AOL to Close China R&D Unit

AOL is closing a research unit in China to cut costs.  The move will result  in the loss of 56 jobs.  Despite the cuts, The company plans to continue to publish it website for China, Hong Kong, Taiwan and South East Asia.  Read more

Rumors Tan Zhi and Other Focus Media Execs to Resign

Rumors are circulating that Tan Zhi and other Focus Media executives will resign after selling its outdoor ad business to Sina.  Focus Media operates the Allyes ad network in China.  Read more.

Google China Testing Adsense on Music Search

 

Google China is testing new advertising models to be used on its music search service (www.google.cn/music). Music download and listening pages are now using both Flash and Google AdSense ads.   This is the latest update for Googles music search service introduced  in August, 2008 in partnership with with legal music download service Top100.cn.  

Google indicated that the music search service has not been fully launched yet.  This effort is a stragic one for Google in its battle to win market share for China’s dominant serach engine Baidu, which gained a huge market lead early on by catering to Chinese users seeking music and games.

Follow my ChinaAdBiz Twitter

We launched a Twitter feed feed today called ChinaAdBiz.  You can receives regular “Tweets about the advertising business in China here…  http://twitter.com/ChinaAdBiz

 Richard Li billionaire chairman of PCCW plans to set up an online financial news provider with Caijing magazine in China to target investors in the world’s fastest-growing major economy, according to four people with knowledge of the matter.  Read more at Bloomberg.

Behavioral Targeting in China

An article in iMedia Connection by Michael Gorman discusses why he believes behavioral targeting will not happen quickly in China.   Read the full article here

Jiang Takes the Reins at Focus Media

On the first day of the Chinese New Year Focus Media announced that Jason Jiang step back in as CEO replacing Dr. Tan Zhi.  The press release below ws posted to the Focus Media website.

SHANGHAI, China, Jan 26, 2009 /PRNewswire-Asia via COMTEX News Network/ — Focus Media Holding Limited (Nasdaq: FMCN), China’s leading multi-platform digital media company, today announced that Jason Jiang, Focus Media’s executive chairman, will resume his position as chief executive officer to replace Dr. Tan Zhi who will continue with the Company as an executive director….more.

Focus Media Sells Digital Out-of-Home Business to Sina

Focus Media announced this morning that it has agreed to combine its digital out-of-home advertising business with Sina.  Sina will issue 47 Million newly issued share to Focus Media which will be distributed to Focus Media shareholders.  Focus Media plans to retain its Internet advertising division Allyes.  Read more about Focus Media and Sina’s plans…

Focus Media “Bites the Bullet”

Focus Media announced yesterday that it plans to exit the mobile advertising business it entered through acquisition in 2007.  The company cited “market conditions”.  They will take an impairment charge of $20 million dollars.  Earlier this year the company was cited for spamming mobile users and took immediate action to curtail the activity.

Focus Media will also take a write down of $200 Million in 4Q to restructure the CGEN in-store digital advertising network it acquired for $182 million.   The write down is more than the company paid for CGEN back in January.  CGEN did not achive its earn out targets, so the company stated that it will NOT owe additional payments of up to $182 million.

Rather than perpetuating the problems in its wireless and in-store ad business, Focus Media seems to be getting, well, focused.  I would not expect any acquisitions from the company in 2009.  2009 will be a year of executing on the organic growth opportunity represented by digital screen out-of-home advertising, which it now dominates, and the AllYes online ad network.  Wall Street reacted positively to the news.  Read the company press release.

The Creative Agency Landscape in China

DanWei has published an interview with Mauro Marescialli, managing director of Standards Group – a creative agency based in Beijing China. Mauro gives his perspective on the current environment in China and the roles creative agencies can play in the current market.  You can find Mauro’s interview on DanWei.