This afternoon, Digital Media Group (DMG) and Shanghai Metro TV (SMT) announced their cooperation on Shanghai subway LCD advertising channels at the Shanghai Four Seasons Hotel.

Here are some key takeaways:

In terms of LCD advertising channels, DMG currently runs an average of 18 advertising minutes per hour. Revenue growth was 70% year-on-year in 2008, and 2009 revenue is expected to be twice that of 2008.

DMG increased prices substantially in Shanghai this year, but Shanghai prices remain much lower compared to those in Japan and Hong Kong markets.

Currently, SMT and DMG operate on Shanghai subway lines 1-6 and 8 and 9, while DMG covers six other cities/regions including Nanjing, Chongqing, Tianjin, Beijing, Shenzhen and Hong Kong.

Programs offered on subway screens are 15% sports/entertainment, 20% social welfare, 50% news/information and 15% other.

Shanghai's new regulations to turn off the volume on in-bus digital advertising may also make their way onto the subway, according to SMT's CEO.

DMG's CEO said the company's advertising business won't be impacted by the financial crisis as much as on-bus advertisers whose main clients are luxury brands, financial service and real estate companies. DMG's main clients are FMCG companies.

DMG operates about 800 digital advertising screens at bus stops in Shanghai.