Migros no longer advertises in "20 Minuten"
Because it feels it has been treated unfairly regarding rates, Migros has suspended advertising in Tamedia’s free newspaper 20 Minuten for the time being. Tamedia told *Werbewoche* that the offer had been fair. It was Migros, they said, that had demanded further concessions on prices. According to research by Blick, the dispute is costing 20 Minuten approximately 14 million francs in advertising revenue. The role played by Migros’s new media agency, OMD Switzerland, in this dispute remains to be clarified.
Migros, Switzerland's largest advertising client, is in dispute with the country's largest free newspaper, 20 Minuten: The orange giant will no longer advertise in the free newspaper until further notice. As a result, the Tamedia title will lose an estimated CHF 13 million in the printed edition and CHF 1 million in the online edition, as reported by Blick in Friday's edition. The reason for the business relationship being broken off for the time being is a wage dispute. However, negotiations still appear to be underway.
Migros writes that fairness is an important part of its values, "as we do not currently feel this in our business relationship with 20 Minuten, we have decided to refrain from working together until further notice." In contrast, Tamedia spokesperson Christoph Zimmer told Werbewoche: "Migros rejected an offer that we considered good and demanded a further concession. Our offer was good and fair. We regret that Migros did not accept our offer". Migros did not wish to comment further on the matter when asked.
Advertisements from Migros Denner not affected by the scandal
Zimmer also says that Migros has been made an offer that is better than the offers for all other companies in Switzerland. This is because increasing sales also means increasing discounts. "We recognize that Migros, as the largest advertising client, should also receive the best conditions." Zimmer denies the question of whether other Tamedia titles are affected by the dispute with Migros. "Such negotiations are an ongoing process. However, there are currently no comparable cases to the one between Migros and 20 Minuten."
The advertisements of Migros' Denner store are not affected by the scandal between Migros and 20 Minuten. "Denner plans and books independently," says Zimmer. He does not comment on the amount of advertising revenue of CHF 14 million that 20 Minuten is said to have lost according to Blick.
Unclear role of Migros media agency OMD Switzerland
The role of OMD Switzerland, Migros' new media agency appointed in December 2008, in this dispute remains unclear for the time being. What is certain is that there were no direct negotiations regarding advertising rates between the cooperative association and Tamedia, meaning that the eclat was resolved between OMD and 20 Minuten. Whether and to what extent OMD Switzerland exerted pressure on the rates or whether this was done on Migros' instructions remains to be clarified.
(elk)
Migros writes that fairness is an important part of its values, "as we do not currently feel this in our business relationship with 20 Minuten, we have decided to refrain from working together until further notice." In contrast, Tamedia spokesperson Christoph Zimmer told Werbewoche: "Migros rejected an offer that we considered good and demanded a further concession. Our offer was good and fair. We regret that Migros did not accept our offer". Migros did not wish to comment further on the matter when asked.
Advertisements from Migros Denner not affected by the scandal
Zimmer also says that Migros has been made an offer that is better than the offers for all other companies in Switzerland. This is because increasing sales also means increasing discounts. "We recognize that Migros, as the largest advertising client, should also receive the best conditions." Zimmer denies the question of whether other Tamedia titles are affected by the dispute with Migros. "Such negotiations are an ongoing process. However, there are currently no comparable cases to the one between Migros and 20 Minuten."
The advertisements of Migros' Denner store are not affected by the scandal between Migros and 20 Minuten. "Denner plans and books independently," says Zimmer. He does not comment on the amount of advertising revenue of CHF 14 million that 20 Minuten is said to have lost according to Blick.
Unclear role of Migros media agency OMD Switzerland
The role of OMD Switzerland, Migros' new media agency appointed in December 2008, in this dispute remains unclear for the time being. What is certain is that there were no direct negotiations regarding advertising rates between the cooperative association and Tamedia, meaning that the eclat was resolved between OMD and 20 Minuten. Whether and to what extent OMD Switzerland exerted pressure on the rates or whether this was done on Migros' instructions remains to be clarified.
(elk)
