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According to Analysys analysis, this is the first time that the government authorities have introduced supervision measures for the outdoor electronic screen advertising industry. The purpose is to regulate the market order, eliminate hidden dangers in traffic safety, and guarantee the space rights of citizens. Beijing is the most stringent area for outdoor advertising supervision in the national market. This regulation and its follow-up measures will become the reference for other provinces and cities to conduct industry management, while the management of other provinces and cities is expected to not exceed Beijing, so the specification "It deserves the attention of the industry.
Yi Guan believes that from the current measures issued by the "Specifications", the following points should be focused on:
First, in general, the requirements of the regulations have greatly improved the industry's entry barriers. The outdoor electronic display setting plan will be incorporated into the outdoor advertising setting plan, and the total amount control will be implemented. The public security traffic management department shall be responsible for the safety assessment, and it will not form light pollution, noise pollution, electromagnetic radiation pollution, etc., which will affect the normal life of the residents. Analysys International believes that this regulation will prevent small businesses from taking advantage of space for profit, thereby protecting the operational interests of large and medium-sized outdoor digital media companies and helping the market to develop in a healthy manner.
Second, Article 6 provides restrictions on urban LED large screens and street LED screens. The "Regulations" require that "outdoor electronic display screens should be mainly located in the appropriate locations of urban public squares or pedestrian streets. Outdoor electronic displays should be installed on both sides of the city's main roads (except for urban closed squares and pedestrian streets). View International believes that this specification will make outdoor video advertisements with LED materials tend to differentiate. The LED large screens (more than 72 square meters) distributed in pedestrian streets and core business districts will have more bargaining power and higher bargaining power. The development of LED small screens distributed on both sides of the main road will be limited.
At present, the LED large-screen operators in the main pedestrian streets and core business districts in China are tulip media. Their commercial terminals are mainly distributed in the core business districts such as Shanghai Xujiahui. This main business is expected to become a bearer after carrying a certain public welfare and government propaganda role. The integral part of the city's overall image is recognized.
The main road LED small screen is still relatively scattered. The main operator is Focus Media's “iStreet†network, which is currently expanding into cities such as Chengdu and Guangzhou by acquiring high-quality outdoor space resources. The specification is expected to allow the industry to reassess policy risks.
3. Article 8 imposes restrictions on the safety technical standards and management standards of outdoor electronic displays. The "Regulations" require that "high-quality materials with advanced technology, energy conservation and environmental protection should be adopted and professional units with corresponding qualifications should be responsible for the design, production and installation of display screens". Analysys International believes that the formulation of this standard still has argumentation difficulties, but if the energy consumption and environmental indicators of materials are restricted, and on this basis, a small number of enterprises are responsible for production and installation, the media will be upgraded. Enterprise operating costs, and technology-driven companies that focus on energy-consuming technologies will benefit.
4. Article 10 There are restrictions on the broadcasting requirements for audiovisual programs such as news and entertainment. The use of outdoor electronic displays to broadcast or relay news, movies, television programs, etc., shall comply with the relevant provisions of radio and television management and intellectual property management. Analysys International believes that this will enable industry players to strengthen their content to attract advertisers, and will have to achieve this through the cooperation with radio and television organizations.
In general, Analysys International believes that the focus of the Code is: The Code raises the industry threshold and limits the entry of small and medium-sized operators, which constitutes another industry barrier for large operators. It is beneficial to the development of the industry. The introduction of this regulation in the early stage of market development will help the long-term healthy development of the market, and the follow-up provisions on this basis will lead to changes in the market structure in other market segments. 
February 03, 2019