China's AirMedia, Sinopec sign advertising deal

BEIJING, April 30 - AirMedia Group Inc, China's top provider of advertising in airports and on planes, and Sinopec Corp signed a deal on Thursday allowing the media group access to 8,000 gas stations around the country.

The deal is AirMedia's first venture into outdoor advertising, a fast growing segment in China's $20 billion advertising market, the world's fourth largest.

"Chinese automobile owners are higher end consumers and fit into our aviation focus," Chairman and Chief Executive Guo Man told Reuters.

AirMedia will install its digital TV screens in up to 1,000 Sinopec gas stations this year, and plans to have a nationwide network in 8,000 service stations by 2015, said AirMedia.

The company's ads already cover more than four-fifths of Chinese air passengers via 2,500 digital TV screens across more than 40 airports and more than 16,000 screens in nine airlines.

AirMedia will hire another 300 staff next year to administer the new programme, bringing its total staffing to 1,000, said Guo.

Publicis, the world's fourth-largest advertising group, said advertising spending was set to rise 8 percent in China in 2009. ($=6.83 yuan)