Pool ideas are a dime a dozen
Radio Market: Private radio stations want to move forward. That’s why they’re discussing a pricing system from Goldbach Media and other models. Some are still in the early stages.
Radio market Private radio stations want to make progress. That is why they are discussing a tariff system from Goldbach Media and other models. After last year's turbulence surrounding pool and tariff systems in the radio market, the private radio stations decided against a fundamental change to the market regulations and described 2006 as a year of transition. Now the topic is back on the agenda. The impetus for this came from Goldbach Media: Two weeks ago, Goldbach CEO Klaus Kappeler once again presented his "Radio Pool Switzerland" marketing model to the private radio operators in German-speaking Switzerland, albeit in a slightly different form. Goldbach had incorporated last year's criticism from broadcasters and agencies. Goldbach has not yet been able to find out exactly what the revised model looks like. According to reports, however, only details have been adjusted, the basic thrust of the model remains the same.does this revised model now have a chance in the radio scene? Werbewoche first asked where it is already being tried out to some extent: at Radio Top, Energy Zürich, Sunshine, Central and Ri. These five stations have been on their own in the market since the One Pool was terminated at the beginning of 2006. However, each of these stations grants a 20 percent discount on its tariff if it is booked in addition to at least four other stations.
Radio Top has had nothing but good experiences with this. In the first four months of this year, the station reported national
campaigns generated 10 percent more advertising customers and 15 percent more revenue. "We wouldn't go back to a pool under any circumstances," says Heuberger. Support for the Goldbach modelOther stations Energy Zurich, Sunshine and Ri (Central was unavailable): They are reporting declining national sales - "to roughly the same extent as the radio genre as a whole since January", they say in unison. Whether it would be any different with a pool connection is doubtful. Nevertheless, Jürg Bachmann, Managing Director of Energy Zurich, states: "The current situation of our station is not satisfactory in the long term. That's why we support the Goldbach model." Marco Meier from Sunshine Werbe AG is of the same opinion. However, he would supplement the Goldbach model with a basic offer.
At Radio Ri, the smallest of the four stations, Managing Director Max Müller sees a ray of hope despite declining sales: His station is still involved in some national campaigns. This shows that the small station Ri is not simply falling by the wayside thanks to the 20 percent discount. "However, it is important that our CPM roughly corresponds to that of the big players," says Müller. Which is exactly in line with the Goldbach model.
If you ask other broadcasters, there are concerns that the Goldbach model will give intermediaries too much power or that broadcasters will be increasingly forced into price dumping in future. Antitrust issues are also still present. Argovia Managing Director Roland Baumgartner, for example, is against a "complicated CPM calculation model with many factors": "This is unnecessary, each radio station should determine its own basic rate, and the CPM will then be adjusted automatically - as has been the case up to now. And the combined discount is then granted on this 'market rate'," he says. However, Baumgartner, who is responsible for commercial matters in the Swiss Private Radio Association (VSP), believes it is even more important that a new model should not only benefit advertising customers and a few large broadcasters, but also the entire radio genre. He has doubts about the Goldbach model in this respect, which is why he also proposes a modification.
Tamedia and the members of Pool 2000 have not yet commented on the revised Goldbach model, with the latter promising a response by mid-June. The VSP Board discussed the topic last week, finds the Goldbach model "exciting" and wants to examine it in more detail together with other concepts. "The VSP will try to develop its own holistic and industry-promoting model in the coming weeks," it said in a press release.
Conclusion: It is questionable whether the Goldbach model (or another one) will have a chance next year. The response from broadcasters has been muted and the discussion has made little progress. However, the industry cannot allow itself too much time to make a decision if the transitional year 2006 is not to become a permanent provisional solution: As a rule, the pools can be terminated by the end of June. The Radioday will take place on August 31. The ideas should be ready by then. The main obstacle, however, is the current, mostly long-term lease agreements between some broadcasters and their agents.
Broad discussionThe most discussed model
is Goldbach Media's "Radio Pool Switzerland". Contrary to what the name suggests, however, this is not a pool but a performance-based tariff system that is open to all broadcasters and marketers. The prerequisite is still that all pools and exclusive leases disappear. In addition, all parties involved must recognize the hourly reach in the 15+ target group as the decisive factor for calculating an adjusted CPM (last year, the target group was still 15 to 49). Customers can buy according to this CPM if they book at least five stations with 18 frequencies each.two other ideas take the Goldbach model as a basis, but want to supplement it. Argovia Managing Director Roland Baumgartner has a basic offer in mind that is geared towards the main customer needs. To this end, he would combine all those stations that have been included in 70 or 80 percent of past national radio campaigns into an attractively priced basic offer. The remaining stations can then be booked according to the Goldbach model. However, if customers only want to book individual or a few stations, the normal offers of the respective radio stations apply - he would not see a combined discount.
Marco Meier, Managing Director of Sunshine Werbe AG, goes one step further. In future, he proposes offering regional language pools that include all radio stations in the relevant language area - at an attractive thousand contact price (CPM). Those who do not want this basic offer can freely select and combine the stations according to the Goldbach model, although this would probably result in a higher CPM.
PubliGroupe, on the other hand, has not been heard from again on the radio scene. Last year, it almost divided the industry with its proposal for a pool.
Markus Knöpfli
Radio Top has had nothing but good experiences with this. In the first four months of this year, the station reported national
campaigns generated 10 percent more advertising customers and 15 percent more revenue. "We wouldn't go back to a pool under any circumstances," says Heuberger. Support for the Goldbach modelOther stations Energy Zurich, Sunshine and Ri (Central was unavailable): They are reporting declining national sales - "to roughly the same extent as the radio genre as a whole since January", they say in unison. Whether it would be any different with a pool connection is doubtful. Nevertheless, Jürg Bachmann, Managing Director of Energy Zurich, states: "The current situation of our station is not satisfactory in the long term. That's why we support the Goldbach model." Marco Meier from Sunshine Werbe AG is of the same opinion. However, he would supplement the Goldbach model with a basic offer.
At Radio Ri, the smallest of the four stations, Managing Director Max Müller sees a ray of hope despite declining sales: His station is still involved in some national campaigns. This shows that the small station Ri is not simply falling by the wayside thanks to the 20 percent discount. "However, it is important that our CPM roughly corresponds to that of the big players," says Müller. Which is exactly in line with the Goldbach model.
If you ask other broadcasters, there are concerns that the Goldbach model will give intermediaries too much power or that broadcasters will be increasingly forced into price dumping in future. Antitrust issues are also still present. Argovia Managing Director Roland Baumgartner, for example, is against a "complicated CPM calculation model with many factors": "This is unnecessary, each radio station should determine its own basic rate, and the CPM will then be adjusted automatically - as has been the case up to now. And the combined discount is then granted on this 'market rate'," he says. However, Baumgartner, who is responsible for commercial matters in the Swiss Private Radio Association (VSP), believes it is even more important that a new model should not only benefit advertising customers and a few large broadcasters, but also the entire radio genre. He has doubts about the Goldbach model in this respect, which is why he also proposes a modification.
Tamedia and the members of Pool 2000 have not yet commented on the revised Goldbach model, with the latter promising a response by mid-June. The VSP Board discussed the topic last week, finds the Goldbach model "exciting" and wants to examine it in more detail together with other concepts. "The VSP will try to develop its own holistic and industry-promoting model in the coming weeks," it said in a press release.
Conclusion: It is questionable whether the Goldbach model (or another one) will have a chance next year. The response from broadcasters has been muted and the discussion has made little progress. However, the industry cannot allow itself too much time to make a decision if the transitional year 2006 is not to become a permanent provisional solution: As a rule, the pools can be terminated by the end of June. The Radioday will take place on August 31. The ideas should be ready by then. The main obstacle, however, is the current, mostly long-term lease agreements between some broadcasters and their agents.
Broad discussionThe most discussed model
is Goldbach Media's "Radio Pool Switzerland". Contrary to what the name suggests, however, this is not a pool but a performance-based tariff system that is open to all broadcasters and marketers. The prerequisite is still that all pools and exclusive leases disappear. In addition, all parties involved must recognize the hourly reach in the 15+ target group as the decisive factor for calculating an adjusted CPM (last year, the target group was still 15 to 49). Customers can buy according to this CPM if they book at least five stations with 18 frequencies each.two other ideas take the Goldbach model as a basis, but want to supplement it. Argovia Managing Director Roland Baumgartner has a basic offer in mind that is geared towards the main customer needs. To this end, he would combine all those stations that have been included in 70 or 80 percent of past national radio campaigns into an attractively priced basic offer. The remaining stations can then be booked according to the Goldbach model. However, if customers only want to book individual or a few stations, the normal offers of the respective radio stations apply - he would not see a combined discount.
Marco Meier, Managing Director of Sunshine Werbe AG, goes one step further. In future, he proposes offering regional language pools that include all radio stations in the relevant language area - at an attractive thousand contact price (CPM). Those who do not want this basic offer can freely select and combine the stations according to the Goldbach model, although this would probably result in a higher CPM.
PubliGroupe, on the other hand, has not been heard from again on the radio scene. Last year, it almost divided the industry with its proposal for a pool.
Markus Knöpfli
