Euro Shock" survey: Thorsten Schoen

We suspect that the strength of the Swiss franc will have a major impact on the advertising industry. The pressure on margins will continue to increase for many clients. As in the past, communication budgets will generally be reduced as a first measure. Unfortunately, it is unlikely that companies will behave anti-cyclically, as the current mindset is too short-term. The weakness of the euro will not really relieve the cost prices of media providers, as well over 90 percent of costs are incurred in Switzerland. It can therefore be assumed that although the pressure on media prices will increase, they will not move much. It can be assumed that advertising budgets could fall by up to 10 percent, but this depends on the further development of the Swiss franc. It is difficult to estimate which media types will benefit and which will not. We expect a certain shift to "cheap" media such as online. But there will also be a shift to daily and weekly newspapers, as many sectors will limit themselves to sales price communication and euro bonuses. What is certain is that communication will move away from image and brand towards tactical advertising.