Extraordinary Genius - Chapter 201– Tender for advertising slots at CCTV Part 3
The host of this tender conference was the Advertising division’s Cheng Baojun, and the Deputy TV Station Manager was also present. Feng Yu felt that his Deputy Manager was here to talk. He made a long speech which had nothing to do with today’s event!
Cheng Baojun mentioned that there will be some changes with this year’s advertising contracts. First, the deal would last until the end of next January, regardless when your current contract ends this year.
Second, the advertising rates will increase. It will increase by an average of 30% and Feng Yu’s 4 advertising time slots will increase by 50%!
Third, those that purchase the advertising slots this year will have priority to continue with the same slots next year. This was an interesting condition. There was no mention that it would be the same as this year or a fixed increase in the advertising fees. Feng Yu was guessing that there would be changes to next year’s advertising contract. He wonders if the auctioning of advertising slots would be brought forward too.
After Cheng Baojun finished talking, everyone was whispering among themselves. Feng Yu looked at Zhong Qingxian and asked: “Mr. Zhong, your company’s advertising fees had increased by how much?”
Zhong Qingxian frowned and sighed: “30%. Why did they increase the rates by so much?”
The company’s finances were already very tight, and he still needs to expand the factory, buy new production facilities, more raw materials, etc. All these needed money. He had expected the advertising rates to increase, but 30% was over his budget.
“30% is not considered a lot.”
When Zhong Qingxian heard what Feng Yu said, he asked Feng Yu: “30% is still considered not a lot? How much did your company’s advertising fees increase?”
Zhong Qingxian only remembered how much his fees had increased and did not take note of other companies.
Feng Yu showed his palm: “not much. Only 50%!”
50% increase and you said not much? This was the highest increased for this year’s advertising fees. This Manager Feng does not want to continue with the advertising slots, or he was wealthy enough to ignore this increase?
“Manager Feng, I remembered you mentioning that your company has more than one advertising slot.”
Feng Yu counted with his fingers and said: “Yes. CCTV 1 has 4 advertising slots. All of these slots increased by 50%. CCTV 2 has 2 slots which increased by 30%, CCTV 3, have 1 slot which increased by 10%. This year’s advertising fees will be more than 5 million RMB again.”
Zhong Qingxian’s eyes widen in shock. 5 million RMB advertising fees? Again? Does that mean that his advertising fees were also more than 5 million RMB last year?
“Manager Feng, how much did you spend on advertising fees in a year?”
“Not much. CCTV, Provincial TV stations, newspaper and celebrities’ endorsements, etc. The total last year was about 10 million RMB.”
Zhong Qingxian’s jaws dropped. Only 10 million? He was talking as if 10 million was like 1,000 RMB.
Zhong Qingxian suddenly realized that Feng Yu was not talking big when he said that he could invest 10 million yesterday. He really had the ability!
Cooperating with such a powerful company would be a good move but also a bad move at the same time. A powerful company not only have the money but also, have strong connections. Le Ha Ha company could get the support to develop faster. However, bosses of strong companies tend to want to be in control of everything. There was a possibility that Le Ha Ha would be taken over in future.
He wanted to develop Le Ha Ha, but he does not want to give his company away. He wants to have the final say in the company.
“Mr. Zhong, wait a while. It’s my company’s first advertising slots turn.” Feng Yu raised his hands and shouted: “Tai Hua Trading will continue the contract.”
Everybody turned and looked for the owner of that young voice. This advertisement slot was the most expensive slot today. Many of the advertisers noticed that it was a young man in his 20s who had shouted. Who was the boss of this Tai Hua Trading? How come he did not come personally for such an important event? Is that the boss’s son?
After a while, it was another slot which had increased by 50%. Feng Yu raised his hand and shouted Tai Hua Trading will continue to recontract!
This Tai Hua Trading is so rich. The rates had increased by 50% and he recontract more than one slots?
The third and fourth slots which increased by 50% were called successively, and to everybody’s surprise, the slots belonged to Tai Hua Trading and all the slots were recontract!
This time, everybody remembered that this time slot was airing Songjiang Motorcycles commercials. Could it be that this Tai Hua Trading is a subsidiary of Songjiang Motorcycles?
There was a total of 6 slots that increased by 50% and Tai Hua Trading owned 4 of them. The other 2 slots were also recontracted.
The effects of CCTV advertisements were shown last year. All the advertisers at CCTV had high returns. However, some advertisers were unlucky. There were some problems with the quality of their products, and it resulted in them suffering losses. Now the advertising rates increased, these advertisers had no choice but to give up and advertise at the Provincial TV stations.
The first round of tender was over. In the afternoon, they will make payments and sign the contracts. Tomorrow will be for the interested companies to compete for the empty slots.
The signing of the contract was not according to the order of the advertising time. It was according to the advertising rates. Feng Yu was the first person to enter the Advertising Division office to sign the contract with Cheng Baojun. The contract would last until next January. In December, there would be another round of tender for next year’s advertisement slots. This was different from what happened in the original history.
“Chief Cheng, why do I feel that CCTV is against my company? Why are our company’s slots rates increased the most?” Feng Yu asked when he was signing the contract.
“Manager Feng, it is not as what you think. The increment of the rates is based on the ratings. Your company’s time slots are all the primetime slots, so the increase was the highest. Look at your CCTV 2 and CCTV 3 advertising fees. The increased was not that high.”
Damn. How can you compare CCTV 2 and 3 with CCTV 1 channel? CCTV 3 was not even broadcast via the satellite!
“Chief Cheng, this increase will put a strain on my company’s finances.”
Cheng Baojun could tell that Feng Yu had some requests. If Feng Yu does not sign the contract and he resold the slots to other companies, his higher-ups would also feel that he was not doing his job right!
“Manager Feng, please speak your mind. We can discuss about it.”
“Ah, these few slots were not recontract. I am not greedy. Just sell 3 of the slots to my company.” Feng Yu took out the forms he prepared in the morning and showed Cheng Baojun. Feng Yu had circled the slots he wanted.
Cheng Baojun looked at the form with wide eyes. Didn’t you say that the increase would put a strain on your company’s finances? You still want to buy 3 more slots?