Direct advertising slowed down the downturn
Net advertising spending in 2001 was down «only» 2 percent—thanks to the return of direct mail to the WEMF statistics
Net advertising expenditure down "only" 2 percent in 2001 - thanks to the return of direct advertising to the Wemf statisticsBy Daniel Schifferle For the first time after four years of an upward trend, net advertising expenditure fell in 2001, reaching CHF 5665 million. Only thanks to direct advertising, which was included again after a long absence, was the decline limited to 2 percent.
The last few years will be remembered as unique. While net advertising sales in the previous years increased by over 8% (2000) and over 10% (1999), the result turned negative in 2001. As the study carried out by Wemf on behalf of the Advertising Statistics Foundation shows, advertising sales fell by 2% or CHF 116 million to a total of CHF 5665 million.
According to project manager Rolf Blum, it is only thanks to direct advertising that there has not been an even more marked decline. It had been missing from the advertising statistics since 1996 because the relevant data was no longer fully available from all providers. Last year, transparency was restored - to the benefit of the overall result. Without direct advertising, the decline would probably have been significantly higher at minus 3.5% or minus CHF 165 million.
Net sales for the two previous years were extrapolated so that a comparison can also be made for direct advertising. This shows that, with growth of 4.6% or CHF 48 million, direct advertising is showing the strongest upward trend among the various media types. This clearly demonstrates in figures that direct advertising is gaining in importance in times of an advertising slump.
Positive results can be counted on one hand
Nevertheless, direct advertising is not the only form of advertising that managed a positive development in the gloomy past advertising year. One of the few fortunate exceptions was poster advertising, which grew by 1.8% or CHF 11 million. Address books were also up on the previous year, increasing by 3.3% or CHF 5 million. And the trade fairs and exhibitions segment also stood out from the generally gloomy environment with growth of 3.5% or CHF 8 million. Together, however, out-of-home advertising, directories and trade fairs and exhibitions only grew by a modest CHF 24 million. This means that the three together only increased by half of the growth generated by direct advertising alone.
As expected, the print media were hit hardest in 2001. They again fell below the CHF 3 billion mark, which was exceeded for the first time in 2000. With a steep loss of 4.8% or 146 million francs, they now stand at 2886 million francs. In percentage and absolute terms, this is the biggest loss for the press in the last ten years. The losses are spread across the various categories: Newspapers (including free newspapers and official journals) down CHF 4.4% or CHF 100 million, consumer magazines down CHF 8.7% or CHF 33 million, trade press down CHF 3.4% or CHF 14 million.
Among the daily newspapers, the small local newspapers (circulation of less than 10,000 copies) were hit hardest in percentage terms. Their sales shrank by 11.7%. In absolute amounts/figures, the large daily newspapers (circulations over 50,000 copies) suffered the most. They fell by 99 million francs.
Job advertisements also experienced a marked slump. While the growth rates in the previous three years were still regularly above 30%, 2001 saw a decline of 4.5% or 27 million francs. Nevertheless, the overall result from the job market of CHF 552 million is still the second best ever for Switzerland. Subscription newspapers suffered the most at minus 8%. At the same time, the free newspapers/official journals category increased by 85.6% or 18 million francs. This result is largely attributable to commuter newspapers, which were able to massively improve their sales from job advertisements.
Among the print media, consumer magazines felt the impact of reduced advertising expenditure the most. They even closed 8.7% or CHF 33 million below the previous year's result. In this group, the results differed greatly: general interest magazines lost 13.0%, financial and business publications were down by 6.0%, after having surged ahead by 39.2% in the previous year. At minus 3.6%, women's titles were the least affected magazine category.
TV advertising revenues below half a billion again
In percentage terms, radio was the hardest hit of the electronic media, falling by 7.6% or CHF 10 million in 2001 - after a record-breaking increase of 16.2% or CHF 19 million in 2000.
Television also suffered a severe setback, as it has already fallen below the half-billion-franc mark it passed for the first time last year - CHF 520 million to be precise. With the current minus of 5.1% or 26 million francs, TV still came to 494 million francs. On the other hand, the sponsorship of programs bucked the general downward trend, increasing by 13.4% or CHF 6 million to CHF 52 million. Teletext also showed stability - albeit only approximate, as the rounded figure of CHF 14 million in net sales hides a minus of CHF 3.5%.
The last few years will be remembered as unique. While net advertising sales in the previous years increased by over 8% (2000) and over 10% (1999), the result turned negative in 2001. As the study carried out by Wemf on behalf of the Advertising Statistics Foundation shows, advertising sales fell by 2% or CHF 116 million to a total of CHF 5665 million.
According to project manager Rolf Blum, it is only thanks to direct advertising that there has not been an even more marked decline. It had been missing from the advertising statistics since 1996 because the relevant data was no longer fully available from all providers. Last year, transparency was restored - to the benefit of the overall result. Without direct advertising, the decline would probably have been significantly higher at minus 3.5% or minus CHF 165 million.
Net sales for the two previous years were extrapolated so that a comparison can also be made for direct advertising. This shows that, with growth of 4.6% or CHF 48 million, direct advertising is showing the strongest upward trend among the various media types. This clearly demonstrates in figures that direct advertising is gaining in importance in times of an advertising slump.
Positive results can be counted on one hand
Nevertheless, direct advertising is not the only form of advertising that managed a positive development in the gloomy past advertising year. One of the few fortunate exceptions was poster advertising, which grew by 1.8% or CHF 11 million. Address books were also up on the previous year, increasing by 3.3% or CHF 5 million. And the trade fairs and exhibitions segment also stood out from the generally gloomy environment with growth of 3.5% or CHF 8 million. Together, however, out-of-home advertising, directories and trade fairs and exhibitions only grew by a modest CHF 24 million. This means that the three together only increased by half of the growth generated by direct advertising alone.
As expected, the print media were hit hardest in 2001. They again fell below the CHF 3 billion mark, which was exceeded for the first time in 2000. With a steep loss of 4.8% or 146 million francs, they now stand at 2886 million francs. In percentage and absolute terms, this is the biggest loss for the press in the last ten years. The losses are spread across the various categories: Newspapers (including free newspapers and official journals) down CHF 4.4% or CHF 100 million, consumer magazines down CHF 8.7% or CHF 33 million, trade press down CHF 3.4% or CHF 14 million.
Among the daily newspapers, the small local newspapers (circulation of less than 10,000 copies) were hit hardest in percentage terms. Their sales shrank by 11.7%. In absolute amounts/figures, the large daily newspapers (circulations over 50,000 copies) suffered the most. They fell by 99 million francs.
Job advertisements also experienced a marked slump. While the growth rates in the previous three years were still regularly above 30%, 2001 saw a decline of 4.5% or 27 million francs. Nevertheless, the overall result from the job market of CHF 552 million is still the second best ever for Switzerland. Subscription newspapers suffered the most at minus 8%. At the same time, the free newspapers/official journals category increased by 85.6% or 18 million francs. This result is largely attributable to commuter newspapers, which were able to massively improve their sales from job advertisements.
Among the print media, consumer magazines felt the impact of reduced advertising expenditure the most. They even closed 8.7% or CHF 33 million below the previous year's result. In this group, the results differed greatly: general interest magazines lost 13.0%, financial and business publications were down by 6.0%, after having surged ahead by 39.2% in the previous year. At minus 3.6%, women's titles were the least affected magazine category.
TV advertising revenues below half a billion again
In percentage terms, radio was the hardest hit of the electronic media, falling by 7.6% or CHF 10 million in 2001 - after a record-breaking increase of 16.2% or CHF 19 million in 2000.
Television also suffered a severe setback, as it has already fallen below the half-billion-franc mark it passed for the first time last year - CHF 520 million to be precise. With the current minus of 5.1% or 26 million francs, TV still came to 494 million francs. On the other hand, the sponsorship of programs bucked the general downward trend, increasing by 13.4% or CHF 6 million to CHF 52 million. Teletext also showed stability - albeit only approximate, as the rounded figure of CHF 14 million in net sales hides a minus of CHF 3.5%.
