Radio market Publicitas wants to broker private radio stations to SMEs. However, many broadcasters doubt the expertise of P.
Wherever you look among private radio stations, you hear the same thing: PublicitasRadiotele has lost its former position as the market leader among radio broadcasters and is now practically insignificant for some radio producers. The Goldbach subsidiary IP Multimedia is considered number one. And even small intermediaries such as Spot Promotion, Cover Media, RadioEmotion (see adjacent article) or the young SRG subsidiary MediaSense have to some extent overtaken P. A very bad start for a company that has taken up the cause of all-media marketing. "Pressure is squeezing margins. "We are actually seeing a drop in radio sales," says Publicitas spokesman Christian Gartmann. He explains the background as follows: Radiotele was already in a very difficult situation in 2006, when it was taken over by PubliGroupe. "Since the Swiss Radio Pool has been exclusively marketed by the SRG subsidiary MediaSense, the pressure has become greater and the margin lower." It is astonishing that Gartmann makes no mention of the exodus of most of Radiotele's long-standing employees and the associated loss of expertise and customers.
Either way, P is now trying to regain ground in the radio market and elsewhere. Thomas Bargetzi, CEO Sales Switzerland, and Ueli Weber, outgoing Head of the Electronic and Interactive Unit, have been on the road a lot recently to get former customers back on board for 2009. It is not yet possible to estimate how successful this will be. However, Weber's surprising departure raises doubts. In mid-March, the team also tried to make P's all-media strategy palatable to private radio stations at an event. Bargetzi also announced that in future he would no longer only be working the national radio advertising market, but would also be acquiring local radio customers via the individual P branches.
However, this caused many radio stations to shake their heads and worry. "How are the 400 P employees supposed to sell radio with commitment if they have no idea about this medium?" asks one person who does not wish to be named. The radios are not interested in simply putting together discount packages. Concrete sponsorship or promotional offers, on the other hand, require in-depth knowledge. At Basler Zeitung Medien (with Radio Basel 1), CEO Beat Meyer also recalls the "poor performance of P" in the local print market in Basel and Aargau: "How does it expect to be successful in the radio sector, where it has even less expertise?" asks Meyer. And Alfons Spirig, Managing Director of Radio Central, fears that the P will only target the local customers he already has. "Then I'll have to pay P an agency commission and end up with less than I have today," he says.
In short, radio stations fear new, unprofessional local competition. Nobody really wants to believe in the propagated market expansion. Even where there was goodwill at the beginning, disillusionment is now spreading. Out of a total of nine radio stations approached, none of them have even seen a draft contract from P for placement in the local market. Not to mention concrete advertising contracts. The most obvious idea so far has been the P idea of bridging the start-up time of each radio web stream with a few seconds of advertising. But even here there have been no bookings.
Expansion instead of revolutionGartmann reacts calmly to such accusations. He says that P never claimed to start allmedia marketing from one day to the next. "This requires a training program for employees in the branches and an Allmedia tool," he says. Both will be rolled out shortly. Incidentally, P's involvement in the local radio market is not so new, Gartmann continued, adding that there have been agency agreements between several stations and local P branches for years.
However, some stations are not making a big deal of this. Christian Gartmann, himself a former radio broadcaster, emphasizes that P will not turn anything upside down in terms of radio brokerage in the local area: "However, we want to drive this area forward and expand it by intensifying our cooperation with the broadcasters." In fact, it makes no sense to take existing customers away from the broadcasters. There are certainly small and medium-sized companies that are also interested in campaigns in several media in the local area, but only if the booking of all these media is simplified. "With its large sales force, P can therefore support local media, not just newspapers and radio stations, but also cinemas, local TV and regional online platforms," says Christian Gartmann. Moreover, the intention is not to simply put together discount packages. "We would earn less from that," he says.
Markus Knöpfli
Further loss of expertiseOnly half a year
After Ueli Weber took over the management of the Electronic & Interactive unit at Publicitas, the "pioneer of the interactive business at Publicitas" (original quote from the P-Communiqué) is leaving the company. He did not give any reasons. The operational management of Publicitas Cinecom, Publicitas Radiotele and Publicitas Web2com will now be taken over by 38-year-old Tim Dührkoop, who has been responsible for strategy development at the new Publicitas since fall 2007 and deals with all types of media. (mk)