Advertising intermediaries The new
Guidelines for professional intermediaries, which PubliGroupe has issued with reservation.
reveal a new philosophy. Georges von Csernatony,
Member of the PubliGroupe Management Board, on the background to this.
WW: The
Title above the Werbewoche report on the procedure of the
Competition Commission (ComCo) against PubliGroupe was a "stage victory for
AdX" (WW 9/06). Do you agree?
Georges von Csernatony: (laughs) No, because it may also be a stage victory for PubliGroupe. Moreover, the Competition Commission has not yet made a final decision.
WW: But
Hand on heart: The most important changes to the content of the
The guidelines of the Association of Swiss Advertising Companies (VSW) are
to the pressure exerted by Weko and thus to the complaint filed by AdX.
Georges von Csernatony: (hesitates)
That cannot be said to be the case. Because even without the lawsuit from AdX
we have adapted the guidelines to the new developments.
WW: What developments?
Georges von Csernatony: Those
in the market. At the end of the 1990s, there were around ten active
All of them were job advertisers. Then
the job market. The result: three or four recruiters from
job advertisements remained and realigned themselves, for example
In the direction of universal mediation: They began to use other sections, supplements,
commercial advertising or new advertising on the Internet.
That's why the term "sector broker" no longer makes much sense today. Also
The market was changing: new brokers were added who were active in print
and also in online portals. And then today we also have
new revenues that did not exist in the past: online to print is a
growing business.
WW: Why did the VSW wait so long to adapt the guidelines?
Georges von Csernatony: The
Weko proceedings have been ongoing since July 2001.
convinced that the VSW's practice is not in breach of antitrust law.
was objectionable; we therefore also saw no reason to
to amend the guidelines. The amendment of the guidelines is primarily
Line because of the new market conditions.
WW: How
The intermediaries contribute a great deal to PubliGroupe's Swiss business, i.e.
to PubliPresse's turnover (2004: 1.5 billion Swiss francs)?
Georges von Csernatony: So
I can say a lot: At the end of the 90s, the
professional mediators several tens of millions of francs. Today it is less.
WW: Does this include the sales of commissioned and non-commissioned agents? Georges von Csernatony: There are in fact no non-commissioned sales.
WW: Excuse me?
Georges von Csernatony: The
Most non-commissioned brokers do get the
Mediation Commission (VK), in that it has the dispositions in our
Leasehold titles simply via a friendly commission agent
who then passes on the UK to them.
WW: New guidelines are now in place - albeit with reservations. What is the main difference compared to before?
Georges von Csernatony: The
The role of the professional broker is presented more precisely: He sells
advertising space and should work for our leased titles. The old
guidelines still placed the emphasis on universal mediation, new
the division broker is also commissioned. Some was
deleted: Whether an intermediary passes on the UK to a third party and whether
it generates at least one million in sales for the entire press,
we can't check, so we took it out.
WW: It now explicitly states that the VSW is interested in the activities of professional mediators. A new PubliGroup philosophy?
Georges von Csernatony: No.
We were already interested in recruitment agencies, but not in
pure line brokers who merely generate sales from one location without any added value.
to the other. But, as I said, there are such agents in the sector
practically no longer. That's why we didn't want a philosophy
that is outdated. However, if the market had not developed so
had changed, we would probably have remained firm on the subject of sector brokers.
WW: For the first time, it is stated what the VK is intended for: it is to compensate the sales organization of the intermediaries and their performance.
Georges von Csernatony: The
is expressed more strongly in the new guidelines; however, it was already
always in such a way that the commissions reflect the sales performance of the agents.
should be compensated. The new guidelines raise the boundary between
sellers and buyers. The media are on the seller's side,
i.e. the newspapers, the VSW advertising companies and the
Professional intermediaries. The buyers include the advertising clients, the
advertising and media agencies.
WW: New
intermediaries must even "protect the interests of the leasehold titles of the
VSW members and actively promote the sale of advertising space in
promote these lease titles". Why should they give up their neutrality?
Georges von Csernatony: The
The intermediary is the sales channel of the print medium; in this respect, it has
no obligation of neutrality towards the customer; he is not a
advertising or media agency. He has the same task as us or a
publishing house, namely to actively use the advertising space of a newspaper in the best possible way.
sell. The new directives do nothing in this respect
New. For us, it is an additional channel. The discussions with the Weko
took so long because we had to define exactly who belonged to the
who does what for whom and to whom the salesperson belongs.
intermediary is obliged. To ensure that no one pays for a service
which he does not provide. As a result, the
The quintessence of the system is clearly expressed: the intermediary should
use our lease sheets. In return, he receives the UK from us.
WW: But now there are brokers, including VSW members, who manage customer budgets. They have to do this on a fiduciary basis.
Georges von Csernatony: Legal
not seen. The professional intermediary acts in his own name and on
own account. A media agency buys in the name and on behalf of the
customers advertising space and is compensated by them. We and the intermediaries
do not receive a fee from the customer. The intermediary is a salesperson who
products. He decides whether these are VSW products or others
himself. We do not force him to advertise with us, but with the VK
we give him an incentive, because we are obliged to
Actively selling leasehold titles.
WW: So far
an intermediary had to achieve a minimum turnover of 100,000 francs in
VSW lease titles in order to be recognized. He must now
limit only in the third year after VSW recognition.
Georges von Csernatony: Yes, that's very generous. It also gives newcomers a chance.
WW: So far
an intermediary had to be legally and legally recognized by its advertisers.
be economically independent. In case of doubt, it must now also be
notarized proof. Why is that?
Georges von Csernatony: This
provision is central and is intended to prevent a major customer from
house agency, has it recognized as an intermediary and then takes over the
VK - in addition to the JUP that he already receives as a major customer.
receives. The fact that the provision has now been strengthened shows that
The Weko also considers the sales performance of the intermediary as an independent
recognizes economic value creation. If you do it for yourself
is not an economic achievement in its own right.
WW: Intermediary
have to be technically up to date and at the same time "have the
VSW members strictly adhere to the technical specifications defined and
any instruments made available exclusively in the
use traffic with VSW members". That smells like market barriers
on a technical level.
Georges von Csernatony: No,
This has to do with the cost-cutting process. We still receive
by some so-called professional mediators on a typewriter
written orders. These must be completely rewritten; the
is not an efficient approach. We only expect that a
professional intermediaries with the usual transmission and transmission services on the advertising market.
processing technologies.
WW: What difference will all the new features make to the dispute with AdX?
Georges von Csernatony: How
We will not accept an application from AdX vis-à-vis any other applicant.
to check whether it meets the requirements of the directives.
corresponds. No AdX guidelines have been created, but
generally valid for the market. If AdX uses the following for its sales
The requirements for picking in accordance with the guidelines are met,
will of course pay out the commission for this.
WW: And what's next for the guidelines?
Georges von Csernatony: Coming soon
the publication of the French version will follow, then we hope for
the early approval of the Competition Commission and for new applications. Yes, we hope
to more professional brokers, who also generate more sales.
In the sense of the preliminary investigation
The final ruling of the ComCo, which will end the four-and-a-half-year
proceedings against PubliGroupe (see also WW 9/06).
Changes to the new guidelines are theoretically possible - they
for the ComCo Secretariat, which is responsible for their (premature) publication.
had demanded, but embarrassing. It also remains to be seen whether the
PubliGroupe to be condemned by the ComCo despite the new guidelines
will be. After all, the majority of the changes were made in line with the
Criticism in the preliminary investigation of 2002.
However, at least one point of criticism from back then apparently had no
Continuity: Collective bargaining remains an important prerequisite for the
Recognition as a professional mediator. In the preliminary investigation, the
Weko secretariat still speculated that the obligation to comply with collective
could constitute a price maintenance clause in breach of antitrust law.
Markus Knöpfli