Electronic Media: The Goldbach Media Group has published a report assessing the state of the private electronic media sector in Switzerland. CEO Klaus Kappeler explains where the sector currently stands. WW: Why is your company publishing a report on the private electronic media sector right now? Klaus Kappeler:
Is there a better time for a gift? All joking aside, we’re convinced that right now—when the media landscape and its structure are changing rapidly, driven primarily by technological developments, and consumers’ media behavior is being influenced by these changes in leaps and bounds—is the right time to pause and reflect. So, on the threshold of a new media age, let’s take stock and analyze why, when it comes to private electronic media in Switzerland, we repeatedly come up against a political wall of protectionism. Which electronic media do you think have the greatest potential for growth and development?I am convinced that we cannot rely on current trends today. Or would anyone have bet on today’s text-messaging culture ten years ago, simply because cell phones were gaining popularity? On the other hand, one thing is clear: the internet, as a technical platform and meeting place for a wide variety of media, will continue to grow. Mobile media consumption can easily be identified as a strong driver of growth. Nor should new forms of out-of-home communication via electronic platforms be underestimated, because the use of ePosters in this area has only just begun.
There are more and more signs that the second wave of the Internet could end in a debacle similar to the first. What do you think about that? There are neither signs nor a wave! To stick with your vocabulary, the water level is rising overall—and quite dramatically. But if you ask me to what extent, I have to admit that growth will be subject to fluctuations in the coming years. Basically, as I said, the Internet will experience rapid growth as a logistics medium. But if you look at in-game advertising, for example, two years ago people would have laughed at the idea that dynamic advertising in online games would be such a success.
To what extent can and should private electronic media in Switzerland grow in relation to public media (SRG)? Despite strong opposition, private electronic media in Switzerland have developed quite well. However, when compared to other countries—even taking into account differences in media development due to historical factors—electronic media, particularly the private sector, have enormous potential. Thanks to digital broadcasting, the electronic media’s current 30 percent share of advertising investment will grow to 50 percent over the next ten years. Regarding your question: Of course, private broadcasters will grow more rapidly than public ones, which will also make the balance of power somewhat more even. The prerequisite for this is that better content—that is, content preferred by consumers—is actually allowed to prevail, regardless of whether the SRG’s new licensing fee round goes through or not.
Roger Schawinski says that running a serious private television station in Switzerland is an impossible utopia. I don't suppose you share his view? You're mistaken. However, the simple word «serious» is key to the statement.
Is audience fragmentation an opportunity or a threat for advertising?
Opportunity and risk. It’s an opportunity because target audiences can be defined more clearly and addressed more precisely. Future user research must also make a quantum leap forward in this area so that advertisers have access to relevant metrics in a comparable framework. I see risks in striking a balance between the effort required for content on the one hand and advertising revenue for a smaller target audience—with correspondingly lower wastage—on the other.
Email Interview: René Worni
«The Battle of the Electronic Media: »Switzerland's Private Electronic Media—An Assessment,'",
That is the title of the 125-page A4-format publication by Goldbach Media, a marketer of private electronic media. The company commissioned numerous well-known industry authors to write about the broader context, the market, and the development of the media from every angle. Based on the observation that nowhere else has the (struggle for survival) of electronic media been documented to date, this work—complete with an accompanying glossary—offers interesting insights into the current media debate. The volume is available from Goldbach for a nominal fee of 100 francs. (rw)