Chapter 260 Old Chen’s Ambition
Chen discussed it with Chu Tong, the head of the advertising department at CCTV for a long time.
At present, CCTV has decided to add three channels. Whether it is hiring people, financial support, or adding equipment, a lot of things need to be done, and they all require money, a lot of money.
Where will the money come from? Naturally, it is part of the state appropriation, and Taiwan raises part of it. This part of the money raised by Taiwan naturally comes from advertising revenue. However, the annual advertising revenue is considerable, and the purpose has been determined long ago, so there is only As a matter of fact, we should first sell the advertising time of these channels that have not been launched in advance, so as to recover some development funds.
Therefore, Lao Chen, who is well versed in the inside story of CCTV exhibitions, is very familiar with this matter. The reason why he was willing to leave CCTV and set up his own advertising company was because he recognized that this was a good opportunity for him to develop his ambitions. As for the commentator The red flag inside was about to fall, which was just a coincidence, but because of Fan Wubing's relationship, he got himself a deputy minister, which was unexpected.
In the officialdom, people pay attention to red tops and white clothes. In fact, the same is true in shopping malls. Ever since he met Fan Wubing, Lao Chen found that hanging out with him was of great benefit. Not only could he ensure that his annual advertising funds would not be wasted, but he could also occasionally If you give yourself some guidance, one idea can often benefit you a lot. As for the projects that the two of you have collaborated on in the past two years, Lao Chen's position in Taiwan is stable and no one can shake it.
If I didn't have a small calculation in my heart and wanted to take advantage of the prime time of the advertising industry to earn some money for retirement, I would have no problem staying on stage for retirement.
Lao Chen also admired Fan Wubing's character. He had nothing to say to his friends. He just mentioned that he wanted to start an advertising company, and he sent him hundreds of millions of funds, and they formed a partnership. My son has become a shareholder, and the support given to me is huge and unparalleled.
Every time he thought of this, Lao Chen felt warm in his heart. It was actually a bit embarrassing for him to be a deputy minister, and he didn't have a daughter with good looks. Otherwise, he would be forced to drag her. It was to be sent to Fan Wubing's bed.
Therefore, when he faced Chu Tong, his former subordinate, he turned hundreds of circles in his mind, for no other reason than to get the most profitable advertising time from the three newly added channels.
Chu Tong also felt a little surprised that Lao Chen suddenly established an advertising company. Seniors like Lao Chen, who had already achieved both fame and fortune, were not immune to vulgarity, but he didn't know what kind of attitude he should use to face this former place. Old superior.
The domestic advertising industry has maintained a good momentum of development in recent years. Mainly thanks to two opportunities.
The first time was in the mid-1980s. With the start of economic system reform. Formed for the first time.
The other was the development of a socialist market economy in the early 1990s. The state further liberalizes the advertising industry. The advertising industry formed a second exhibition.
From the perspective of development rules. Entry barriers to the advertising industry. It is also lower than before. It has become high and low now. It can be said. Exhibiting advertising industry now. It is absolutely impossible without strong financial support.
Lao Chen opened an advertising company. It's impossible not to take care of it. But Chu Tong himself also had to ensure that the platform could raise enough funds. So there was some hesitation in my heart. I'm afraid that Lao Chen's request exceeds his own bottom line.
From the perspective of the earth environment. Deng Gongdi gave a speech during his southern tour. It caused the advertising industry to develop by leaps and bounds. A diversified advertising industry structure has been formed. State-owned advertising and joint venture advertising performed well. A large number of small advertising agencies emerged. Forming a highly developed, highly open, and highly competitive market situation.
Under high competition. CCTV also has many advertisers to deal with. Unless you have the ability and financial resources to win the big cake. Otherwise, you won't even be qualified to take a bite.
But Lao Chen came prepared this time. Without saying anything else, he directly brought a cash check to Chu Tong and handed it to her with a smile.
"Oh my God -" Although Chu Tong considered that Lao Chen might be able to get some sponsorship and the amount of funds might exceed tens of millions, he was still shocked when he saw the check.
She counted the zeros on the check. There were eight in total. The number at the beginning was not one, but two. It was a cash check of two hundred million! She looked at Lao Chen with some suspicion, thinking how could he have such a large financial support?
Old Chen saw the doubts in Chu Tong's heart and said to her with a smile, "Mr. Fan is a good friend. Our friendship for many years will naturally not make my later life miserable."
Chu Tong suddenly understood and thought to himself, since you are leaning on Fan Wubing, why do you have to worry about having a miserable life in the future? I'm afraid there's too much money to spend, right? It's just that Fan Wubing was really generous with his actions. He threw out a cash check worth 200 million so easily, but it gave him a bit of a headache.
The domestic advertising industry is mainly based on the advertising agency system, which means that advertising companies occupy the main and core position in advertising operations. They provide advertisers with comprehensive advertising services and provide advertisers with market research-based, advertising planning-led, and creative services. center
It is a comprehensive service that uses cloth as a means and is supplemented by other promotional means.
The implementation of the advertising agency system can form a healthy operating order within the advertising industry and maximize the strengths of advertisers, advertising companies and media.
But ever since Fan Wubing launched a CCTV competition to compete for the top spot, the situation has become a little different.
CCTV cannot be said to be an advertising theme, but can only be regarded as an advertising medium. The largest TV advertising media in the country, and now the largest advertising media in the country, the announcement tool has suddenly taken charge. It has launched its own advertising auction, which is actually equivalent to the largest advertising media in the country. It deprives advertising companies of their profits to the maximum extent, making the market that was originally opaque to advertising owners transparent.
Although in the future, advertising owners will also need to find professional advertising companies to design ads for themselves and get creative, but in any case, they should not think about the original high profits at this time.
Therefore, Fan Wubing's creative idea can be said to be a drastic change in the current situation of the domestic advertising industry. Although CCTV benefited greatly from this, many advertising companies suffered heavy losses.
Advertising is a channel and tool for enterprises to achieve sales. Without advertising, there would be no corporate marketing, let alone brand building, and the economy would not be able to develop healthily.
Advertising has nurtured a large number of media. The source of media’s survival is advertising, especially some large media. The development of the media relies on advertising fees, not certain fees allocated by the state.
However, in China, many media generally hold a discriminatory attitude towards advertising, and they often mock or criticize this or that advertisement. In fact, they are spitting on their own jobs.
CCTV was able to kick out advertising companies and go it alone because of its monopoly position and the ability to directly communicate with companies. However, the general media also scorned advertising companies and couldn't get along with them.
Lao Chen is very aware of this change. He has not been in the industry for so many years in vain. The changes in the living environment of the domestic advertising industry have made him understand that now there is a world of ice and fire, which is not only a challenge to the advertising industry, but also an opportunity. , like other domestic industries, the advertising industry is now facing a breakthrough. Only large advertising companies with strong funds and strong strength can persist and eat the cake. Other small advertising companies can only survive in the cracks. , I do some small projects to support my family. As for becoming a successful person, it is very, very difficult.
The main source of profit for advertising companies is advertising agency fees. Originally, advertising agency fees were generally 10%. However, with the intensification of competition, there has been a phenomenon of zero agency. Now most advertising companies have changed advertising agency fees to service fees and For some special expenses, some companies also propose to charge according to the advertising effect.
This is mainly due to the impact of media buying companies. Their large-scale media buying volume has significantly reduced agency fees, making the industry-recognized agency rates useless. Media buying companies have cracked down on and changed the original revenue structure of advertising companies, and advertising companies have to change service fees to avoid excessively low media agency fees.
The emergence of the current CCTV standard king can actually be said to be a new advertising model, which is a new model of strong media and advertising companies. The premise of this model is that the media must have an absolute monopoly. From today's perspective, only CCTV Only with this advantage, a large number of local TV stations do not have the strength to gather a group of advertising companies. Therefore, this idea may generate some large advertising groups, but it will be difficult to promote them.
In other words, if we don't take this opportunity to strengthen cooperation with CCTV and bundle both parties on the same chariot, there will be no store like this after passing this village.
The reason why Lao Chen was able to get so much cash from Fan Wubing was of course because Fan Wubing also considered that if he wanted to develop a large advertising company, cooperation with CCTV would be the best shortcut, especially in today's world. There are not many companies in China that can afford such a large amount of money to advance advertising costs for CCTV, or there may be some, but they don't have the courage.
Lao Chen said to Chu Tong very clearly, "Xiao Chu, you know that I have had a deep relationship with CCTV for decades. For the rest of my life, I want to continue to serve the station in another way, so I don't hesitate to I have shamelessly raised so much money just to accomplish such a thing, but you must understand me and support me!"
Chu Tong looked at the glorious expression on Old Chen's face, and for a moment he believed it was true. He thought that after all, he was an old comrade who had served Taili for decades, so his ideological consciousness was very high! Now that there are three new channels in the station, I am worried that the advertising business cannot be carried out smoothly, and Lao Chen comes to help me. It is really touching.
Lao Chen was thinking in his heart, although I can't be the station director, if I can monopolize most of CCTV's advertising business, it would be a big achievement in my life, right?
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