity.

Focus Media excavated the original "impossible" media resources of the building, and Li Limin aimed at a wider audience.

CTR, a market information and research institution, shows that in the first tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen, there are 300 days in a year, and the average distance is 33~91 minutes.

Li Limin concluded that the bus and subway will be gold mines.

But if there is a continuous bombing campaign in dozens of minutes, enough to annoy any passenger, people will be able to receive ads after the content is inserted.

At this time, the "11th Five-Year plan" was put forward to speed up the digitalization of wired networks and build a digital TV network which basically covers the whole country.

This made Li Limin very excited.

The 20 year old businessman has excellent commercial sense and has long been accustomed to adjusting policies.

If Vision China can cooperate with the state's Radio and television systems in content cooperation, it will have obvious advantages: TV programs are well produced, updated every day, enough to attract the attention of passengers and enhance the advertising value; most importantly, the state requires separation of production and broadcasting, and the broadcasting system is the main broadcasters and censors. Only enough "safe" content under the leadership of radio and television can make Vision China calm down to specialize in advertising business.

At this time, Towona and bus online companies have entered the field of traffic and media. They use DVD hard disk prerecorded, CF card system or network fixed point download technology to play fixed content. Besides Beijing and Shanghai, although they already own mobile TV operators, they have limited scope.

Li Limin immediately decided to cooperate with the broadcasting and television system.

Vision China has put forward that TV stations are based on the broadcast of cable TV in their homes, and they are using the technology of radio and television broadcasting to move the TV to the bus and subway, which can form the recycling of resources, and can also bring an income to the broadcasting and television system.

The concern of the broadcasting and television system is whether it can always be in the leading position, so as to ensure the uniformity of the publicity caliber, and whether the Vision China can bear the risk of "pilot".

After weighing, Li Limin put forward two ways of cooperation: joint venture with radio and television systems in all parts, holding the right to the other side's TV station, the TV station chairman as chairman, providing the resource allocation and examination broadcast of the program; the Vision China sends out the general manager and is responsible for investment and camp; the Mobile Broadcasting Corporation already has the right to operate the 5~15 year management to Vision China.

At the other end of this model is the cooperation with the public pport system and the subway system. The agency cost of some scarce resources is very high.

In March 2009, DMG won the Shanghai 1~13 line platform and carriage for the next 5 years, and the cost of TV advertising management was 700 million yuan, after which the investment was estimated at around 500 million yuan.

"It's normal to give more when getting started.

For advertising operators, if you want to gain more explosive power, you must bend your knees to get a rebound.

After opening the chain, in August 2005, the Vision China's first choice chose Chengdu, and the cooperation with radio and television began to make profits after six months, and the form of "content + advertising" was quickly accepted by advertisers.

Since then, Vision China has begun to run horses, and now it has entered 29 cities, covering 130 thousand bus TV terminals and 34 thousand subway TV terminals.

Marketing with the help of "big things"

In the "Vision China mode", Li Limin's pride lies in the construction of content, and the advertising value will naturally increase as long as he shows the audience's favorite programs.

The joint venture between Vision China and radio and television will edit the program to the essence of 3~5 minutes every day, and hand it in with the advertisement.

These contents include news, financial investment, life health, entertainment and so on, so that all audiences can have appropriate viewing section.

In addition, it will also take care of the needs of different cities: for example, the programmes in Chengdu are relatively casual, while in Shenzhen, some inspirational subjects will be shown, plus public service advertisements and soft advertising short plays.

"People are used to watching the world in the morning. If they are on the way to work, they will get used to seeing the first stock information before opening the screen in China."

For the broadcast and television system of territorialization management, the Vision China connects the bus and subway system screens in different places, which is a greater temptation for advertisers.

Like KFC, the exclusive agent of China's public pport television media is handed over to Vision China in the whole year, and audiences can see advertisements in the early morning.

At present, Vision China's 70% revenue comes from multinational customers such as Amway, cleaning, Unilever, L'OREAL, etc. Pepsi has signed a three year advertising contract with Vision China.

While in the main sales of fast selling products, people can even see movies and activities on the screen, even "I love to memorize lyrics", "Zhi Yong Da Chong Guan" and so on.

This content advantage is most vividly reflected during major events.

In 2008, in the southern snowstorm and the Wenchuan earthquake, bus and subway TV became the first platform to release official information.

During the post Olympic Games in Beijing, the mobile TV in public pport became the second largest media in the Beijing area after the traditional TV. When the Chinese team participated in the competition, the subway passengers would even take a few more stops to see the result of the competition.

Li Limin's next major event focuses on World Expo, Shanghai.

The 5 month long event will host 70 million overseas business leaders and business leaders from 200 countries and regions.

He disclosed that there had been a one-time advertising of 120 million yuan in Vision China by car manufacturers.

At the same time, the censorship of screens in public places has reached an unprecedented level. In the past, new media operators using plug-in cards had been affected, and even had to accept the fate of being requisitioned during the major events or playing only fixed content.

No one was willing to play the slogan of "city changing life" only in 5 months, and the cooperation with TV station made Li Limin one of the few carefree people.

The greater the number of events, the more easily the advantages of Vision China will emerge. The real-time performance of mobile TV can integrate social value and commercial value.

IPO accelerated mergers and acquisitions

From the "supermarket myth", from the supermarket to the campus, the hospital, from taxis to golf courses, there are endless new media in various subdivision fields.

According to the statistics of Qing Ke group, from 2005 to early 2008, there were nearly 30 outdoor media companies, with financing amounting to US $more than 600 million, but most of them encountered bottlenecks or even aborted.

Li Limin believes that the ups and downs of the new media industry are related to the shape, technology and policies of those media.

His identity with China as a media is very clear. "We are the complement of traditional television, that is, we move the programs of the day to the evening and move the contents of the family to the public pport subway.

But we can't take the place of traditional media. "

When the Vision China was first established, Li Limin's goal was to go public for 3 years. His reason was that he would be the leader of the industry only if he tried to go to the market, and if the new business mode had no support from the capital market, it would be difficult to rise suddenly.

In order to let the company have the "listing", Li Limin invited DDT to audit every year to strictly manage the listed companies.

Now, looking back, people who were skeptical had to admit the astonishing speed of Vision China.

In December 2007, investors on the eve of the crisis began selling and cash in. A dozen companies who were also planning to land on NASDAQ were in a dilemma. Li Limin had no choice but to wait.

At that time, investment company SIG gave the evaluation that Vision China had the ability to resist crisis and maintain "bullish".

After raising funds, the Vision China decided to spend money on the knife edge. The acquisition of DMG. Li Limin chose Chen Lianyi as the new CFO from 37 candidates in the world, and the merger and acquisition master who had worked in famous financial institutions such as PWC, DDT, Lehman brothers and so on. He also experienced the integration of the masses and the crowd, and also experienced Lehman's downfall. This is exactly what Li Limin sees.

He has been immersed in real estate, catering, Chinese medicine and other industries for many years. He is accustomed to billions of real estate projects. He is calm and calm when he listings. He is one of the few "not so excited" owners in the market.

The acquisition of DMG was completed in early 2010.

DMG, which was founded in 2002, has gone through 4 financing. The total amount is about 70 million US dollars. It has resources covering 7 cities and 27 subway lines. It also owns the exclusive advertising operation right of Hongkong metro line. This is a scarce resource for Vision China, which is successfully covered in the bus network in a short time.

In the first half of 2009, Vision China accounted for 50.7% of the total mobile TV market, but there is still doubt about whether it can continue to expand its advantages.

The industry's second bus has become a partner with CCTV international. The third Towona has adopted a similar mode with Vision China in more than 30 cities, and cooperated with local TV stations.

Li Limin said, "in the next 10 years, the whole country will increase more than 170 subway lines, the territory is bigger and bigger, Vision China has many successful cases, it will increase the share of the subway."