Breaking with tradition

The restructuring at PubliGroupe, Daniel Strobel’s resignation as CEO of Publimedia, and—in particular—the question «Publimedia—quo vadis?» are on publishers’ minds. Some had hoped to find answers at the Publicitas Publishers’ Conference in mid-June.

The restructuring at PubliGroupe, the resignation of Daniel Strobel as Publimedia CEO and, in particular, the question "Publimedia - quo vadis?" are keeping publishers busy. Some were hoping to get answers at the Publicitas publishers' conference in mid-June. But so far there has been no announcement. The reason: "The publishers' conference will not take place in June," says Christian Gartmann, Head of Media Partners Relations & Marketing. "We are planning to merge it with the Publimedia Forum and hold it in the fall." He does not give a reason. But he knows the benefits of such events. He describes it as follows: "A lot of information can be communicated to a larger group with a small amount of time and the partners appreciate the opportunity to network." However, he has obviously already received inquiries from concerned publishers. In any case, he is reassuring: "We will not let contact with our publishing partners break off. We are already maintaining them bilaterally."
So if you want answers from PubliGroupe, it's best to pick up the phone. Or wait for the Publimedia Forum on September 24, 2008 in Zurich-Oerlikon. (mk)

Mike Lüscher communicates for Fam Expo

From June 1, 2008, Mike Lüscher will take over as Head of Communications for the Fam Expo family fair. He previously worked for various radio and TV stations.

From June 1, 2008, Mike Lüscher will take over as Head of Communications for the Fam Expo family fair. After many years working for Radio Z and Radio Argovia as well as Tele M1, Tele Tell, TV3, SF and Tele Züri, Lüscher is taking on the new challenge. He will also contribute his experience as a new father, according to a press release. He will be responsible for expanding communication around the experience fair and planning events. Lüscher was most recently Managing Director of the lighting products company Xemi.

Construction site or cash cow?

Regional press The Basellandschaftliche Zeitung is a construction site, said Peter Wanner. AZ Medien is playing it down.

 
Regional press The Basellandschaftliche Zeitung is a construction site, said Peter Wanner. AZ Medien is playing it down. 
Last December, AZ Medien acquired the Basellandschaftliche Zeitung (bz). Half a year later, AZ Medien boss Peter Wanner is obviously having stomach pains with the paper in Liestal. At any rate, in an interview in his own Aargauer Zeitung on May 7, he did not exactly speak flatteringly of his latest acquisition. He described the bz as one of the four group-wide "construction sites" that had brought AZ Medien a merely "mixed result in 2007". The statement is astonishing, as there is nothing to suggest that the bz is a construction site that is also a burden on the Group result. Of course the bz is also losing readers and circulation - but not excessively. And it is not even doing badly in terms of advertising. According to VSW advertising statistics, it grew by 13.2 percent in the first quarter of 2008 compared to the same period last year - making it the second-best growth rate among the titles in the Mittelland-Zeitung (MZ) network, just behind the Olten Tagblatt (+14.7 percent). Of course, a large part of this is due to the newly launched Sonntag. But the latter has benefited all MZ partners in terms of volume. Nevertheless, Solothurner Zeitung (SZ), and above all Zofinger Tagblatt (ZT) and Aargauer Zeitung (AZ) are considerably weaker. While the SZ still achieved an increase in advertising of 7 percent, the ZT and AZ were clearly in negative territory in the first quarter of 2008 with minus 16.7 and minus 19.1 percent respectively. In view of these figures, is it not presumptuous to speak of the bz as a construction site?
Peter Wanner could not be reached for a direct comment, but Head of Communications Eva Keller responded in his place. "The term 'construction site' is meant in the sense that we are analyzing internal processes at all levels of bz. The aim is to increase earnings by exploiting synergies." The operational management has been strengthened since the beginning of the year with Sabine Galindo as Publishing Director and Urs Lüdi as Managing Director. In addition, the company is currently examining whether the bz layout should be aligned with that of the MZ. However, nothing has been decided yet. What is clear, however, is that Keller prefers to use the terms "renovation, modernization, further development" instead of "construction site".
And what is the reaction in Liestal? bz publisher Mathis Lüdin (63), still Chairman of the Board of Directors of Basellandschaftliche Zeitung AG, laughs at Wanner's statement. "I can live with that," he says. There is always room for improvement. He admits that reader marketing has "fallen a little short" since joining the MZ and launching the Sunday edition. "With the call center in Aarau, we can now follow up professionally when subscribers cancel or after a trial subscription expires." He is pleased that he was relieved of his operational duties earlier than planned. "This allows me to keep an eye on things in the print shop, which still belongs to our family." Following the death of his brother Alex in March of this year, a succession plan now needs to be put in place. But the bz itself, says Lüdin, is doing well in the market. Around half of the advertising growth in the first quarter came from the local market, with the rest coming from Sonntag. Speaking of Sunday: "The additional costs are affecting everyone, but here too the advertisements are above budget," says Lüdin.
Markus Knöpfli

Steep pass on the grill

Essen Publicis, on behalf of Migros, has announced the lineups for the European Barbecue Championship.

 
Food Publicis announces the line-ups for the European Grill Championships on behalf of Migros. 
 
 
 
 
 
This summer, two extremely important major events are coming together for Migros: the barbecue season and the European Football Championship. And because the kick-off for Euro 08 also coincides with the end of the M'08 campaign for the first official fan championship, Migros' unofficial sponsorship is naturally being extended.
The hot matches on the pitch continue over glowing coals. In keeping with the European Championships, Migros is offering its customers a comprehensive range of barbecue specialties from all over Europe. After all, the playmakers at Mirgos know that football fans are also barbecue fans and vice versa.
The campaign certainly makes you hungry for football and barbecuing at the same time. Migros humorously presents the Italian, Spanish, Greek and, of course, the Swiss selection for M'08 in four advertisements and posters, and even pits these teams against each other in four TV commercials (see below). But as befits barbecue specialties with a logo that has not been officially approved by Uefa for Euro 08 (trademark registered), of course on the barbecue and not on the pitch.
The campaign is accompanied by daily half-price promotions and a promotion with Jörg Stiel: Migros is handing out barbecue aprons in the look of the Swiss national team. Anyone who wears these when they visit the store on the Swiss national team's European Championship match days (be careful not to wear them in the fan mile!!!) will receive a 10 percent discount on their purchases. The campaign was launched on May 18 and will also run on TV around the European Championship matches (registered trademark), in the most important Swiss print media and at the POS in all Migros stores.
 
Andreas Panzeri
 
 

The typology of social media

Internet Social media is no longer a marginal phenomenon. In the USA, the topic has captured the advertising industry.

 
Internet Social media is no longer a marginal phenomenon. In the USA, the topic has captured the advertising industry. 
A look at the US trade press reveals which new advertising strategies are already gaining acceptance. In the digital age, it is no longer the number of contacts a campaign reaches that counts. For today's overseas marketing managers, the quality of contact, known as "engagement" in technical jargon, now counts more. In order to increase the quality of contact, more and more investment is being made in social media in the USA. This term covers networking sites such as MySpace and Facebook, weblogs and video sites such as YouTube, where endless user-generated content is created. As the Face of the New Marketer study by Coremetrics shows, large budgets are not yet being invested in social media. However, marketing bosses believe that social media offers great advertising potential. Expressed in figures: 78 percent of US marketing managers rate the importance of "new media" as high, but only 8 percent have planned a budget for such activities. According to the study, things look better for the social media industry in the coming year. 88 percent of survey participants intend to spend money on social media campaigns.
31 percent of bosses invested a significant amount of money in social media in 2008. The study by McCann Erickson entitled "Wave 3.0 - Power of the People. Social Media Tracker" impressively demonstrates this. Social media is no longer a marginal phenomenon, but now represents a serious challenge for newspapers and television. Especially in terms of reach. This is illustrated by a few figures from the study: Today, 73 percent of Internet users worldwide already read weblogs. For 48 percent of Internet users, blogs are part of their regular weekly media consumption. Video usage via the Internet is also on the rise. For example, 83 percent of users watch video clips online. 59 percent even watch them weekly. And on the subject of social networking: over 57% of web users worldwide already belong to a community.
In view of these figures, the question is: How does a company reach its customers in the cosmos of social media? And do marketing managers even know whether their customers are using social media?
The US market research company Simmons Research recently published an interesting typology. The company has been observing American consumers since 1960. Based on existing consumer type models and demographic data, the researchers have developed nine profiles.
The nine groups are briefly presented here:
  > Socially Isolated
The members of this group are dissatisfied with life and often feel alone. They write an above-average number of emails, which does not mean that they shy away from social media. They read more weblogs than average and occasionally comment on articles online. They mainly read weblogs about music, comsum and video game topics.
> Approval Seekers
This group is oriented towards a minority of trendsetters. Approval Seekers use social networks to meet like-minded people, exchange opinions and stay in touch with friends and family. They use instant messaging and download music more than average.
> Health and Image Leaders
This group consumes wellness products, experiments with diets and spends a lot of time trying to look younger. The majority are under 50 years old. They prefer weblogs for information and comment occasionally. They mostly read about music, art and literature. This group is active on social networks. More than a fifth of these target persons visit such networks more than twice a week. 
> Smart Green
This group shops with a very high level of eco-awareness. The target persons are average social networkers and also show an average interest in new media. They are mostly over 50 years old and need the internet to find out about health and financial issues. Because this group is committed to a clean environment, they send an above-average amount of electronic mail in the form of greeting cards.
> Brand-Loyal
This consumer group is characterized by a high level of brand loyalty. The target persons are average social media users, except when it comes to professional networking. This consumer group is very active in so-called professional networks.
> Stay-at-Home Moms
They are between 25 and 49 years old and the mother of at least one child. This group uses social media for various reasons. The target group is five times more likely to use online services dedicated to parenting topics. This target group is rather shy when it comes to chats, forums and blogs. Podcasts are used a lot.
> Upscale Grays
These 50-plus consumers are very well educated and have a household income of more than 100,000 dollars. This type of consumer is rather reserved when it comes to social media.
> First-Time Home Buyers
For these consumers, it makes sense to gather information online before making a purchase. As the experts write in the study, most shoppers under the age of 35 are very active on social networks. This group has taken a liking to weblogs and podcasts.
> Divorced
This group has a high affinity for dating platforms. Divorced women shop online 20 percent more than divorced men. They mainly visit sports sites. Neither gender is interested in weblogs or chat forums. In order to stay in contact with their children, this group mainly writes e-mails.
The online agency Smashlab recently published a primer in the USA entitled "A Primer in Social Media", which briefly and concisely summarizes the development of social media. The topic is highly topical: according to E-Marketer, US companies are spending around 1.5 billion dollars on advertising in social networks this year.   
 
Christian Lüscher
 
 
 
Men are receptive to advertising on social networks Who directs advertising messages
in social networks and which advertising formats are suitable for viral marketing? According to a study by the Swiss market research company Innofact, which was conducted in Germany on the basis of online surveys, it is primarily men who spread brand messages. As the authors write, men above the average community age prefer to forward advertising content. The authors refer to them as multipliers. This target group is very open to online advertising: almost 30 percent of this target group likes to look at online advertising, while only 17 percent of all social community members do so. As the study
games in which the advertiser acts as a discreet sponsor are very popular. As long as the fun of the game is not impaired by the sponsorship, this format is suitable for forwarding to communities, as this is where the networking idea comes into play. For example, by competing for high scores or challenging friends and acquaintances. Sending music is very popular among younger community members to draw the attention of groups of friends to news. What prevents members of social networks from spreading advertising more widely? According to the study, the fear of viruses or spam is one of the main reasons why ad-financed content is not forwarded. In addition, the advertising message must not interfere excessively with the use of the content, for example by interrupting a music playlist or showing ads during a video clip. The study took place this spring. A total of 1500 Internet users were surveyed. (cl)  
 
 
 
Community marketing in book formWho, as a marketing manager
want to build communities on the Internet in the near future, we recommend Cary Steinmann's book. The former advertiser and current ZHAW lecturer is publishing the book "Community Marketing - How companies create value in social networks" at the end of May. With numerous case studies from international companies such as Microsoft, Adidas and Ebay, the book offers a comprehensive overview of the diverse potential of communities and provides concrete instructions for management. If you would like to find out more about the book in advance, we recommend the presentation by Norbert Bolz, who presented the contents of the book on the basis of three future theses at this year's Marketing Day in Lucerne. The presentation can be found as a webstream on Marketingtag.ch. 
Helge Kaul/Cary Steinmann (Eds.). Community Marketing. How companies create value in social networks. Approx. 300 p., hardcover, ISBN 978-3-7910-2757-9.

Barbecue chef gets the party started

Essen II Metzgerlehner worldwide partners launches the party year with the Bell Grill Chef.

 
Food II Metzgerlehner worldwide partners launches the party year with the Bell Grillchef. 
Barbecuing and football are also the order of the day at Bell. However, the Metzgerlehner worldwide partners agency did not ring in the barbecue season for its client with sausages away from the pitch. Nevertheless, there is a bit of Euro 08 smoke in the air. In the "campaign in three phases", as CD Felix Dammann explains, there is an offensive before, during and after the European Championships. In addition to football, the focus will be on the party theme and thus Bell's barbecue specialties, with the first of a total of three TV commercials and a nationwide advertising campaign accompanying the Bell Barbecue campaign with many below-the-line ideas. As a life-size POS stand, a cardboard barbecue chef invites consumers to a barbecue party in shopping centers and at petrol stations and "hands out" free barbecue brochures with tips and recipes. Consumers can also find lots of information about barbecuing at www.bell.ch.    
 
Andreas Panzeri

Mobile TV wants to outgrow its infancy

Bruno Bucher is fully committed to mobile TV with his MoTV. He wants to launch by Christmas, but there are still a few hurdles to overcome, such as financing. Nevertheless, the former Swisscom man wants to be on air by Christmas at the latest.

 Swisscom has recently started broadcasting 20 programs via mobile TV. The "Mouse Cinema" is currently the subject of heated debate. However, it will only become interesting when the possibilities of this personal TV device can be exploited accordingly. Bruno Bucher is fully committed to mobile TV with his MoTV program, which he presented at an IGEM insider lunch. His business idea is based on special and exclusive offers that are very different from conventional TV programs. Primetime for MoTV is when people are out and about, namely in the morning, at midday and the evening before. Bucher emphasized as an advantage that MoTV is very free in terms of advertising, as it is not subject to the RTVG, according to him. However, according to an IGEM report, Bucher's presentation also made it clear that there are still some hurdles to overcome. The main issue is financing. Only 20 percent of the required minimum capital of one million Swiss francs has been secured at the moment. With unwavering optimism, however, the former Swisscom man is convinced that he will be able to go on air by the Olympics or by Christmas at the latest. At the IGEM Insider Lunch, it became clear that the road to "Personal TV" is a long one. Managing Director Ueli Custer pointed out the advantages and disadvantages of the two distribution channels for mobile TV: DVB-H offers better picture quality, but to date it can only be received in the greater Zurich, Basel, Bern and Lake Geneva basin areas. As before, TV programs can also be received via the "telephone frequencies" with UMTS or EDGE-capable devices. However, capacities here are very limited.

Making copyright law fit for the internet age

From July 1, new rules in copyright law will apply with the revised law. Performers, producers and broadcasting companies can now also determine whether and how their works and performances may be distributed via the internet.

 From July 1, new rules will apply in copyright law with the revised law. It is intended to reflect the Internet age. In addition to authors, performers, producers and broadcasting companies can now also determine whether and how their works and performances may be distributed via the internet. Anyone who makes music or films available for download via file-sharing networks can therefore be prosecuted by all these rights holders. Downloading works from the Internet for personal use remains permitted without restriction. However, it is forbidden to circumvent technical protection measures such as digital copy and access blocks. The Federal Council is creating a monitoring center to analyze the effect of technical protection measures. It is tasked with identifying problems and finding amicable solutions through mediation, as announced by the Federal Department of Justice and Police.

Clowning around with an Espace clone

Publishers Tamedia spares no effort to own 100 percent of Espace Media.

 
Publishers Tamedia spares no effort to acquire 100 percent ownership of Espace Media The Bern-based Espace Media Groupe has founded a new company called Espace Medien AG. The only strange thing is that, apart from the slightly different name and the smaller share capital, the new company is virtually identical to the first one - also in terms of the composition of the board of directors. What, please, is being played here? According to Tamedia spokesman Christoph Zimmer, the situation is as follows: Tamedia took over 80 percent of Espace Media Groupe last year, but now holds just under 99 percent thanks to generous offers to the other shareholders. But Tamedia wants 100 percent. Only then can the cross-shareholdings (Tamedia in Berner Zeitung, Berner Zeitung in SonntagsZeitung) be cleared up. But how do you get rid of the last shareholders who won't sell voluntarily? Legally, this is only possible by means of a merger, says Zimmer. For example, with a merger of Tamedia and Espace Media Group. But that's not what they want in Zurich, because they don't want to give up their local roots in Bern. So Espace Media Groupe was effectively cloned - with the difference that the clone Espace Medien AG is 100 percent owned by Tamedia. In a next step, Espace Media Groupe will then be merged with the clone, which will later be renamed Espace Media Groupe again.     
 
Markus Knöpfli
 

Unknown persons cut Volvo out of giant poster in Zurich

At Zurich's Bellevue, unknown perpetrators climbed a construction scaffold and cut a giant image of a Volvo out of a mega-poster. This is reminiscent of similar actions in Berlin.

 At Zurich's Bellevue, unknown perpetrators scaled a scaffolding and neatly cut an oversized picture of the Volvo C30 and the brand name from a mega poster. The operation was not without danger, as the poster thieves had to work at a height of 40 meters. This may smell like a media-effective campaign by creative advertisers - but that is not what it was, Volvo and the agency responsible for the advertising, Spillmann/Felser/Leo Burnett, emphasize in a press release: The theft was neither staged nor carried out by them. The action is actually more reminiscent of what happened in Berlin, where groups critical of advertising cut out pictures of models from giant posters (for more on this, see
). For the time being, Volvo is responding to the crime with incentives rather than threats of punishment: Georg Redlhammer, Head of Marketing at Volvo Switzerland, has offered a finder's reward for the "stolen car": Anyone with a clue to the stolen poster part will receive a test drive. If the clue actually leads to the thief, the reward is a weekend for two at a 4-star hotel in Switzerland. Volvo is keeping quiet about what the perpetrators can expect.

The Magic and Cost of «Everything for Free»

Column: We find it hard to believe that we’re being ripped off precisely when we get something «for free.» How much longer will it be before newspaper and magazine publishers explain these connections to us?

 
Column: We find it hard to believe that we’re being ripped off precisely when we get something «for free.» How much longer will it be before newspaper and magazine publishers explain these connections to us? 
If it costs nothing, it’s worth nothing. This insight is widely held, yet it has little influence on our everyday behavior. «The Cost of Zero Cost» is the title of the third chapter of a book that is not intended specifically for advertising and marketing professionals, journalists, or publishing executives. Nevertheless, it is recommended for all media professionals who still wonder about the success of free newspapers.The book is by Dan Ariely, an economist who teaches at MIT in Cambridge, Massachusetts. Using behavioral science experiments, he challenges the fundamental axiom of his field—namely, that we all behave rationally—at least in most situations. The book is titled *Predictably Irrational*, and its author shows us how predictably irrational—and thus not very self-interested—our decisions all too often are.
«It’s no secret that we feel good when we get something for free.» The author points out that «free» isn’t just «any old price,» but rather «highly emotionally charged—a source of irrational enthusiasm.» He then holds up a mirror to us and explains how this works: “Would you buy something that’s been marked down from 50 cents to 20 cents? Maybe. Would you buy it if it were marked down from 50 cents to 2? Maybe. Would you snap it up if it were free instead of 50 cents? I bet that…”
In his experiments, Ariely shows just how terrible we are at math and how often «free» gifts turn out to be gifts from the Danae: when we buy three cans of tomato paste at the supermarket, even though we only need one, because the third one is “free.” When we go to the museum on Sunday because admission costs money on weekdays, and we get annoyed that so many other people are blocking our view of the exhibits. When we wait in line for half an hour for a free ice cream without thinking about how much more meaningfully we could have used that time.
Similarly, one could argue that free newspapers steal our precious time: they are, by necessity, forced to offer low-quality journalism. From an economic perspective, the editorial content serves as an advertising platform. You never know for sure what part of this «journalism» is ultimately (surreptitious) advertising or PR…
Ariely interprets the magic of the «free» price as a result of a deep-seated fear of loss. When something costs money, we fear we might lose something, rather than improving our situation through the transaction. The idea, however, that we might be getting ripped off precisely when we seem to be getting something “for free” hardly ever crosses our minds.
I wonder how much longer it will take before those newspaper and magazine publishers—who want to continue selling their products despite often facing free competition from their own companies—enlighten us about these connections? It’s probably already too late for that. In any case, it’s telling that there was no longer any mention at a recent international conference on the future of journalism (150 experts had gathered at Yahoo!’s headquarters in Silicon Valley) was no longer even mentioned: namely, micro-payments—tiny payments that allow users to pay for specific online services with a single mouse click. That, at any rate, was the dream of software tinkerers, one that had been debated back and forth at conferences for 15 years.
«Journalism that matters» was the organizers« lofty goal. Nevertheless, among the thought leaders in online journalism, the idea that editorial content might cost the end user anything was taboo. One participant put it bluntly: She had grown up with free information on the internet since childhood. She could »no longer imagine paying for it.”.
So we’re left with the vague expectation that «someone» will eventually foot the bill. Until now, it has been the advertising industry. But it is increasingly finding smarter ways to communicate its messages without having to help finance expensive journalism. It can do this thanks to new technological possibilities that allow it to place ads on the Internet with precision and target specific audiences. But it’s also because understaffed newsrooms have left the floodgates wide open to PR releases. On top of that, the classified ads business is drying up. This is especially true now that Craigslist is here. It’s foreseeable that the company will replicate its sensational success in the U.S. with online classifieds in Europe—free of charge for private customers, «of course.».
All that remains is the irrational hope for patrons or for the government—whose efforts to fix market failures all too often end in government failure. Or the belated realization that «zero cost» for news could end up costing us all more than we’d like. Journalistic independence and journalistic quality cannot be had for free in the long run—and presumably not on the internet either, if they are no longer cross-subsidized by the «old» media and their customers.
Stephan Russ-Mohl heads the European Journalism Observatory at the University of Lugano.
*Dan Ariely, *Predictably Irrational: The Hidden Forces That Shape Our Decisions*, HarperCollins, New York, 2008
 
 
 
 

Last but not least: Buffett on shopping spree

The world's richest man, Warren Buffett, was in Lausanne. His meeting with the media turned into the perfect promotional event for him, his investment company Berkshire Hathaway, and, above all, Rolex.

 
The world's richest man in terms of money, Warren Buffett, visited the Lausanne management school IMD on Tuesday and answered questions from the media. The investor, who now not only owns 62 billion dollars, but has also become a figurehead for responsible investors, is currently touring Europe and giving tips on investing money, ranting against excessive salaries for managers and leaving his address everywhere in case someone wants to sell him his company. Buffett's piggy bank for company acquisitions contains around 36 billion francs. According to reports in Cash Daily and Blick, he has apparently also shown an interest in Swiss companies, including Rolex. "Rolex is a great company," he said as he pulled up his sleeve and showed the journalists his gold Rolex. "They have my phone number. Unfortunately, they've never called." After this media-effective publicity stunt, it may have rung after all.
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