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VisionChina Media's CEO Discusses Q1 2011 Results - Earnings Call Transcript

The week-long study was carried out in China’s major city and included all media platforms. In terms of reach, subway and bus TV was ranked number three, right behind the country’s most important TV station CCTV-1 and CCTV-3.

As the market of VisionChina’s nationwide mobile TV media network mature, more third party research study is being conducted. These studies consistently support VisionChina’s intent to establish industry standard and also highlight the effectiveness and reach of our platform enhancing our growth processes.

In terms of new revenue stream growth, in recent years we have seen a surge in new types of internet-based businesses such as social networking, group (inaudible) and video share website. These types of companies promote their brands and products aggressively across various channels. Without vast reach, high conversion rates of viewership to transaction, accurate targeting and massive coverage that reaches hundreds of millions of commuters daily, VisionChina has become a beneficiary of the growing advertising spending related to these emerging businesses.

We have seen revenue growth potential in IT and internet advertising spending verticals as a result of recent placements by these new brands.

As discussed in previous quarter, VisionChina has established cooperation with various leading satellite TV stations around China. By leveraging these relationships to broadcast highly rated and custom tailored content from these stations, VisionChina is creating secondary advertising sales opportunities for programming. We are also actively working with our satellite TV partners to promote trailers for top rated shows such as one called Happy Girls, which is a hit on Hunan Satellite TV to be played on our bus and subway networks.

Leveraging VisionChina’s highly effective broadcasting capability to support their marketing campaign, these satellite TV stations are able to influence audiences’ brand perception and increase viewer ratings. We are confident that these partnerships will become another revenue growth area for VisionChina.

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