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Farewell to illusions
Neuromarketing: Thanks to neurological research, marketing departments are gaining a new set of tools. Werner T. Fuchs describes the end of illusions in *Werbewoche*.
Neuromarketing Thanks to neurological research, marketing departments have a new set of tools at their disposal.
When 10,000 English schoolchildren across England are asked to drop their sandwiches from the table, it is either for an entry in the "Guinness Book of Records" or for a scientific experiment. At least in 2001, the latter was the case. Because Robert A. J. Matthews is a physicist. And scientists have an irresistible urge to want to explain the world and all its oddities. If a friend tells you that you utter countless exclamations of astonishment every day, he has either observed you well or read a neurological study on the anterior cingulate cortex, or ACC for short. All science begins with observation and then searches for patterns from which generally valid rules can be derived. Although such rules are not truths, they make it easier to predict whether a particular event will be repeated.
Just as physicists generally don't concern themselves with sandwiches, neurologists are just as unconcerned with marketing issues. We should not forget this in the excitement surrounding neuromarketing and the question of the latest state of research. What is of interest is not how far the chemical, physical and neuro-physiological processes in the ACC have been decoded, but how much we already know about the basic functioning of the human brain. And the answer is: too little to create a human-like robot - too much to send marketing textbooks into the next edition without drastic changes.
Thanks to the latest technologies, we can now watch the brain at work. And what we assume by closely observing healthy and brain-damaged people can be simulated and displayed on screens. But what we see there is not a new, completely unknown person. We have long known or suspected what neuroscientists have to say to the marketing and advertising industry. We just didn't want to admit it.
The scientific evidence alone that human behavior is largely controlled by the unconscious should cause unease in marketing departments. But neuroscientists now have much more to offer. They explain how we absorb information, in which memory areas it is distributed and stored, what happens when we remember, which patterns are general, individual or culturally influenced and in which situations we are particularly susceptible to manipulation.
Neuromarketing in the sense of applied neurology primarily means saying goodbye to illusions. This applies to market researchers as well as planners and strategists. Neuromarketing means asking new questions. Or reviving old questions. What story do I need to tell? How do I incorporate the random into my strategy? How do I translate the sign language of the unconscious into an applicable set of tools? What replaces the outdated AIDA formula, Maslow pyramid or SWOT analysis? How do common sense and analytical thinking work together?
Neuroscientific research is now at a stage where we know enough about the fundamentals to revise our own models. We should now be dealing with the sandwiches instead of waiting for quantum physics to contribute to the synchronization of nerve cells.
Werner T. Fuchs
See also:
Brand impact in the mind
Vita Werner T. FuchsWerner T. Fuchs
He earned a doctorate in German and theology and, after working in various positions in Germany and abroad, entered the advertising industry. At the end of the 1980s, living with his disabled daughter prompted him to take a close look at the findings of modern brain research. At the end of 1999, he founded Propeller Marketingdesign to transfer the results of this research to everyday practice. In his book "Tausend und eine Macht. Marketing and modern brain research"
Werner T. Fuchs has developed a set of tools that makes the sign languages of the unconscious visible. A continuously updated and annotated bibliography on neuromarketing can be found at www.1001macht.ch.
Watsons for the young woman, of course
Kosmetik Bluespirit launches the Watsons product line for Marionnaud Parfumeries. The CD paid particular attention to the stringent declination of the main subject.
Cosmetics Bluespirit launches the Watsons product line for Marionnaud Parfumeries.
Natural essences, such as those popularized by the Body Shop label, are increasingly becoming a trend in cosmetics. Multinationals such as Marionnaud are also promoting this development. The fast-growing international chain was acquired in 2005 by the A.S. Watson Group, the trading division of Hutchison Whampoa Ltd. based in Hong Kong. Today, Marionnaud Parfumeries has 1231 stores in 13 countries and is the market leader in Switzerland with 115 stores. (Until five years ago, these perfumeries operated under the Alrodo label). Now the cosmetics specialist has landed a major coup and is launching its own product line on the market. With Watsons, Marionnaud is launching its first skincare line specifically for the young target group. Watsons is the company's first "private label" and enables Marionnaud to establish its first contact with young, discerning customers. Blue Spirit Communications in Schlieren was commissioned by Marionnaud Parfumeries Switzerland to create its own launch campaign for this natural skincare line.
The agency, which is also known for its Sloggy posters and specializes in advertising and retail marketing, designed the POS campaign for a young and young-at-heart target group that prefers products with natural essences when it comes to skincare. At the same time, customers were able to get to know Watsons in the 115 stores and convince themselves of its effectiveness, naturalness and extensive product range. "Marionnaud is entering a new segment with the natural line and it was therefore important to the company that the launch went off without a hitch," explains Bluespirit CEO Gerry Flückiger.
For Account Manager Patricia Müller, the staging of the Watsons line clearly focuses on the product benefits and natural beauty. In Anna Meier, the daughter of Yello founder Dieter Meier, the ideal model was found who also personally stands for natural body care. The product benefits are highlighted "graphically charming" with green stars in the advertising material.
CD Peter Trüb paid particular attention to the stringent declination of the main subject for the extensive advertising material and the animating store decoration, for example with coupons on the shop windows. Customers are also brought into contact with Watsons via A-boards, promotional displays, merchandising presentations, product brochures and plastic bags. The launch was rounded off with a specially produced store information leaflet for beauty consultants with detailed product information and a recommendation for corporate communication, ensuring the necessary consistency.
The campaign will be available in all Marionnaud perfumeries in Switzerland until the end of October 2007. According to the latest information, the Watsons line is already enjoying great demand among the target group, as Marc Berg and Rossella Haas at Marionnaud Parfumeries Switzerland have announced.
Andreas Panzeri
Excuses no longer apply
Environmental protection Spinas Gemperle campaigns with WWF for climate change in our heads. The campaign plays with the most common excuses.
Environmental protection Spinas Gemperle campaigns with WWF for climate change in our heads.
Global warming is a reality and is caused by us humans. According to surveys in various European countries, around 80 percent of people think so today. But when it comes to making our own behavior climate-friendly, an all-too-human reflex often comes to the fore. And it sounds something like this: "I'd do something for the climate in a heartbeat. But..."
This is where the WWF's current climate campaign comes in - the time for excuses is now over. Because this message is much more likely to reach people's minds if it is communicated with a wink instead of a warning finger, those who really can't do anything for climate protection have their say: the poster, the advertisement, the TV, the movie screen. All of them would immediately do something for the climate. But they are not human. In the cinema, this is shown imaginatively with the white screen that transforms into a talking mouth.
Everyone can save energyWith Spinas Gemperle's holistically integrated campaign, the WWF is focusing on raising awareness for climate-friendly politicians in the upcoming elections in addition to communicating personal energy-saving options by switching off stand-by or buying energy-efficient appliances.
The WWF also raises funds for its international climate protection projects with the annual ZEWO collection in mid-October. One example is the fight against immense slash-and-burn agriculture in the tropics, which accounts for around a fifth of climate-damaging greenhouse gases.
The campaign can be seen as posters, TV commercials, cinema spots, advertisements, internet banners, radio spots, mailings, litter and balloons. The campaign is also supported by the members of the WWF Climate Group, which includes Coop and Migros as well as Ikea, Swisscom and ZKB.
Andreas Panzeri
The amateurs come away empty-handed
Private TV The small amateur stations provided a splash of color in the local TV landscape. Now they are the big losers of the new fee splitting.
Private TV The small amateur stations provided a splash of color in the local TV landscape. Now they are the big losers of the new fee splitting.
From ambitious political talk shows with local heroes to sports coverage from the lower leagues and bizarre public reports about the fashion show in the village boutique: the smallest of the local TV stations bring a bit of homegrown variety to the stylish landscape of private TV stations. However, the new Radio and Television Act now threatens these niches. It only provides for shares from fee splitting for 13 large local stations, which are allocated a fixed broadcasting area.
"Fewer licensed channels, but larger coverage areas for more professional TV stations," is how Alfred Hostettler from the Federal Office of Communications (OFCOM) describes the principle according to which 13 licences are currently being put out to tender. This "system change" favors the large local private broadcasters. Accordingly, the hotly contested Zurich-North-Eastern Switzerland broadcasting area, in which TeleZüri, Tele Top, Schaffhauer Fernsehen and other interested parties are active, has become an ongoing topic.
Too little professionalismThe mini-broadcasters in rural areas are at a disadvantage. They have benefited from fee splitting since 1995, albeit in a modest form. In recent years, between CHF 5 and 6.5 million has been available in each case, which has been distributed among more than 20 micro-broadcasters. The lion's share went to western and southern Switzerland, where some of the previous recipients such as Tele Ticino, Tele Bielingue and Tele Südostschweiz will continue to receive money under the new fee regime. In German-speaking Switzerland, on the other hand, some small stations will go away empty-handed. Although they have done pioneering work, they are not large enough and not professionally supported enough to apply for one of the new license areas.
No daily newsOne of these stations is Tele D, which went on air over 20 years ago as the local television station Diessenhofen and can now be received in large parts of the cantons of Thurgau and Schaffhausen. It is run by a prominent foundation and financially supported by many municipalities in Thurgau. Around 40 people produce several hours of programming per week on a voluntary and unpaid basis. Tele D does not broadcast daily news or advertising.
In recent years, Tele D has received around CHF 50,000 from fee splitting. From 2008, this income will cease. "We have to stretch ourselves to the ceiling," says Peter Schuppli, Chairman of the Board of Trustees and Managing Director of Tele D. The financial gap is now to be plugged with a "Club of Friends of Tele D". Schuppli expects that local companies and the population will continue to support the station. Although viewing figures are not measured, he is aware of the attention his station receives. "The response to some programs is huge," he says.
Giving up is out of the questionEven elsewhere in the amateur league of television production, people are used to finding creative solutions to finance tight budgets. The Arolfingen local television station ALF, which broadcasts in western Aargau and the canton of Solothurn, received around CHF 30,000 from the license fee fund, which will no longer be available from 2008.
Loly, the local television station in Lyss, will also be missing out on almost CHF 40,000 from fee splitting from 2008. Around 30 people, most of whom work on a voluntary basis, have been producing one hour of programming per week for twelve years for a catchment area of just 30,000 inhabitants. They have given up the paid editor-in-chief position and organized themselves with a new editorial concept so that they can continue to be in the black, explains Marianne Batos, co-president of the sponsoring association.
The small broadcasters will all continue without fee splitting. After all, the new Radio and Television Act offers them one advantage: those who waive their share of fees can broadcast wherever and however they want. Instead of applying for a license, all you have to do is register with OFCOM. It is quite possible that sooner or later more hobby broadcasters will spring up.
Behind closed doors, criticism is also heard here and there: based on their experience, some local television producers doubt whether the local public service envisaged by Bakom can really be provided by the future licensed broadcasters with fee splitting. The broadcasting areas are so large that the planned fee contributions of between CHF 1.4 and 3.2 million per broadcaster appear to be too low.
Adrian Scherrer
Coveted coverage area For the Zurich-Northwestern Switzerland coverage area,
which covers the cantons of Zurich, Schaffhausen and Thurgau with a total population of 1.6 million, several interested parties are bidding: Tele Top, which currently covers Winterthur and Frauenfeld as well as Schaffhausen and St. Gallen, and the Tamedia station TeleZüri. It was recently announced,
that the mayor of Rapperswil and a St. Gallen cantonal councillor are fighting for TeleZüri to remain available in the Linth region, which is more strongly oriented towards Zurich. The redistribution of the license areas, ordered by the federal government this summer, no longer provides for this for Glarus, Schwyz and the Linth region. The redistribution
also has consequences for other license applicants. Tele Südostschweiz, for example, has left a joint interest group consisting of the Glatttal local broadcaster Züri Plus, Schaffhauser Fernsehen, Ringier and IP Multimedia. Südostschweiz publisher Hanspeter Lebrument explains that they will no longer enter into this concession. His station is concentrating on the area of Südostschweiz and Glarus. "That means we have our hands full," says Lebrument. (rw)
Martin Spieler presents "BörsenTrend" on TeleZüri
The weekly show "BörsenTrend" will be broadcast on the private channel TeleZüri from October 5, 2007. It will be presented by Handelszeitung editor-in-chief Martin Spieler, who is already present on SF 2 with the format "Handelszeitung-Börsenstandpunkte".
Clear to go for BoB in a new outfit
Awards Registration for BoB is now open. The newly designed creative and concept competition is the only platform for the B2B marketing communication segment in German-speaking countries.
Awards Registration for BoB is now open. The newly designed creative and concept competition is the only platform for the important segment of B2B marketing communication in German-speaking countries (Switzerland, Germany, Austria). The BoB identifies the benchmarks in the field of professional and attention-grabbing B2B communication and thus provides the industry with comprehensible orientation aids for professional communication. Entries can be submitted until November 16, 2007 and can be registered at: www.kommunikationsverband.de/awards/bob.
Well underway with Migros
Insurance Migros enters the breakdown and travel insurance business. Exxtra communicates the offer and its advantages.
Insurance Migros enters the breakdown and travel insurance business. Exxtra communicates the offer and its advantages.
The market was previously covered almost exclusively by TCS. Now Migros has also entered the car breakdown and travel insurance business. What is new are not necessarily services that the competition does not offer. What is new, however, are the "unrivaled prices" for the various services. The range includes breakdown assistance Switzerland, breakdown assistance and travel insurance Europe and travel insurance World. Migros has an experienced and competent partner in Elvia, which has the largest fleet of breakdown services in Switzerland.Exxtra Kommunikation has found a witty solution for the launch of Assistance. The advertisements appear as if the new services were a standard addition to the Migros product range. Bodily roadside assistance and emergency doctors stand on a shelf with a price tag, which a customer looks at attentively. Or a young woman has just placed a roadside assistant from the shelf on her shopping cart and is on her way to her car in the underground car park of a Migros branch.
Parallel to the print campaign, there is a broad-based radio campaign that is no less surprising. You hear nothing but hearty swearing from men and women who have broken down. But the whole thing is so cleverly acoustically censored that not a single swear word is recognizable. The various benefits are then communicated in the off-screen text.
As an accompanying measure, 200,000 mailings were sent to Cumulus customers. Promotions in Migros stores, petrol stations, car washes and guerrilla samplings attracted attention to the new offers. An unmissable POP display with life-size cardboard figures arouses the curiosity of Migros customers in the stores. The design of the breakdown vehicles and the breakdown service uniforms were also created by Exxtra Kommunikation.
Andreas Panzeri
«No matter why—that man has to go.»
Interview: Former Aegis executive Aleksander Ruzicka is accused of not passing on in-kind discounts on advertising time to his agency, but instead cashing them in and pocketing the proceeds. Ruzicka, who has been in custody since October 2006, gave his first interview to the press on September 10; *Werbewoche* is publishing a heavily abridged version of it.
Interview: Former Aegis executive Aleksander Ruzicka is accused of not passing on in-kind discounts on advertising time to his agency, but instead cashing them in and pocketing the proceeds. Ruzicka, who has been in custody since October 2006, gave his first interview to the press on September 10; *Werbewoche* is publishing a heavily abridged version of it.
Mr. Ruzicka, you say you are annoyed and frustrated by the allegation of embezzlement in 87 cases totaling 52 million euros at the expense of Aegis Media, and that you did nothing wrong. What leads you to this conclusion? Ruzicka: I am irritated and frustrated that the public prosecutor’s office continues to portray the facts—which I explained in my 10-day testimony and substantiated with documents—in a manner that deviates from the proven reality. I am convinced that the allegation is untenable, as no funds from Aegis were involved at any time. Therefore, there can be no breach of trust toward Aegis Media. Nor can Aegis Media have suffered any harm. On the contrary: Aegis has benefited from additional TV terms amounting to tens of millions per year.
When and how did you find out about one of the two anonymous tips? On September 12, 2006, when the searches took place at Aegis Media and also at my home in Wiesbaden.
What was the business purpose of Camaco and Watson Communications? As early as the 1990s, Kai Hiemstra had contracts with companies to obtain key information that wasn’t freely available on the market—such as the terms other agencies or clients were receiving. Of course, it’s important to know what terms OMG or Group M have in order to say: “If they get that, I want it too.” This also took place over dinners, trips, summer parties, soirées, or the much-cited hunting trips. The goal was to obtain information in a deliberately created private setting that would lead to better terms for Carat. Because Carat was paying for this at the time, we founded the companies Camaco and Watson, which focused on media auditing and information gathering. The information gathered was made available exclusively to Aegis during negotiations with media outlets or during pitches. Despite declining revenues, Aegis was able to use this to improve its freespace volume and terms.
Did Aegis Media pay for TV commercials that it would have been entitled to receive for free? No, because the client funds resulted in free commercial slots that the client and Aegis would not otherwise have received. The client funds that, for example, Emerson Film Fond received went to a production company. That company uses the client funds to produce a show like «Born to Cook» for a TV network. The network wants this show and receives it from the production company. In return, the network grants free airtime to the film fund company or directly to Aegis Media. The network is happy to do this because Freespace quotas do not strain its budget—they cost nothing. This approach increases Aegis’s quota with the network, and a campaign is then implemented for the client. The client gets more value for their budget. The agency receives a share of the Freespace. The Film Fund Society also receives a bonus. The production company makes its profit from the production. And the broadcaster has a funded program.
So where does the accusation come from that these are shell or front companies set up for the purpose of money laundering? Apparently because people are talking to those who don’t understand media planning or media auditing. A media auditor does nothing more than use their network to gain an overview of the market—specifically, which client receives what terms from which agency and which media outlets. That’s what Camaco did. There were also no concealment measures whatsoever. There’s no question of fictitious invoices being slipped into the accounting system. Six or seven departments were involved. The invoices were signed by hand by the then-CFO, Andreas Bölte.
Does your employment contract allow for these secondary activities? Yes, of course. It essentially states that the employer is aware that Mr. Ruzicka is engaged in secondary activities within the scope of the non-compete clause with the company’s knowledge and approval. This is nothing new. In the past, for example, I held shares in the company PLV—which had a similar business purpose—together with Mr. Hiemstra or Mr. Ihlefeld (former CFO, note).
Is Aegis Media aware of the existence and purpose of Camaco and Watson? Yes.
So the system didn't fail—that was the system? Exactly.
Did you enrich yourself through kickbacks from TV stations that should have gone to Aegis Media? No. I have never received a kickback, either personally or through a company. I had no operational contact with TV marketing agencies.
Did you pocket the proceeds from the media models privately or through your companies? I have never received a dividend from any of the companies. The proceeds were always used, for example, to lease the much-cited hunting lodge in South Africa—in Watson’s case—where we invited Aegis clients. Or a house in Cape Town to serve as a representative office. So we wouldn’t end up like Mr. Schmidt-Vogel (Chairman and COO of Mediacom, ed.), who would fly in, make a brief appearance, and then never return. We’ve made a commitment to the country, which naturally leads to better results in negotiations. All done completely legally. We let people who wanted to talk have their say. In a pleasant, private atmosphere.
If you've been so successful in working on behalf of Aegis Media, why were you suspended, fired, arrested, sued, and likely to be convicted? Obviously, Mr. Bölte wanted my job.
That is a serious accusation. To put it plainly: Should Aegis Media CFO Andreas Bölte have noticed discrepancies in the billing of Freispot quotas? Mr. Bölte was familiar with the media models described. He knew exactly which funds were being transferred, when, where, and why. He pushed to increase the intensity of these business relationships. The cash flows to Emerson FF were marked separately in the system—precisely so that they would stand out! This was done to closely monitor exactly how much client money was being invested there each month.
You have strongly resisted Vincent Bolloré’s influence at Aegis Media. Did you interfere with his attempts to gain influence at Aegis Media? The directive to protect Aegis from Vincent Bolloré’s influence comes from the very top in London. I have no ill will toward Vincent Bolloré. I consider the challenge of establishing MPG (part of Havas Media, ed.) as a leader in Central Europe to be achievable and extremely exciting. Our interactions so far have been consistently positive. However, Bolloré’s advisor for Germany, Mr. Hiemstra, openly displays his hostility toward me.
Your attorney, Marcus Traut, stated that you are to be «silenced and forced out of the market.» Why, and by whom? The complaint aims to force Ms. Jackson, Mr. Linn, Mr. Kernebeck, and me out of our positions. It is written in a polemical and defamatory manner and was not specifically directed against my work at Aegis; rather, regardless of the reason—fraud, embezzlement, violation of species protection laws, or the Registration Act—that man must go. When you lead a company like HMS Wiesbaden into a corporate group like Aegis, you also have to make difficult decisions. For many, I was probably too young, too successful, too straightforward, and too honest about my private life.
What will you do once the proceedings are over, regardless of whether they result in a prison sentence or not? I am convinced that these proceedings will bring about lasting changes to the agency market in Germany. Sooner or later, the current model of the agency business will cease to exist; instead, it will evolve to adapt to new media offerings and changing customer demands. Time will tell to what extent I will pursue this or pursue other interests.
Interview: Michael Ziesmann
The full interview appeared in the Austrian industry news service Medianet. Aegis CEO Andreas Bolte's response was not long in coming (see
«Aegis Media Fights Back»
)The First InterviewThe Interview
took place on September 10, 2007—almost exactly one year to the day after the start of the biggest scandal in the German advertising and media industry—at the Weiterstadt Correctional Facility near Frankfurt am Main. The Wiesbaden Regional Court was cooperative and respected the right to freedom of expression and media coverage. From a purely legal standpoint
The interview took place in private, without a lawyer and without censorship. Not a single question was omitted. Aleksander Ruzicka responded in detail to all questions. He appeared focused, friendly, and by no means resigned. Prison officials also recognized the significance of the conversation. At the prison’s discretion, the planned 60 minutes were spontaneously extended to 80 minutes. Ruzicka is facing the proceedings with a positive and calm attitude. (Michael Ziesmann/ed.) Chronology of Events July 5, 2005:
An anonymous person files the first criminal complaint. September 12, 2006:
Searches were conducted at Aegis Media and at the private residences of, among others, Aleksander Ruzicka (on suspicion of embezzlement and fraud to the detriment of Aegis Media). September 25, 2006:
Aleksander Ruzicka is relieved of his duties as CEO of CE. October 10, 2006:
Aegis Media announces Ruzicka's formal departure by mutual agreement. October 24, 2006:
Aleksander Ruzicka is arrested at his home in Wiesbaden around 8:00 p.m. At the same time, arrest warrants are issued for David Linn, Heinrich Kernebeck, and Felicitas Conway. A warrant is issued for Claudia Jackson, who is reportedly in Argentina. Three days later, Aegis Media suspends Linn, Jackson, and Kernebeck. May 8, 2007:
Aleksander Ruzicka gives extensive testimony for 10 days, 12 hours a day. May 29, 2007:
Aegis Media obtains seizure orders for the defendants' real estate and assets with a total value of 16 million euros. June 19, 2007:
The Frankfurt am Main Higher Regional Court rejects Ruzicka's appeal against his detention. The court orders that he remain in custody. July 27, 2007:
Eleven months after the house searches, the public prosecutor’s office submits the 167-page indictment. To this day, it has not been admitted as evidence in court. September 3, 2007:
The Wiesbaden Regional Court grants permission to visit for the purpose of conducting an interview.
Matter & Greter lure young creatives out of their shells
The Swiss Press Association’s Young Creative Competition gives up-and-coming creatives the chance to showcase their work to an audience of millions. The current competition is now entering its third round and challenges junior creatives to develop a campaign on the theme «Only an ad can do that.».
Responsible at the Swiss Press Association:
Toni Vetterli, Pepi Burch; responsible at Matter & Gretener: Daniel Matter (CD), Dominik Imseng (text), Max Faller (AD), Marcus Gretener, Leonie Bachmann (consulting).
Metzgerlehner wins five budgets in five months
Between May and September 2007, the Erlenbach-based agency Metzgerlehner won five new accounts in competitive pitches.
In flagrante delicto hits hard
Wohnen Hausinfo, the guide for homeowners, commissioned In flagranti to design its website. The Lyss-based advertising agency is continuing the existing campaign across multiple media platforms with new themes.
Wohnen Hausinfo, the guide for homeowners, has redesigned its website www.hausinfo.ch and is promoting its practical newsletter. In flagranti, the advertising agency from Lyss, continued the existing campaign cross-media and with new subjects. In a first phase, not only advertisements, posters and Internet banners were placed, but also plaster sets were distributed in DIY stores. A second phase with an additional subject will follow at the end of October.
