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DMG inks massive Shanghai subway contract

By Xiao Ma (chinadaily.com.cn)
Updated: 2009-02-24 19:19

Subway systems media operator Digital Media Group (DMG) announced today that it had signed China's biggest DOOH (digital out-of-home) contract with Shanghai Metro TV, enabling it to operate in-train and platform digital advertising on all of Shanghai's 13 metro lines over the next five years.

DMG said it hopes to boost its daily subway audience in Shanghai from the current 4.3 million to 9 million, half of the city's total population, by 2010.

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"By partnering with DMG, we will deliver a better experience for Shanghai metro's passengers and a superior platform for advertisers," said Zhu Yushan, general manager of Shanghai Metro TV.

The deal enables DMG to operate a mobile advertising business across 30 subway lines in nine cities including Beijing, Shanghai, Hong Kong, Shenzhen and Tianjin.

The new media group currently operates on 16 lines, reaching 7.8 million passengers daily in Shanghai and Beijing — two of its most important markets.

Shanghai, which has long advocated the expansion of public transport to cope with mounting traffic problems, is expected to build its metro system into the world's biggest network by 2013, with 13 metro lines running around 500 km.

DMG has also won the exclusive rights to the digital screen network for 3,000 bus shelters throughout Shanghai. Combining its subway and bus shelter networks, it will reach over 14.1 million passengers in Shanghai alone by 2010, when the World Expo will be held.

Despite the recent sluggish advertising market, DMG recently announced that it had raised $30 million in the third round of capital raising from its existing investors Oak Investment Partners and Gobi Partners.

"This is a game-changing opportunity for DMG," said Ren Riley, general partner of Oak and a director of DMG. "With this additional capital, we can continue to further consolidate our leading market position."