AirMedia Group Inc. operates out-of-home advertising platforms in China targeting mid-to-high-end consumers. As of December 31, 2014, the company operated digital frames and digital TV screens in 28 airports in China. Advertising Network and Services The company offers advertising services at various platforms, including digital frames in airports, which include mega-size LEDs, digital TV screens in airports and on airplanes, traditional media in airports, such as light boxes, billboards and painted advertisements, and gas station media displays and other outdoor media displays outside of the air travel advertising sector. Digital Frames in Airports The company operates a network of digital frames, strategically placed in the areas of airports, such as departure halls, terminals and arrival halls, where most of the air travelers congregate and spend significant amounts of time waiting. The company’s digital frames are high-definition liquid crystal display (LCD) screens that change digital picture displays approximately every 6 or 12 seconds, with certain exceptions of 5 to 10 seconds in certain large airports. The company’s digital frames include standalone digital frames and mega-size LEDs. Standalone digital frames display advertisements on vertical or horizontal display panels ranging in size from 52 to 108 inches. The company also owns and operates digital frames of a larger size, up to 108 inches and 106 inches, in the airports of Beijing and Haikou, respectively. In both international and domestic arrival halls of Terminals 2 and 3 of the Beijing International Airport, the company operates 44 sets of 108-inch LCD screens that measure 4 square meters (or 43.1 square feet) each. In addition, as of March 31, 2015, the company operated mega-size LED screens in 16 airports, including, Beijing International Airport, Changchun Longjia International Airport, Changsha Huanghua International Airport, Chengdu Shuangliu International Airport, Dalian Zhoushuizi International Airport, Guangzhou Baiyun International Airport, Hangzhou Xiaoshan International Airport, Hohhot Baita International Airport, Jinan Yaoqiang International Airport, Nanning Wuxu International Airport, Qingdao Liuting International Airport, Sanya Fenghuang International Airport, Shenyang Taoxian International Airport, Shenzhen Bao’an International Airport, Tianjin Binhai International Airport and Xi'an Xianyang International Airport. As of March 31, 2015, the company operated approximately 1,446 digital frames in 25 airports, 1,139 of which were standalone digital frames, including 106- and 108-inch LCD display screens and mega-size LED screens and 307 of which were frames displayed in groups. Its digital frames play advertising content repeatedly mainly in 5-minute and 10- minute cycles. Digital TV Screens in Airports In 2014, the company entered into arrangements with an unrelated third party to divest its airport digital TV screens business. Digital TV Screens on Airplanes As of March 31, 2015, the company’s programs were placed on digital TV screens on planes operated by seven airlines. The displays on its network airplanes, which have been installed by aircraft manufacturers, are located at the top of passenger compartments and on the back of passenger seats. There are approximately 10 to 280 on an airplane. The company’s airplane display programs are played once for approximately 45 minutes to an hour per flight. Approximately 4.5 to 15 minutes of each program consist of advertising content provided to the company by its advertisers and the rest of the program consists of non-advertising content. The non-advertising content on these planes includes travel shows, documentaries, sports and other content similar to that shown on its airport programs. Traditional Media in Airports The company’s traditional media in airports currently includes light boxes and billboards in airports. As of March 31, 2015, the company operated approximately 454 light boxes and billboards mainly in 7 airports, such as Beijing Capital International Airport, Chengdu Shuangliu International Airport and Wenzhou Yongqiang International Airport.
airmedia group inc-adr (AMCN:NASDAQ GS)
No. 46 Dongzhimenwai Street
Phone: 86 10 8438 6868
Fax: 86 10 8460 8658www.airmedia.net.cn
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