Global outdoor advertising leader Clear Channel Outdoor (CCO) and BlueFocus Communications Group (:BFCG), a leading Chinese communications company, recently announced a multi-year partnership to promote high-flying Chinese brands to American consumers. However, the news failed to cheer investment sentiment as the share prices of Clear Channel remained relatively flat on the following day on Jul 3.
The deal gives Chinese brands access to some of the most valued out-of-home (:OOH) digital sites in the U.S. like Times Square and San Francisco International Airport. The Times Square space will be handled by the company's Clear Channel Spectacolor while Clear Channel Airports will be controlling advertising media at all major airports. The strategic goal of BlueFocus is aimed towards digitalization and globalization of its services as it expects revenues to grow ten times within a decade.
The deal with BlueFocus is likely to be a valuable proposition as Chinese brands expand their global reach and reach out to newer consumers, with the U.S. being one of the most important markets. Clear Channel will be utilizing its expertise in exceptional marketing programs such as full motion video screens and wallscapes to enable BlueFocus to effectively reach out to a larger mass.
Clear Channel aims to use innovative advertising concepts to expand its reach. At present, Clear Channel is concentrating on strengthening its business and expanding its client base as over 1000 large format digital billboards reaches more than 80 million adults monthly. Also, Clear Channel maintains a sound and flexible balance sheet with ample liquidity for key acquisitions to fuel its top-line growth.
Clear Channel currently has a Zacks Rank #3 (Hold). Better-ranked stocks that are worth a look include Coupons.com Incorporated (COUP), Marin Software Incorporated (MRIN) and Omnicom Group Inc. (OMC), all carrying a Zacks Rank #2 (Buy).