Advertisements: With a new «account credit,» P pays its customers up to 3 percent for all ads they book through the P branch in Basel.
Over the past two years, numerous publishers have turned their backs on Publicitas and switched to managing their own advertising. Many also followed Tamedia’s example and offered their clients a direct booking fee (DBE). Their aim is to encourage clients to place their ad orders directly rather than through Publicitas. By doing so, self-managed publishers save on the brokerage commission they would otherwise have to pay to Publicitas. But Publicitas struck back. The 1.5 percent handling fee it introduced with the NZZ a year ago was a first counteroffensive. Now it is launching a second, more far-reaching attack: In Basel, where Basler Zeitung Medien (BZM) will transition fully to in-house management at the start of the new year, the local P branch has been signing new «cooperation agreements» with its clients since the fall; Werbewoche has obtained a copy of these agreements. In these agreements, P Basel promises its clients an «account bonus» of up to 3 percent if they place their 2008 ad orders «at the same level as before—similar to 2007» through the Basel P branch. The bonus is based on revenue: Those who place more than 80,000 Swiss francs net annually through P Basel receive 0.5 percent; those who place orders exceeding 100,000 Swiss francs receive 1 percent; for a net client volume of 250’000 francs or more, the bonus is already 2 percent, and for half a million francs or more, it is 3 percent. In short: The bonus is more attractive than any DBE.
«The account bonus is a new product for our loyal customers,» says Jürg Räber, director of P Basel. He won’t say how many customers have signed up. He’ll only say this much: His branch is responding to the «fierce competition in Basel» with the «loyalty bonus.» His superior, Thomas Bargetzi, Head of Sales Switzerland, is more explicit: BZM is attempting to win over as many advertising clients as possible «with massive price concessions» and to «drive Publicitas out of the market through discriminatory measures.» For example, Bargetzi says, BZM abruptly stopped offering free subscriptions to major advertisers with budgets over P without prior notice.
What’s particularly interesting about the new offer: According to the agreement, P Basel bases the rebate on the total volume of print advertising booked through it. In other words: Anyone who was already a P Basel customer and now places ads through them totaling at least 80,000 Swiss francs net per year in any (Swiss) print publication or any ad package is eligible for the bonus. It does not matter whether the placements are in in-house titles or P-leased titles. Räber expressly confirms this. However, there appear to be differing opinions on this within P. ’The P offer applies to placements in the BaZ and the Baslerstab and is the competitive response to similar offers from the publisher,« explains Bargetzi. »Placements through P Basel are therefore not generally cheaper than elsewhere.« It should be noted, however, that the text of the agreement contains no restriction to BZM titles.
That is precisely why this offer raises questions. For example, whether the bonus is still offered by other P-regions. Bargetzi, who heads the Zurich region himself, does not provide a concrete answer to this. Urs Donatsch and Moreno Cavaliere, the directors of the P-regions in Western Switzerland and the Mittelland, on the other hand, are unfamiliar with the term «account bonus.» Both assure us that they do not offer any other type of (loyalty) discount, regardless of its name. «We represent the publishers» official prices and offers in the market,« Donatsch asserts. And Cavaliere adds: »We grant any special conditions only in consultation with the publishers, because otherwise P would have to pay for them. However, today’s commissions no longer allow for such practices, and it would never occur to me to give up any of that.”
This raises the question of whether the bonus was agreed upon with the publishers; after all, they have the final say on rates. One thing is clear: BZM was not informed by P (see interview). Bargetzi comments: «If the publisher wants to change or make its rate structure more flexible, Publicitas is free to follow this market trend and submit a corresponding offer.» In any case, the bonus is «fully covered by P Basel.» And Bargetzi does not consider it necessary to inform the other independently operated and leased publishers, since, in his view, the bonus applies only to orders in BZM titles.
But the text of the agreement is clear: The bonus applies to «all advertising orders» booked through P Basel. Bargetzi either seems unaware of this or does not want to openly communicate this aspect. He dismisses the notion that existing P Basel clients might, due to the new attractive terms, choose to allocate their entire print budget through the branch at the «Knee of the Rhine» in the future. «Pure price-based enticements are not enough to optimally meet customers» growing needs,” he reassures. And he certainly wants nothing to do with the idea of a deliberate strategy to turn P Basel—in response to the in-house production and DBE trend among publishers—into a kind of P-internal clearing house for major clients and a national advertising discounter. “P Basel is not a national classifieds discounter and will not become one,” he states. The recently announced expansion of P Basel’s staff—notably despite the loss of the BZM in-house production contract—has a different reason.
It remains to be seen whether customers and publishers see it that way. And what do independent recruitment agencies think of P’s 3 percent commission? It has been less than a year since the Competition Commission fined PubliGroupe 2.5 million francs for «abusing its dominant market position» and «hindered and discriminated against» other agencies (in the Commission’s own words). The commission could now be viewed as a new tool for discrimination.
Markus Knöpfli
See also
«We are considering legal action»