Ranking remains constant
BSW Leading Swiss Agencies presented the ranking and see the coming recession not only as a challenge but also as an opportunity.
Not sporty, but fit," is how BSW President Frank Bodin wants the ranking of the major Swiss agencies to be understood. This is therefore not to be understood as a sporting competition with winners and losers. "The ranking serves to provide transparency and guidance for clients." The fact that the results nevertheless reveal a healthy level of fitness makes the industry optimistic. Everyone is talking about the coming crisis. "But it will hit the media harder than the agencies," Urs Schneider from Media Schneider is convinced. Peter Felser puts it in figures: "The 6 billion franc advertising billings will undergo more painful changes than the agencies' fees." In other words, advertising clients will continue to need good and perhaps even more help from creative agencies even in tougher times. However, the ideas found will no longer find their way into the media in such a broad way. In addition, a constantly growing proportion will shift to the cheaper Internet.
The summary of the ranking shows: The 55 advertising and specialist agencies in the BSW realized a total of 331.3 million francs in gross operating income in 2007, an increase of 7.5 percent compared to 2006. In 2007, the BSW agencies were responsible for advertising money amounting to around CHF 2 billion for their clients. "The importance of BSW agencies is demonstrated by the fact that they only account for around 7 percent of all advertising agencies in Switzerland, but manage two thirds of all advertising money that is deployed via agencies," Bodin calculated.
With regard to the development of the Internet, Schneider explained that 120 million Swiss francs are already invested in online advertising every year. Last year, the media specialist calculated an increase of 400 percent, "albeit at a low level". However, Schneider believes that this development cannot continue indefinitely. Advertising space on the portals is limited, usually to two banners per page. Felser also wants to dispel some of this fear of the almighty online. He is convinced that online advertising is not an easy way to achieve broadcasting - i.e. broad brand awareness - because online advertising has to be "approved" by the user and is only noticed with annoyance, especially in the most popular communities.
When interpreting advertising spendings, it should not be forgotten that in today's multi-layered campaigns, more and more money is also being invested in below-the-line measures.
As far as the development of print is concerned, Schneider sees a widening price-performance gap. The number of readers is decreasing - the cost of advertising, on the other hand, is trending upwards. But those who want to address the highly positioned target group of a particular newspaper will perhaps interpret such figures differently.
Schneider estimates that print advertising will decline by 10 percent in the coming year. In the discussion surrounding this development, it became clear that some advertisers are currently also seeing an oversupply of competing print titles. However, Peter Felser also wanted to see a counter-trend in that his two daughters are not only constantly online, but also read two newspapers today, which teenagers would never have done in the past. And the situation where we now have to fight our way through at least four well-made weekend editions on a Sunday has never been seen before in the history of the newspaper. In all this talk about the print crisis, it is also forgotten that expenditure on traditional advertising amounted to CHF 3.2 billion in 2001 and is now at least CHF 4 billion.
With regard to the outlook, the BSW Management Board believes that 2008 will be "just as successful as 2007". At least the first half of the year shows this trend.
BSW still sees the traditional model as the agency model of the future. But "everything is done" there today, and online is already used by 90 percent of all customers. Just as naturally as the former "advertising agencies" supplemented their posters with the advent of TV advertising. However, posters in particular will soon be experiencing a small boom again.
After a five-year hiatus due to stock market regulations, the ranking is now back for the second time - with categories based on millions in revenue. A new addition is a separate ranking of media agencies.
Andreas Panzeri
The summary of the ranking shows: The 55 advertising and specialist agencies in the BSW realized a total of 331.3 million francs in gross operating income in 2007, an increase of 7.5 percent compared to 2006. In 2007, the BSW agencies were responsible for advertising money amounting to around CHF 2 billion for their clients. "The importance of BSW agencies is demonstrated by the fact that they only account for around 7 percent of all advertising agencies in Switzerland, but manage two thirds of all advertising money that is deployed via agencies," Bodin calculated.
With regard to the development of the Internet, Schneider explained that 120 million Swiss francs are already invested in online advertising every year. Last year, the media specialist calculated an increase of 400 percent, "albeit at a low level". However, Schneider believes that this development cannot continue indefinitely. Advertising space on the portals is limited, usually to two banners per page. Felser also wants to dispel some of this fear of the almighty online. He is convinced that online advertising is not an easy way to achieve broadcasting - i.e. broad brand awareness - because online advertising has to be "approved" by the user and is only noticed with annoyance, especially in the most popular communities.
When interpreting advertising spendings, it should not be forgotten that in today's multi-layered campaigns, more and more money is also being invested in below-the-line measures.
As far as the development of print is concerned, Schneider sees a widening price-performance gap. The number of readers is decreasing - the cost of advertising, on the other hand, is trending upwards. But those who want to address the highly positioned target group of a particular newspaper will perhaps interpret such figures differently.
Schneider estimates that print advertising will decline by 10 percent in the coming year. In the discussion surrounding this development, it became clear that some advertisers are currently also seeing an oversupply of competing print titles. However, Peter Felser also wanted to see a counter-trend in that his two daughters are not only constantly online, but also read two newspapers today, which teenagers would never have done in the past. And the situation where we now have to fight our way through at least four well-made weekend editions on a Sunday has never been seen before in the history of the newspaper. In all this talk about the print crisis, it is also forgotten that expenditure on traditional advertising amounted to CHF 3.2 billion in 2001 and is now at least CHF 4 billion.
With regard to the outlook, the BSW Management Board believes that 2008 will be "just as successful as 2007". At least the first half of the year shows this trend.
BSW still sees the traditional model as the agency model of the future. But "everything is done" there today, and online is already used by 90 percent of all customers. Just as naturally as the former "advertising agencies" supplemented their posters with the advent of TV advertising. However, posters in particular will soon be experiencing a small boom again.
After a five-year hiatus due to stock market regulations, the ranking is now back for the second time - with categories based on millions in revenue. A new addition is a separate ranking of media agencies.
Andreas Panzeri
Frank Bodin, President.
Urs Schneider, Chairman.
Peter Felser, Vice President.
