When PubliGroupe held its annual press conference on March 18, CEO Hanspeter Rohner and the new Publicitas Director Beat Roeschlin reported that Publicitas (P) had adapted its business model and "extended almost all of its partnerships with Swiss publishers on this basis as of January 1, 2011". Specifically, they mentioned the agency agreements with Ringier, Tamedia, Edipresse and Axel Springer as well as the management contracts with the NZZ Media Group, Corriere del Ticino, Le Temps and Hersant. Rohner then doubled down in the Advertising Week of April 1: P had concluded "cooperation agreements with all major publishers on the new commercial basis", he said.
But Rohner and Roeschlin were obviously piling high. Because the P was unable to reach an agreement with two publishers - W. Gassmann in Biel (Bieler Tagblatt/Journal du Jura) and Mengis Druck und Verlag in Visp (Walliser Bote). In addition, a Werbewoche survey revealed that at least six other independent newspaper publishers have not yet entered into a cooperation with the P under the new model (see box). "Does Mr. Rohner consider the majority of newspapers to be insignificant?" asks Marcel Geissbühler, Head of Media at Gassmann. "What Mr. Rohner said is not true," agrees Kurt Hasen, Director of Mengis Druck und Verlag. "He may have signed a few contracts based on the new model, but he also seems to be meeting with resistance."
New basic fee as an obstacle
The reason for the resistance is the price model that P is basing the new brokerage agreement on. Previously, P charged a turnover-based commission for the placement of advertisements with in-house publishers. Now, P still wants a percentage of sales, but combines it with a minimum fee per ad placement. This reportedly ranges between 30 and 65 francs, depending on the publisher and title portfolio. If the same advertisement is placed several times, the fee is charged accordingly. However, if the revenue share per placement exceeds the fee, the latter is waived. "For us, the commission under the new model would cost 60 percent more than before - without any additional service!" criticizes Hasen. For the Visper publishing house, this is unacceptable. Originally, P had even demanded a price increase of 110 percent, more than twice as much as before. The situation was similar for the Gassmann publishing house, which switched from leasing from P to marketing itself only a year ago. "Our new commission would cost almost as much as the full direction at the time - although P would now only act as an agent for us and no longer take over the entire direction services," says Geissbühler. In addition, the fee for small classified ads would be higher than their insertion price - completely unthinkable for Geissbühler. "With the new model, we would have to increase prices, but that's impossible. We have to make our products more attractive and not more expensive," he says. Gassmann had therefore made a compromise proposal to P, but the latter had not accepted it.
Now Gassmann and Mengis are on their own
The fact is that the products of the two publishers are no longer being brokered by P. "We have heard from some customers that P is now refusing bookings in our titles," reports Hasen. "Publicitas is thus saying goodbye to neutral universal brokerage. It can no longer fully advise its customers," says Martin Bürki, Managing Director at Gassmann Media. When asked about this, Beat Werder, Head of Communications at PubliGroupe, responds with a standard answer. "Publicitas works with all media as long as a contractual basis for cooperation can be found. Unfortunately, this is no longer the case with the Gassmann AG media, because after intensive negotiations the parties were unable to agree on economically sensible commissions for the placement of advertising orders," writes Werder. He does not respond to other questions. He also does not comment on the dismissal of Mengis. What does this mean for the future of the two independent publishers? After all, around 25 percent of Gassmann's advertising revenue has so far come from the P, compared to around 10 percent for Mengis. Although both have signaled to P that they are still willing to talk, they are primarily adapting to the new situation. "We informed all our customers that they can book our products online or with Gassmann Media, our marketing company - where we also accept advertisements for all other Swiss print titles," says Bürki. Hasen also wants to "go on the offensive". He is primarily thinking of a coordinated approach with the partners Bieler Tagblatt and Freiburger Nachrichten, with whom the Walliser Bote is linked in the newspaper pool. Markus Knöpfli
P MUST EXPECT FURTHER RESISTANCE
When asked by Werbewoche whether a contract based on the new P model already exists, AZ Medien did not provide any information. However, as it only switched to its own management a year ago, it is probably currently in the middle of negotiations with P. This probably also applies to Basler Zeitung Medien (BZM), where publishing director Paul Herzog says that there are "still some uncertainties regarding the new P business model". The answer from Schaffhauser Nachrichten (SN) is unclear but confident: as it is involved in advertising combinations with both Tamedia titles and those of the NZZ, "we have a fundamentally different starting position", wrote publisher Norbert Neininger. Which probably means: Our situation is comfortable. We are so well integrated and bookable via several channels that the P cannot make any demands on us. However, the situation is clear at the Zofinger Tagblatt, Freiburger Nachrichten (FN) and Südostschweiz Mediengruppe: here they are still cooperating with P as before. At FN, however, renegotiations are imminent, says deputy director Gilbert Jenny, who is already defining the boundaries: he points out that FN also places advertisements with third parties, for example on a large scale with La Liberté and La Gruyère, which are under P management. "If P were to impose its new model on us, we would also apply it to the P titles," warns Jenny. Susanne Lebrument, member of the management team at Südostschweiz Medien, has a similar reaction. "The P has already presented the new model to us - we would be crazy to go along with it," she says. She has already made contact with W. Gassmann AG. "We are looking to see if we can somehow support the Bielers and work more intensively with them," says Lebrument, whose advertising organization also places advertisements for third parties and even has its own office in Zurich. - It is therefore quite possible that some publishers, who from P's point of view are obviously no longer "essential", will now join forces to form a kind of "second publicitas". (mk)