Replies to post #10520 on China MediaExpress Holdings, Inc. (fka CCME)

[martych]

The wirless hub at the originating bus station is what I believe they disclosed and that makes the most sense. I would argue that if the went to your option #1 it would be in sync with putting screens in seats which they said may happen some day. Seems like an idea for a few years from now. At that point they could do PPV and numerous other pd services to help pay for it, but seems hard to be believe that could happen in the next couple years.

Do you know how many bus stations there are in the CCME network? If it's more like the old US system they would likely have one per originating city. I used the 65 in my model but it was a SWAG as I don't know how many cities/locations are have embarking passengers.

[justin s]

Privately I have been quite outspoken in regards to what I believe is CCME's greatest weakness - automation through a centralized ad platform. Fernando can attest to my concern and thinking in this regard for some time now. I come from the advertising space. I have been building ad platforms for a decade. My last company was acquired by a public company for its strategic value as an ad delivery platform. As a significant shareholder in CCME, I am deeply concerned and at the same time, optimistic about the opportunity to acquire an ad platform . The dialogue today has been centered around updating of content. What I would strongly suggest is the updating part is only just the start. What we are talking about is campaign creative, targeting, delivery, tracking, and reporting. In the West, these conditions are requisites. In China, it is still merely about reach which is not defensible mid-term. Last year, when I was in China, I spent an evening with an advertising executive in Shanghai. He was maybe 35, born, raised, and educated in the States. His company's clients were all Western. His niche, luxury advertising. Coach and other luxury brands couldn't throw enough money at the Chinese consumer and him - a firm on the ground to do a little market and consumer segmentation and ad buying. What struck me most about the conversation, having spent the last 15 years in the ad space, was how opportunistic he actually was and how little was actually being done from an ad delivery perspective compared to the standards in the West. He first went to China to teach English. Having said all this, I own a boatload of CCME and I believe strongly in my investment. But we longs need to call a spade a spade, and when it comes to ad platforms, CCME, and the next couple of years, debates predicated on needing someone in EACH bus because we got catalogs now is not an argument, nor is the its not cost-effective to deliver content in this manner position. I have read thousands of posts on CCME and never once has someone spent time talking about the infrastructure required to, and the companies involved in, delivering the content that CCME delivers, relative to what the media buyers will expect as we move out of the world of opportunism to having basic expectations for delivery and measurement. I write tonight because I want to affect change and not run from the truth because it is convenient. Long CCME, let us use our damn cash to get some technology in place and grow in a manner which is scalable and defensible.