Media agencies: BSW refers to industry principles
The BSW is actively involved in the newly formed working group on the media industry and emphasizes the importance of industry principles. Managing Director Walter Merz disagrees with the accusation that media agencies lack objectivity and neutrality. The association is now hoping for constructive solutions.
SW President Carlo Schmid caused a stir on Friday with critical words about the media business. How does the Association of Leading Advertising and Communication Agencies in Switzerland (BSW), which also includes some of the leading media agencies, respond to the accusations? "We have industry principles for media agencies that clarify our position," explained Managing Director Walter Merz when asked by Werbewoche. The paper, which was adopted in 2005, sets out the working principles for agency evaluation, performance profile and remuneration. However, Schmid explained on Advertising Day that the BSW principle, according to which all commissions and discounts are reimbursed to the client, is no longer always adhered to. "I can say two things about this," continued Merz. "Firstly, there may be agreements between clients and agencies. These may state that the agency receives a lower fee but is allowed to keep the commissions. However, this must be contractually regulated," said Merz. "Secondly, I keep hearing rumors that there are irregularities. But when I ask, no one wants to comment. Until someone says specifically who and what is involved, I don't believe the irregularities exist." Of course, it cannot be ruled out that individual media outlets grant kickbacks that the client knows nothing about. But these tend to be isolated cases, says Merz.
"Different system to Germany" The BSW Managing Director rejects Carlo Schmid's fears that court cases could arise as they do in Germany: "The system is completely different here. Here, the agencies don't buy media as brokers, but book according to order. That is a difference. That's why embezzlement like in the Ruzicka case can't happen with us." The fact that agencies receive freespace from the media probably also exists in Switzerland, but this must be declared and benefit the clients.
Merz also does not entirely agree with the accusation that media agencies lack objectivity and neutrality. "Of course, there is no such thing as objectivity per se anyway. If three agencies create media plans, they will turn out differently - depending on the weighting and preferences of the agencies." Neutrality, on the other hand, is a given, as agencies are not part of the media companies.
Merz was not surprised by Carlo Schmid's words on Advertising Day: "We keep hearing accusations to this effect. It was also known that SWA President Gérard Stalder is skeptical of media agencies and sometimes accuses them of not working properly." For the BSW, however, it is clear that the industry principles are being adhered to. Merz hopes that the working group that has been formed will play with open cards and that constructive solutions will be found. The BSW is also represented in the group, namely with Peter Leutenegger from Draftfcb. Urs Schneider (mediaschneider) and Christof Kaufmann (OMD Switzerland) are expected to join as representatives of the media agencies after consultation with Swiss Advertising.
Carole Scheidegger
"Different system to Germany" The BSW Managing Director rejects Carlo Schmid's fears that court cases could arise as they do in Germany: "The system is completely different here. Here, the agencies don't buy media as brokers, but book according to order. That is a difference. That's why embezzlement like in the Ruzicka case can't happen with us." The fact that agencies receive freespace from the media probably also exists in Switzerland, but this must be declared and benefit the clients.
Merz also does not entirely agree with the accusation that media agencies lack objectivity and neutrality. "Of course, there is no such thing as objectivity per se anyway. If three agencies create media plans, they will turn out differently - depending on the weighting and preferences of the agencies." Neutrality, on the other hand, is a given, as agencies are not part of the media companies.
Merz was not surprised by Carlo Schmid's words on Advertising Day: "We keep hearing accusations to this effect. It was also known that SWA President Gérard Stalder is skeptical of media agencies and sometimes accuses them of not working properly." For the BSW, however, it is clear that the industry principles are being adhered to. Merz hopes that the working group that has been formed will play with open cards and that constructive solutions will be found. The BSW is also represented in the group, namely with Peter Leutenegger from Draftfcb. Urs Schneider (mediaschneider) and Christof Kaufmann (OMD Switzerland) are expected to join as representatives of the media agencies after consultation with Swiss Advertising.
Carole Scheidegger
