About SinoMedia
2020 was a year full of challenges undoubtedly. The outbreak of COVID-19 epidemic brought the society as a whole to a standstill, the macro-economy was seriously affected, the growth rate of GDP in the first quarter turned from positive to negative. Consequently, all sectors suffered the impact and challenges imposed by the epidemic in some way, and the advertising industry, which is closely related to the economic environment, was no exception. According to the data released by CTR Media Intelligence, the advertising expenses throughout 2020 decreased by 11.6% year-on-year.
During the outbreaks, the Group firmly abided by the deployment and requirements of the State on the epidemic fight efforts, actively implemented the measures ensuring employees’ health and safety, and strive to maintain the staff’s jobs stable. In addition, in response to the sliding growth rate and the huge pressure on the operation and development caused by the epidemic, the Group took rapid action by optimizing business structure, effectively controlling the business costs and operating expenses, which maintained the financial stability.
Out of the concern over the declining consumption demand caused by the epidemic in 2020, some advertisers took a more prudent attitude to the TV advertising placement than before, which resulted in a drop in advertising budgets compared with last year. Accordingly, the revenue of the Group in the core advertising business declined. In the current media ecological circle, however, the traditional media, represented by China Media Group, always enjoys the advantages featuring high coverage and public credibility. As one of the leading creative communication providers in the industry and one of the largest advertising agencies of China Media Group, the Group took the initiative in integrating the upper and lower streams of the industry chain and optimizing the media resources structure. Furthermore, the Group was a strong champion of the amplified communication effect through the quality media resources of all channels of CCTV and the internet media market using excellent visual creative expressions, offering clients one-stop solutions to their brand positioning, visual creativity, communication strategies, media implementation and effect assessments.
The Group accelerated the development of the content marketing business with the R&D and production of video programs as the core, to customize creative video programs for clients and to realize their brand communication value by means of content marketing. In 2020, the Group offered creative communication services to clients and the business revenue saw a remarkable increase compared with last year through live streaming interactions, video clips, content imbedding, program planning, animation development, promotional campaigns and other forms. Among them, Chinese Youth Talk Show(中国少年说), a large talk show designed to share youth’s ideas, which first season is 10 episodes with each 60 minutes, was broadcasted on CCTV-14 (Children’s Channel) in the year under review, with remarkable audience effect and attentions from all walks of life. The Group participated in the planning and production and co-presented the program with the Sports and Youth Program Center of China Media Group.
Despite the decline in the digital marketing business resulting from the epidemic, the Group followed the development trend of internet media by tapping into quality media resources, upgrading and updating its self-developed intelligent programming advertising placement platform iBCP so as to enhance clients’ placing effect and brand influence on the internet by optimizing the marketing efficiency of the advertising placement using big data. With the mitigating epidemic efforts further enhanced, the market demand would resume over time. www.boosj.com(播视网) of the Group, concentrating on the core demand of family life, developed two major content series of the healthy life of the middle-aged and elderly and parent-child talent training. By means of precising content distribution, socialising users’ interactions and online and offline combination, www.boosj.com offered interactive platforms and channels linking products and services to family users and enterprise clients.
As a leading integrated media operation group in China, we are committed to our mission and vision by moving forward in the strategic direction with inter-screen creative communication as the core with the aim of enhancing the value of clients’ brands. We are convinced that, despite the changing market or the media, content creativity and brand strategy will remain the core competitiveness to empower and increase value for our partners. Confronting the severe market environment and the economic recovery full of uncertainties, the Group will develop the client market by seizing development opportunities in all sectors. Meanwhile, the Group will also accelerate the expansion of brand investment management in the consumption field by focusing on the industry chain of children’s growth and parent-kid family consumption so as to promote the optimization of our business structure and the development of brand business.
My thanks must go to all of our Shareholders and business partners for your long care, support and trust. We will join each other to strive ahead for a shared future.
Chen Xin
29 March 2021
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