UBS takes it easy

 
Financial crisis Despite the huge losses and image problems: UBS is hardly changing its communication strategy. 
Switzerland's largest bank, UBS, has been under constant criticism and scrutiny since the historic billion-dollar losses, the resignation of the head of UBS, Marcel Ospel, and a new loss carryforward of 12 billion Swiss francs in the first quarter of 2008. After the disaster became known, the media even took to the streets and asked passers-by whether they would close their accounts with the big bank, but despite the loss of clients and its image, UBS did not react with an image offensive or a reduction in its advertising budget. "There are no major changes," says UBS media spokesperson Dominique Gerster. Only the "You and Us" advertising campaign, which shows UBS functionaries in their free time, has been scaled back because the bank has launched its major appearance for Euro 08. Otherwise, the "courant normal" continues. "However, it is clear that we have generally reviewed our expenditure due to the current situation." In concrete terms? We are reviewing how we have presented ourselves to the public so far and whether certain adjustments need to be made to our tone.
The big bank has worked hard for Euro 08 with the so-called UBS arenas (a kind of open-air games with a big screen for live coverage of the matches at 16 locations in Switzerland) and started planning a year and a half ago. It would be a sad sign if the project were simply abandoned, says Gerster and emphasizes: "We are fully committed to the activities."
The organizers of Perron 8, who organize the events in and around the arenas on behalf of the big bank, are also satisfied so far. Especially (and contrary to reports in the business newspaper Cash daily) with the sales of around 200,000 tickets sold so far, half of the available seats. "It would be illusory to want to sell all the tickets in advance," says Reto Bloesch, press spokesman for Perron 8, as it is to be expected that many people will only buy tickets on the day of a match. However, the negative headlines surrounding the UBS banking debacle are not noticeable for the organizer, notes Bloesch.
Financial institutions generally cautiousAre marketers feeling the general effects of the financial crisis? The radio and TV marketer Publisuisse is responsible for the UBS arenas and works together with Allgemeine Plakatgesellschaft (APG) for poster advertising in the local area. In general, it is safe to say that the financial institutions have reduced their TV advertising to the bare minimum, says Beatrice Knill, Head of Sales at Publisuisse. "The trend is clearly noticeable," she explains. For the other advertising clients, it will be necessary to wait until the second half of 2008 to identify possible trends.
"We are noticing a certain reluctance on the part of advertising clients," confirms Ivan Schultheiss, Head of Sales Switzerland at APG. The focus of the financial crisis is particularly on the two major banks UBS and Credit Suisse, although not all the effects of the latter are yet apparent. However, the budgets are set until after the euro. "After the first 26 weeks of this year, the outlook for us is not bad so far," says Schultheiss. Thanks to Euro 08, it remains to be seen whether the financial crisis will have an impact on the advertising market.
René Worni