Beijing TV and Beijing Cable merged their operations in June 2001, but maintained separate ad sales teams. Luo Ying, who was the ad director for Beijing TV's channel one, will head the joint operation.
Next month's merger comes more than a year after media groups in Shanghai integrated their sales operations under the Shanghai Media Group banner.
MediaCom Beijing general manager, Aaron Tsoi, believed the merger would result in rate cards being unified, a move which he added would benefit multinational shops.
The merger comes amid speculation that the station is likely to incur a revenue shortfall this year unless there is a strong pick-up in the final quarter. Agencies said a pre-payment scheme launched towards the end of last year to prop up 2001 revenues, which offered steep discounts to those who paid upfront, was a drag on 2002 revenues. The station is understood to have set a revenue target of Rmb 1.3 billion (US$158 million).
Agency sources however believe soft advertising conditions and hefty pre-payment discounts would erode revenue. "If they can get Rmb 1.1 billion, which is about what they cleared in 2001, it will be good," said a media buyer.
