VisionChina Media Inc
) recently announced the renewal of a contract to continue
operations of its mobile digital television advertising network
in Wuhan, China.
The agreement provides for the continuation of digital mobile
television advertising services on buses in Wuhan. With this
deal, VisionChina is expected to get the bulk of digital mobile
television advertising revenues, (which account for 90% of the
total advertising revenue in Wuhan) as it will be the sole
operator of such services.
According to the Wuhan Bureau of Statistics, Wuhan ranked ninth
in terms of GDP among all cities in China with a total GDP of
$145 billion in 2013. The new contract is expected to reduce the
company's media cost by 46.7% year over year in the region. The
strategic move is aimed to strengthen its competitive cost
structure, while improving margins and operating efficiency in
the forthcoming quarters.
With rapid strides in the digital arena, the future appears
bright and advertisers that embrace these opportunities will be
able to deliver a cost-efficient, cutting edge digital campaign
across its channels. The TV advertisers need to ensure that their
content is relevant and engages their target audiences, as a
paradigm shift to mobile platform is observed in the digital
As one of the largest out-of-home advertising networks,
VisionChina provides digital mobile television broadcasts to
deliver content and advertising to displays on mass
transportation systems such as buses and subway networks, network
delivers real-time programming including news briefs, stock
market updates, weather and traffic information, sports
highlights and entertainment shows mixed with TV
VisionChina currently has a Zacks Rank #3 (Hold). Other stocks
that look promising and are worth considering now include
Marin Software Inc.
MDC Partners Inc.
NV5 Holdings, Inc
), each carrying a Zacks Rank #2 (Buy).
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