Study On Outdoor Advertising Concession

The outdoor advertising industry has experienced a fast decade-long development in China and now comes under adjustment. The problems that have been accompanying the fast development are surfacing up, such as outdated government management methods, faulty laws and regulations, and less self-discipline of the industry. The problems are held responsible for markets chaos and jeopardizing the industry development. The market economy requests reasonable resources allocation and maximum benefits, as a public resource, the outdoor advertising used to be run by the governments through Administrative Approval System(AAS), but there was so called"Government Failure"that would prevent the resources from being well allocated, for the purpose of accommodating market economy, the governments need to replace the AAS with Concession which allows the market to configure resources itself, the change will be positive for sustainable development of the industry. Considering the fact that outdoor advertising concession is at initial development stage in China, either theories or practices are relatively poor, the thesis will be thus focused on study of outdoor advertising concession.The writer studied in first on environment and development of outdoor advertising in China, USA, Japan and Britain, etc. The common management modes applied in China and developed countries were introduced, that was: AAS mode under centralized economy and Concession mode under market economy. As market economy is being further strengthened in China, AAS mode will be gradually replaced by Concession mode, but there are many problems during the transition that require further study and reform on existing management mode of outdoor advertising.After extensive study on concession mode, the writer suggested that the concession modes applied in China were mainly BOT and TOT, both were with corresponding advantages/disadvantages and applicable rules. BOT was relatively more suitable for efficient resources allocation in market economy than TOT and therefore BOT should be more promoted; but TOT was more suitable for imperfect market economy of outdoor advertising as it is in China now. Either it is BOT or TOT, the existing management environment has hindered the further development of both, and caused various problems. With analyzing on these problems, and learning lessons from abroad, the writer suggested that the steady and healthy development of outdoor advertising should be bolstered by three favorable conditions: perfect legal system, efficient government management and reliable self-discipline of the industry, the goals would be realized by joint efforts between government and the outdoor advertising industry. With all above analyzes and conclusions, the writer aims to provide positive references for sustainable development of outdoor advertising concession in China.