BEIJING, May 9 /Xinhua-PRNewswire-FirstCall/ -- XFMedia , a leading media group in China, announced that it has signed a 3-year contract with a major China auto advertiser for promotion on radio channels in China's three top cities.
Under the contract, the automobile advertiser will take up sectional advertising minutes on Shanghai's EasyFM 87.9, Beijing's EasyFM 91.5, and Guangdong's traffic radio FM107.7.
Beijing and Shanghai EasyFM are China's only bilingual radio channels targeting audience with higher education and income levels. Guangdong Radio FM107.7 is primarily a drive-time radio format aimed at high-income private vehicle owners aged 25 to 48.
"Our effective integration as a media platform is the major reason we won this contract," said XFMedia CEO Ms Fredy Bush. "We can provide radio assets in all three major markets where auto sales are significant and growing."
"XFMedia provides advertisers with unique access to China's upwardly mobile demographic, and this deal is a good example of that," Ms Bush added. "Radio is the primary entertainment during drive time and we are very pleased to be able to provide advertisers with the appropriate media channel to reach out to their target audience."
According to the National Bureau of Statistics, China has become the second largest new car market since 2006, next to the US. China's car ownership at the end of 2007 rose to 56.97 million vehicles, an increase of 14.3% over the previous year, of which 35.34 million were private cars, up 20.8%.
"The potential for growth in the China's auto industry is significant, and we are focused on building a strong position in the market," said Ms Bush. "There are currently only 30 cars for every 1,000 people in China, far behind the world's average of 120 cars per 1,000. That is why auto companies are expanding their advertising expenditure so rapidly."
Ms Bush said the radio business is one of the key focus areas of XFMedia since over 90% of China's advertising dollars go to TV, radio and print. For fiscal year 2007, the radio business contributed 4.1% of XFMedia's total revenue, of which around 50% came from Guangdong radio advertising.
XFMedia successfully planned and organized China's Best Car Award 2007 in late March, strengthening its position in the auto industry. The awards ceremony, held at the Four Seasons Club in Beijing on March 29, recognized the top brands and models in the China market.
XFMedia announced earlier this year that membership of its Traffic Radio Channel Car Owners Loyalty Club in Guangdong had grown to 80,000 within the past year. The loyalty club was established to promote Guangdong Radio FM107.7 and to provide advertisers with more direct access to their target audience. The club approach is very effective in China in terms of building consumer loyalty for advertiser's products and services while increasing revenues for consumer club operators like XFMedia.
About Xinhua Finance Media
Xinhua Finance Media ("XFMedia"; NASDAQ: XFML) is a leading media group in China with nationwide access to the upwardly mobile demographic. Through its five synergistic business groups, Advertising, Broadcast, Print, Production and Research, XFMedia offers a total solution empowering clients at every stage of the media process and connecting them with their target audience. Its unique platform covers a wide range of media assets, including television, radio, newspaper, magazine, outdoor, online and other media assets.
Headquartered in Beijing, the company has offices and affiliates in major cities of China including Beijing, Shanghai, Guangzhou, Shenzhen and Hong Kong. For more information, please visit http://www.xinhuafinancemedia.com/ .
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, quotations from management in this announcement contain forward-looking statements. Statements that are not historical facts, including statements about XFMedia's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those contained in any forward-looking statements. Potential risks and uncertainties include, but are not limited to, risks outlined in XFMedia's filings with the U.S. Securities and Exchange Commission, including its registration statement on Form F-1. All information provided in this press release is as of the date hereof, and XFMedia undertakes no duty to update such information, except as required under applicable law.
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