Chapter 192 The Golden Age of Advertising Companies

It is recognized that China's advertising industry started relatively late.

Advertising, as a product of the commodity economy, originated and emerged almost at the same time as the commodity economy. The Chinese nation has a long history and a long history of advertising. However, after the founding of the People's Republic of China, the implementation of the planned economic system brought advertising out of the social stage.

Under such a special economic pattern, urban and rural residents in my country are basically in a typical lagging consumption state, characterized by slow changes in the composition of consumer goods, daily necessities continue to account for a large proportion, and non-living necessities grow slowly. China's industrialization is achieved at the extremely low consumption level of urban and rural residents.

Because of this, with the process of industrialization, the advertising of consumer goods did not increase, but instead declined. In the 1960s, the advertising market in this area shrank rapidly, and disappeared at the earliest, leaving the circulation field. In the 1970s, with the further strengthening of the planned economy and the loss of corporate autonomy, advertising of means of production automatically disappeared from the historical stage.

After the Third Plenary Session of the Eleventh Central Committee, the focus of work shifted to economic construction, the economic system began to shift from a planned economy to a market economy, commodity production continued to develop, and foreign trade grew rapidly. Many new products faced the issue of opening up markets and expanding sales, thus providing an opportunity for the recovery and development of the advertising industry. 1979 was the first year of the new era of advertising in my country. Tianjin Daily took the lead in resuming commercial advertisements, and then Wenhui Daily also began to publish advertisements. Later, Shanghai TV broadcast the first commercial advertisement in the history of Chinese TV, which was a kind of wine-making.

On March 15 of the same year, CCTV broadcast its first foreign advertisement, Swiss radar. A month later, Guangdong TV set up the first advertising program in the history of Chinese television, and the People's Daily also began to publish advertisements.

Since then, advertising companies across the country have sprung up like mushrooms after a rain, and advertising investment has increased rapidly. By 1990, there were more than 10,000 advertisers and their advertising revenue exceeded 2.5 billion yuan. The advertising industry has become one of the fastest-growing industries in my country.

Of course, the problems in the domestic advertising industry are also very serious. For example, although the number of advertising business units and employees has developed rapidly, the quality of employees is uneven and the lack of senior technical management personnel has always been the bottleneck in the development of the advertising industry. In addition, state-owned advertising companies have always been the backbone of the industry, but most of these companies are established under the planned economic system, with weak market adaptability, imperfect management system of the advertising industry, and the proliferation of false advertising, which seriously affects the development of the advertising industry itself.

In short, compared with the world's advanced level, the gap cannot be calculated in the road.

However, the best opportunity to enter the market is not at the stage where various systems of the stock market are already complete, but at the stage of chaotic stock market management. Only in a chaotic situation can huge profits be obtained, and the speculative opportunities in the advertising industry are the same.

Lao Chen is very familiar with the development of domestic advertising business and the inside story of domestic advertising companies, so he sets his goals for the second half of his life here and prepares to start a second entrepreneurship.

"The advertising content in China is relatively simple and easy to produce, especially the stable advertising platform is CCTV." Since Old Chen has already started, he started chatting with Fan Wubing and wanted to see what suggestions he has for entering the advertising industry. "My relationship network at CCTV is very deep, and it is easier to obtain resources in this area than others. Moreover, the competitiveness here is small and easy to develop. I am confident that the company can reach hundreds of millions of millions in two years."

Fan Wubing shrugged, but he didn't doubt Lao Chen's words. After all, he has been immersed in CCTV for decades and is very familiar with the tricks. Some businesses can be taken out without a penny, and then divided the tasks and subcontracted them to some small companies to do, and then settled them one by one. In this way, as long as you can get tens of millions or hundreds of millions of working capital in advance, you can get many advertising planning businesses on the stage. Although these businesses may not be advertisements broadcast during prime time, they also spend a lot of money, and their overall income will not be less than CCTV itself.

Regarding the advertising industry, Fan Wubing has not considered it. However, the current domestic advertising market is still smaller, and the advertising awareness is still indifferent. It can be said that the market capacity itself is not large, and the competition among tens of thousands of advertising companies is relatively fierce. Basically, they are all in small profits but quick turnover. In addition to people like Lao Chen who can find shortcuts in the industry, there are not a lot of companies that want to make a fortune, but the number is indeed very small. This is also an important reason why Lao Chen decided to retire early and enter the advertising industry.

As for the words "The red flags in the family are shaking randomly, although it is part of the reason, it is not the most important. After all, Old Chen has been planning for his whole life, so how could he not have such a cleverness?

"It's just that you have a significant position in Taiwan, and your management is a very important part. It can be said that you are the chief financial officer of CCTV. If you suddenly retire like this, will the Taiwan be in chaos? Will the leaders in the department agree to you retire and start your own company?" Fan Wubing asked Lao Chen with some doubts.

Old Chen smiled and said, "Now, official positions are a kind of radish and a pit. Although I don't want to do it anymore, there are more people who want to do this job. There are many people in the department alone who are thinking about it! I am willing to give in this voluntarily, and I may have to owe me some favors to the Taiwan and the department. I will inevitably take care of my future business. After all, I am still several years away from retirement!"

Fan Wubing nodded, thinking that Old Chen was very smart. He arranged his retirement time after CCTV's advertising bidding conference, just to let everyone see the bright future he managed and let everyone see that he easily gave up such a big piece of cake, so that no matter he was the successor or the leaders in the department, he would accept his favor.

As Lao Chen himself, he also chose to retire at the most glorious moment, and will add a lot of money to Taiwan's history in the future. The title of a pioneer of the new era of CCTV advertising is indispensable.

Since there are so many benefits, Old Chen will certainly make this decision without hesitation.

As the saying goes, those who know the times are heroes. When to make what decisions are made is the wise man. Although CCTV is good, Chen is no longer young. Although he can make greater contributions to CCTV, he will work hard in state-owned enterprises. No matter how great your achievements are, they will not be recognized by others. Everyone will think that if you are in that position, you may do better.

Only those who are knowledgeable and tactful can they better survive in this society and survive better and better.

After thinking about it, Fan Wubing felt that Lao Chen's decision was very wise. In his fifties, he chose an industry in the golden age as his new career, which was very lucky.

It can be expected that within 20 years, the domestic advertising industry will begin to grow at a very considerable high speed. Since some small companies with more than a dozen people can earn tens of millions of assets, Fan Wubing has reason to believe that with the help of CCTV's media resources and his calculating mind, it is only a matter of time before Chen's assets exceed 100 million yuan.

As a friend who has been dating for many years, Fan Wubing felt that he should help Lao Chen both public and private. It is not only a personal relationship problem, but also a connection of interests. So he said to Lao Chen, "Do you lack start-up capital? I will give as much as you want."

Although Old Chen has a small savings, if he wants to start a larger advertising company and be qualified to talk directly with groups like CCTV without losing the risk, he will win over a creative team of 100 people. In this way, with the venue and other expenses, as well as various funds invested in advance, and advertising operation costs, the overall amount cannot be less than 20 million yuan, or more.

Of course, he can't get this money, but in China, banks probably won't lend him so much money. At the same time, overseas venture capitalists are not easy to invest, and they may not invest easily in individuals, because their current focus is still targeting some domestic companies qualified to go public.

In this case, his own network of relationships is very important. Therefore, after Lao Chen made this decision, the first thing he thought of was Fan Wubing. Only he would not care about this little money, and only he would bring so much money to himself without making too many requests.

So Old Chen said to Fan Wubing without hesitation, "I thought about it, as the saying goes, everyone has made a fortune, you invest 50 million yuan, and we will get half of the equity, what do you think?"

If it were someone else, he would definitely scold Lao Chen for being greedy and did nothing, so he would first ask for his 25 million yuan as his own share capital. How could such a good thing happen?!

But Fan Wubing is naturally not someone else. He nodded in agreement and said, "Okay! But the liquidity is a little less, and the equity is half as you said. In addition, I will add another 50 million to you to operate first. This is an interest-free loan."

Old Chen was overjoyed when he heard this, "I knew I had read the wrong person for a long time. You are indeed born to do great things!"

With this 100 million start-up capital, Lao Chen has sufficient confidence to operate his company into the number one brand in the domestic advertising industry. What are the small advertising companies that are now scrambling with CCTV?
Chapter completed!