Chapter 34 Data link: Emotional speeches by the "heads" of the five major M&A departments

Rushing to NASDAQ is the lifelong dream of many entrepreneurs in China, and "I would rather be a chicken head than a phoenix tail" is a famous saying for self-motivation of entrepreneurs.But compared with the entrepreneurial entrepreneurs who never sold their children as pigs, especially to their "rivals", Tan Zhi, Yu Feng and Zhu Hailong are undoubtedly different and different.However, when venture capitalists with similar smiles on their faces and similar behaviors breathed a sigh of relief at the M&A, we can still see their reluctance from the post-M&A speeches. I am very happy to witness history here today.This history is not only the size of the transaction volume mentioned by Mr. Jiang and Mr. Yu, but more importantly, all other industries in China. As far as I know, I don’t know if there is such an industry that can change the competitive environment into such a environment?It is a merger, everyone becomes a family, and the market is being cleaned up and integrated. I don't know if you have heard of such an example, but I haven't.This kind of integration requires insight, courage, character, professionalism, human ability and other aspects. It is very exciting to witness such a history.

The integration of Focus and Juzhong is only 3 months away from the last framework integration. It can be said that Mr. Jiang is running at a very fast pace.Because I see this, I think I see that the elevator media industry should have a better prospect. This prospect is something we never dared to think about or do before. It can only be achieved through such a few big efforts to things. I once told friends in the media that the framework can be acquired by Focus, which is the second grand slam in my life.The fact is indeed the case, the integration of focus and framework is much better than our expectation.Mergers and acquisitions integrate the resources of Focus and Framework, so that our sales team can achieve better sales with more confidence and simplicity.Doing better from the perspective of brand and sales has made our business rise exponentially.

Of course, because of the integration with the framework, Focus Media has continuously increased the contact rate of the media.The strong integration of Focus and Juzhong has also opened up a new era of elevator media, which means that the era of elevator media competition has basically ended, and the next step needs to be intensive cultivation. What everyone is facing is how to increase value and make services and products better. Getting better will be a bigger challenge. The rise of life circle media is also a signal brought by the monopoly of big media.Anything and everything requires innovation, and the media is like that.The life circle media emphasizes how the media can cover more accurately and completely. As Mr. Jiang said, if a person has a life circle, our advertising resources revolve around your life circle, so that you can be well-known in all environments. As you can see, the ad is working.

Similarly, our elevator advertisements are the same. Our elevator advertisements can provide information that is closely related to your life, and when you take the elevator, you can see such information in 15 seconds. I think we have provided you with A very good way to disseminate information. Through the perfect coverage of the life circle and the perfect combination with life, it has become a very influential media.The emergence of life circle media also makes advertisements more time-consuming, which can make advertisements more deeply rooted in people's hearts and families.It can also follow you like a shadow and influence your life subtly. It can also affect people's understanding of the brand and their attitude towards the brand, and it can also arouse people's desire to buy and consume.I believe that this model can improve the return on investment of advertisers, and can also provide consumers with an environment that is easy to accept. Advertisers recognize it and consumers accept it. This will also bring healthy development to the advertising industry and bring a new era. Heaven and earth, new prosperity.

Colleagues, today, I announce to all employees that the merger of Juzhong Media and Focus Media, the largest competitor, is a decision after careful consideration for me.After the decision, there is a sense of relief and peace, but also some unavoidable melancholy. Juzhong Media is my most important business. I have watched it grow from birth to growth, and now we have one foot on the threshold of NASDAQ.At this time, I need to make a choice: should I continue to go public to intensify this competition, or should I divide and gather together to negotiate and go hand in hand?If it goes public, no matter the company or the employees, it will be very good, and I, Yu Feng, will be full of honors. However, after the listing and financing, there will be more intense competition with competitors.It has been more than three years since China joined the WTO, and the media industry is gradually opening up to the outside world. In 2006, foreign businessmen will be allowed to operate sole proprietorships in outdoor advertising. "Wolf" is here!

Facing the collective sinking of Internet media concept stocks in Nasdaq, how can the building video industry maintain a good momentum of development?How can gathering people go further? The process of making a decision was long and painful, and I couldn't sleep at night for several days, which was very tormenting.I fully understand the mood of employees at the moment. Many employees are worried about whether they will be laid off.The merger adopts the method of stock exchange of overseas companies. Juzhong Media and Focus Media will be in charge of different businesses and operate as two independent brands.What needs to be pointed out here is that any healthy company will survive the fittest and gather crowds to go public, and will also demand our employees according to the standards of listed companies.Now the two companies are legally merged, but the specific business development continues.For example, in the area of ​​operation, we have so many equipment outside, and our operation personnel need to check regularly and regularly every day, including the adjustment of effective points.With a better environment for building development, the goals will be clearer, and price negotiations will become more rational.In terms of sales, the merger of the two companies reduces malicious competition and is more conducive to business negotiations, and as a company, it will always consider how to win more and bigger orders.

"The internal affairs of the universe must be taken on and let go." A man must have a long-term plan, be able to afford it, and be able to let it go.As the predecessors said: "Those who do great things, bandit alone wins with spirit, and Gai also has absolute wisdom." At that time, Yu and Liang each had their own masters, and they competed so that only one person could win.The merger of Juzhong and Focus is a powerful means to fight against foreign media, and it is a win-win situation for all parties.As a private enterprise, we all have a simple wish, that is, China's media industry and advertising industry will become stronger and stronger, and be able to compete with foreign media.Here, I am willing to join hands with you to create a brilliant industry.

We are very familiar with the two media, Focus Media and Ju Zhong. In 2003, we both started building advertising business. In the past three years, we have had a lot of competition, and many media will pay attention to the process of competition.But today I want to say that if there is no crowd gathering, there will be no crowd gathering, and if there is no crowd gathering, there will be no crowd gathering. Therefore, our competition in the past has promoted the great prosperity of the industry and achieved today's performance.I think 2005 was a special year for Focus Media. When we listed on NASDAQ on July 13, we set a record for IPO and acquired Frame Media.I have always respected Juzhong. Although we have been competing, I have always admired the development of Juzhong Media. Its development is very rapid, and it also constitutes a strong competition for Focus Media.In this kind of competition, we deeply feel that the opponent's ability and competitiveness are very strong.

Focus has also absorbed a lot of experience from Juzhong. We can see that Focus and Juzhong have formed a high entry barrier in the field of building TV.The significance of the integration of the two companies, I think on the one hand, through the merger of our two companies, unnecessary competition has been avoided, such as our competition in buildings and the occupation of scarce resources. We used to compete fiercely in buildings, which also formed Instead of rising irrational costs in buildings, the merger will also bring those costs down. In addition, there will also be factors of price wars, leading to unreasonable prices. After that, we will form a standardized and orderly environment.Third, I think the integration of Focus and Juzhong gives us all more time not to focus on competition, but to think about creating more return on investment for advertisers.As you can see, after our integration this time, the commercial buildings will be divided into 4 blocks. Before the integration, everyone felt that whoever integrated first would be more dangerous to the other party.With this integration, we found more coverage.

The scale of the network makes subdivision possible.After the merger, Focus will further refine the commercial building network according to the nature of the building, and gradually form a network system for leaders covering golf clubs and airport VIP halls; a network system for business and white-collar workers centered on office buildings and commercial and residential buildings. Network system for business travelers; a network system for white-collar workers in business travel consisting of aircraft TV, airport buses, airport security checks, waiting halls, and thousands of well-known hotels; a network system covering ShoppingMall, KTV, bars, fitness clubs and other leisure and entertainment venues A network system for fashionable people, etc.The subdivision of TVs in commercial buildings will bring advertisers more accurate media channels and avoid wasting advertising budgets on the wrong people to a greater extent.Moreover, after the integration, the company will broaden the battle lines in many fields, exert the scale effect and synergistic effect after the integration, and jointly make the in-building TV industry bigger and stronger.I think through such refinement, we can avoid waste through precise positioning.

I think the integrated Focus buildings cover more than 60,000 buildings.Our stores cover more than 4,000 terminals.At the same time as a leader, I think Focus Media is a framed medium in the community, involving nearly 100,000 apartment posters.As a major consumer, it has become very difficult not to see Focus Media for a day. Everyone is in Shanghai, and most people will see our elevator posters in the apartment elevator at home.When you go to the office building, you will also see our LCD TV.You might also see our network if you're out of your office building and out to your leisure venue.When you go shopping in supermarkets and convenience stores, you will also come across our network. After our integration, everyone goes to the convenience store to buy things, no matter which convenience store will be covered by us.Today, Focus is also preparing to enter the mobile phone field. Now home TV has a very important impact on people, but after going out of the house, going to stores, convenience stores, etc., will form close contact with Focus in the future.Focus has become an integral part of life, and we will look for a certain moment in these forms of life to adjust our desire for certain commodities.I think that many advertisers have changed their thinking to a certain extent.I used to work as an advertising agency for many years. The clients I met all said how many TVs, newspapers, and outdoors I would do this year. In fact, he only talked about media classification. I think more and more clients Start thinking about another model, such as who is the target audience of my computer or mobile phone?What is the lifestyle like?Which of these lifestyles are the main media touchpoints?What communication channels are available at the touchpoints to have a conversation with them?I think this is some new models that advertisers can implement in the future. In 2008, China will overtake Japan and the UK to become the second largest media market in the world.To become the world's largest advertising media group is my dream, and it is also the dream of Tan Zhi and Yu Feng. The influence of Allyes Advertising Network in the field of Internet advertising in China is well known in the industry. I am very happy to be able to join hands with Mr. Zhu Hailong this time, because this allows us to directly enter the Internet, which can target audiences more accurately and provide accurate communication field of effect.On the surface, Allyes’ business is technology business on the one hand, and agency business on the other hand. I think it is neither technology nor agency. This is a phenomenon, as Zhu Hailong said, this is two legs. Let’s take a look at Haoye’s model. The first is to be a rich media alliance, and the second is to make precise and targeted delivery, which is consistent with Focus’s one-to-one concept.The third is the CPA effect billing model, which is also in line with Focus’s precision and increasing the rate of return of advertisers. Since Allyes and Focus’s “Life Circle Media Group” strategy is highly consistent, today’s mergers and acquisitions have changed. very clearly.After the integration of Focus Media and Allyes, we will research and develop innovative cases and models in Internet advertising marketing. The goal of these innovative models is to create a higher investment value for advertisers. Founded in 1998, Allyes is China's largest Internet advertising publishing software provider and third-party real-time monitoring company. It provides advertising publishing and monitoring technology and services for large and medium-sized Chinese websites including Sina, and has now established a huge Internet audience browsing behavior analysis system and database.Relying on this database and analysis system, it is possible to deliver different types of online advertisements according to different regions and interests of the audience.Real-time monitoring and real-time updates can also be achieved when placing advertisements, and the viewing frequency can be set for the same audience, thereby fully improving the pertinence and click-through rate, and improving the return on investment of advertisers. Allyes also created a rich media advertising alliance to promote the development of broadband-based video advertising business.In addition, Allyes also created the Smart Trade platform, which aggregates the traffic of 5,000 small websites and well-known domestic personal websites. The daily advertising display volume (Page View) exceeds 400 million times, and the monthly unique visitors that can be reached by advertising reach 3,700 Wan, on the Smart Trade platform, advertisers can adopt the CPA payment model and pay according to the effect produced. The integration of Allyes Advertising Network this time is the fifth merger and acquisition carried out by Focus in the past two years. In retrospect, since Focus was listed in the United States on July 13, 2005, its performance has been receiving a lot of media attention.I remember that I was very worried when I was listed on Nasdaq. This model does not exist in the United States. I was afraid that the issue price would fall below the issue price. Later, it increased along the way. At the end of 2005, it was 30 US dollars, which made us feel more stable. After 30 US dollars, we acquired Juzhong Media. From the end of 2005 to 2006, our stock price rose to 60 to 70 US dollars in the past year, and now it is about 80 US dollars. The platform has always received capital market recognition.From the perspective of performance, we have just announced the financial report for the fourth quarter, and the overall revenue has increased by more than 200% compared with the same period last year. In December, the monthly advertising revenue exceeded 250 million yuan, and the entire fourth quarter reached 588 million yuan. receive. In addition, the data performance of Focus in many professional fields also makes us gratified. First of all, we can see that in the research report on the media contact habits of the new rich class in China's CMMS, the entire Focus Building TV is currently in the field of TV video advertising, and the media reach rate ranks first among all 19 major players. Among the cities, the group with an annual household income of 60,000 yuan has reached the first place.After being voted by 500 advertisers in 2005 as the "China's Most Selling Media of the Year", in September 2006 in the selection of the "Jinyuan Award", Focus Media won the "China's Best Sales Media" in the selection of thousands of advertisers. The Most Valuable Media Award in the City" and the "Best Business Model Award in China" by Chinese business schools, all of which come from the constant recognition of the value of our media by advertisers. Focus Media is a relatively active company in the capital market. Through the acquisition framework in October 2005, we expanded our business from pure building business to apartment elevator poster business. After that, we acquired Juzhong Media, and we integrated Focus Media and Juzhong Media Afterwards, the building was divided into 4 different channels, namely the business building network, the leader network, the fashion network, and the business traveler network.The acquisition of Juzhong Media makes it seem like we have avoided price wars and the cost of building development has been controlled, but in fact the greater significance lies in freeing up more of our time, not thinking more about competition, but about future development. Direction of development.In April 2006, we acquired Kaiwei Diancao and entered the mobile phone advertising market. Now we have done dynamic LED outdoor projects in Shanghai's main commercial areas, and the dynamic and fashionable urban color screens have entered Shanghai. After the LED market, it announced its entry into the film market in September. Now it has more than 140 cities covered by theaters, and has almost mastered the pre-movie advertising resources of all major theaters.Our acquisition of Allyes is largely a decision made by Focus on repeated research on the Internet, so our cooperation and merger with Allyes reflects our strategic decision and is a strategic entry into a new field. Focus has formed two major strategies, one is more coverage, the pursuit of wider coverage.A person 24 hours a day? ? ? , Sleeping for 8 hours, waking up for 16 hours, the cumulative time of seeing advertisements is 1 hour, how much can you let him see in 1 hour of advertisements?It depends on how much effective advertising resources an advertising company can cover, the accumulated share, and how much time. We can see that Focus is committed to developing its own advertising media platform and continuously accumulating the length of time people are exposed to advertising, so as to achieve wider coverage. The extension of our product line has covered the mainstream population in the city. Some of them have been in contact with Focus Media for 5-10 minutes. The 5-10 minutes of advertising share in this hour gradually reflects the importance of Focus Media in Chinese advertising media. position among them. The second is more segmentation, which is a more in-depth subdivision.In fact, advertisers don’t care whether you are a traditional media or a new media. If the communication of your new media is similar to that of the traditional media, why should he shift the advertising?We help advertisers avoid their waste, which is the direction Focus has always insisted on.Let's take a look at Hehaoye's cooperation and mergers and acquisitions, which are largely derived from these two strategies. What is missing in our strategic framework-the life circle?One is the lack of TV at home, and the other is the lack of Internet.In particular, the Internet has been in contact with young mainstream consumers for a long time and there are more and more people. With the increase of Internet users and their dependence on the Internet, they obtain advertising information online, and thus become more and more dependent on the Internet.Through the merger of Allyes, we have added to Internet advertising, that is, extending our advertising time and space to other time and space. A few years ago, I saw a phrase called "anytime, anywhere, anyscreen", which could become a medium at any time, any space, and any screen.We have seen that the focus elevator posters in the apartment may be changed into digital photo frames in the future, and LCD screens are seen in buildings, and computer screens are turned on when entering the office, and LCD screens are seen in restaurants and bars at night, and outdoors on the road. LED screens, mobile phone screens in cars and other mobile spaces, and silver screens in movie theaters. LCD, computer and mobile phone, in the future, these three screens will definitely form a good interaction and connection. For example, when an audience comes to the elevator entrance in the office, holding a mobile phone in their hand, they will look at the two-dimensional image in the car advertisement on the LCD. You can take a picture of the code and send it out at any time, you can connect to the corresponding mobile website to get more information, or you can send a text message, and you will receive more detailed information about this advertisement, such as the price of the car and the phone number of the dealer At the same time, your reply can also get better lottery, test drive opportunities, etc., which improves the effectiveness of building advertisements.Get on the elevator and come to the office, turn on the computer, and you can express on the Internet which of the advertisements downstairs is more exciting to you. You can choose the building advertisements, and you can also go to the other party’s website to get more information. This kind of interactive The generation will make the audience enhance their understanding of in-depth information, and when we have short-term incentives for the audience, this will be watched and strengthened. When a person repeatedly receives the same information in different time and space, the cognition of this information will be improved. deepen.Mobile phones, the Internet, and LCDs will become a common network, and will reflect interactive and mutually reinforcing advertising effects. I am very happy to participate in today's media group meeting of China's largest living circle. The protagonists are our Haoye and Focus.Let me briefly talk about what Haoye is doing in China and what kind of cooperation it will have with Focus Media in the future. Allyes is the largest provider of Internet advertising software technology and the largest Internet marketing company in China. In the past 7 years, Allyes has only done one thing, which is Internet marketing, mainly in three fields and advertising The main communication, one is the publishing technology of Internet advertisements. In China, most of China's Internet media, including Sina, use Allyes' technology to publish and monitor advertising inventory, advertising placement and advertising reports. In this regard, we have a large share of advertising media that use third-party advertising companies. 80% market share. The second is the agent of Internet advertising. Since 2003, we have been ranked first in China. The third business is an Internet marketing platform that charges based on performance. I think we have about 5,000 website users, but our charging method is different from most media charging.We use the method of charging according to the effect, and charge different fees according to the requirements of each advertiser according to the number of registrations on the Internet. At this time, the Internet is no longer a platform for network communication. First of all, we will do one-to-one advertisements in the future. The difference between the Internet and traditional advertisements is that the interaction and real-time performance can be one-to-one. How can this be achieved?It is technology.Allyes' advertising management system, from the very beginning, conducts one-to-one marketing according to the interests of netizens. The first is to target according to the text. For example, I, Zhu Hailong, like to read financial news. Take people who are interested in financial news as the target of his targeting.The second is regional, such as real estate. Most buyers of real estate in Shanghai are people who live and work in Shanghai. When they see real estate advertisements in Urumqi, Tibet, Lhasa, and Kunming, they may fly to Shanghai to buy a house. The possibility is very small. If it is only aimed at netizens surfing the Internet in Shanghai, the effect will be better and the advertiser will save more money.Third, everyone who does traditional advertising knows that if there are more than six or seven exposures, or more than 10 exposures, it is wasteful and irresponsible to the advertiser.When the exposure exceeds a certain number of times, our system can stop the exposure.The fourth is the browser. For example, what kind of browser he uses, we can know the computer product that this person uses, and other language targeting can be applied to it, bringing higher benefits to the advertising owners.In addition to visual orientation for this "one-to-one", we are also doing marketing linked to search engines. Secondly, it is rich media. China’s broadband Internet users account for more than 68%. If we count last year’s 130 million Internet users, the number is about 90 million. This means that it is an era of innovation. See.We can interact with Focus TV's building advertisements, and Focus's building advertisements can be extended on the Internet. Finally, I want to talk about performance-based fees. With the maturity of the market economy, more and more businesses will not only pay attention to the improvement of brand awareness, but also to bring popularity to advertising owners. This is the performance-based fee.In the past 3 years, Allyes has helped Taobao, the largest C2C platform in China, to do marketing. From the first day, we have achieved "quantity", the second is how many registered users, and the third is how to generate registered users. Orders, the fourth is to increase the sales of each order, so as to increase its transaction volume. We have been assisting Taobao in this matter for the past three years, and gradually achieve the requirements for mature products, mature brands, and mature services. Use the method of charging according to the performance to help advertisers carry out marketing. The above are the three aspects I mentioned above. On the basis of these three aspects, I would like to ask you a question. In fact, for advertisers, they don’t care what the media is. What they care about is where their target audience is. Think about it, everyone, if you are a merchant, do you care about which TV I put on?In which newspaper?What you care about is who are the readers of this newspaper and who are the viewers of this TV. This is what businessmen care most about.Let’s look at the data of AC Nielsen and other survey data. What we look at most is to turn the first few pages to see who the final audience is and who the final synergy effect is. Like Focus, we care about the goals that advertisers need to understand. Where is the audience? The media group in this life circle ranges from buildings, fashion life communities to golf courses. Now we want to increase the media coverage time for consumers that advertisers care about, and use the existing technology of Haoye to let them The long-term benefits get higher promotion. I think in the future, in our minds, there will be no media, only audiences!This is the media that can bring benefits to advertisers.