Focus Media Holdings Ltd, China's largest listed advertising
company, is bidding for the local IT consultancy iResearch Group,
the company's latest move to carve a niche in China's online
advertising market.
"We have been in talks for the acquisition since earlier this
year," said Yang Weiqing, iResearch's general manager. "Besides
Focus Media, we are also negotiating with other advertisers and
consulting firms."
Yang and officials from Focus declined to reveal further
details. It was reported earlier that the advertising company may
pay as much as US$10 million for the IT researcher.
Established in 2002, iResearch has become one of China's major
IT consultancies. Focusing on the Internet, the company releases
more than 50 reports each year, covering topics such as the
shopping habits of local Internet users, the company said.
"iResearch's knowledge of Internet users could give Focus Media
a boost for its online advertising business," said Sheng Wei,
marketing director of Analysys International, a Beijing-based IT
consulting firm.
Shanghai-based Focus paid as much as US$300 million in cash and
shares this March to acquire Allyes Information Technology Co Ltd
to enter the online advertising market.
The largest online advertising agent in China, Allyes provides
services and technology that allows advertisers control creative
production, ad tracking, targeting and performance analysis.
"Allyes and iResearch could be complementary to each other, if
their understanding of media platform and user behavior are
combined to create more effective online ad solutions, " said
Sheng.
Most of Focus Media's revenue still comes from sales of
advertising on flat-panel televisions installed in office
buildings, supermarkets and other public venues. But the company
has been aggressively expanding into the Internet and mobile
advertising sectors to seek new revenue sources.
(China Daily June 6, 2007)