Temporary end to the boom
TV advertising Switzerland's advertising windows have almost reached SRG level. Now the wind is changing.
TV advertising Switzerland's advertising windows have almost reached SRG level. The crisis has played into the hands of the advertising windows. Since 2001, when the advertising market literally collapsed, the boom in Swiss advertising on German channels has really taken off. With growth of over 23 percent (gross advertising expenditure), the crisis year 2001 was the absolute top year for Swiss German advertising windows. During the same period, the TV advertising revenues of SRG stations in German-speaking Switzerland experienced a slump of 8.7 percent.It is worth noting that the marked expansion is not due to additional advertising windows. Neither in 2000 nor 2001 were new ones opened. The decisive factor for the better performance was the "different customer structure", explains Michi Frank, CEO of IP Multimedia (Switzerland). "The main customers of the advertising windows consist of everyday products (fast moving consumer goods), which are also consumed and advertised in times of crisis."
On the other hand, SRG broadcasters have a higher share of high-priced products (cars) and services (banks, insurance companies), which were hit harder by the crisis. However, Michi Frank believes that this restraint will subside as the economy improves.
Overtaking maneuver is canceled
A pleasing prospect for Publisuisse, which will thus avoid the ignominy of being overtaken by the advertising windows. It would not be far off: in 2003, the gross advertising expenditure of the advertising windows in German-speaking Switzerland was only 32 million francs behind that of SF 1 and SF 2. Four years earlier, the advertising windows had only reached half of SRG's turnover.
Another factor that speaks against an overtaking maneuver is the large gross-net gap, which has widened particularly wide among private broadcasters. This is because the original advertising blocks overlaid with Swiss advertising have to be filled. This automatically leads to more freespace offers.
However, Publisuisse CEO Martin Schneider casts doubt on the comparison using gross figures: "Private individuals sell heavily on price, which leads to a greater discrepancy between gross and net. This is why the Media Focus figures (gross) show a distorted picture of the real market shares (net)." Due to the real distribution of the TV advertising pressure available in the market, Schneider also sees no danger of being outperformed by the windows. "In German-speaking Switzerland, around two thirds of advertising pressure is attributable to SF 1 and SF 2," says Schneider.
Michi Frank also does not believe in a rapid increase in market share. "2003 will remain the high point for advertising windows for the time being," explains the CEO of IP Multimedia (CH).
Publisuisse CEO Schneider also cites an important indicator for a slower future development of the advertising window competition: "The latest rate increases point to a departure from the pure price strategy. These adjustments show that the advertising windows cannot generate sufficient growth simply by filling their advertising islands."
Sat 1 skims off the top with sponsorship
The Sat-1 advertising window, on the other hand, does not expect the boom to end quickly. Matthias Luchsinger, CEO of marketer Cinecom, predicts that the double-digit percentage upturn of previous years will continue in 2004. This is only possible thanks to the Swiss program window on Sat 1. "In the area of sponsorship, this exclusive platform will also create attractive growth potential in the future," says Luchsinger. After sponsorship revenues already increased "by around 20 percent" in 2003, he expects a further jump "of 20 to 25 percent" for the current year.
IPM CEO Frank also sees future growth in special advertising formats and in tapping into the previously neglected target group of children. From March 1, Super RTL will be the last advertising window still available on German channels. "Children are very brand-conscious and can have a strong influence on family shopping," says Frank.
The "strong trend towards special forms of advertising" will require particular attention in future. To this end, IPM set up the IP Productions department at the end of last year. The innovative advertising programs "Ahead" and "Amped Champ" have emerged from this think tank and production workshop. And that is just the beginning. "Special forms of advertising are not the really big pieces of our future revenue pie," says Frank, putting the brakes on exaggerated expectations. "But they are the butter on the bread and are a lot of fun for us and our customers."
SWA wants expansion in French-speaking SwitzerlandThe unsatisfactory advertising window situation in French-speaking Switzerland is a thorn in the side of the Swiss Advertisers Association (SWA). In view of the hardened fronts between M6 and TSR - the latter has another lawsuit pending before the Fribourg court - it is unlikely that the M6 advertising window will be activated in the conurbations of Geneva and Lausanne in the foreseeable future.
The problem is at the top of the SWA's list of pending issues, explains SWA Director Jürg Siegrist. However, he does not see a short-term solution. "If Bakom and the SRG oppose this, we have to be prepared for a long battle." Siegrist is nevertheless hopeful: "The sale of M6 to the RTL Group a few months ago could get things moving." (dse)
Special advertising vehicle "Amped Champ": Snowboard contest real (picture) and virtual as a video game.
Daniel Schifferle
On the other hand, SRG broadcasters have a higher share of high-priced products (cars) and services (banks, insurance companies), which were hit harder by the crisis. However, Michi Frank believes that this restraint will subside as the economy improves.
Overtaking maneuver is canceled
A pleasing prospect for Publisuisse, which will thus avoid the ignominy of being overtaken by the advertising windows. It would not be far off: in 2003, the gross advertising expenditure of the advertising windows in German-speaking Switzerland was only 32 million francs behind that of SF 1 and SF 2. Four years earlier, the advertising windows had only reached half of SRG's turnover.
Another factor that speaks against an overtaking maneuver is the large gross-net gap, which has widened particularly wide among private broadcasters. This is because the original advertising blocks overlaid with Swiss advertising have to be filled. This automatically leads to more freespace offers.
However, Publisuisse CEO Martin Schneider casts doubt on the comparison using gross figures: "Private individuals sell heavily on price, which leads to a greater discrepancy between gross and net. This is why the Media Focus figures (gross) show a distorted picture of the real market shares (net)." Due to the real distribution of the TV advertising pressure available in the market, Schneider also sees no danger of being outperformed by the windows. "In German-speaking Switzerland, around two thirds of advertising pressure is attributable to SF 1 and SF 2," says Schneider.
Michi Frank also does not believe in a rapid increase in market share. "2003 will remain the high point for advertising windows for the time being," explains the CEO of IP Multimedia (CH).
Publisuisse CEO Schneider also cites an important indicator for a slower future development of the advertising window competition: "The latest rate increases point to a departure from the pure price strategy. These adjustments show that the advertising windows cannot generate sufficient growth simply by filling their advertising islands."
Sat 1 skims off the top with sponsorship
The Sat-1 advertising window, on the other hand, does not expect the boom to end quickly. Matthias Luchsinger, CEO of marketer Cinecom, predicts that the double-digit percentage upturn of previous years will continue in 2004. This is only possible thanks to the Swiss program window on Sat 1. "In the area of sponsorship, this exclusive platform will also create attractive growth potential in the future," says Luchsinger. After sponsorship revenues already increased "by around 20 percent" in 2003, he expects a further jump "of 20 to 25 percent" for the current year.
IPM CEO Frank also sees future growth in special advertising formats and in tapping into the previously neglected target group of children. From March 1, Super RTL will be the last advertising window still available on German channels. "Children are very brand-conscious and can have a strong influence on family shopping," says Frank.
The "strong trend towards special forms of advertising" will require particular attention in future. To this end, IPM set up the IP Productions department at the end of last year. The innovative advertising programs "Ahead" and "Amped Champ" have emerged from this think tank and production workshop. And that is just the beginning. "Special forms of advertising are not the really big pieces of our future revenue pie," says Frank, putting the brakes on exaggerated expectations. "But they are the butter on the bread and are a lot of fun for us and our customers."
SWA wants expansion in French-speaking SwitzerlandThe unsatisfactory advertising window situation in French-speaking Switzerland is a thorn in the side of the Swiss Advertisers Association (SWA). In view of the hardened fronts between M6 and TSR - the latter has another lawsuit pending before the Fribourg court - it is unlikely that the M6 advertising window will be activated in the conurbations of Geneva and Lausanne in the foreseeable future.
The problem is at the top of the SWA's list of pending issues, explains SWA Director Jürg Siegrist. However, he does not see a short-term solution. "If Bakom and the SRG oppose this, we have to be prepared for a long battle." Siegrist is nevertheless hopeful: "The sale of M6 to the RTL Group a few months ago could get things moving." (dse)
Special advertising vehicle "Amped Champ": Snowboard contest real (picture) and virtual as a video game.
Daniel Schifferle
