Chapter 260: Old Chen’s Ambition

Old Chen discussed with Chu Tong, the director of the advertising department at CCTV for a long time.

At present, CCTV has determined to add three channels. Whether it is for employment, financial support, or equipment addition, it requires a lot of things, all of which require money and a lot of money.

Where does this money come from? Naturally, it is part of the state funding, and the self-raised part of the money raised by Taiwan is naturally to be found from advertising revenue. However, the annual advertising revenue is digitized and the purpose has been determined long ago. Then you can only eat the food in the first place and sell the advertising periods of these channels that have not been built in advance to recover some development funds.

Therefore, Lao Chen, who is well aware of the inside story of CCTV's development, is very clear about this matter. The reason why he was willing to leave CCTV and set up an advertising company was also because he was a good opportunity to develop his own ambitions. As for the fact that the Hongqi in his family was about to fall, it was just a coincidence. However, because of Fan Wubing, he had a deputy ministerial level for himself, which was unexpected.

In the officialdom, it is important to be like the red-topped white, but in the shopping malls, the same is true in the shopping mall. Since Lao Chen met Fan Wubing, he found that it is beneficial to get along with him. Not only can he guarantee that the annual advertising funds will not be lost, but he can also give himself some advice. Often, one idea can benefit him a lot. As for the projects that the two people have worked together in the past two years, Lao Chen’s position in Taiwan is stable and unshakable.

If I hadn't had a small plan in my mind and wanted to make some money for retirement while taking advantage of the golden time of the great development of the advertising industry, I would have no problem even if I stayed in Taiwan for retirement.

Old Chen also admired Fan Wubing's character very much. He had no choice but to say anything about his friends. He just mentioned the matter of starting an advertising company, so he sent hundreds of millions of dollars. Both of them became shareholders in partnership, and the support he gave him was huge and rapid and unmatched.

Whenever I think of this, Old Chen feels warm. It’s really a bit embarrassing to come from the deputy ministerial level, and he doesn’t have a daughter who looks good or not. Otherwise, he would have to be sent to Fan Wubing’s bed.

Therefore, when he met Chu Tong, his former subordinate, he had a few hundred rounds in his mind, not for anything else, just to be able to divide the most profitable advertising period from the three newly added channels.

Chu Tong felt a little sudden about Lao Chen's sudden establishment of an advertising company. Seniors like Lao Chen who have gained fame and fortune are unavoidable, but he doesn't know what attitude he should use to face his former senior.

The domestic advertising industry has maintained a good development momentum in recent years, mainly due to two opportunities. The first was in the mid-1980s, which was formed with the start of economic system reform. In addition, it was the development of the socialist market economy in the early 1990s, and the country further liberalized its operations in the advertising industry, and the advertising industry formed a second development.

From the perspective of development laws, the entry threshold for advertising industry has also changed from the previous low starting point and high speed to the current high starting point and low speed. It can be said that it is absolutely impossible to develop the advertising industry without strong funds to support it.

Lao Chen opened an advertising company, and it would not work without taking care of it. However, Chu Tong himself also wanted to ensure that the Taiwan could raise enough funds, so he was a little hesitant, fearing that Lao Chen's request would exceed his bottom line.

From a general perspective, Deng Gong’s speech in the southern tour caused a rapid progress in the advertising industry, forming a diversified advertising industry structure, state-owned advertising and joint venture advertising have developed well, and a large number of small advertising companies have emerged, forming a highly developed, highly open and highly competitive market trend.

Under high competition, CCTV has to deal with a lot of advertisers. Unless you have the ability and financial resources to win the big cake, you are not even qualified to take a bite.

But Old Chen came prepared this time, and didn't say anything else, and directly brought Chu Tong a cash check and handed it to her with a smile.

"My God--" Although Chu Tong considered that Lao Chen might be able to attract some sponsorships 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, and there were eight in total. The number at the beginning was not one, but two hundred million cash checks! She looked at Lao Chen with some doubts, thinking how could he have such a large amount of financial support?

Old Chen saw the doubt in Chu Tong's heart and said to her with a smile, "Mr. Fan is a friend, and many years of friendship will naturally not make my evening miserable."

Chu Tong suddenly realized, thinking that you have leaned on Fan Wubing, and you still have to worry about the miserable old age? I’m afraid that the money is too much to spend? But Fan Wubing’s actions were really generous. The 200 million cash check was smashed so easily, but it gave me a headache.

The domestic advertising industry is mainly an advertising agency system, that is, advertising companies are in the main and core position in advertising operations, and provide advertisers with comprehensive services based on market research, advertising planning as the main, creativity as the center, media release as the means, and other promotional means.

Implementing the advertising agency system can create a healthy operating order within the advertising industry and maximize the strengths of advertisers, advertising companies and media.

But since Fan Wubing created a CCTV bidding competition, the situation has been a little different.

CCTV cannot be said to be an advertising theme, but can only be regarded as an advertising medium. It is the largest TV advertising media in China. Now, the largest advertising media in China, the announcement tool has suddenly become the leader and started advertising auctions. In fact, it is equivalent to depriving the advertising company of the profits to the greatest extent, making the market that was originally opaque to advertisers become transparent.

Although in the future, advertisers also need to find professional advertising companies to design advertisements for themselves and make creative ideas, no matter what, the original high profit should not be thought about at this time.

Therefore, Fan Wubing's creativity can be said to have taken the blame and changed the current situation of the domestic advertising industry in one fell swoop. Although CCTV has benefited greatly from this, many advertising companies have suffered heavy losses.

Advertising is the channel and tool for enterprises to achieve sales. Without advertising, there will be no marketing for enterprises, let alone brand construction, and the economy cannot develop healthily.

Advertising raises a large number of media, and the source of media survival lies in advertising, especially in some large media. The development of media relies on advertising fees, rather than the certain fees allocated by the state.

However, in China, many media generally have a discriminatory attitude towards advertising, and often mock or criticize advertising, which is actually spitting at their own jobs.

CCTV was able to kick off advertising companies and work alone because of their monopoly position and could directly talk to companies. However, ordinary media also sneer at advertising companies, which is because they can't get along with themselves.

Old Chen is very clear about this change. He has not been in vain for so many years in the industry. The changes in the domestic advertising industry's survival environment have made him understand one thing. Now it is a challenge to the development of the advertising industry, and it is also an opportunity. Like other industries in China, the advertising industry is also facing a breakthrough. Only large advertising companies with strong funds and strong strength can persist and eat cake. Other small advertising companies can only survive in the cracks and do some small projects to support their families. As for making a fortune, it is very, very difficult.

The main source of profit for advertising companies is advertising agency fees. The original advertising agency fee rate was generally 10%, but with the intensification of competition, zero agency phenomenon has emerged. Now most advertising companies have changed advertising agency fees to service fees and some special fees, and some companies have also proposed to charge based on advertising effectiveness.

This is mainly because of the impact brought by media purchasing companies. They significantly lowered agency fees with large-scale media purchases, making the industry-recognized agency fees in vain. Media purchasing companies have cracked down on and changed the original advertising company revenue structure, and advertising companies have to charge service fees to avoid too low media agency fees.

The emergence of CCTV's bidding kings is actually 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 position. Today, it seems that only CCTV has 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 produce some large advertising groups, but it is difficult to promote them.

In other words, if we do not take advantage of this opportunity to strengthen cooperation with CCTV and tie both parties to the same chariot, there will be no such store after passing through this village.

The reason why Old Chen was able to get so much cash from Fan Wubing was certainly because Fan Wubing also considered that if he wanted to develop a large advertising company, cooperation with CCTV was the best shortcut, especially in China today, there were not many companies that could afford such a large amount of money to pay for CCTV's advertising costs, or some, but they did not have such courage.

Old Chen said to Chu Tong very clearly, "Xiao Chu, you know, I have a deep relationship with CCTV for decades. In the second half of my life, I want to continue to serve Taiwan in another way, so I have to raise so much money without hesitation. I just want to accomplish such a thing. 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. He thought that after all, he was an old comrade who had served in Taiwan for decades, and his ideological awareness was high! Now three new channels have been added to the Taiwan platform, and he is worried that advertising affairs will not be able to be carried out smoothly, so Old Chen came to help him all the time, which is really touching.
Chapter completed!