PubliGroupe I CEO Hanspeter Rohner discusses the company's new strategy and the areas where it needs to improve. 
WW: Mr. Rohner, you said that last year’s restructuring of PubliGroupe was the largest in the company’s history. Where does PubliGroupe stand now, and what are the next steps? Hanspeter Rohner: The new overall structure is in place. 2008 will be a particularly intense year, especially for Media Sales—that is, the «new Publicitas.» In Zurich, more than 500 people from six different locations will soon be moving to the new headquarters in Baslerpark. That’s where the new Publicitas will come into its own: radio, TV, internet, and print marketers—all under one roof and in open-plan offices. A truly comprehensive fresh start. We’re implementing the same approach at each of our more than 150 locations worldwide. At Search & Find (S&F), the focus is on implementing the portal strategy—that is, migrating the platforms Directories.ch, Gelbeseiten.ch, Weisseseiten.ch, and Local.ch to a single, high-traffic platform: Local.ch. This is a massive project that we’re undertaking together with Swisscom Directories. In the Custom Publishing division, the focus is on the integration of Denon and Emphasis and on preparing for expansion projects in Europe and Asia. And in the fourth business segment, Digital and Marketing Services, the focus is on synergies between Zanox and most of the Publicitas and S&F companies, as well as on the further development of Namics. We are also exploring several additional acquisitions in this area.What conclusions do you draw from the 2007 pro forma financial statements based on the new structure? It’s clear that rising online revenue is offsetting the slight decline in print. What’s important for us is that we can maintain a high level of profitability at S&F. If we achieve this, it will be a success given the massively intensified competition, while we will already realize significant earnings growth at Media Sales this year. After all, if we were to generate just over 13 million in EBIT on revenue of more than 2 billion there, that would be completely unacceptable.
How do you plan to generate additional profit in Media Sales? First, internally, thanks to the new, more efficient structures; second, we want to increase sales; and finally, the compensation system will become even more performance-based. In short: good times for top performers, tough times for underperformers.
Will all employees worldwide receive new employment contracts under the new structure? No, but certainly all sales employees who have direct contact with customers will. New compensation models are being developed for each sector; while they won’t be implemented all at once, they are clearly a topic of discussion everywhere.
Where do you expect earnings growth—more abroad or more in Switzerland? There will be variations worldwide, including in Switzerland. Last year, we had to carry out a complete restructuring in the U.S. and are now re-entering the market with a fresh start. I don’t expect miracles there, but I do expect to return to profitability. In Switzerland, we’re in the black across the board except for Cinecom. There, we expect a significant jump in earnings thanks to more efficient back-office structures. And abroad, where we’ve made major investments in India and China, we’re essentially starting “Year 1” following the consolidation.
In 2007, PubliGroupe generated about 20 percent of its revenue abroad. How large will this share be this year, and how large will it be in five years? In 2007, Switzerland accounted for 82 percent of total revenue, while international operations accounted for 18 percent. In 2008, we will reach nearly 30 percent abroad—which is a huge leap, because we are not scaling back in Switzerland. About half of the growth abroad is attributable solely to the fact that our Zanox stake can now be fully consolidated. In five years, I expect foreign revenue to reach around 40 percent, while at the same time we anticipate a slight growth in the Swiss market.
Revenue in the Swiss advertising business (PubliPresse) rose by 1.1 percent in 2007, primarily thanks to job ads. How do you prepare for tougher economic times? With a Plan B (laughs). Well, our situation mirrors that of the entire Swiss daily press: The overall result has been encouraging, but primarily thanks to job ads. At the moment, the trend is still pointing upward, but it remains to be seen whether the current crisis in the financial market will remain confined to that sector. If not, it could spill over from the U.S. to Europe and also affect the labor market. The only possible strategic response to this is to make the company’s cost structure more flexible—that is, reducing fixed costs and increasing variable costs—so that we don’t have to take overly drastic measures at the first signs of a downturn. But one thing is clear: if there were to be a truly significant drop in job postings, cost reductions would be unavoidable.
Last year saw major upheavals in Switzerland: Tamedia acquired Espace Media, Axel Springer strengthened its position, SRG intervened on a massive scale in private radio advertising, and Ringier, thanks to Media Swiss, became a major competitor to P. in the classifieds business. Where does PubliGroupe see itself in this new landscape?In the same week that Tamedia announced its acquisition of Espace Media, we, together with Axel Springer, announced our investment in Zanox—the largest acquisition in our company’s history. While this coincidence in timing was purely accidental, it certainly carries a deeper symbolic meaning. Namely this: Whether in the directories sector or in marketing—while the print-oriented part of our business will continue to play an important role for a long time to come, we clearly see substantial growth outside of Switzerland and, to a significant extent, in the non-print sector.
Cinecom experienced a sharp decline in 2007. Why? Three factors played a role. First, we had a poor year for the movie industry in Switzerland, with no blockbusters and declining attendance. The outlook for 2008 is significantly different. Second, we experienced turmoil in Cinecom’s management, which led to Matthias Luchsinger and other senior executives leaving our company—right in the crucial fourth quarter, when, in the past, around 30 percent of total cinema revenue was generated.
Last year, however, this was not the case, and it accounted for a large part of the shortfall in revenue. That is simply mismanagement. Period. The third point: Cinecom was not innovative enough in terms of the offerings it provided to advertising clients. The digitalization we introduced two years ago has so far been given far too little consideration. Yet it actually makes cinema a very flexible medium. With Beat Mühlemann—who, within Media Sales, is responsible, among other things, for developing innovative offerings—we should gain new momentum in this area. After all, he was the largest advertising client for years and was known for innovative advertising concepts. One of his new tasks is to incorporate the perspective of major clients when defining offers.
Things didn’t go smoothly in radio marketing either: After Publisuisse entered this business, PubliGroupe suddenly found itself at a disadvantage in this area. Last year, we did indeed make a vigorous effort to secure the marketing of Swiss Radio Pool, but we ultimately lost out to Publisuisse. This caused some frustration both for us and for IP Multimedia. We were surprised that Switzerland’s private radio stations threw their support behind the SRG subsidiary. In the meantime, however, a certain disillusionment has set in. After all, it’s clear from what we’re hearing and from the statistics that Publisuisse’s first forays into the radio sector were not received as inspiring by the market. And now it’s becoming clear that the awarding of licenses could create a new landscape. In any case, you can count on the new Publicitas to play an active role in the radio business—visibly and audibly—throughout Switzerland.
But at Radiotele of all places, half the crew and nearly all the expertise walked out. How are things supposed to move forward from here? Radiotele has indeed been severely shaken up. Not receiving the contract from Swiss Radio Pool was, understandably, a huge disappointment. On top of that, Radiotele founder Bruno Oetterli has always refused to make special deals. He always operated strictly according to the rate card—a principle we also uphold in print. But this approach has cost Radiotele market share. Today, we feel well-positioned and fully motivated to play an important role in the radio market as well.
Do you think you still have enough expertise to do that? Yes, definitely, although the biggest challenge for the new Publicitas as a whole is to transfer the extensive existing specialist expertise to all branches worldwide as quickly as possible. This is a task that will be a top priority this year.
Another source of unrest involves the Basel Zeitung Medien (BZM): Until half a year ago, you yourself were a member of the BZM’s board of directors. What’s going on there—it seems as though things are slipping out of your control. When the Basellandschaftliche Zeitung decided to merge with the Mittelland Zeitung, we found ourselves in a conflict of interest at BZM. We therefore proposed an early termination of the BZM management contract and formalized our collaboration starting in 2008 in a new cooperation agreement. Now, however, we’re still struggling to get these new arrangements—which are simple in theory—to work in practice. I don’t want to add fuel to the fire here. But at the moment, tensions on a personal level are unfortunately still very high—not between Mr. Hagemann and me, but among the staff in the Basel market.
Is that really the case? Ultimately, a power struggle that’s damaging our reputation is underway. Is a solution really in sight? We’re working on it, and we’re the first ones interested in resolving the conflict in a professional manner. For example, in Bern, we’ve also been in very intense competition with Espace Media for decades over every ad, but there we’ve always conducted ourselves with a high degree of mutual respect, without personal or unwarranted disparagement. We must try to achieve the same in Basel as quickly as possible.
What will happen to the 37 percent stake in BZM? That’s not up for discussion right now, but what happens in the medium term is, of course, still open. However, we have no reason to take any proactive steps in this regard.
Publishers repeatedly cite the example of Basel to illustrate that the P has lost its footing, at least in Switzerland. Is that really the case? Is the problem in Basel really just a drop in the bucket from an international perspective? No, certainly not—Basel is, after all, Switzerland’s second-largest advertising and communications market. But the problem with the BZM is quite clearly an isolated incident. Last year, we were able to sign new contracts with various newspapers. Therefore, Basel is not the beginning of a new trend; rather, it’s a conflict of interest that could arise again anywhere. One of the consequences of both market developments and our strategy is that, in the future, we will no longer be able to please everyone. This applies not only to the print sector but in general: the battle for advertising revenue is intensifying. If we were to continue trying to maintain relationships with as many partners as possible, we would be overwhelmed or lose credibility. That’s why we’ll raise our profile if, in individual cases, we simply end one agency relationship and focus entirely on another.
Interview: Markus Knöpfli

 
PubliGroupe II P improved in all areas, primarily abroad and in the marketing of electronic media. 
PubliGroupe increased its sales by 3.6 percent to CHF 2.16 billion in 2007. The advertising group increased its net profit by more than a third to CHF 83 million. However, one-off costs of around CHF 10 million for the strategic realignment depressed the result. The 0.4 percent improvement in the operating result (EBIT) to CHF 68.9 million is primarily due to the positive development in the Swiss advertising business (PubliPresse) and gains from the sale of investments.
The "Business in development" segment showed above-average growth of 15%. The online marketing company web2com (+9.4 percent) and Namics, which offers e-business consulting services (+37.6 percent), performed particularly well. Thanks to Cinecom and Radiotele, sales with electronic media increased significantly, namely by 44.8% in the TV sector and 58% in the radio sector. However, the weak development of cinema advertising in the 4th quarter and problems at Cinecom dragged the "Business under development" division into the red with a loss of CHF 8.3 million. This had a negative impact on the result for the entire Group.
The online marketing company Zanox, which PubliGroupe took over with the German Axel Springer in 2007 and which grew by 55 percent in 2007, performed well above expectations.
Zanox and other companies acquired in 2007 only had a minor impact on the results, but will make a substantial contribution to earnings in the current year. PubliGroupe is therefore expecting double-digit growth in 2008 without any further acquisitions. International business is accounting for an increasingly large proportion of sales. Last year alone, international business grew by 12.7 percent. PubliGroupe is expecting strong double-digit growth again this year, not least thanks to last year's acquisitions in Asia and the Olympic Games in Beijing. However, the discussion about a (partial) boycott of the Olympic Games is likely to dampen these hopes. China could become more isolated again.
In addition to the regular annual accounts, PubliGroupe also presented a pro forma statement in accordance with the new structure. They show that although the new Media Sales division (all-media marketing) will be by far the main source of sales for the reorganized PubliGroupe (91 percent share), it did not operate very profitably, at least in the last year (EBIT share 20 percent). PubliDirect and the future Search & Find (S&F) division are performing much better, albeit with a - comparatively - high headcount. PubliGroupe expects the share of Media Sales to fall to 76 percent in five years and that of S&F to be maintained, with sales increasing overall. However, the EBIT shares of both areas should reach just under 40 percent.
Markus Knöpfli

 While more and more German creatives would like to work in Switzerland, there is also a movement in the other direction: Swiss creatives would like to win an award at ADC Germany. Golden nails instead of cubes are awarded there. This year again, as part of a major award show and gala on Saturday, April 12 at the Premium Hallen in Berlin. Every year, the exhibition of all competition entries is a true world tour through the world of creativity. ADC Germany has also organized a new congress this year, the "Summit of Creativity 08". From Thursday, April 10 to Saturday, April 12, there will be more than ten presentations each day. The list includes Frank Bodin with "Häsch es gseh? Why the most beautiful communication comes from Switzerland", Michael Conrad on the "Berlin School", star cameraman Michael Ballhaus on "The Ballhaus Project" and Karl Lagerfeld on "Marketing made human".
The entire program of the Krea Summit can be found at www.adc.de. Tickets can also be ordered there. One day of the congress costs 75 euros, there is a discount for several days.

 
Mediafocus Compared to the previous year, advertising pressure rose by 11.7% in February. Entertainment electronics/photo/film saw the strongest growth at 57.9%. Marketing in the film industry grew by 93.8 percent, cinema by 89 percent. The key market of beverages grew enormously by 33.9%. Image grew by 77.8% due to the European Championships. IT lost 48.3 percent. Food (+38.2 percent), watches/jewelry (+28.4 percent), charitable campaigns (+28.2 percent), telecommunications (+27.9 percent) and cosmetics/personal care (+26.8 percent) grew. Cinema, television and daily newspapers grew above average.

 
Sport Hesskiss promotes the new television format "fcz.tv" on TeleZüri. 
They are not only Swiss champions. They are also leaders in media. FC Zurich and its footballers are now making television. From March 29, the in-house TV show "fcz.tv" will be flickering on the TeleZüri channel. At the same time, fans can also access the new TV format online at www.fcz.tv and www.fcz.ch/tv. Talks, reports and reports about FCZ will give fans a look behind the scenes of the traditional football club.
Hesskiss is beckoning FCZ fans to the screens with a major campaign. The subject communicates in a humorous way that the current Swiss champions are now delivering news and updates from the club's environment directly to the fans' homes with "fcz.tv". To propagate the slipper football, the Hesskiss creatives have put the central objects in the spotlight: finches and a football. And with "Football's coming home", a well-known, popular and extremely apt headline in fan circles underlines the good news.
The advertisement appears in the FCZ match program "Eisnull", in the free newspaper .ch and is also displayed on selected poster sites in the city of Zurich.
 
Andreas Panzeri
 

 
Magazine Publicis is entering its second round with the latest advertising campaign for Schweizer Illustrierte. 
According to the latest Mach figures, Schweizer Illustrierte, under its new editor-in-chief Dominic Geisseler, has a reach of almost 23% with 943,000 readers. This makes SI "the most-read people magazine in Switzerland" - and it now also shines in advertising with three new subjects. The agency Publicis has realized the second edition of the successful campaign just in time for the start of spring. The three new subjects from CD Florian Beck's team, with photos by Holger Pooten, also document the unique proximity to the stars and provide surprising insights into the most important and interesting people from culture, sport, politics, business and entertainment. For example, a famous national team player plays against his daughter on the Playstation at home and concedes a goal. The "hottest" subject not only shows the relaxing effect of the hamam on a diva, but also demonstrates how many people can fit into a steam bath. And last but not least, we see a star standing helplessly in front of his closet, which only hints at the VIP's "double life".
The campaign has been running since March 25 and can be seen on posters and advertisements.
 
Andreas Panzeri

 "It was an extraordinary year," said publisher Michael Ringier to the media on Thursday at the publisher's annual orientation. Last year, the Swiss media group achieved record results for the sixth year in a row. Profits rose by over 50 percent to 102.7 million Swiss francs and turnover by 9 percent to 1.458 billion Swiss francs. Group CEO Martin Werfeli also rated this as "very satisfactory". At CHF 880.8 million, the largest share of sales was once again generated in Switzerland. The electronic media segment grew particularly strongly, with sales up by 16.4 to 58.2 million francs. Turnover in the publishing business fell by 2.1 percent to CHF 557.7 million. The publisher commented in particular on special events in the past financial year. For example, Ringier "heard a lot" when the Group sold its entire TV magazine family to Axel Springer Switzerland. This was often interpreted as the beginning of the sale of the Group. However, the proceeds were reinvested very quickly and flowed into the purchase of Media Swiss Group. The publisher holds an 80 percent majority stake in the company, which owns websites such as Scout 24 and Gate 24. The purchase is of far-reaching strategic importance for the publisher. "Until now, the online advertising business has bypassed us," said Ringier. With Media Swiss, it is now practically the largest provider on the Internet.
Slight decline in newspaper sales Ringier generated newspaper sales of CHF 190.8 million. The decline of 1.4 percent is a "pleasing result" in comparison with other publishers, said Werfeli. While advertising revenues increased by 6.3 percent, circulation revenues fell by 2.7 percent as a result of declining print runs. According to Werfeli, Blick, Sonntagsblick, Heute and the sports magazine were able to maintain their position despite competition from the Internet, free newspapers and the additional Sunday edition of the Mittelland Zeitung. The Group CEO did not yet want to comment on the effects of the reorganization of Sonntagsblick, Magazin and Blick. It is still too early to make an assessment. Readers still need to get used to the new Blick in a bundle, but the advertising industry has reacted positively.
Following the sale of twelve TV program guides, magazine sales fell by 2.1 percent to CHF 227.9 million. In contrast, advertising sales rose by 6.3 percent. At CHF 123.8 million, investments were significantly higher than the previous year's figure of CHF 88.7 million. In Switzerland, for example, investments were made in the modernization of the Ringier Print Adligenswil newspaper printing plant and the investment in Radio Energy.
International business flourishes Ringier recorded a marked increase in turnover of 17.7 percent to CHF 506.3 million in Central and Eastern Europe. With the exception of Ukraine, Ringier was "in the black" in all countries, Werfeli noted. The development in Asia was also pleasing with an increase in turnover of 14.6 percent to CHF 71.3 million. Ringier benefited from the strong growth in advertising volume in China and the recovery of the print market in Hong Kong.
Ringier focuses on electronic media Publisher Michael Ringier's motto for the future of the publishing house is "consolidation and digitization". The company's strategy will increasingly focus on digital and electronic media. The course for this was set with the acquisition of the Media Swiss Group in December 2007. In future, the media company wants to link its journalistic content more closely with commercial online offerings. Ringier said that it is already well on the way to achieving its Group target of generating around ten percent of sales in the electronic business by 2010.
Ringier employs a total of 7016 people in Switzerland, the Czech Republic, Slovakia, Hungary, Romania, Ukraine, Serbia, Germany, Vietnam and China. The number of employees has more than doubled in the last 25 years, said Werfeli. (sda/rw)

A long working day is coming to an end. Finally out of the office. Shut down the computer, get in the car, windows down, loud music. Your stomach is growling, but where can you find the energy to spend hours frying something up in the kitchen? A clear case for one of those delicious ready meals. One that you just have to heat up quickly and that is always made so tasty in advertising. The choice is huge. How about "kale with hearty cabbage sausage and diced potatoes", for example? After all, the packet says "refined seasoning" as an addition. Or a "hake fillet in dill sauce, with spinach leaves and mashed potatoes"? Or perhaps a "beef roulade with mashed potatoes and red cabbage with apples"? - It's hard to decide. Everything looks so fresh, so "hearty", so lovingly prepared on the packaging. The fact that the microwave reality is often different is now unmasked by the loving website Pundo3000. One hundred ready meals were photographed in a before-and-after style. The images mercilessly reveal the discrepancy between the advertising illusion and the product. They reveal: spaetzli reminiscent of worms, many a disgusting sausage, many a cloudy broth and many a fraudulent label. For example, why does the cocoa cookie really only have a tenth as much filling as on the packet? Bon appetit! 
 

 
Stéphane Chapuisat is the face of this year's spring campaign by SOS Children's Villages. The current advertising campaign draws attention to the problem of AIDS orphans in southern Africa. Former football star Chapuisat saw the work of SOS Children's Villages for himself during a visit to a children's village in Rustenburg, South Africa, and has been supporting the organization's fight against AIDS ever since. "I saw the vital work of the SOS Children's Villages with my own eyes. They give children who have lost everything the most important thing a child needs: a safe, loving home," the former international was quoted as saying in a press release. He has been a FIFA ambassador for SOS Children's Villages for over a year, and many children in southern Africa come to SOS Children's Villages as a result of Aids. Often one or both parents have died of Aids. They are given a new home in the villages. The organization fights against the social poverty associated with Aids, which is one of the causes of the disease. It offers medical, material and psychological support.
SOS Children's Villages is a private, politically and non-denominational children's aid organization. The organization provides a permanent home for around 65,000 children and young people in 132 countries.

 There was a break-in at French-speaking Swiss Television (TSR) in Geneva on Thursday night. Audiovisual equipment and a vehicle were stolen. The thieves stole screens, DVD recorders, telephones and portable computers. They apparently used a magnetic card to gain access to the editorial offices. TSR Head of Communications Manon Romerio confirmed to SDA a report by the French-speaking Swiss radio station RSR.

 
Watches Swatch celebrated its 25th birthday in March. It remains at the top thanks to good brand management. 
 
It has been a hit for 25 years: the Swatch watch. For 25 years it has stubbornly remained at the top of the world rankings, even though the demand for luxury watches and cheap products from the Far East is constantly increasing. The reason why the iconic Swiss watch continues to sell so well is easy to explain: In addition to strengths such as design and sales, the Swiss flagship relies on clever marketing. To this day, the message "Highest quality at the lowest price, provocation and fun in life" remains the focus of the watchmakers. Ever since the first Swatch watch was presented in Zurich in March 1983. Of course, its success can also be explained by the fact that anyone can afford these affordable timepieces. But the watch also stands for a unique attitude to life. The brand stands for youth, innovation, sportiness and originality. Thanks to its clear positioning and marketing, the Swatchgroup has sold 300 million watches to date. And "Mr. Swatch" Nicolas G. Hayek is convinced that Swatch will continue to be a bestseller: "Emotional consumer goods backed by a consistent brand with a clear message to consumers will remain in demand, regardless of the market segment."
Although the trendy piece of plastic has become a cult brand, the watch is no longer one of the 20 power brands in Switzerland that are determined annually by the advertising agency Advico Young and Rubicam. In 1995, Swatch was still in first place, but until 2007 it was in the top 20 without interruption, a feat only achieved by brands such as Migros, Toblerone, Ovomaltine, Gruyère, Zweifel, Coca-Cola and Lego. According to the latest brand study in June 2007, the watch has lost profile among younger consumers. M-Budget has pushed Swatch out of the rankings. "The brand lacks the rebellious appearance of the past, the former cult brand is now just mediocre," says Caspar Coppetti, author of the study. Nevertheless, in the "Most Trusted Brands 2007" report, the Swiss watch export hit is still top of the class in the watch category.
In addition to the watch, the advertising has always been an eye-catcher. Instead of advertising with celebrity actors like other brands or simply staging the watches in large format, Swatch tries to convince potential consumers with lifestyle advertising. Unconventional and with a wacky visual language. Swatch press officer Katy Jolidon: "Our advertising slogans are always Trendy, Joy of Life, Positive Provocation." New media is usually used to reach the young target group. Jolidon: "We mainly advertise on the Internet to reach young people. We try to position the Swatch brand in the art, fashion and sports environment."
This strategy is most clearly expressed in the area of sport. Swatch uses YouTube as an advertising channel, for example. The watch brand maintains its own channel on the video platform to document its involvement in the TTR World Snowboard Tour. Swatch is the official sponsor of the world's most important snowboarding competition, the Ticket To Ride (TTR) World Snowboard Tour.
Christian Lüscher

 
Chipboards Stahel-partner has developed a new corporate design and campaign for Sorbes. 
For over four years, the Sorbes Group has been combining the best resources in Switzerland, Estonia and Ukraine to produce chipboards in a wide range of designs and finishes. Now the Zurich agency Stahelpartner has developed a new corporate design for the company. "The key challenge was to find an identity that would fit into a premium environment in terms of style, but at the same time not be too outlandish, as Sorbes' products are also affordable for a wide range of people," explains Irene Jost from Stahelpartner. The brand specialist managed the project and provided strategic and conceptual support. In terms of color, the new corporate design is characterized by a stylish orange. The color stands at the interface between the natural origin of wood-based materials and the design potential of modern coatings. The discreet plus sign signals "Swissness". In addition to quality in the broader sense, this also stands for a consistent design quality that is reduced to the essentials. A distinctive visual language for advertising has also been newly developed, which guarantees Sorbes an attractive appearance in the long term. The idea places the boards at the center of the campaign in the truest sense of the word. The boards are held by employees, customers and end users in an authentic environment from the point of origin to the area of use.
More insights can be gained from a virtual space that has already been set up, a joint Internet platform at www.sorbesgroup.com.
Andreas Panzeri