Media agencies The new strategy presented by PubliGroupe on March 28 contains explosive material for media agencies. However, only a small proportion of them have understood this. Although the marketing business in the media sector remains the foundation of PubliGroupe, it will be "successively supplemented by a profitable consulting and service business". This was stated by PubliGroupe CEO Hanspeter Rohner at his annual press conference at the end of March. He added: "In future, consulting for advertising clients will become an even more important discipline", which PubliGroupe also intends to bundle in the new "Marketing & Digital Services" division (see WW 14/07). According to the latest PubliGroupe letter to shareholders, this division "comprises a portfolio of consulting and services for advertising clients and agencies for the implementation of communication and media strategies" and will "grow faster than the other segments". It can be assumed that PubliGroupe will enter into direct competition with media agencies with its activities and tools, something that many media agencies have not yet realized. When asked about this by Werbewoche, several are clueless. "Do I have to deal with this?" asks OMD CEO Christof Kaufmann. "Of course it's an issue, a big issue in fact," says Walter Merz, Managing Director of BSW Swiss Leading Agencies. The BSW will therefore be discussing it soon. "An explosive topic", also acknowledges Stephan Küng, CEO of Initiative Media Western. However, he still lacks enough information to really form an opinion.
Others are feeling the same way, such as Urs Rueb, co-owner of MediaPlus. "We'll have to wait and see what PubliGroupe decides to do," he says. If it stays in the area of liquidation, that would be okay with him. "But if it wants to offer planning for all types of media, that would be wrong. Because that is ultimately the job of the media agencies." He also sees a conflict of interest here between PubliGroupe and its core business, newspaper leases.
Urs Schneider, owner of the Mediaschneider agency, is less reserved. "There'll be a war," he exclaims. Because it is clear to him: "The P is planning an all-media consultancy with a cross-media slant. It's taking the advertising and media agencies head on." In addition, it is building up the new consulting business with the support of publishers - after all, P's main income comes from Swiss print advertising.
Schneider is not surprised by the "attack by the P", he sees it as a tit-for-tat response, for example because most agencies had agreed to the "direct booking compensation" from Tamedia, Ringier & Co. But Schneider is surprised that the P is offending "its best clients" in this way. "It comes out wrong," he comments - and refers to the international networks. "It's a problematic strategy that lacks credibility."
No war, but at least a "huge chaos" according to Riccarda Mecklenburg, CEO of m&m Media Holding, "in the event that PubliGroupe should offer its future consulting services in the same way as Publimedia does today - namely free of charge". Because then it would be tight for the agencies in Switzerland. "The national agencies will be blown away. And the international networks, which will inevitably remain here, will have to subsidize their Swiss business through their foreign business." However, Mecklenburg is not worried about his own media agency group. "We are very well positioned thanks to our foreign strategy."
"Limits of professionalism "Yvonne Boller, Managing Director of Universal McCann Switzerland, does not see the future as all doom and gloom. Thanks to its dominant market position, PubliGroupe is in a position to push the price for consulting and planning below the cost recovery level and to lure advertising clients with superficially good conditions. "But by mixing its roles, PubliGroupe is now definitely reaching the limits of its professionalism, because it wants to be a marketer, agent, consultant and media owner at the same time."
According to Boller, this "role puff" is also an opportunity for media agencies: "Because we can make our advice more neutral, more needs-oriented and therefore more professional." Ultimately, it is the customer who decides what price is worth what quality.
At the Swiss Advertising Association (SWA), Director Jürg Siegrist has certainly noticed the new wind from Lausanne, but the matter is still a little too nebulous for him. "Where is PubliGroupe getting the know-how from? Does it want to take over a media agency? If so, is it aware that it is turning the agencies against itself?" he asks, adding: "I don't have enough facts at the moment; the picture still needs to become clearer."
Markus Knöpfli