If a media agency books its advertisements directly with the publishers and does not have this task conveniently carried out by Publicitas, it incurs additional costs - not only for booking, but also for controlling and invoicing. In 2005, Tamedia therefore began to reward large agencies and major customers who booked directly with Tamedia titles for this additional work by granting them a direct booking fee (DBE). To this day, Tamedia refunds customers a certain percentage of the DBE volume booked each year.
Goal: Bypassing Publicitas
Of course, Tamedia did not introduce the DBE out of altruism, but in the wake of the NZZ Group's decision to place its titles under Publicitas management from 2005. Tamedia feared that it would subsequently be disadvantaged by Publicitas as an independent title. The new DBE was therefore intended to motivate agencies to bypass Publicitas and contact Tamedia directly. With two advantages for Tamedia: The publisher gained more direct customer contacts. And with every directly placed advertisement, it saves the advertising commission that it would have to pay to Publicitas under the terms of the commission contract. These are annual amounts in the millions that Publicitas has lost and continues to lose. But this was just the beginning. Other independent publishers soon also introduced a DBE. Many other publishers also broke away from the P-directorate - and the new DBE idea made this step easier for them. To this day, the problem is that publishers only launched a channel battle with the DBE: direct booking versus booking via Publicitas. Market share can hardly be gained in this way.
Publishers have very different approaches
This is what the specific DBE offers look like: Tamedia and Tamedia Publications Romandes (previously Edipresse Suisse) each grant a separate 1.5 percent discount on the booked volume - with a minimum annual turnover of one million francs per language region. If the previous year's volume is exceeded in a language region, the customer there receives 2 percent on the additional volume. While the DBE applies to all Tamedia titles in French-speaking Switzerland, bookings in the Tagblatt der Stadt Zürich are excluded in German-speaking Switzerland, explains Group spokesperson Christoph Zimmer. However, bookings in the Landbote and Winterthurer Stadtanzeiger are also included. Ringier has also had a DBE for several years, but this was significantly increased in 2010. Originally it was 1 percent, applied to 15 titles and required a minimum volume of half a million francs. For a year now, customers with a volume of CHF 2 million or more receive 1.5 percent. And anyone who exceeds their previous year's turnover will even receive 4 percent on the additional turnover. AZ Medien, in turn, offers 1.5 percent on all its newspapers and special interest magazines, with a minimum annual turnover of 500,000 francs. Axel Springer Switzerland has the same offer on all its titles. Basler Zeitung Medien also offers 1.5 percent on the three titles Basler Zeitung, Baslerstab and Vogel Gryff, but does not require a minimum volume. The Walliser Bote also waives this requirement. However, it only grants the DBE of 1.5 percent if it is booked as an individual title. If it is included as part of a newspaper bundle, it is not subject to the DBE.
There is still a lot going on when it comes to DBEs. For example, Kimedia is currently considering a DBE of 1.5 percent for nine Konsumenteninfo AG titles (including K-Tipp). "The decision will be made soon," said Peter Salvisberg, member of the Executive Board. Fachmedien Mobil AG, which bought the Automobil Revue from Tamedia last year, has already joined the DBE providers. "There is a DBE with a major media agency," writes marketing assistant Claudia Gerber. "However, we have agreed not to disclose the content and conditions." No precise information is available on the DBE of Südostschweiz Medien either. However, Thomas Kundert, head of the advertising company Südostschweiz Publicitas, confirms that the publisher has been offering a DBE to media agencies with certain minimum volumes for two years. A piquant fact: Südostschweiz Medien is not a 100 percent in-house publisher. Kundert: "Publicitas has a 50 percent stake in Südostschweiz Publicitas and thus indirectly in the DBE."
Secrecy surrounding the DBE
However, there are also independent publishers that do not grant DBEs - these include Agefi, WochenZeitung WoZ, Schaffhauser Nachrichten, Coop-Zeitung and Zeitlupe. Others have not provided any information for years, such as Weltwoche, Freiburger Nachrichten, Migros-Magazin, W. Gassmann (Bieler Tagblatt, Journal du Jura) and Zürcher Oberländer (ZO). With regard to the latter, however, it was learned that bookings for the ZO within the combination of Zurich regional newspapers also fall under Tamedia's Swiss-German DBE. Markus Knöpfli
NZZ WITH "HANDLING COMPENSATION"
In 2007, the NZZ - under Publicitas management since 2005 - also introduced a type of DBE. However, because this was not intended to circumvent Publicitas, but on the contrary to reward bookings via it, the discount was called "handling compensation" (HE). The HE was a reaction to the fact that from 2007 all major business publications as well as SonntagsZeitung and SonntagsBlick granted a DBE. This meant that NZZ was the only title in the Zurich business press segment and in the Sunday market without a DBE - and at a disadvantage.
Since then, the HE has amounted to 1 percent and is paid to customers and agencies whose annual BK/JUP-eligible turnover from commercial advertisements and supplements in NZZ titles amounts to at least CHF 500,000. The HE applies to bookings in NZZ, NZZ am Sonntag, Magazin Z, NZZCampus, Bücher am Sonntag, NZZ Folio and NZZ Chronik, but not in NZZ Online. Other publishers under Publicitas management have not yet resorted to this method. (mk)
LITTLE JOY AMONG PUBLICITAS AND ADVERTISING CLIENTS
"There's no question that Publicitas is still not happy about the DBE," says Othmar Fischlin, Head of Marketing at Publicitas. And he points out that the DBE idea emerged at a time when newspaper publishers were staring at the online business and tended to pay less attention to generic marketing for print - traditionally a Publicitas task. This had consequences. "In the last five years, newspaper publishers alone have lost around CHF 400 million in advertising revenue, a loss that they were not nearly able to recoup through other channels despite bypassing Publicitas," Fischlin points out. In a defensive market environment, however, generic marketing and other services related to print advertising, such as those offered by Publicitas to the advertising industry, are "clearly being revalued", says Fischlin. "Today, Publicitas has a commercially sound basis for cooperation with most publishing houses." The Swiss Advertising Association (SWA) was also not enthusiastic about the DBE. It took the view that the DBE was a discount and belonged to the client, not the agency. The SWA also demanded full transparency from agencies that became DBE-eligible. It also drew up new model contracts for its members for discussions with the agencies. To this day, however, the question of who is allowed to collect the DBE is regulated individually between the client and the agency. (mk)