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Founded in 2003, Focus Media is China's largest Digital Media Group in China. Based on an audience-centric approach, Focus Media provides a broad portfolio of media advertising platforms, including our Commercial Location Network, In-store Network, Poster Frame Network, mobile handset advertising network (through Focus Media Wireless) and Outdoor LED Network. Each of these media platforms covers specific demographics of higher-than-average-income urban consumers at various out-of-home media interaction points, from office lift lobbies to entertainment and social venues, shopping districts, mobile phones and residential complexes.
We have established our commercial location network by installing flat-panel LCD television displays in high-traffic areas, such as elevator bank of commercial office buildings to target business professionals with higher-than-average income. As of December 31, 2007, our commercial location network has grown to six unique advertising channels, including our Premier Office Building Channel A, Premier Office Building Channel B, Elite Channel, Fashion Channel, Travel Channel and Healthcare Channel, with a total installed base of approximately 112,000 flat-panel displays reaching higher-than-average-income individuals in over 90 cities in China. We have successfully attracted over 3,000 leading domestic and international brands, including Nokia, Toyota, P&G, China Telecom, and Motorola, as customers to advertise on our network.
We established our in-store network in April 2005. Our in-store network targets shoppers at the point-of-purchase through flat-panel displays at prominent locations in hypermarkets, supermarkets and convenience stores, such as on the product shelves at eye-level. As of December 31, 2007, our in-store network has approximately 50,000 flat panel displays installed in approximately 4,000 hypermarket and store locations in China.
In October 2005, Focus Media acquired Framedia, which operates the largest in-elevator poster frame advertising network in China and provides brand advertisers and community service providers a direct channel to target urban residential communities. As of December 31, 2007, our poster frame network has over 190,000 advertising poster/digital frames installed in cities throughout China.
In March 2006, Focus Media acquired Dotad Media Holding Limited ("Dotad"), a leading mobile handset advertising service provider in China. Upon the completion of the acquisition, Dotad was renamed Focus Media Wireless.
In May 2006, Focus Media launched its outdoor LED advertising network. By the end of December 31, 2007, our outdoor LED network has over 200 outdoor LED displays in Shanghai.
In July 2006, Focus Media entered into a share purchase agreement to purchase 70% of the equity interest in ACL, which leases screen time prior to the screening of each movie shown from movie theaters in cities in China, and then sells those time slots to advertisers. ACL's network is then renamed as Focus Media's "movie theatre network" Our movie theatre network currently covers over 120 movie theatres throughout China, which is expected to represent approximately 85% of the theatre ticket revenue in China.
In February 2007, Focus Media acquired Allyes Information Technology Company Limited, the largest internet advertising service company in China, entering China's growing Internet advertising market.
In December 2007, Focus Media acquired CGEN Digital Media Company Limited, a leading operator of an in-store digital advertising network in China. This transaction would expand Focus Media’s existing coverage of its digital advertising displays in large chain stores in China. |
| | | Independent Accountant | Deloitte & Touche
30/F Bund Center
222 Yan An Road East
Shanghai, 200002
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| | Legal Counsel | Simpson Thacher & Bartlett LLP
ICBC Tower, 7th, Floor
3 Garden Road
HongKong,
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| | Transfer Agent | Dexia Corporate Services Hong Kong Ltd.
51/F Central Plaza
18 Harbour Road
Wanchai
Hong Kong,
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