Rumor: China Mobile to Drop Fractalist
Sohu IT, 12/18/07
It has recently been rumored that due to long-term sluggish performance, China Mobile (NYSE: CHL; 0941.HK) plans to terminate Fractalist's position as sole advertising agency for the Monternet, instead shifting the position to its own subsidiary, Aspire. Leveraging Olympics-related marketing opportunities, it then hopes to get the Monternet's advertising business back on track.
Fractalist has been the exclusive ad agency for the Monternet for 2 years, however advertising revenues during this time have been well below China Mobile's expectations. Industry insiders believe that Fractalist's lack of experience with sales channels and advertising operations are the root causes behind Fractalist's inability to exploit the Monternet's full advertising value.
In addition, expensive office space and highly paid management have led to a large increase in costs. Fractalist had reportedly been hoping to gain outside investment to help maintain operations, and had attracted interest from Legend Capital. However, Legend Capital recently dropped these plans after performing a detailed assessment of Fractalist's operations.
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Keywords: Fractalist China Mobile CHL 0941.HK Aspire Monternet WVAS mobile advertising Legend Capital Olympics wireless
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