Direct booking discount The discount is also rampant online - and apparently the advertising clients are not being informed.
When Tamedia announced last week that the Group would in future be relying on self-marketing not only in print but also in the online advertising market, a small bombshell was dropped in passing. "Tamedia is also introducing a transparent commission policy for all online offerings, whereby the intermediary commissions are to be gradually brought into line with the level of online direct booking compensation within three years," it said in the third paragraph. But it is not. "This is new to me. Until now, we have not been informed by Tamedia," says Jürg Siegrist, Director of the Swiss Advertisers Association (SWA). And he adds angrily: "But I'm not surprised."
In fact, publishers have never spoken of an online DBE. Exception: Espace Media was the only publisher to announce at the beginning of 2007 that it would grant a DBE for both the Berner Zeitung and its portal Espace.ch, namely a uniform 1.5 percent. The other publishers, on the other hand, had even excluded the online sector. Officially at least.
In the meantime, it is clear that the first DBE agreements between individual Tamedia websites and individual media agencies already existed around two years ago. "They arose individually, and in contrast to DBE for print, one cannot speak of a uniform offer," says Tamedia spokesperson Christoph Zimmer. He does not want to mention the names of websites with DBE agreements, nor individual conditions. Just this much: "The conditions have varied so far, but the DBE is around 15 percent. Now we want to gradually create a company-wide offer." Zimmer's statements are roughly in line with industry information: There it is said that the discount is 15 to 20 percent - depending on the website and media house. In any case, not only Tamedia websites have concluded DBE agreements.
But who else? Clear answers came from Basler Zeitung Medien and Edipresse: No such offers are known there. Not even at the NZZ. Markus Ehrle, Head of Advertising Market, added: "We also see no reason to join in, as there are differentiated value chains and marketing models in the various media categories and Tamedia's offer is more likely to amount to a kind of group discount."
Ringier, on the other hand, had not responded by the editorial deadline and Axel Springer Switzerland made a secret of this. CEO Ralph Büchi wrote: "Due to the limited volume of online business for the time being, we have no general solutions, only individual ones. And we do not publish them."
This annoys the SWA. "If someone offers a DBE, we want to know about it. We demand that this is also noted in the tariff documentation," says Siegrist. The SWA takes the view that all discounts, including DBEs, belong to the client, unless the agency and client have contractually agreed otherwise.
But an estate that is not known cannot be settled. The industry is not only pleased about Tamedia's "confession", as it once again puts media agencies in a predicament. Only recently, Carlo Schmid, President of Schweizer Werbung (SW), called for more transparency in the media business and set up a new commission for this purpose - whereupon the BSW referred to its industry principles and insisted on transparency and fair fees. And now Tamedia is once again directing suspicion at the media agencies, which is described as "sensitive" in the industry. BSW Managing Director Walter Merz did the same when asked by Werbewoche.
The question also arises as to why Tamedia is now, of all times, making a veiled and meek confession. Is Carlo Schmid's loud rumbling already having an effect? No, says Christoph Zimmer, the decision to introduce a transparent DBE and commission policy is the result of a lengthy process involving all those responsible - and such a process takes longer than two weeks. "Transparent communication was important to us right from the start."
And how does the Swiss Press Association view the new DBE form? After all, a "Market Transparency" project group there has been working for a year to compile an overview of the discount and commission models in use today, as well as their conditions and cash flows. Has an online DBE ever been an issue there? Toni Vetterli, Head of Marketing at the Publishers Association and member of the project group, says: "No, not yet. We are currently still in the middle of the work and have made an overview for print. In a further phase, however, we also want to include other media types, including online. Ideally, the second step will be successful in cooperation with the other industry associations and genre marketers."
Markus Knöpfli
Major differencesWhile the DBE for print
While the online segment accounts for between one and two percent of the gross volume, depending on the publisher, the online segment should account for between 15 and 20 percent. Why is there such a big difference? The reason: online volumes are at a much lower level than print volumes - the margin is correspondingly higher. The agency commission (AC) is also correspondingly higher, at 30 to 50 percent. Tamedia's proposal to align the VC with the DBE therefore comes as no surprise to the industry. With growing online volumes, this is normal. The only ambitious aspect is that Tamedia wants to achieve this alignment within three years. According to an insider, a 20 percent UK is justified from an online gross volume of 150 million francs. In 2007, however, only 52 million francs were invested in online advertising, 10.1 percent more than in the previous year.No problem for AdlinkThe fact that Tamedia also relies entirely on its own resources in the online sector
has consequences for Adlink. The Goldbach Media subsidiary is losing three of its 150 exclusive leases, namely those for the Tamedia sites Sonntagszeitung.ch, Radio24.ch and Telezueri.ch, and can now only book these in mediation. "That doesn't hurt us any more," says Adlink Managing Director Stephan Suter calmly. "Although we are losing individual titles within our topic pools, these are of little consequence in terms of overall reach." In addition, the Tamedia sites can still be occupied. The online DBE hardly affects Adlink either, says Suter. This is because advertising customers primarily use Adlink's help when they want to book online advertising pools or several titles at the same time, which is complex and time-consuming for technical or logistical reasons. Tamedia's online DBE is therefore more likely to hurt Web2com and Admazing in particular, says Suter. (mk)