If there is something in life that is common and hated, then advertising will definitely be able to make the list, or even to the top of the list. However, in this era of a variety of goods, advertising has become a marketing means that various merchants cannot leave, and many companies have also made a lot of money, such as ByteDance, the parent company of Douyin, through the advertising business, in the past 2021, reaching an average daily revenue of 1 billion.
Of course, if you want to pick out one of the most annoying categories in the advertisement, then it is the elevator advertisement, if it is an advertising display with a speaker, then for commuters, the daily repeated advertising is definitely a torture, of course, these tortures will eventually become the income of the advertising company.
For example, Focus Media, which is the first stock of elevator advertising, has a revenue of more than 12 billion yuan in a year, a net profit of 4.004 billion yuan, and a net profit margin of more than 33%. Year-on-year, Cao Dewang called the "earn dead" water sales industry, taking Nongfu Spring as an example, its annual operating profit margin is only more than 30%, so it seems that elevator advertising is more profitable than selling water.
The third year became the general manager and became the first in Shanghai
Every company has a soul founder, such as Li Shufu of Geely, Lei Jun of Xiaomi, Ma Yun of Alibaba, etc., and here in Focus Media, this person's name is called Jiang Nanchun, a man whose name is only one word away from Jian Nanchun, who has been in contact with the advertising business since his sophomore year, so the advertising industry can be said to be the beginning of his career.
In 1994, when Jiang Nanchun was still in his junior year and his classmates were still looking for internship opportunities, he was already qualified to talk about cooperation with Hong Kong Yongyi Group and established Shanghai Yongyi Communication together, serving as the general manager of the company. In 1998, Yongyi Communications even won nearly 95% of Shanghai's advertising business, becoming a veritable first in Shanghai. After seven years of yongyi communication work, Jiangnanchun has achieved the company's performance of 150 million yuan.
But at this time, he saw that the competition in the traditional media industry gradually became cruel, in addition, in Yongyi Communication, he is just a general manager, no matter how good it is, it is only to make a wedding dress for others, although later because of the change of equity, Jiang Nanchun has been a leader of Yongyi Communication, but after deliberation, he still decided to stand on his own portal, and since then he has founded Focus Media, and has targeted building LCD advertising, especially elevator advertising.
Half a year burned out 20 million funds, backed by SoftBank layout of 45 cities across the country
However, the road to re-entrepreneurship is not smooth, elevator LCD advertising this category, in the country can be said to be Focused Media single-handedly made, as a pioneer in the industry, the investment to be made is naturally huge, such as the elevator and the LCD screen in the elevator, but are installed by Focus Media itself, and Focus Media's initial goal is the office building in Shanghai, this cost is not small, and When Jiangnan Chun spreads from Yongyi, the funds are only 20 million yuan.
In addition to the huge investment, as a new advertising category, because of the difficulty of the early business development, it has not brought too much performance to Focus Media. In just half a year, Jiangnanchun's funds have almost bottomed out. Fortunately, SoftBank Capital has been looking for promising companies in China in those years, and SoftBank China is not far from Focus Media, so SoftBank has become the first financier of Focus Media.
It is said that the investment was achieved because Jiang Nanchun talked to the head of SoftBank China in the bathroom about the business, such a story is like Sun Zhengyi met Ma Yun for six minutes and decided to invest 40 million US dollars. However, Focus Media, which received the investment, relied on this fund to arrange 37,500 LCD screens in 20,000 office buildings and residential buildings in 45 cities in China, which is equivalent to running a staking ground in the field of elevator advertising.
The annual income is 12 billion, and the net profit margin of 33% is more profitable than selling water
After occupying the market first-mover advantage, Focus Media's development has been smoother, and it has been listed on the NASDAQ in 2005, becoming the first advertising stock listed on the NASDAQ in China and being selected for the NASDAQ 100 Index. However, as we all know, the most annoying thing about the Chinese stocks in the US stock market is a company called Muddy Water, and various short research reports are always exhausting, so in 2012, after being shorted by Muddy Water, Jiang Nanchun angrily privatized the company, and the valuation of the privatization Focus Media reached $3.66 billion.
Then, at the end of 2015, Focus Media returned to A-share backdoor listing, and its market value once climbed to a high point of 190.3 billion yuan, surpassing Liu Qiangdong with a value of nearly 50 billion yuan that year and becoming the ninth richest man in the Chinese mainland. As mentioned above, as a leading enterprise in elevator advertising, Focus Media has an annual revenue of 12.097 billion yuan in 2020, but its net profit has reached 4.004 billion yuan, and the net profit margin is as high as 33%.
According to its financial report for the third quarter of 2021, in the first three quarters of last year, Focus Media has obtained a net profit of 4.423 billion yuan with revenue of 1.148 billion yuan, and the net profit margin is already on the next level. If elevator advertising in the early years can make people pay attention to the boring elevator time, then in this era of habit of looking down at mobile phones, elevator advertising has become a new noise, so it seems that Focus Media may be the most hated company for office workers.