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JD.com Invests $142 Million in Elevator Ad Firm

Binwei Wang 2019-08-09 08:00 AM

China's second-largest online retailer, JD.com Inc. (Nasdaq: JD), announced today that it is investing $142 million in Xinchao Media Group, a company that places advertisements in elevators.

The partners will use big data and artificial intelligence to improve the quality of the advertisement, as well as empower the cooperative brand and business ecology, according to the announcement.

Founded in 2007, Chengdu-based Xinchao operates in more than 100 Chinese cities, including Beijing and Shanghai. It has 700,000 elevator televisions and covers 200 million families. Since its establishment, the company has received nearly 7 billion yuan in investments.

JD.com said elevator media is one of the mainstream media closest to family consumption, and the value of scenes and data is increasingly prominent.

Jianwen Liao, the chief strategic officer of JD.com, said, "With the trend of the digital industry, Xinchao Media and JD.com are highly complementary in software and hardware capabilities. Future cooperation in the media field can help JD.com expand user-level connectivity and growth, achieve accurate access to users and information services better, and build a more efficient ecological connection between users, brands and businesses. What’s more, JD.com has fully opened up its' retail infrastructure' capability, which is also an important symbol of JD.com's move from 'integration' to 'integrated opening'."

The stock in JD.com jumped 4 percent Thursday, closing at $27.54 per American depositary share.