Cross-media—a key concept in PubliGroupe’s new strategy. CEO Hanspeter Rohner explains what he means by it, what his company is missing to achieve complete “all-media” success, and how he plans to position the group in the market. WW: Mr. Rohner, everyone is talking about cross-media—including you. But everyone understands it differently. Can you give some examples that come closest to what you have in mind? Hanspeter Rohner: In Japan, there’s a very interesting development taking place between newspapers and cell phones: Advertisements include a code that you can enter into your cell phone. After that, you hear a voicemail, receive a text message, or can access visual content. There, it’s moved beyond the project stage; major Japanese newspapers are already generating significant double-digit percentages of their revenue this way. You’ll find other genuine cross-media approaches in Scandinavia and South America. In Switzerland, Goldbach Media has conducted the most pilot tests in the digital sector—though always without print. But in my opinion—and many advertisers agree—cross-media without print is inconceivable in the long run. That would be like a multi-course gourmet meal without a main course.WW: By the end of the year, you want to restructure Publipresse so that print, cinema, online, TV, radio, mobile, and AdScreen are offered from a single source.Rohner: It’s incorrect to speak of a restructuring of Publipresse. We are establishing a new strategic division called Media Sales, which will include all Publipresse companies, Publicitas Promotion Network, and the marketing companies Web2Com, Cinecom, and Radiotele. With this comprehensive reorganization, we aim to eliminate the current divisions between Switzerland and international markets, as well as between print media and electronic-interactive media, in order to tap into new synergies and achieve greater market efficiency in our sales operations. Of course, each medium will continue to be marketed individually in accordance with the responsibilities assigned to us.WW: Will the company names Cinecom, Radiotele, Publimedia, or Web2Com disappear? Rohner: This is one of the questions—though not the most important one—that the various project groups must clarify by the third quarter of 2007. WW: Will PubliGroupe now also develop new cross-media planning or booking tools? Rohner: A lot has already happened in this area—just think of Publisherconnect for the classifieds market in online and print. The key development, however, will be the gradual implementation of a fully digitized order-processing platform that will offer all market partners a significantly broader range of services than is available today. While not everything will be ready by January 1, 2008, all activities will be geared toward this coordinated marketing concept from now on.WW: Billboards are missing from your all-media offering. Do you regret that PubliGroupe withdrew from Affichage in 1999? Rohner: That’s just nostalgia (laughs). We had acquired a stake in APG in the hope of implementing a joint international strategy. However, this wasn’t possible with the people in charge there at the time. That’s why we had no choice but to realize a huge financial gain and exit. From today’s perspective, it’s a shame, of course. WW: Clear Channel Outdoor could soon be split up, and some of its national subsidiaries sold off. Is that an option for PubliGroupe to re-enter the outdoor advertising market in Switzerland or elsewhere? Rohner: We will always consider acquisitions that strengthen our media marketing capabilities in markets that align with our strategy. But, logically, the target must be of a certain size. We don’t want to play just a minor role. WW: At least in the local TV and radio sector, you’re facing a new, strong competitor in Publisuisse, the SRG’s marketing arm. Rohner: We don’t fear competition; internationally, we’re more than used to it. And as long as Publisuisse and other competitors play on a level playing field, we’re happy to take on the challenge. But if the battle were to be fought with cross-subsidized weapons, we would defend ourselves. Incidentally, I’m very confident about our prospects, because things are developing faster in the digital sector than the various providers would like. That’s why completely new opportunities are constantly opening up for us. Moreover, we’re only just getting started: We’ve only developed or acquired the various companies in the radio, TV, and online sectors ourselves over the past three years—and yet we already generated just over 150 million in revenue in fiscal year 2006. While this isn’t a huge amount relative to our total revenue, it’s still quite respectable in relation to the Swiss market volume for this segment.WW: Publimedia is increasingly offering print clients services that are actually traditional tasks of media agencies. Will this service now also be expanded to include cross-media offerings? Are you moving toward building or acquiring an all-media agency? Rohner: Publimedia acts as a category marketer and offers many services designed to make working with print media more attractive. Nothing will change in this regard within the Media Sales division. However, we plan to develop services and planning solutions within the new strategic division, Marketing and Digital Services, in order to become a provider in this area on a pan-European level. It is still too early to provide more specific details, though. WW: The strategy paper mentions expanding the consulting offering. So much seems certain. Will PubliGroupe compete with media agencies across all media formats in the future? Rohner: Our assessment of market developments is that all players in the value chain between advertisers and media publishers—that is, advertising agencies, media agencies, intermediaries, and marketers—will have to fundamentally rethink their roles. Large media agency chains are already positioned today as market makers in the field of commercial communication. And in this emerging environment, we clearly intend to play a role from a European perspective as well. WW: Do media companies and clients actually trust P’s cross-media consulting expertise—despite its focus on print? Rohner: Like everything else we’ve achieved so far, we’ll have to earn that trust in the market. It’s also a huge challenge in terms of training and continuing education—at least in Europe. In China, on the other hand, we already have employees who sell a wide variety of media from a single source. They wouldn’t even understand your question; for them, it’s completely normal. WW: Among publishers, PubliGroupe currently operates print—and, at most, online—sales divisions. Instead of these individual media sales divisions, are you aiming for group-wide sales divisions in the future so you can market a multimedia company as a whole? Rohner: It’s only natural that we need to develop new forms of cooperation with media companies. The main question, after all, is how to design the most successful marketing strategy. I don’t think the most successful approach is to market each medium as independently as possible, without any connection to the others. It would be better to offer package solutions, although each medium will still need to be marketed individually in the future.WW: Aren’t you a little late to the cross-media game? Basler Zeitung Medien, for example, has already established its own cross-media marketing strategy despite the P-Pacht agreement. And AZ Medien is now doing something very similar. Rohner: So far, the share of cross-media in Swiss advertising spending has been negligible. Moreover, we’ve been moving in this direction for quite some time. When I took over as Group CEO five years ago, about 300 of our 3,200 employees worked in the non-print sector. Today, out of 2,900 employees, about 1,000 work in the non-print sector. So our profile has changed and will continue to change. That said, print will always remain very important. WW: Cross-media requires intermedia research, but this is still in its infancy. Rohner: So far, we’ve actually failed to reconcile the various research methods. This will also require greater international efforts. Because one thing is clear: the capabilities of all internet-based media—where impact can be measured immediately—are becoming the benchmark for all media, even if this benchmark cannot be applied uniformly everywhere. We’ll have to find new approaches, in the interest of the entire market. I’m also thinking of disciplines like media auditing and media research, as these will clearly continue to grow in importance. Interview: Markus Knöpfli