Tamedia has set off an avalanche
Advertisements There’s a stir in the publishing industry: More and more self-managed publishers want to introduce direct-booking commissions for agencies. This is also causing concern among publishers with P leases. But P remains silent.
Advertisements There is rumbling in the publishing industry: More and more independent publishers want to introduce direct booking fees for agencies. This is also making publishers with P leases uneasy. But P remains silent. At the beginning of 2005, everything still looked like an extra tour by Tamedia: At that time, the Zurich media group offered media agencies that booked their advertisements in Tamedia titles directly instead of via Publimedia a so-called direct booking fee. On July 1, 2006, Ringier followed suit with the majority of its titles. "We noticed that Tamedia titles were gaining market share at the expense of similar titles from other publishing houses," said Thomas Passen, responsible for the reader and advertising market at Ringier Magazines, explaining the decision at the time. In addition, Ringier had "hoped in vain that Publimedia would do something to counter the threat of a discount spiral." Different publishing policiesNow it seems that such a spiral is definitely coming: Tamedia spokesman Christoph Zimmer announced that from next year, Tamedia titles 20 Minuten, Finanz und Wirtschaft and the Thurgauer Zeitung, which is switching to its own management, will also grant direct booking compensation. This means that all Tamedia titles will participate under the same conditions. The situation is different at Ringier, where the Blick Group remains excluded, but the original test offer itself will continue, presumably as before. "We have not yet analyzed the figures in detail, but a trend reversal was noticeable: our titles have gained market share again," says Thomas Passen.
Other publishers with their own titles are still hesitating. But at Edipresse, for example, it's as good as a done deal. "We will introduce 75 percent of the compensation, but only for our magazines," says Marcel Siegenthaler, Head of Advertising Market Edipresse Switzerland. Ralph Büchi, publisher of the Handelszeitungs Group, is also looking into the matter. "The chance that we will introduce compensation as of 2007 is intact," he says. According to reports, the Espace Media Groupe has already decided in favor of compensation - at least for the Berner Zeitung - but no comment was available from them. There has also been no reaction from the Walliser Boten.
Schaffhausen, on the other hand, is saying no. "Direct booking compensation is always an issue for us, but we will tend to do without it," says Alexandra Strohm, publishing director of Schaffhauser Nachrichten (SN). Strohm points out that P markets the advertising combination 1 with Landbote and Thurgauer Zeitung, which is important for SN. It obviously doesn't want to mess things up with the P.
Publishers under pressure to actThe reasons why other publishers are flirting with the compensation are manifold. On the one hand, some media agencies have been under pressure from other publishers following Tamedia's bounce. These were apparently under so much pressure that even Ringier, whose compensation is half a percent lower than Tamedia's, is "reviewing the amount of compensation again", according to Thomas Passen.
A second reason is that publishers want a level playing field. "We want to avoid our titles having to face disadvantages," says Siegenthaler. He fears such disadvantages because Ringier has also brought the compensation to French-speaking Switzerland. "We haven't felt anything yet, but Ringier has informed us that the compensation has had a positive impact on its magazines," says Siegenthaler. At the same time, however, he doubts that the agency fee could be financially worthwhile for the publishers. "It is primarily an investment in the relationship with the market partners," he says.
Ralph Büchi puts forward another argument: Provided that publishers openly declare their direct booking compensation, he sees this as a contribution to "transparency and fairness" in the triangular relationship between publisher, media agency and advertising client. "Hidden kickback payments, such as those that have come to light in Germany, undermine trust," he says. However, he does not believe that similarly serious conditions prevail in Switzerland. "But there are noticeable tendencies here too, and we want to counter these at an early stage in the interests of all market partners," says Büchi.
Jürg Siegrist, Director of the Association of Swiss Advertisers (SWA), has little sympathy for the publishers' arguments. For example, he criticizes the fact that publishers are being asked for a minimum volume per year. "This encourages agencies to make strange, financially motivated booking maneuvers towards the end of the year," says Siegrist. This is particularly noticeable at Tamedia, which increases the fee if an agency exceeds the previous year's volume. Siegrist also criticizes the fact that Tamedia only compensates agencies that book directly, but not clients that book directly.
The situation is different at Ringier, where both parties explicitly receive the compensation. "The whole thing amounts to less transparency than before," summarizes Siegrist. He emphasizes that the SWA is not fundamentally opposed to direct booking compensation. "However, we demand that all our members are informed openly," he says. It is then up to the clients to clarify with their agency who should ultimately receive the compensation.
However, Stephan Küng, CEO of Initiative Media Switzerland, is a clear "advocate of direct booking compensation". Not so much from a financial point of view, but because direct contact with the publisher is more efficient and also brings added value for the customer, he says. "For me, the whole thing also has a political component: P is a direct competitor of the media agencies in certain areas. And the compensation is a signal from the publishers that they want to treat equal performance equally," says Küng.
Time-consuming direct bookingFor Urs Schneider from Media-Schneider, too, the compensation "for an effectively provided advance service is very welcome", as he says. After all, direct booking is actually more time-consuming: not so much because of the direct contact, which is necessary for ad placement anyway, but in terms of billing and controlling. "If we go through Publimedia, we receive a single invoice. If we book directly, we receive several," says Schneider. He also reminds us of the SRG marketer Publisuisse: Publisuisse also grants online booking agencies compensation that has not yet been claimed by the clients.
This is what Tamedia and RingierRingier's compensation amounts to
(currently) one percent of annual net/net sales on advertisements and inserts - in 15 Ringier magazines as well as in Cash and Cash daily. The only exceptions are Gesundheit Sprechstunde, the sports magazine and the newspapers Blick, SonntagsBlick (including the magazine Sie + Er), Il Caffè and heute. A further condition must be met: The minimum annual turnover in the eligible titles must total half a million francs.Tamedia's direct booking fee, on the other hand, is 1.5 percent on volumes of at least one million francs annually. If the turnover also exceeds that of the previous year, Tamedia grants two percent.
U-turn by Jean FreyThe compensation avalanche triggered by Tamedia
Jean Frey AG (Bilanz, Beobachter, TVStar and 40 percent of Weltwoche) has also recognized the benefits of direct booking media agencies. "We are thinking about it for 2007", CEO Filippo Leutenegger announced shortly before the editorial deadline, although - unlike his publishing colleagues - he never used the term "direct booking compensation" but spoke of a "reimbursement". However, he emphasized that the decisions on Förrlibuckstrasse had not yet been made. It is also possible that there will not be a uniform Jean Frey regulation. "With us, the freedom of the individual titles is greater than elsewhere, we only coordinate." In any case, the respective title policy takes precedence. A year ago, Leutenegger was still clearly against compensation. He now justifies his U-turn with an unspecified "pressure from the market". The P is under pressure to actIn view of the potential wave of compensation
P is not only at risk of losing sales, it is also under pressure from its leased titles. Because they are not allowed to grant agencies a "discount" (P terminology), they fear that they will fall behind their own titles with direct booking compensation in the future. No wonder, then, that the entire industry is currently keeping a close eye on P. So far, however, the advertising giant has mainly left it at threats. For example, it has held out the prospect of slightly higher licenses for certain tools to agencies that book directly. Or charging for certain services that P currently provides free of charge.
Only two things have been implemented so far. For example, Publimedia introduced compensation in 2005: Agencies that book their own titles via Publimedia instead of directly receive five francs per order - a fee for which the agencies only have a weary smile. The second: if an agency orders cost calculations from Publicitas but then books directly, the expense is now invoiced. It is interesting to note that the print sponsor Publimedia does not do this.
Werbewoche wanted to ask Otto Meier, General Director of Publipresse, about the new situation. However, he canceled an interview without giving a reason. The publishers, agencies and the SWA did not fare much better: talks with Meier did take place, but there were no concrete answers, it was said in unison.
Markus Knöpfli
Other publishers with their own titles are still hesitating. But at Edipresse, for example, it's as good as a done deal. "We will introduce 75 percent of the compensation, but only for our magazines," says Marcel Siegenthaler, Head of Advertising Market Edipresse Switzerland. Ralph Büchi, publisher of the Handelszeitungs Group, is also looking into the matter. "The chance that we will introduce compensation as of 2007 is intact," he says. According to reports, the Espace Media Groupe has already decided in favor of compensation - at least for the Berner Zeitung - but no comment was available from them. There has also been no reaction from the Walliser Boten.
Schaffhausen, on the other hand, is saying no. "Direct booking compensation is always an issue for us, but we will tend to do without it," says Alexandra Strohm, publishing director of Schaffhauser Nachrichten (SN). Strohm points out that P markets the advertising combination 1 with Landbote and Thurgauer Zeitung, which is important for SN. It obviously doesn't want to mess things up with the P.
Publishers under pressure to actThe reasons why other publishers are flirting with the compensation are manifold. On the one hand, some media agencies have been under pressure from other publishers following Tamedia's bounce. These were apparently under so much pressure that even Ringier, whose compensation is half a percent lower than Tamedia's, is "reviewing the amount of compensation again", according to Thomas Passen.
A second reason is that publishers want a level playing field. "We want to avoid our titles having to face disadvantages," says Siegenthaler. He fears such disadvantages because Ringier has also brought the compensation to French-speaking Switzerland. "We haven't felt anything yet, but Ringier has informed us that the compensation has had a positive impact on its magazines," says Siegenthaler. At the same time, however, he doubts that the agency fee could be financially worthwhile for the publishers. "It is primarily an investment in the relationship with the market partners," he says.
Ralph Büchi puts forward another argument: Provided that publishers openly declare their direct booking compensation, he sees this as a contribution to "transparency and fairness" in the triangular relationship between publisher, media agency and advertising client. "Hidden kickback payments, such as those that have come to light in Germany, undermine trust," he says. However, he does not believe that similarly serious conditions prevail in Switzerland. "But there are noticeable tendencies here too, and we want to counter these at an early stage in the interests of all market partners," says Büchi.
Jürg Siegrist, Director of the Association of Swiss Advertisers (SWA), has little sympathy for the publishers' arguments. For example, he criticizes the fact that publishers are being asked for a minimum volume per year. "This encourages agencies to make strange, financially motivated booking maneuvers towards the end of the year," says Siegrist. This is particularly noticeable at Tamedia, which increases the fee if an agency exceeds the previous year's volume. Siegrist also criticizes the fact that Tamedia only compensates agencies that book directly, but not clients that book directly.
The situation is different at Ringier, where both parties explicitly receive the compensation. "The whole thing amounts to less transparency than before," summarizes Siegrist. He emphasizes that the SWA is not fundamentally opposed to direct booking compensation. "However, we demand that all our members are informed openly," he says. It is then up to the clients to clarify with their agency who should ultimately receive the compensation.
However, Stephan Küng, CEO of Initiative Media Switzerland, is a clear "advocate of direct booking compensation". Not so much from a financial point of view, but because direct contact with the publisher is more efficient and also brings added value for the customer, he says. "For me, the whole thing also has a political component: P is a direct competitor of the media agencies in certain areas. And the compensation is a signal from the publishers that they want to treat equal performance equally," says Küng.
Time-consuming direct bookingFor Urs Schneider from Media-Schneider, too, the compensation "for an effectively provided advance service is very welcome", as he says. After all, direct booking is actually more time-consuming: not so much because of the direct contact, which is necessary for ad placement anyway, but in terms of billing and controlling. "If we go through Publimedia, we receive a single invoice. If we book directly, we receive several," says Schneider. He also reminds us of the SRG marketer Publisuisse: Publisuisse also grants online booking agencies compensation that has not yet been claimed by the clients.
This is what Tamedia and RingierRingier's compensation amounts to
(currently) one percent of annual net/net sales on advertisements and inserts - in 15 Ringier magazines as well as in Cash and Cash daily. The only exceptions are Gesundheit Sprechstunde, the sports magazine and the newspapers Blick, SonntagsBlick (including the magazine Sie + Er), Il Caffè and heute. A further condition must be met: The minimum annual turnover in the eligible titles must total half a million francs.Tamedia's direct booking fee, on the other hand, is 1.5 percent on volumes of at least one million francs annually. If the turnover also exceeds that of the previous year, Tamedia grants two percent.
U-turn by Jean FreyThe compensation avalanche triggered by Tamedia
Jean Frey AG (Bilanz, Beobachter, TVStar and 40 percent of Weltwoche) has also recognized the benefits of direct booking media agencies. "We are thinking about it for 2007", CEO Filippo Leutenegger announced shortly before the editorial deadline, although - unlike his publishing colleagues - he never used the term "direct booking compensation" but spoke of a "reimbursement". However, he emphasized that the decisions on Förrlibuckstrasse had not yet been made. It is also possible that there will not be a uniform Jean Frey regulation. "With us, the freedom of the individual titles is greater than elsewhere, we only coordinate." In any case, the respective title policy takes precedence. A year ago, Leutenegger was still clearly against compensation. He now justifies his U-turn with an unspecified "pressure from the market". The P is under pressure to actIn view of the potential wave of compensation
P is not only at risk of losing sales, it is also under pressure from its leased titles. Because they are not allowed to grant agencies a "discount" (P terminology), they fear that they will fall behind their own titles with direct booking compensation in the future. No wonder, then, that the entire industry is currently keeping a close eye on P. So far, however, the advertising giant has mainly left it at threats. For example, it has held out the prospect of slightly higher licenses for certain tools to agencies that book directly. Or charging for certain services that P currently provides free of charge.
Only two things have been implemented so far. For example, Publimedia introduced compensation in 2005: Agencies that book their own titles via Publimedia instead of directly receive five francs per order - a fee for which the agencies only have a weary smile. The second: if an agency orders cost calculations from Publicitas but then books directly, the expense is now invoiced. It is interesting to note that the print sponsor Publimedia does not do this.
Werbewoche wanted to ask Otto Meier, General Director of Publipresse, about the new situation. However, he canceled an interview without giving a reason. The publishers, agencies and the SWA did not fare much better: talks with Meier did take place, but there were no concrete answers, it was said in unison.
Markus Knöpfli
