A year after launching an advertising agency for print and online media, Aswen disclosed its finances for the first time. From November 2009 to November 2010, Aswen's advertising business turnover reached 30 million yuan, but its profit was only 300,000 yuan, with a profit margin of just 1 percent. Industry insiders pointed out that Asahi's entry into online advertising, print advertising, newspaper advertising and other fields is its strategic behavior to maintain media relations and customer relations, but such a fierce price war into the advertising market, is bound to affect the future market pattern.
According to authoritative statistics, print media advertising and online advertising in China has reached nearly 100 billion market scale this year. Print media advertising grew 13.2 per cent, the highest in nearly five years. At the same time, the Internet as a new mainstream media, its marketing value is more and more attention by businesses, so the network advertising is growing rapidly.
As the first publishing company in China, Chaowen initially seized the public relations market with its price advantage. According to the fee model of the traditional public relations industry, an article in print media may cost 7,000 yuan or even tens of thousands of yuan, but only 3,000 yuan for Asomitong, and only 4,000 yuan for 25 online media. And this way of clearly marking prices also makes customers very reassured. As a result, it has acquired thousands of customers in just five years. By taking advantage of the price war, Asnewscom has nibbled the market share of many small and medium-sized public relations companies, and its current turnover has reached hundreds of millions of yuan, which is a huge impact on the traditional public relations industry.
Due to the large volume of articles, Zhaomun has established long-term cooperative relations with more than 6,000 domestic print media and more than 8,000 websites. In the process of communicating with these media, many media also promote their advertising business to Aswen. For the news channel, to win the media advertising business, can better maintain media relations. So for the news, to enter the advertising business, basically belongs to the "cuddy grass to fight the rabbit" - by the way.
Asnewscom sees media advertising more as a way of maintaining its main business than as a way of making profits. As a result, the media can give as much discount advertising, Asahi to customers at the original price. Asomitong charges a paltry return fee. Therefore, the advertising price of Asahi is lower than that of many professional advertising agencies.
If traditional PR firms still have some strategic advantage in PR publishing, then advertising is a naked price war. Whoever gets the lower discount can save more cost for the customer; Who has more media advertising resources, who can integrate more advantageous resources for customers. The scale advantage Asahi gained from the price war is beginning to show. At present, the company has more than 100 advertisers, most of whom are also using the company's publishing business. And has established a close cooperative relationship with the news channel.
Therefore, in essence, AsNewscom's entry into the media advertising market is a strategic behavior, whose purpose is mainly to maintain media relations and enhance customer stickiness. And for advertising companies such as good Yeah, this way belongs to the "desperate" price war. To add to rivals' fears, Asahi can always "raise prices" and make advertising its main profit as it increases its "scale advantage" in terms of customer and media resources. At that point, the media advertising market could be reshuffled.
