"We got off lightly, as they say"
Peter Kettiger on the new structure of OMD Switzerland
Peter Kettiger on the new structure of OMD SwitzerlandThe former OMD Zürich AG will soon be renamed OMD Switzerland. Christof Kaufmann is the new CEO of the media agency. Marion Wagner remains CFO. Hans Ulrich Schweizer and Hans-Peter Detsch sit on the Board of Directors. The Chairman is Peter Kettiger from Zogg Kettiger Gasser. He analyzes the background to this structural change. Changes are usually improvements and cause for celebration. What do you like about your new structure with OMD Switzerland?
Peter Kettiger: I think the greatest thing is that we have managed to fill all the new positions with excellent people in such a short space of time. We have recruited nine additional employees for the three units in addition to managers. And that was between Christmas and New Year. What also makes me feel positive is the reaction of the media providers. They have recognized the potential of this new structure. The cooperation was therefore maintained without the slightest problem. Thanks to our proactive information policy, the media providers very quickly realized that OMD Zurich should not be punished for what happened in Zollikerberg.
Nevertheless, there is the famous saying that a chain is only as strong as its weakest link. Has your group experienced any of this?
Kettiger: Of course we have felt the negative effects. When you hear that an OMD Zollikerberg is going bankrupt, it's easy to conclude that the whole OMD is bankrupt. But there is no group, there is only one company, and it is called OMD Zürich AG. It has three units. OMD Zürich See, OMD Zürich City and OMD Genève are divisions of OMD Zürich AG, which will be renamed OMD Schweiz AG in the foreseeable future. Communicating this was the main task I had to take on: making it clear that OMD Zollikerberg and OMD Zürich AG are two completely separate and independent companies.
Malicious tongues are wagging that OMD Switzerland got off lightly because the "Group" perhaps bought too much media before the general mood of crisis. How do you react to such assessments?
Kettiger: When we published the sales figures in the market, we combined them because the two OMDs already had the same resources as OMD in Europe, particularly in terms of international business. However, the companies in Switzerland had been completely separate. It was my job to make sure that customers and providers saw them as two pairs of boots. That was relatively successful and that's why we got off lightly, as they say.
What will happen to the customers of OMD Zollikerberg?
Kettiger: OMD Zollikerberg has had three categories of customers. International clients who have contracts with OMD Europe. Other clients have come from Seiler DDB, where the media part has been subcontracted, so to speak. Thirdly, OMD Zollikerberg looked after its own clients. The international clients were immediately transferred from London to OMD Zurich because OMD Europe was obliged to offer these clients the service in Switzerland. OMD Europe was pleased that it was able to hand over its customers to a second OMD. As far as Seiler DDB's customers are concerned, CEO Kaspar Loeb has decided to have them looked after by OMD Zurich as well. Almost without exception, the direct customers have decided to continue working with OMD. A vote of confidence that is binding.
What will happen to the shares that DDB Zollikerberg held in the Group?
Kettiger: The company Optimum Media Direction AG in Zollikerberg was involved in OMD Zurich. This company offered media services. It is a subsidiary of Seiler Com Holding, a sister company of Seiler DDB. When we founded OMD Zürich AG, we offered Seiler Com Holding a stake because we wanted to incorporate the international network know-how that Herbert Seiler already had. As it stands, DDB Europe will take over this package from the bankruptcy estate and not Seiler DDB. As board member Hans-Peter Detsch said, OMD's concept is that OMD itself does not own any agencies, but generally works with the three local creative agencies from the Omnicom Group, i.e. TBWA, BBDO and DDB, which are the owners or partners of the media agencies, in the local markets.
Where do you see OMD Switzerland in the ranking?
Kettiger: Unfortunately, the published figures are not comparable. With our CHF 125 million turnover, we see ourselves in 3rd or 4th place. That is where we are today and of course cannot yet be the goal. I think that by the end of the year we can be number 3 for sure.
Your agency Zogg Kettiger Gasser also seems to be busy at the moment. You are looking for staff. Do you have a lot of new business to report?
Kettiger: We have Orangina, Philips with the entire household sector and Personal Care as new clients. There have been additional mandates from existing clients such as Merck Sharp & Dohme-Chibret. We are now handling corporate communication in Switzerland for this international pharmaceutical group. Swisslos entrusted us with additional mandates, as did our major client Masterfoods.
BSW is publishing its new figures this week. Is your agency in line with the general trend?
Kettiger: 2001 was not a brilliant year for us, as it was for many companies in the communications sector. The figures are roughly comparable with the previous year, slightly worse. This year things are looking very positive.
How important is international business for ZKG?
Kettiger: This is becoming increasingly important because more and more large brand manufacturers are no longer allowing many small kingdoms to exist in the various markets. But you have to know that: An agency that is not firmly anchored locally has no chance in international business.
How important is the office in Biel?
Kettiger: This is the ex-agency of our partner Max Winiger. The office is currently inactive. However, we have certain projects with which we would like to reactivate the Biel office in the future, as a gateway to French-speaking Switzerland, so to speak. Interview: Andreas Panzeri
Peter Kettiger: I think the greatest thing is that we have managed to fill all the new positions with excellent people in such a short space of time. We have recruited nine additional employees for the three units in addition to managers. And that was between Christmas and New Year. What also makes me feel positive is the reaction of the media providers. They have recognized the potential of this new structure. The cooperation was therefore maintained without the slightest problem. Thanks to our proactive information policy, the media providers very quickly realized that OMD Zurich should not be punished for what happened in Zollikerberg.
Nevertheless, there is the famous saying that a chain is only as strong as its weakest link. Has your group experienced any of this?
Kettiger: Of course we have felt the negative effects. When you hear that an OMD Zollikerberg is going bankrupt, it's easy to conclude that the whole OMD is bankrupt. But there is no group, there is only one company, and it is called OMD Zürich AG. It has three units. OMD Zürich See, OMD Zürich City and OMD Genève are divisions of OMD Zürich AG, which will be renamed OMD Schweiz AG in the foreseeable future. Communicating this was the main task I had to take on: making it clear that OMD Zollikerberg and OMD Zürich AG are two completely separate and independent companies.
Malicious tongues are wagging that OMD Switzerland got off lightly because the "Group" perhaps bought too much media before the general mood of crisis. How do you react to such assessments?
Kettiger: When we published the sales figures in the market, we combined them because the two OMDs already had the same resources as OMD in Europe, particularly in terms of international business. However, the companies in Switzerland had been completely separate. It was my job to make sure that customers and providers saw them as two pairs of boots. That was relatively successful and that's why we got off lightly, as they say.
What will happen to the customers of OMD Zollikerberg?
Kettiger: OMD Zollikerberg has had three categories of customers. International clients who have contracts with OMD Europe. Other clients have come from Seiler DDB, where the media part has been subcontracted, so to speak. Thirdly, OMD Zollikerberg looked after its own clients. The international clients were immediately transferred from London to OMD Zurich because OMD Europe was obliged to offer these clients the service in Switzerland. OMD Europe was pleased that it was able to hand over its customers to a second OMD. As far as Seiler DDB's customers are concerned, CEO Kaspar Loeb has decided to have them looked after by OMD Zurich as well. Almost without exception, the direct customers have decided to continue working with OMD. A vote of confidence that is binding.
What will happen to the shares that DDB Zollikerberg held in the Group?
Kettiger: The company Optimum Media Direction AG in Zollikerberg was involved in OMD Zurich. This company offered media services. It is a subsidiary of Seiler Com Holding, a sister company of Seiler DDB. When we founded OMD Zürich AG, we offered Seiler Com Holding a stake because we wanted to incorporate the international network know-how that Herbert Seiler already had. As it stands, DDB Europe will take over this package from the bankruptcy estate and not Seiler DDB. As board member Hans-Peter Detsch said, OMD's concept is that OMD itself does not own any agencies, but generally works with the three local creative agencies from the Omnicom Group, i.e. TBWA, BBDO and DDB, which are the owners or partners of the media agencies, in the local markets.
Where do you see OMD Switzerland in the ranking?
Kettiger: Unfortunately, the published figures are not comparable. With our CHF 125 million turnover, we see ourselves in 3rd or 4th place. That is where we are today and of course cannot yet be the goal. I think that by the end of the year we can be number 3 for sure.
Your agency Zogg Kettiger Gasser also seems to be busy at the moment. You are looking for staff. Do you have a lot of new business to report?
Kettiger: We have Orangina, Philips with the entire household sector and Personal Care as new clients. There have been additional mandates from existing clients such as Merck Sharp & Dohme-Chibret. We are now handling corporate communication in Switzerland for this international pharmaceutical group. Swisslos entrusted us with additional mandates, as did our major client Masterfoods.
BSW is publishing its new figures this week. Is your agency in line with the general trend?
Kettiger: 2001 was not a brilliant year for us, as it was for many companies in the communications sector. The figures are roughly comparable with the previous year, slightly worse. This year things are looking very positive.
How important is international business for ZKG?
Kettiger: This is becoming increasingly important because more and more large brand manufacturers are no longer allowing many small kingdoms to exist in the various markets. But you have to know that: An agency that is not firmly anchored locally has no chance in international business.
How important is the office in Biel?
Kettiger: This is the ex-agency of our partner Max Winiger. The office is currently inactive. However, we have certain projects with which we would like to reactivate the Biel office in the future, as a gateway to French-speaking Switzerland, so to speak. Interview: Andreas Panzeri
