Chapter 486 Advertising is burning money
Friday, August 31st.
The second batch of six people from advertising agencies arrived at the Shangri-La Hotel conference room on time.
Things in the shopping mall cannot be hidden from anyone. They have already known through various channels that Fairy Company is about to release a revolutionary and epoch-making electronic product that will definitely detonate the world.
So I stopped being reserved, and the people who came and sat around the table were all gringos.
Oh, not just six, but four general managers of the company who didn't come yesterday were also sitting at the table with shy faces.
With the successful experience of the first day and the fact that yesterday's resentment has long since dissipated, there is no doubt that Yu Shanshan performed even better today.
Northeast Dayangma not only shocked them with her beautiful appearance, but also played the DreamPad to perfection, which almost made a group of people's eyes fall out. The whole room exclaimed "My God" and "Shit".
It's never been interrupted.
The demonstration here has just ended. Before anyone could say anything, Kojima Shigemasa from Japan's Kojima Planning and Kim Daeheng from South Korea's Samsung Advertising were already waiting outside the door. When they came in, they respectfully sent the process and domestic emergency communication.
, written DreamPad advertising plan.
Yesterday afternoon, the two of them agreed with the additional condition of "shooting in mainland China" added by Fairy Company yesterday afternoon.
Not only them, but the general managers of the other ten companies also fully agreed.
Why?
Staying in China to shoot commercials can be regarded as a great achievement for them. This performance should be written on their resumes and accompany them throughout their careers!
With this credit in hand, are you still afraid that one day you will not be able to return to the headquarters and take a higher position?
The only one who is a little bit more troublesome is Taylor, the rising American singer. But that doesn't matter. The large advertising companies in the United States are all very powerful. They can invite even a small singer.
Xiao Qi took Yu Shanshan to discuss the contract details with Kojima Maochang and Jin Daheng, leaving the remaining ten advertising company general managers to discuss on their own.
The young man believes that DreamPad, which replaced the IPHONE and first appeared in the world, will never escape the temptation of anyone who has seen it.
The person who is anxious now is not you. If you let them go, it will be more conducive to negotiations.
There are three main expenditures for advertising: the first is production fees, the second is celebrity remuneration, and the third is promotion fees.
Generally speaking, the money consumption of the three is exactly the opposite. Promotional expenses such as television media are the largest, celebrity remuneration is second, and production expenses are the cheapest.
Xiao Qi's initial sales targets are the ten major countries in the Americas, the European Union and developed countries such as Switzerland and Australia, Japan, South Korea, Singapore, etc. In total, there are more than thirty-five developed countries, and these are the places where advertising is placed.
one.
One billion U.S. dollars seems like a lot, but it can be spread across thirty-five countries, and there is not just one advertisement, but a series, so the average is less than ten million U.S. dollars, which is probably not enough.
Once the second phase of advertising comes out, it is not surprising that an additional three to five billion US dollars will be spent.
Fortunately, Chinese celebrities use RMB to pay their bills, otherwise they would have spent much more.
Of course, Xiao Qi is not afraid of spending money on advertising. As long as he can earn more, it will be worth it.
In the United States alone, Nike's advertising expenses in 2000 reached 600 million U.S. dollars. Since then, the annual advertising expenses have been between 600 million and 800 million. As a result, its sales and profits have been increasing every year, which shows that the product is good.
It is good with advertising and can complement each other.
In four months, global advertising was carried out, with a loose budget of one billion U.S. dollars, but Xiao Qi did not have this huge sum of money.
But he wasn't too worried. If it didn't work out, he could borrow it from Citibank.
In the past month, as of today, August 31st, New York oil has been quoted at US$63 per barrel. Xiao Qi has received a total of US$700 million in bets from Goldman Sachs and Merrill Lynch, although this money is still available.
It's not in the account, but looking at the slow and unstoppable decline in oil prices, no one would think that it would hit more than 80 US dollars. At least this year, fewer and fewer people are bullish.
It’s not that Xiao Qi worships foreigners and doesn’t know how to take care of domestic commercial banks.
It’s really because the US dollars are lent out and when they are returned a few years later, the appreciation of the RMB alone is enough to offset all the interest and make a fortune for themselves. With such a good thing, how can a young man fall behind others?
In the conference room, Xiao Qi looked at the contract details brought by Kojima Shigemasa and Jin Daheng, which were the same as what he requested yesterday.
In terms of advertising costs, time, and promotion plans, the plans made by the two of them are absolutely excellent. The detailed classification and the anticipation of various emergencies are all very professional. No wonder they are from their own countries.
One of the top advertising giants among them.
However, the advertising costs of both companies are not cheap either.
South Korea's Samsung offered four well-known Chinese celebrities, five advertisements, and full medium exposure for half a year, totaling US$23.8 million.
The Japanese island is better, with eight advertisements and a total of 40 million U.S. dollars in the same half-year average exposure.
Don’t look at absolute values when advertising.
Considering that the economies of South Korea and Japan are almost as strong, but Japan’s population is three times that of South Korea, so the price is only almost double that of South Korea, which is not expensive at all.
Xiao Qi can be lavish with his own people, but he doesn't like to get used to the bad habits of foreigners.
After thinking about it, he divided the Korean Samsung advertising budget into 20 million and the Japanese advertising budget into 35 million, and handed them back.
"Director Xiao, we can't make it at this price!" Jin Daheng's face was so ugly that he almost cried out, "For these four stars in China, what you need are famous stars, and each of them should cost at least 500 to
8 million in remuneration, right? South Korea's KBS and other three major TV stations are all money-hungry. A fifteen-second ad can earn them $2 million for half a year, let alone a thirty-second ad.
It’s not that our Samsung brand is strong enough, even 23.8 million won’t work.”
"I have here a detailed copy of the advertising expenses of eight companies including Nike, Nokia, and Dell in South Korea last year. Director Jin, please take a look." Xiao Qi took a copy of the information from Yu Shanshan and handed it over, "Look at ours.
Is there any error in the algorithm? Of course, we know that world-renowned companies will definitely receive preferential treatment, so I just raised the price by 10% based on theirs, and you should make a profit."
Jin Daheng looked at the familiar data and listened to Xiao Qi's words. A look of horror appeared on his face: How did this kid get such detailed information? Isn't he too evil?
Kojima Shigemasa also received a detailed information in his hand. Needless to say, the content was similar to Jin Daheng's, which made him smile bitterly.
In order to get a more accurate figure on advertising costs, Xiao Qi specifically went to the American Bolen Consulting Company to purchase detailed data. Thirty-five pieces of information cost two million US dollars, but it was absolutely worth every penny.
According to the amount he calculated, the advertising company can maintain a gross profit of 10-15%. Although it is not much, it is definitely profitable.
Chapter completed!