It has become exceptionally quiet around the discussion of what is and is not appropriate in the advertising business. Before the summer break, the Swiss Advertisers' Association (SWA) launched the topic widely and called for transparency in the media business from all parties involved. According to the SWA, this was triggered by evidence of unfair practices in the media business. However, a working group on transparency, which was hastily set up by the Swiss Advertising Association (SWA) and included representatives of the industry associations SWA and BSW, has so far remained fairly quiet. Recently, however, the working group met for the second time, after it was not clear before the summer vacations whether a second meeting would take place at all. SWA Managing Director Jürg Siegrist sees this second round of discussions as positive. "I had the impression that things were moving forward," he says.
The Swiss Press Association, specifically the Market Transparency Project Group, also jumped into the breach and recently launched an 18-page working paper that should serve as a basis for discussion and help to objectify the problem.
The project group, chaired by Christoph Bauer, has set itself three core objectives:
1. create transparency for market participants such as publishers, advertising clients, media agencies, advertising agencies and intermediaries by presenting the advertising money flows for print media and their compensation models.
2. create a basis on which the requirements and models of other media genres and industry associations can be incorporated.
3. obtain as comprehensive a basis for discussion as possible for dialog with partner associations and market participants.
The published paper is regarded as an interim status of the project work in order to initiate a dynamic process and facilitate open discussion and further development.
As a first step, those responsible concentrate on a basic model with cash flows and billing models that are commonly used for print media so that market participants have a concrete basis for discussion and comparison. Basically, the individual steps in the business process should be defined as precisely as possible for the market participants so that ultimately everyone is talking about the same thing in the maze of different discounting models. Based on this basic model, the project group distinguishes between four cases: Principal model, agency model, agent model and agent model with agency. The work stages are always the same: media planning, media buying, media processing and media payment. The transparency of advertising money flows and compensation models depends to a large extent on the respective application model. In principle, the more market partners are involved in the process, the lower the transparency. The project group concludes that the greater the lack of transparency, the greater the share of financing in the publishers' media process.
"The working paper is a valuable first step," says Jürg Siegrist. "But it still needs to be expanded. It seems particularly important to me that concrete measures are then also adopted. After all, we have a veritable salad of discounts here," he emphasizes.
René Worni