Marketers The PubliGroupe and Tamedia radio pool has just collapsed. Goldbach Media quickly proposes a market without pools at its half-year results press conference.
of August 29, PubliGroupe CEO Hanspeter Rohner admitted that the P
its entry into radio marketing announced for this year
postponed "until sooner or later".
Rohner will now have to revise his radio marketing plans, because
Since August 31, the radio industry has been presented with a new proposal that
also has the ambition to expand the radio market in Switzerland and the
medium of private radio. This time it comes from the kitchen of
Goldbach Media, where Michi Frank, Head of Marketing at IP Multimedia,
and Goldbach CEO Klaus Kappeler set up a model and
which bears the name "Radio Pool Switzerland" and which is
in the subtitle as a "future-oriented, national generic solution for
all private radio stations, agencies and advertisers".
"Strictly speaking, we are not proposing a pool, but rather a way of
the radio market can be liberalized from 2006," says Kappeler. With
liberalization, the Goldbach boss is referring to the abolition of all existing
pools and their restrictive requirements, as well as the abolition of all
Exclusive leases. "Our proposal does not involve commercial radio
and no marketer is excluded, everyone can take part," says Klaus
Kappeler. Under one condition: the broadcasters must agree on a
uniform model tariff system, in which the hourly range is
in the target group of 15- to 49-year-olds for the thousand contact prize
(CPM) is decisive. In future, the advertising industry will be able to
radio stations have the same profitability in this target group
within a narrow CPM corridor.
33 performance-based tariff levels
Based on the average net reach of between 6 and 19
Kappeler proposes a CPM of 13.50 francs and 33
performance-based price levels. From a CPM of 14.20 francs
a degressive CPM model controls the rate. With the tariff of the
average hour, the prices for each station can also be displayed on
convert the individual hour between 6 a.m. and 7 p.m. The calculated
tariff, each broadcaster may, within a defined framework
suggested are plus/minus 15 percent - at your own discretion
or offer it at a lower price - but without increasing its average price.
change the daily rate.
For national customers - and only for them does the model apply - this has
the advantage that in future they can choose the range of channels they want to book,
freely and according to their own criteria, whereby the
CPM advantage only comes into effect from five channels. Otherwise
Single tariff booked. Another premise: Each channel selected must
be placed at least 18 times in a closed campaign.
Winners and losers
The actual calculation model for 41 commercial broadcasters is based on
from the weekday net reach from January to May 2005. It
shows: The majority of broadcasters are already operating in a
CPM corridor of 12.80 to 14.20 francs. Only eight stations deviate
more strongly. Of course, the calculations also allow for theoretical
Comparisons between the current pool situation and the proposed
model. This shows that Radio 24 and Lausanne FM, for example, have been
2006 and Radio Zürisee and One FM received significantly more money
than with the current Swiss Radio Pool. Performance-related losses
Basilisk, Sunshine, Central and Aktuell, on the other hand, had to accept losses,
ExtraBern, BEO, Regenbogen as well as Lac and Nostalgie (all One Pool).
Energy Zurich, also in the One Pool, would get off lightly.
"The model rates each station equally with its listener performance,
That's why all broadcasters receive the same conditions for national campaigns.
chances of being included in a radio plan," emphasizes Kappeler. The
He describes the model itself as "innovative", and it also creates trust.
and an increased demand for the medium of radio.
The initial reactions of radio operators are largely cautious
positive. Many of the 15 or so broadcaster managers asked gave
but told Werbewoche that they have yet to finalize the model.
would have to be carefully calculated. Goldbach Media received good marks for
the open discussion. There was also praise for the fact that the model
is open to broadcasters.
There were reservations on two points in particular: The tight time frame, the
for discussion (see box) does not suit many people.
After all, the devil is in the detail, and most of the
pool agreements and the management leases between Radiotele and individual
broadcasters is criticized. The second point of criticism comes from
Andreas Meili, Head of Electronic Media at Tamedia. "The model has
one main problem: it is not a pool and therefore not a product, but
prescribes an industry-binding CPM. In my opinion, this
view amounts to a price agreement. From a competition law
reasons, the model is unlikely to have a future," he says. Markus
Ruoss, majority shareholder at Radio Sunshine, disagrees. "I believe
not that the Competition Commission sees a problem if 41
market players in different areas," he says.
Voilà - the discussion is launched.
Markus Knöpfli