Profile: China Mass Media Corp. (CMM.N)

China Mass Media Corp., formerly China Mass Media International Advertising Corp., incorporated in November 2007, is a television advertising agency in the People’s Republic of China. The Company is engaged in advertising agency services, in which it purchases and sells the advertising slots on television channels to its customers. The Company also provides sales and marketing services to China Central Television (CCTV) for special sport events and provides advertisement production and public service announcement sponsorship services to its customers. The clients of the Company include advertising agencies, as well as corporations or other entities seeking to advertise their own products or services. During the year ended December 31, 2008, the Company provided advertising agency services to over 300 non-agency advertisers that purchased advertising time slots to advertise their products or services, either directly or indirectly through other advertising agencies.

The clients of the Company include advertising agencies, as well as corporations or other agencies seeking to advertise their own products or services. The Company is also a producer of public service announcements and commercial television advertisements in the People’s Republic of China. It also produces public service announcements and commercial advertisements for government agencies and corporations. The Company offer a range of integrated television advertising services, including advertising agency services, special events services and production and sponsorship services.

Advertising Agency Services

The Company provide advertising agency services to the clients by providing them with the advertising time slots obtained from CCTV. Advertisers purchase advertising time slots obtained from CCTV either directly from the Company or through their advertising agencies.

The advertising agency services start with an initial discussion between the sales and marketing personnel and an advertiser. After learning more about the advertiser, including its business and its goals for placing the advertisements, the Company conduct the relevant market research for them and propose a marketing and advertising plan, which includes the recommendations of advertising strategies and specific television channels and time slots on which to place the advertisement to maximize the desired effect. After the advertiser approves such a plan, the Company enter into an advertising agency contract with the client who agrees to engage as its agent to procure the relevant advertising time slots. The contract would specify, in the case of acquiring advertising time slots from the Company, the time slots or the programs within which the advertisements would be broadcast and the relevant price for the advertising time slots allocated to such client.

Special Events Services

The Company have contractual agreements with CCTV to assist CCTV in the sales and marketing of advertising time slots on CCTV Channels 1 and 2 during sporting events that are broadcast on these channels. Such sporting events include the Olympic Games, the FIFA World Cup and various other sporting events. The Company participate in the joint efforts to market events, produce promotional films, organize promotional fairs, negotiate contracts with potential advertisers and provide post-broadcasting services to the clients.

Production and Sponsorship Services

The Company provides a range of services, including designing, producing and packaging television advertisements to the clients. It also offers production and sponsorship services as part of the integrated advertising services package it offers to the advertising clients. The Company provide production services directly at the request of the clients, including both corporations and government agencies or non-governmental organizations. The production of public service announcements and commercial advertisements involves various stages, including identifying concepts, formulating ideas, drafting advertising strategies and story books, organizing pre-production meetings, drafting and finalizing the shooting book, shooting, editing and post-production procedures.

The Company competes with SinoMedia Holding Limited, Walk-on Advertising Co. Ltd. and Charm Communication Group.