At the annual media breakfast of BSW leading swiss agencies at the Park Hyatt in Zurich, a whole range of topics were discussed; the BSW ranking 2008, the first BSW ranking for media agencies, then a review of 2007 - an extremely successful year for BSW agencies - and of course the economic crisis. Peter Felser (SFLB), Urs Schneider (Mediaschneider) and Frank Bodin (EuroRSCG) were present. The discussion was moderated by Walter Merz, Managing Director of BSW.
BSW does not believe that agencies will be hit just as hard by the recession as the media. It is a widespread misinterpretation that the current drastic cuts in advertising expenditure, which are primarily affecting the media, will have the same impact on advertising agencies. Due to the smaller advertising budgets, it is even more crucial to use them efficiently. And the BSW agencies, seven of which are among the top 10 in the Swiss Krea ranking, are ideal for this.
Crisis as an opportunityAlthough the looming recession and the associated budget cuts will put agencies under even greater pressure, no general statements can be made overall, as the various sectors are behaving differently. It is true that banks in particular have drastically reduced their advertising expenditure. However, other sectors see the gap as an opportunity and are investing disproportionately in their marketing communication. For agencies, this means that they must be able to react even more quickly and flexibly.
The crisis is also often used as an opportunity to increase the cost pressure on agencies. However, this has been the case for years and is almost exhausted. The discussions between the advertising client association SWA and bsw leading swiss agencies with regard to the contractual framework are also part of this context.
2008 ranking of advertising and specialty agenciesAfter publishing a turnover ranking of Switzerland's leading advertising and specialty agencies for the first time in five years in 2007, most of the member agencies decided to participate again in 2008. The 55 advertising and specialty agencies in the BSW realized a total of 331.3 million Swiss francs in gross operating income (GOP) in 2007, which corresponds to an increase of 7.5 percent compared to 2006. In 2007, they were responsible for advertising money amounting to around two billion francs for their clients. Only around seven percent of all advertising agencies in Switzerland are in the BSW, but they are responsible for around two thirds of all advertising money used via agencies.
" 2008 ranking of advertising and specialty agencies (list)
First ranking of media agencies
For the first time in 2008, media agencies also published their own ranking in the BSW, which is also intended to provide transparency and guidance. Media agencies have a slightly different business model to advertising agencies (media planning and media buying in addition to consulting services/strategy) and are therefore not directly comparable with them.
The ten media agencies in the BSW generated gross operating income of CHF 42.3 million in 2007. They handled media assets worth around CHF 1.2 billion for their clients, making them an important link in the communications industry's value chain.
The 2008 ranking
The media agencies in the BSW published their own ranking for the first time in 2008. Due to the US Sarbanes Oxley Act, the majority of media agencies are unable to publish earnings figures. The ranking was compiled by a neutral trustee on the basis of actual gross operating income (GOP) and is published without figures - but with details of employees. The agency Mediaxis-MPG AG refrains from participating in the 2008 ranking. The media agencies in the bsw generate a total operating income of CHF 42.5 million and are responsible for approx. 1.2 billion media assets for their clients.
Ranking list (full-time equivalents in brackets)
1 Optimedia AG (incl. B,G, Media, Zenithmedia) (85)
2 OMD Schweiz AG (47)
3 Mediaedge:cia Switzerland AG (38)
4 MediaCom AG (30)
5 MindShare AG (20)
6 Initiative Media Western AG (18)
7 mediaschneider AG (17)
8 The whole Media AG (4)
9 JBW Julien B Witt Media (2)
A successful 2007 - probably an equally successful 2008
The member agencies of BSW leading swiss agencies performed very successfully in 2007. The gross operating income of Switzerland's top 60 agencies rose by 7.25 percent to CHF 363 million despite increasing cost pressure from clients. 2008 - at least as far as the first half of the year is concerned - is likely to be even better for the agencies than 2007.