"The chosen cooperation strengthens the position of each member"
For Publicitas CEO Ernst Grab, the Mittelland Zeitung generates attractive ad volumes
For Publicitas boss Ernst Grab, the Mittelland Zeitung generates attractive volumesFrom January 2002, the Aargauer Zeitung will merge with the Solothurner Zeitung, Oltner Tagblatt and Zofinger Tagblatt to form the third-largest newspaper in Switzerland. This unites economically linked areas under one newspaper umbrella. For Publicitas and AZ Media, this also creates a new form of cooperation. What is the great advantage of the cooperation that has now come about between Aargauer Zeitung and Neuer Mittelland Zeitung? Or to put it another way: why does it make more sense than a partnership with the Berner Zeitung (BZ) or the Bund or NZZ, which were also involved in the negotiations?
Ernst Grab: A very important point: this cooperation will strengthen the economic region of the Mittelland between the two powerful poles of Bern and Zurich. As a joint block, the four participating titles have very good chances of survival in the medium and long term. It is also crucial that the area between Baden and Solothurn comes under a single newspaper umbrella, because this area makes sense as a common, homogeneous and strong advertising market.
But if Bern or Zurich had been chosen, what would have been the disadvantages?
Grab: In one direction or the other, this would have led to a separation of the three partners of Neue Mittelland Zeitung. But none of these three long-standing partners wanted to be torn apart. And another thing that should not be forgotten is that the Aarau-Olten-Zofingen region has grown together more and more over the past decades to form an economic area. The Mittelland Zeitung is now bringing this region together again.
And the whole scenario with the Berner Zeitung - why would this have been the worse solution?
Grab: The canton of Solothurn would probably have been split in two - one part towards Bern and the other towards Aargau. But that would not have been a good thing. Although the economic areas are cross-cantonal, the cantons still play an important role within such economically interconnected areas. A connection to the Bern region would not only have split one canton in two, but the entire Mittelland economic region. And this would have negative consequences for both the market area and the newspaper titles involved. In a cooperation with the Berner Zeitung, the latter would also have had to relinquish more autonomy than is now the case with the Mittelland Zeitung. This is because, as the example in the Bernese Oberland shows, the Bernese are tending towards much more integrated cooperation models with their partners.
So how does the Mittelland Zeitung model work?
Ernst Grab: For the advertising business, the Aargauer Zeitung plays the role of locomotive in this cooperation. This is because it has more pages from the national advertising market than the current Neue Mittelland Zeitung. The cooperation will also bring these additional volumes into the overall offering. To a large extent at least, this will certainly succeed. As a result, the three titles Solothurner Zeitung, Oltner Tagblatt and Zofinger Tagblatt, which currently have less national advertising, will receive larger volumes from the national market.
Has anyone calculated how high the increase will be?
Grab: Of course we have made calculations, but these are complex calculations that are also subject to uncertainties. That's why I only want to say this much at the moment: it will be an attractive additional volume.
Publicitas will work closely with AZ Media, the sales organization of the Aargauer Zeitung, to market the Mittelland Zeitung. Is this model similar to those already used by the Neue Luzerner Zeitung or Südostschweiz, for example?
Grab: No, what we do at the Mittelland Zeitung is different. Today we have a management contract with the publishers of the Neue Mittelland Zeitung (Solothurner Zeitung, Oltner Tagblatt, Zofinger Tagblatt) and a very close cooperation with the Aargauer Zeitung. In future, the basis of the cooperation will be a contract between the publishers of the Mittelland Zeitung and Publicitas for the promotion, sale and handling of advertisements. In this contract, the exclusive management of the advertising market will be transferred to Publicitas, with the restriction that the sales organization of AZ Media will also market the Mittelland Zeitung as a second sales channel. The Mittelland Zeitung will therefore have two sales channels.
But that sounds like a conflict-prone construction. How is the coordination of the two handled?
Grab: The way we have planned it, this organization is not prone to conflict. A management committee, in which the publishing directors of the participating newspapers and Publicitas are represented, will define the market development strategy and coordinate sales and processing.
The partners of the Mittelland Zeitung have not stopped emphasizing that the cooperation now chosen was not absolutely necessary. But isn't that only half the truth?
Grab: It's wise to do something as long as you don't have your back to the wall. The advertising market is booming at the moment. We are currently in the fortunate situation that all regional newspapers are doing well. But you also have to plan for the longer term: if the job market and advertising expenditure fall again, it could become difficult for individual regional newspapers. The chosen cooperation strengthens the position of each individual member. It leads to additional income, which in turn helps to build up reserves for tougher times. This also applies to other newspaper systems that restructured themselves at an early stage and that could possibly find themselves in a potential crisis from a strong position. I am convinced that if a dramatic situation similar to that of the early 1990s ever arises again, such newspaper systems will be able to survive.
Interview: Daniel Schifferle
Ernst Grab: A very important point: this cooperation will strengthen the economic region of the Mittelland between the two powerful poles of Bern and Zurich. As a joint block, the four participating titles have very good chances of survival in the medium and long term. It is also crucial that the area between Baden and Solothurn comes under a single newspaper umbrella, because this area makes sense as a common, homogeneous and strong advertising market.
But if Bern or Zurich had been chosen, what would have been the disadvantages?
Grab: In one direction or the other, this would have led to a separation of the three partners of Neue Mittelland Zeitung. But none of these three long-standing partners wanted to be torn apart. And another thing that should not be forgotten is that the Aarau-Olten-Zofingen region has grown together more and more over the past decades to form an economic area. The Mittelland Zeitung is now bringing this region together again.
And the whole scenario with the Berner Zeitung - why would this have been the worse solution?
Grab: The canton of Solothurn would probably have been split in two - one part towards Bern and the other towards Aargau. But that would not have been a good thing. Although the economic areas are cross-cantonal, the cantons still play an important role within such economically interconnected areas. A connection to the Bern region would not only have split one canton in two, but the entire Mittelland economic region. And this would have negative consequences for both the market area and the newspaper titles involved. In a cooperation with the Berner Zeitung, the latter would also have had to relinquish more autonomy than is now the case with the Mittelland Zeitung. This is because, as the example in the Bernese Oberland shows, the Bernese are tending towards much more integrated cooperation models with their partners.
So how does the Mittelland Zeitung model work?
Ernst Grab: For the advertising business, the Aargauer Zeitung plays the role of locomotive in this cooperation. This is because it has more pages from the national advertising market than the current Neue Mittelland Zeitung. The cooperation will also bring these additional volumes into the overall offering. To a large extent at least, this will certainly succeed. As a result, the three titles Solothurner Zeitung, Oltner Tagblatt and Zofinger Tagblatt, which currently have less national advertising, will receive larger volumes from the national market.
Has anyone calculated how high the increase will be?
Grab: Of course we have made calculations, but these are complex calculations that are also subject to uncertainties. That's why I only want to say this much at the moment: it will be an attractive additional volume.
Publicitas will work closely with AZ Media, the sales organization of the Aargauer Zeitung, to market the Mittelland Zeitung. Is this model similar to those already used by the Neue Luzerner Zeitung or Südostschweiz, for example?
Grab: No, what we do at the Mittelland Zeitung is different. Today we have a management contract with the publishers of the Neue Mittelland Zeitung (Solothurner Zeitung, Oltner Tagblatt, Zofinger Tagblatt) and a very close cooperation with the Aargauer Zeitung. In future, the basis of the cooperation will be a contract between the publishers of the Mittelland Zeitung and Publicitas for the promotion, sale and handling of advertisements. In this contract, the exclusive management of the advertising market will be transferred to Publicitas, with the restriction that the sales organization of AZ Media will also market the Mittelland Zeitung as a second sales channel. The Mittelland Zeitung will therefore have two sales channels.
But that sounds like a conflict-prone construction. How is the coordination of the two handled?
Grab: The way we have planned it, this organization is not prone to conflict. A management committee, in which the publishing directors of the participating newspapers and Publicitas are represented, will define the market development strategy and coordinate sales and processing.
The partners of the Mittelland Zeitung have not stopped emphasizing that the cooperation now chosen was not absolutely necessary. But isn't that only half the truth?
Grab: It's wise to do something as long as you don't have your back to the wall. The advertising market is booming at the moment. We are currently in the fortunate situation that all regional newspapers are doing well. But you also have to plan for the longer term: if the job market and advertising expenditure fall again, it could become difficult for individual regional newspapers. The chosen cooperation strengthens the position of each individual member. It leads to additional income, which in turn helps to build up reserves for tougher times. This also applies to other newspaper systems that restructured themselves at an early stage and that could possibly find themselves in a potential crisis from a strong position. I am convinced that if a dramatic situation similar to that of the early 1990s ever arises again, such newspaper systems will be able to survive.
Interview: Daniel Schifferle
