Creates Incremental Revenue Opportunity in the Mobile Advertising Space
Jingwei International (OTC Bulletin Board: JNGW) (“Jingwei”) today announced a new arrangement to provide mobile advertising services to China Unicom subscribers, one of China’s largest mobile telecommunication providers with over 150 million subscribers. Jingwei will be the exclusive provider of mobile advertising services, including SMS text advertisements (“SMS”) and banner advertisements that push targeted ads to specific consumer profiles (“Push WAP”).
“Today’s announcement is a significant step in the development of Jingwei. We are bringing our fast growing data mining capabilities to one of our premier existing relationships, with China Unicom. This speaks directly to our compelling data mining platform and our established, long term relationships in the telecommunication sector,” stated George Du, Chairman of Jingwei International.
As the exclusive mobile advertising platform for China Unicom, Jingwei will help identify potential advertisers and the ideal target audience for the advertiser, drawing from the Company’s database of over 300 million Chinese consumers. Jingwei will then conduct the SMS or Push WAP campaign on behalf of the advertiser, recognizing revenue for each message sent or banner ad launched. Finally, Jingwei will analyze the response data and help the advertiser continually improve its media placement strategy.
Du continued, “We believe Jingwei has a compelling mobile advertising solution and we are poised to capitalize on this exciting new market. While the concept of mobile advertising is still young in Asia, we believe there is significant room to grow, with over 500 million mobile phone users in China today. Many of these users are ideal targets for advertisers who, due to media fragmentation, find it harder and harder to reach China’s affluent consumers. Our consumer database and our cutting edge analytics -- which slice and dice the data -- allow us to find very specific targets and elicit a much higher rate of response than traditional or mass advertising.”
The Company expects to begin to recognize revenue related to campaigns targeting China Unicom subscribers in the fourth quarter of 2007. Jingwei expects to initially provide mobile advertising services to users in the city of Shenzhen, China, with a nationwide roll-out anticipated during 2008. The Company plans to provide service focusing on Shanghai and Beijing early in the year.
About Jingwei International
Jingwei International (“Jingwei”) is one of the leading providers of data mining and customer relationship marketing services in China. With a customer database of over 300 million Chinese consumers, Jingwei enables leading Chinese companies to reach their target audience. The Company’s services include market segmentation, customer trend and churn analysis, fraud detection and direct marketing services such as telemarketing and WVAS. The Company also operates a software services business, which provides a broad range of billing systems, provisioning solutions, decision support and customer relationship management systems for China’s leading mobile telecommunication carriers. The software services business strengthens sales opportunities for Jingwei’s higher margin data mining platform, and allows the Company to enhance its customer database. Jingwei plans to evolve into an integrated marketing platform with targeted outbound sales campaigns via mobile phone advertising, and customer service/order fulfillment at call centers throughout the country.
Safe Harbor Statement
Certain of the statements made in the press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.