According to the Swiss Advertising Statistics Foundation, net advertising revenues rose again in 2006. Television and outdoor advertising both gained market share, while print media remained stable. For the third consecutive year, net advertising spending is on the rise. The low point was in 2003, when net advertising revenues for all of Switzerland stood at 5.123 billion Swiss francs. They have since reached 5.632 billion Swiss francs, meaning they are practically back at the 2001 level—at least at first glance.
However, this is not the case; the current total figure is not really comparable to those of previous years. This is because the statistics for trade fairs and exhibitions have been expanded, making the net volume appear significantly higher (see box «Trade Fairs and Exhibitions»). If the statistics had been compiled exactly as before, the current total net figure would likely still be about 130,000 Swiss francs lower than that of 2001. However, since WEMF also recalculated the statistics for 2005 using the new methodology, the following statement can still be made: The 5.632 billion in net revenue in 2006 is approximately 180 million Swiss francs, or 3.3 percent, higher than the comparable figure for 2005.
A look at the individual media categories reveals that, with the exception of teletext (–23.7 percent), radio (–2.9 percent), and movie theaters (unchanged), all categories saw slight growth compared to the previous year. Growth rates were 7 percent for outdoor advertising, 4.5 percent for television, 3.1 percent for print media, 3 percent for direct mail, and 0.7 percent for address books. Online and Ad-Screen are also listed for the first time—but only with gross figures and therefore outside the overall statistics.
It is interesting to note that net advertising revenues in 2006 grew at roughly the same rate as—or even slightly faster than—gross domestic product (GDP), which increased by 3.3 percent compared to 2005. In recent years (with the exception of 2004), net advertising revenues have consistently been well below GDP growth.
With regard to net advertising investments in the press, the following aspect is also likely to be significant for the future development of the Swiss newspaper landscape: Last year, 1.688 billion francs were invested in advertisements in daily, weekly, and Sunday newspapers—4.5 percent more than in 2005. The Sunday market saw the largest increase (+10.1 percent). However, the free daily and weekly newspapers benefited even more: Their net advertising revenue rose to 298 million Swiss francs—40 million, or 15.2 percent, more than in 2005. However, the existing free titles had to share this additional revenue with the four newcomers: Matin Bleu, 20 minutes, Heute, and Cash daily. Incidentally, subscription-based publications grew by only 2.5 percent.
When viewed by language region, the situation takes on a different perspective: In German-speaking Switzerland, daily and regional weekly newspapers (excluding Sunday papers) grew by a total of 4.5 percent, while free-circulation titles grew by 7.5 percent—twice as much as subscription-based newspapers. In French-speaking Switzerland and Ticino, daily and weekly titles grew by 4.8 percent, or 18 million francs. However, this growth—and even more besides, totaling 22 million francs—went entirely to the free publications, primarily to *Matin Bleu* and *20 minutes*. The subscription press actually recorded a decline of 1.1 percent compared to 2005.
The outlook is more positive for western and southern Switzerland when it comes to the general-interest, financial, and business press, as well as specialized and trade journals: Publications in the French- and Italian-speaking regions consistently posted gains, whereas those in German-speaking Switzerland posted losses across the board.
In terms of TV advertising (excluding sponsorship), Swiss private broadcasters once again posted the strongest growth, rising by 13.8 percent, while foreign advertising slots increased by 7 percent and SRG by 0.2 percent. Including sponsorship, however, the percentage increases in revenue for Swiss private broadcasters and advertising slots were nearly equal. Sponsorship of TV programs also showed a significantly higher growth rate than TV advertising: it rose by 11 million to 54 million Swiss francs (up 27.1 percent).
Radio advertising, on the other hand, was less in demand. Excluding sponsorship revenue—and thus excluding SRG stations—net advertising revenue fell by 10 million to 104 million Swiss francs (–8.3 percent), with German-speaking Switzerland suffering a greater decline both in percentage terms and in absolute figures than western and southern Switzerland. When sponsorship—and thus the SRG radio share—is factored in, the picture is similar to that of TV: sponsorship is also in high demand on the radio. Last year, it grew by 6 to 34 million Swiss francs (+19.1 percent) and already accounts for one-fifth of net revenue in this sector.
Markus Knöpfli

Market Research: According to the Swiss Advertising Statistics Foundation, net advertising revenues rose again in 2006. Television and outdoor advertising both gained market share, while print media remained stable. For the third consecutive year, net advertising spending is on the rise. The low point was in 2003, when net advertising revenue for all of Switzerland stood at 5.123 billion Swiss francs. It has since risen to 5.632 billion Swiss francs, meaning it is practically back at the 2001 level. At least at first glance. But that is not the case; the current total is not really comparable to previous years. This is because the statistics for trade fairs and exhibitions have been expanded, making the net volume appear significantly higher (see box «Trade Fairs and Exhibitions»). If the statistics had been compiled exactly as before, the current total net value would likely still be about 130,000 Swiss francs below that of 2001. However, since WEMF also recalculated the statistics for 2005 using the new methodology, the following statement can still be made: The 5.632 billion in net revenue in 2006 is approximately 180 million Swiss francs, or 3.3 percent, higher than the comparable figure for 2005.
A look at the individual media categories reveals that, with the exception of teletext (–23.7 percent), radio (–2.9 percent), and movie theaters (unchanged), all categories saw slight growth compared to the previous year. Growth rates were 7 percent for outdoor advertising, 4.5 percent for television, 3.1 percent for print media, 3 percent for direct mail, and 0.7 percent for address books. Online and Ad-Screen are also listed for the first time—but only with gross figures and therefore outside the overall statistics.
It is interesting to note that net advertising revenues in 2006 grew at roughly the same rate as—or even slightly faster than—gross domestic product (GDP), which increased by 3.3 percent compared to 2005. In recent years (with the exception of 2004), net advertising revenues have consistently been well below GDP growth.
With regard to net advertising investments in the press, the following factor is also likely to be significant for the future development of the Swiss newspaper landscape: Last year, 1.688 billion francs were invested in advertisements in daily, weekly, and Sunday newspapers—4.5 percent more than in 2005.  The Sunday market saw the largest increase (+10.1 percent). However, the free daily and weekly newspapers benefited even more: Their net advertising revenue rose to 298 million Swiss francs—40 million, or 15.2 percent, more than in 2005. However, the existing free publications had to share this additional revenue with the four newcomers: Matin Bleu, 20 minutes, Heute, and Cash daily. Subscription-based publications, by the way, grew by only 2.5 percent.
When viewed by language region, the situation takes on a different perspective: In German-speaking Switzerland, daily and regional weekly newspapers (excluding Sunday papers) grew by a total of 4.5 percent, while free-distribution titles grew by 7.5 percent—twice as much as subscription-based newspapers. In French-speaking Switzerland and Ticino, daily and weekly publications did grow by 4.8 percent, or 18 million francs. However, this growth—and even more besides, totaling 22 million francs—went entirely to the free publications, primarily to *Matin Bleu* and *20 minutes*. The subscription press actually recorded a decline of 1.1 percent compared to 2005.
The outlook is more positive for western and southern Switzerland when it comes to the general-interest, financial, and business press, as well as specialized and trade journals: Publications in the French- and Italian-speaking regions consistently posted gains, whereas those in German-speaking Switzerland posted losses across the board.
In terms of TV advertising (excluding sponsorship), Swiss private broadcasters once again posted the strongest growth, rising by 13.8 percent, while foreign advertising slots increased by 7 percent and SRG by 0.2 percent. Including sponsorship, however, the percentage increases in revenue for Swiss private broadcasters and advertising slots were nearly equal. Sponsorship of TV programs also showed a significantly higher growth rate than TV advertising: it rose by 11 million to 54 million Swiss francs (up 27.1 percent).
Radio advertising, on the other hand, was less in demand. Excluding sponsorship revenue—and thus excluding SRG stations—net advertising revenue fell by 10 million to 104 million Swiss francs (–8.3 percent), with German-speaking Switzerland suffering a greater decline both in percentage terms and in absolute figures than western and southern Switzerland. When sponsorship—and thus the SRG radio share—is factored in, the picture is similar to that of TV: sponsorship is also in high demand on the radio. Last year, it grew by 6 to 34 million Swiss francs (+19.1 percent) and already accounts for one-fifth of net revenue in this sector.   
Methodology: The figures are based on surveys of media companies (publishers, broadcasters) throughout Switzerland and the Principality of Liechtenstein and reflect the amounts that advertisers actually paid for advertising placements. Surveys were conducted from March through May 2007.
 
Estimates are included only if refusals to provide information would have resulted in significant distortions in the year-over-year comparison. The extent of these refusals is illustrated by the example of print media: In 2006, 379 titles reported their net revenues—79.8 percent of the total circulation of all print titles. In 2005, 377 titles reported their net revenues, representing 73.8 percent of the total circulation at that time.
 
Direct mail refers, on the one hand, to the actual revenue generated by distribution organizations from the distribution of unaddressed mail and, on the other hand, to an estimate by the postal service of postage revenue from addressed mail based on representative surveys of companies.
How Net Advertising Revenue from Customers Is Calculated: Net advertising revenue from customers is calculated by subtracting discounts (for volume and repeat purchases) from gross revenue. Commissions, fees (JUP, BK), and other incentives are not included. Production costs (such as those for the services of advertising and media agencies) for printing brochures or posters, producing a commercial, or constructing a trade show booth are also not included.
Trade Shows: A Special Case
The «Trade Fairs and Exhibitions» report is based on an annual survey conducted by the Swiss Trade Fair Association (VMS).  It is based on commercially oriented international, national, or regional events published in the Swiss Trade Fair Calendar. Last year, the VMS adapted its internal statistics to the needs of the industry, making them more comprehensive than before and therefore no longer comparable to the earlier publications of the Swiss Advertising Expenditure Foundation.
 
The figures from the expanded statistics were also collected retroactively for 2005. The year-over-year comparisons are based on the expanded statistics: For 2006, revenue from 217 trade shows was recorded (2005: 199 trade shows). The net revenue
Revenues in 2006 totaled 345 million Swiss francs, up 1.7 percent from the previous year.