Leuthard gives green light for advertising alliance

The advertising alliance does not hinder the private media in Switzerland to any significant extent, Media Minister Doris Leuthard told the media in Bern on Monday. Her department, together with the supervisory authority Bakom, therefore came to the conclusion from a media law perspective that free competition should play. Unlike the alliance partners Swisscom and Ringier, however, the SRG would have to abide by the concession. Advertising tailored to target groups is not covered by the current concession, he said. "Here we are entering new territory in a very dynamic market," Leuthard said. There are still many open questions, she added.

Concession expires in 2017

This includes, for example, whether regional advertising is permitted or not. Bakom will deal intensively with these questions in the coming months. Leuthard recalled that the license for radio and television expires next year and that target group-specific advertising could be regulated there. It is also conceivable that this form of advertising could be included in an ordinance. According to Bakom Director Philipp Metzger, the regulatory authority will address all of these issues. "This work is likely to take several months," Metzger said.

Ban lifted

With immediate effect, Bakom's decision of December 16, which forbade SRG to appear on the market as part of the joint venture, has been rescinded. In other words, SRG may participate in the market presence of the new advertising alliance, but may not place any target-group-specific advertising as long as the federal government does not permit this. Private TV stations, on the other hand, are already free to use this new type of advertising, the media minister stressed. In order to secure advertising revenues in the medium term, however, it is important that all licensed TV broadcasters, including SRG, can take advantage of target-group-specific advertising. Leuthard went on to say that she takes the fears and concerns of the private media companies seriously. Technological development is advancing rapidly, she said. Switzerland could play a pioneering role with regard to such new forms of advertising. In a dynamic environment, development cannot be stopped.

Disposition can be challenged

The ruling by the Department of the Environment, Transport, Energy and Communications (DETEC) can be appealed to the Federal Administrative Court. The private media houses had strongly criticized the joint venture of the three partners and demanded to see the details of the agreement from Bakom. Bakom refused to do so. Leuthard once again emphasized that SRG will in any case remain prohibited from placing advertising on the Internet. Bakom will keep a watchful eye on this, Metzger said. The private media houses had repeatedly expressed fears that SRG would use the joint venture to circumvent the online advertising ban. Leuthard recalled that private publishers still have a very strong position in the Swiss advertising market, which must be defended against large foreign competitors. Total advertising revenues amounted to CHF 4.2 billion in 2014.

Alliance partner delighted

The three alliance partners SRG, Swisscom and Ringier welcomed the Uvek decision in a statement (Werbewoche.ch reported). The conditions have now been met for the new marketer to start operations. The launch is planned for the 2nd quarter of 2016. According to Marc Walder, designated Chairman of the Board of Directors of the joint venture, this sets the course for a media policy that takes account of the fundamental upheavals in the media world.

Slightly disappointed by the rulings of the Bakom and the Uvek is Hanspeter Lebrument, President of the Association of Swiss Media. The goal of achieving a halt to the march or excluding SRG from the joint venture has not been achieved, he says. Nevertheless, Lebrument is confident about two things. One is that SRG is prohibited from running regional target-group-specific advertising. "And in the upcoming discussion in 2017 about the content of the SRG concession, the publishers will bring their full weight to bear," Lebrument continued (Reaction Swiss Media Association).

Leuthard: Publishers have a strong position

Federal Councillor Leuthard recalled that private publishers still have a very strong position in the Swiss advertising market, which must be defended against large foreign competitors. Advertising revenues amounted to CHF 4.2 billion in 2014. TV advertising revenues accounted for CHF 772 million. A good half of this went to SRG, 10 percent to private Swiss broadcasters and 40 percent to private advertising windows. Revenues from Internet advertising amounted to around CHF 720 million per year - with an upward trend year on year.(SDA)

"Under the guise of public service, anything has been possible so far"Natalie Rickli in the big Werbewoche interview on the planned advertising alliance.