Frank Bodin, CEO of Euro RSCG, on identity building and the ever tougher pace in the advertising industry. A review and outlook.ww:The advertising industry has been waiting a long time for a recovery. Although it is now here, there is no mood for celebration. Are the problems deeper than that?
Frank Bodin: In general, the agencies continue to deal with
four problem areas. Firstly, advertising is and will become an even
tougher predatory market. And that with an ever-shrinking
Cake. A few, increasingly strong agencies are becoming disproportionately
while the majority of the agencies are increasingly weaker.
will emerge from this competition.
With what specific consequences?
We will have to deal with a more or less stagnating advertising market.
in which the total turnover is increased by more disciplines
is generated.
What other problems do agency managers have to deal with?
With the globalized brands that have centralized their communication budgets
control. And the fact that they are increasingly less likely to run their campaigns for our
market, but for the entire German-speaking world.
or French-speaking countries, i.e. abroad. The third
I see specialization in the advertising industry as a problem area.
Advertising is actually dead per se. It is no longer enough to only advertise in
classic patterns. Just think of cross-media to create a
buzzword. The consequence of this and also my fourth
point is the increasingly difficult problem of profitability in the
the high-price island of Switzerland.
Other sectors are also suffering from this.
In contrast to these, knowledge services such as the
communication has long been dominated by domestic providers. But also
Liberalization is taking place here due to cost pressure. The market
is also opening up to specialists from abroad, who are often more favorably priced.
are.
So the industry still has no answers to all these questions?
Most of the problems have essentially remained unchanged for five years. However, they are now becoming even more acute.
How do you explain this delay?
Certain agencies were living off their reserves, but these have now been depleted.
should be. You have to wonder why there are so many people in the Swiss
There has been almost no land consolidation in the advertising industry.
Are you expecting a further shrinkage process?
You have to distinguish between reality and appearance. There are still
Agencies that present themselves as if they are incredibly important and
big. In reality, they are modest SMEs.
In contrast to the economic and marketing dimensions, however, you are talking about a dubious identity formation in the agency sector.
The discussion about self-presentation and self-image was held in
almost forgotten during the crisis years. We need to get back
increasingly concerned with which product we actually want to use.
produce. The output debate has increasingly become a
Strategy-briefing-communication-money-discussion shifted. Good to
This phenomenon can be observed in the discussion about the
Tobacco advertising bans, where all of the tobacco
Saving advertising investments with lobbying and other means
try. In my opinion, that is wrong.
Again the well-known "outsider Frank Bodin".
More correctly probably the "try-to-think-differently-bodin".
The fact is that in many cases the advertising we do is seen as
is perceived as disturbing. Three out of four respondents find TV commercials
harassing. So we have to ask ourselves: which politician is going to
help, which politician wants to advertise an important
branch of industry? If, on the other hand, our work was recognized by the
there would be no discussion about advertising bans.
And what conclusions must the industry draw from this thesis?
Customers, the media and the communications industry must
think together about what they want to offer people. When the
advertising industry as part of the entertainment industry
and its content via the various channels in an entertaining way.
or at least in an appealing way, then you could
they develop a new understanding of the advertising profession. Then we would
away from isolated 30-second TV spot thinking and towards new forms of
of commercial communication, towards an industry that is once again
has sex appeal.
Are you calling for more self-reflection so that the industry no longer stands in its own way?
I'm not saying that everyone has to deal with themselves,
but that the only way forward is to work together. One example:
Only if the most important agencies succeed in working together for the
multicultural, multilingual and in many respects pioneering
Switzerland as a creative location, global players can be
attract. Your search for very high standards should not be in London,
New York or Paris, but also sometimes in Zurich or Geneva or
Berne. If an agency alone wants to try to protect itself or the
Switzerland internationally attractive as a business location, then it will not be
to achieve sustainable success. This is also one of the tasks and
The orientation of an industry association like the BSW, in which I am on the board
am.
They appeal to our heritage such as Swiss Graphic Design, GGK and the ever-present creative export hit architecture. In contrast to the latter, however, we have to accept that communication has become too fleeting and fast-moving to position ourselves successfully internationally with tradition and expertise.
That is true. On the other hand, it is our job to show the customer,
that our real customer is the brand. And a brand can be
only be built up sustainably and successfully if a certain
continuity is available. And it is precisely this expertise that we can only
to a certain extent. However, this cannot be achieved if every
agency "büschelet und bäschelet" backwards in its reduit. We
have to set up a program such as "How to win two
Grand Prix in Cannes". And this is where I pick up on the fact that the
Problem only with the clients, the media and the universities
can be tackled together. Allow me to add a brief
Paranthesis: We live in an inhuman age in which culture, style
and a certain humanity count less and less. Even in the
advertising, we are often treated like the last service provider
treated. But the fact that people work here who put their heart and soul into their
work is often overlooked. Here, too, one would have to
Create more awareness on the customer side.
The advertising industry was not entirely uninvolved in this development. But back to your plan: doesn't this strengthening of the industry association correspond to a new cartel agreement with international competitors?
Quite the opposite. What the new BSW logo (a stylized globe,
editor's note) is that we want to express ourselves precisely
from this way of thinking and from the cliché of the 17.65 percent fee association
want to say goodbye. Instead, the BSW Leading Swiss Agencies
for quality, transparency, fairness in the remuneration of work as well as
as for an exchange of ideas for more advertising investment security
at national and international level. Ultimately, these
efforts to improve our advertising location, and everyone benefits from this. Today
our industry must organize itself like a company and
Swiss Made" quality label.
That sounds honorable. Nevertheless, the Swiss advertising industry is recovering rather slowly.
It's about recognizing the problems and working on them.
has to come up with. It's not just advertising that needs a
extraordinary idea. Moreover, one should not generalize. There are
agencies that realized a very good operating result in 2005.
have. It is nowhere near as catastrophic as the situation in
Germany or, on closer inspection, in France. It is
It's simply no longer the case that the advertising industry has to
when the economy is doing better again.
What does this mean for sales development next year?
My forecasts for the agency sector are based on stagnating advertising
and rising per capita sales. This will again be accompanied by staff cuts
and outsourcing of risks. Fewer people become more and
have to do better.
You mentioned transparency. In the agency industry, which makes promises by profession, it is still difficult to achieve, see the lack of BSW ranking.
These are the consequences of the Sarbane-Oxley Act, most of which
large network agencies are affected. Unfortunately, it is now the case that
This law is being abused by some larger agencies in order to
not having to be transparent. Although advertising is very complex and
cannot be measured like shot put, the BSW has developed a
Ranking alternative presented, in which with
Gross operating income categories again a reflection of the industry possible
should be. Viewed in isolation, however, such rankings only
provides information about the quality of work of the individual agency. How
Can creativity or customer satisfaction be quantified?
In any case, I have submitted a request to the BSW that the new
BBE ranking as quickly as possible.
However, precise figures are no longer declared. What information can it provide?
In a year-on-year comparison of how successfully an agency has worked
i.e. promoted and relegated. Among the top ten agencies in the
From today's perspective, the turn of the millennium has certainly brought shifts
took place.
This should certainly be in your interest at the moment.
(laughs) We can actually report continuous growth
- 20 percent in 2004, this year it is likely to be around seven to ten percent.
percent. Conversely, we also stand by the fact that last year
less involved in creative showbiz and therefore no longer in the
creative ranking. But we will do that next year with
Our great team will certainly change that again.
Which place do you want to conquer?
It could well be the top five.
Interview: Luca Aloisi