Daily press The commuter newspaper Metro has launched five new editions in Italy in Bologna, Florence, Genoa, Turin, Verona and Padua, increasing its total circulation to 850000 copies and making it the largest daily newspaper in Italy. The free paper has been available in Rome and Milan since 2000.

Luca Aloisi on the ADC image of some of its German members. Press conferences held by creative juries are often a feast for the media. On this playing field of narcissists, nerves are often so frayed after days of debate that animosities open up huge rifts and the all too human comes to the fore.ADC Germany is no exception, having awarded its nails for the most creative advertising work a few days before Good Friday this year. The scandal did not go unnoticed: Due to a publicized insider case, an ADC jury chairman threatened the journalists that the club would exclude them in future and could live quite well without them.
The fact that this expression of respect left everyone speechless was probably due to the absurd threat. And to the fact that the journalists who flew in from all over Europe were presented with a grimace that our neighboring country is doing its best to shake off. In its memorability, the unrestrained ADC member overshadowed a global image campaign for Germany, which the agency group Scholz & Friends had presented to the journalists shortly beforehand: Germany is to be positioned as the "Land of Ideas". However, it only took one hothead to make the image aimed at by the federal government and the Federation of German Industries look contrived.
I don't want to hold this slip against the author and suspect that there is something wrong with his ADC image. After all, although German advertisers shine at international competitions, their everyday lives look completely different. As long as almost every second TV viewer consistently zaps away during commercial breaks, arrogance is out of place. Especially when it comes to the media, which reinforce the ADC message of rewarding creativity.
The words of ADC board spokesman Michael Preiswerk, who pleads for more fun and less seriousness in his own ranks, are praised.
> Luca Aloisi, Head of Marketing & Communication

Without Arche, the Zurich-based charity founded in 1980, 400 more addicts and socially disadvantaged people would be on the streets every year. 400 addicts and marginalized people have been helped back into normal life by the institution for a quarter of a century. Drug misery is now hidden, and the Arche has to ensure that those who want to quit and those at risk of addiction do not end up on the streets again, thanks to a shortage of state funding. The understanding and support of the public is therefore of great importance for the work of the Arche. The Arche's anniversary campaign was conceived and realized by Frank Bernhardt (art direction/concept) and Hans Peter Brugger (text/concept), both from Basel. It combines a thank you with an appeal to continue to make the work of the Ark possible in the future. The donation mailing contains forget-me-not seeds, packaged by former addicts who now work at the Arche nursery in Uitikon.

Watches IWC lets JvM/Alster advertise for it. It was an American who won the bid for the oldest water-resistant military watch at the last IWC charity auction. Hardly a coincidence. In the home country of IWC founder Florentine Ariosto Jones, the reputation of the luxury watch brand from Schaffhausen is very good. But almost only among connoisseurs. In US society, however, IWC's reputation still has great potential. The same study came to a similar conclusion for the strategic markets in Asia, and the fact that the International Watch Company has not yet established itself sufficiently among the target groups in these and new markets is attributed to the "macho campaign". The goal of being perceived as an international luxury brand was hindered by the low level of acceptance for the satirized machismo of the previous advertising campaign. "This is surprising in that the mania for masculinity is firmly anchored in the culture in these countries in particular," says Hanspeter Schweizer, CD of IWC's previous agency Wirz Werbung. It is no less surprising that pitch winner Jung von Matt/Alster (JvM) advertises itself with four naked beauties nestled together on fur.
But IWC is not an advertising agency, and certainly not a car rental company like Sixt ("The only thing that rattles here are your wife's teeth", also JvM). Rather, the Richemont Group, to which IWC also belongs, has the sobering UBS market forecasts in mind after encouraging sales figures in the last quarter (+9%). According to them, 2005 will be another tough year for the luxury segment. All the more important
It appeared that a single campaign would be understood and accepted in all markets and that the exploited potential would compensate for stagnating demand.
The question is now justified:
Has JvM/Alster developed an "Esperanto campaign" that resembles the appearance of many luxury watches? The agency is presenting its new IWC campaign just in time for the Salon International de la Haute Horlogerie from April 4 to 10 in Geneva. Even the subline "Engineered for men" (previously: "IWC. Since 1868 and as long as there have been men") makes the direction clear. Instead of male nefariousness, the focus is on IWC's engineering skills. "IWC is the engineer who builds technically outstanding watches with passion," says Georges Kern, CEO at IWC. This claim is reflected in the communication, albeit with restrained humor. With the core values of technology and engineering, the new headlines continue to address the man - the technician in him.
The campaign has remained unique, as has the watch component in the subjects. However, the image is enhanced with new substance and new elements in the image and copy. This gives the viewer an impression of the mechanical components. If only there wasn't the second narrative strand, which has to bridge the gap to the joke ("Wow!" for the Aquatimer). This often seems artificial and lame. Fortunately, this small print does little to change the typical IWC campaign character that has set it apart from other luxury brands since 1978.
This is what makes the somewhat different man tick: instead of machismo nefariousness, the focus is on IWC's engineering skills.
Luca Aloisi

Elisabeth Baumgartner and Markus Stolz are now also present in Switzerland with their Competence Network St. Gallen - The Refresh Company.research, strategy and idea management from a single source: that is the business idea of Competence Network St. Gallen - The Refresh Company. What independent media agencies have been offering for some time with their deployment strategies could in future be provided by the Refresh Company for consulting support. "We have set out to develop growth concepts and awaken the dormant powers of companies and brands," explains Elisabeth Baumgartner. Together with Markus Stolz, the former Managing Director of Jung von Matt/Isar founded the new agency last year. The head office is in Wiesbaden. "We span the classic advertising and consulting sectors and try to combine business management with creative issues," says Stolz, describing the concept. In line with the new approach, The Refresh Company is not organized like a traditional advertising agency. The value chain extends further and begins with market research. Freelancers (9 experts from various disciplines) are available. In this way, a client can be helped to find the optimal advertising agency and such a crossover of business models can only work at a high level. There have already been similar approaches in England. Ikea and Audi are currently considering a similar model in Germany.
The Refresh Company is currently working on a new strategy process for Siemens Mobile Networks. Retail brands are being repositioned for Otto, for example Sport-Scheck. Smaller budgets such as the publisher Karl May can also be interesting. The aim is to bring the Karl May myth into the present and boost sales. The work for this publisher was honored with the Leipzig Book Market Award for innovative marketing concepts.
Cobblers often wear the most worn-out shoes. For this reason, The Refresh Company offers itself as a consultant for self-promotion. Red Rabbit, voted Newcomer Agency of the Year in 2004, can also be found on The Refresh Company's client list.
"On the client side, the need for a lifelong agency relationship is crumbling," Stolz believes. He therefore sees opportunities for more modular formats.
Stolz and Baumgartner are focusing on "Swissness" in their project because this quality concept is very valuable in Germany. The Swiss cross in the logo and "St. Gallen" refer to the direct company involvement of the Competence Network St. Gallen, which was founded by HSG alumni and benefits from close contact with the university's leaders and thinkers.
The two partners and founders of the agency live in Munich. Elisabeth Baumgartner has worked in Switzerland for a long time. In Zurich, she was a consultant at GGK and Dominique von Matt. After training at the Sawi in Biel, she was account director at Start in Munich in 1997, one year later managing director of Markenhaus and between 2001 and 2003 managing director at Jung von Matt/Isar. Her most important clients were BMW and Sixt.
Markus Stolz originally comes from the publishing sector. He trained as a market media analyst at Axel Springer. After studying communication design, he worked in market and trend research. In 1997, he started working for Roland Berger Strategy Consultants in the area of Strategic Brand Development. From 2001 to 2003, he was Head of Business Development for Start in Munich. Important clients were Burger King, Yahoo! Disney Channel.
Baumgartner spent a year traveling through Canada and Mexico. Stolz gained international experience in China while building up the China Telecom brand. She loves paragliding; he likes windsurfing. What they both have in common is a desire for something completely new.
Andreas Panzeri

Column The gap between freelance and well-paid staff journalists is widening, forcing freelancers to look for lucrative sources of money It is astonishing how little media attention this bribery scandal has generated: The Bush administration "bought" several journalists with US taxpayer money. Armstrong Williams alone, a prominent conservative columnist, has pocketed 24,000 dollars in this way to support a political campaign of the President ("No child left behind") in the media.Strangely enough, hardly anyone seems to be upset about something that in the "good old days" would certainly have been a solid reason for a ministerial resignation. Why is that? Are we - on both sides of the Atlantic - gradually becoming accustomed to PR and journalism working together symbiotically and becoming indistinguishable?
Perhaps the underlying reason why more and more journalists are earning extra money with PR - and in some cases violating the professional norm of journalistic incorruptibility in the process - has to do with developments on the labor markets and growing income disparities. Many years ago, the economist Isaac Ehrlich argued that such growing "gaps" create incentives for corrupt and criminal behavior.
Without being able to prove this empirically in detail, I suspect growing income disparities in journalism and the upstream PR sector at five different levels:
- A "star system" has emerged in journalism. Above all, those who appear regularly on the screen and attract viewers to the station with their likeness quickly become top earners who lose all grip on the ground.
- Apart from these stars, journalists earn relatively little compared to other demanding professions, such as doctors, managers and bankers.
- Within journalism, the gap between well-paid permanent employees and miserably paid freelancers working on a fee basis is widening. Many freelancers are victims of outsourcing - in other words, they used to be permanent employees.
- The same applies within the PR sector.
- The difference in fees for journalists and PR people is also huge. For the same article for which I as a journalist receive a fee of 200 francs, a client at a PR agency has to pay X times that amount.
Such inequalities not only generate envy. They also encourage those who can live more poorly than well on their fees to look for additional sources of income in creative ways - for example by taking advantage of discounts (www. journalistenrabatte.de), accepting invitations and creatively financing research trips that are not paid for by the employer, but often by those who are to be reported on.
On the other hand, the Armstrong Williams case is proof that corruptibility is not solely dependent on income. Stars often don't get their mouths full - perhaps precisely because they live in an environment that is light years away from the everyday realities of most journalists. When it comes to bribes for journalists, we collectively bury our heads in the sand - the topic is surprisingly taboo, no matter how hard journalists try to remove the taboos. In Western democracies, we are approaching Russian conditions faster than we would like due to the momentum that the PR sector and journalism are developing. There, it is common practice for journalists to gnaw on their hunger pangs - and therefore hold their hands up when they are asked to report on someone.
> Stephan Russ-Mohl is a professor of journalism at the University of Lugano.

Michael Preiswerk (54), chairman of the German ADC with a Swiss passport, talks about quality standards.WW Mr. Preiswerk, how does it feel to be the new chairman of the world's largest ADC?Michael Preiswerk: The largest ADC in the world? No, our exhibition in this form is the largest in the world.
biggest. In Germany, the ADC show is certainly decisive in terms of opinion leadership. For me, the election is both an honor and an obligation.
The two Gs of GGK, Karl Gerstner and Paul Gredinger, are honorary members of the German ADC. In this context, your predecessor Sebastian Turner spoke of the role model function of Swiss advertising. How do you see that?
Swiss advertising is very important in Europe. Definitely at the top. I'm a fan of its clarity, consistency and originality. The prejudice that the Swiss are lazy with their mouths is also disproved by the many good campaigns. When they say something, it's a precision landing.
Speaking of level: despite three percent more submissions, your juries awarded a good 25 percent fewer works. Is that self-mortification or a loss of standard across the board?
Rather the first. The juries have become stricter in their judging, which has made the ADC more exclusive. You see, many works in Germany stand out for their good design, but are stripped of ideas. We, on the other hand, evaluate ideas. The best ones. And those that also meet international standards. Furthermore, this year the juries were required to award not only quality, but real existing quality.
You are referring to the fake festival that many people painted on the wall in the run-up to the competition.
If you look at the result, we were able to prevent this. Which is not to say that only large clients were awarded prizes.
The introduction of the "low budget" category was also mentioned as a possible solution. How do you feel about this?
Such voices were raised again. However, the budget size of the commissioned work does not play a role in our assessment. The lowest switching frequency is permissible as long as the publication circumstances are plausible and the campaign resonates with the target group. After all, it is precisely the work with smaller budgets that must assert itself through good creation. And show what is possible.
Let's move on to your goals for the German ADC. What do you want to change during your term of office?
I don't want the whole thing to be taken too seriously, too German. Yes, we do advertising and we take our job very seriously. But we mustn't forget the joy and the fun in all this seriousness. After all, who is called upon to take an optimistic view of the world in this day and age if not us advertisers? Of course, I can't change that, but I would like to point it out. We should try to come up with even better ideas with more light-footedness.
For the first time, however, they also had the judges chosen by lot. They were then only assigned to the categories half an hour before their task. What is the purpose of this?
The idea was to introduce even more objectivity and neutrality here. This would prevent any potential cliques and the possibility of prior consultation.
ADC Germany has noticed a trend towards more emotion, humor and even poetry in the work. Are you also observing this development internationally?
Yes, and not since today. As far as Germany is concerned, Brazilian imagery is being replaced by narrative and more human advertising. Just one example - the GTI campaign. Furthermore, there is always better humor. As we are experiencing an oversaturation of comedy programs on television, the punchlines in advertising have to get better. Good examples of this: Media Markt, Hornbach, K-fee.
In 2004, German creatives were among the most successful participants in the international competitions for the first time. Will Germany's advertising soon join the league of the top
Scorers like England, Scandinavia, the USA and Brazil?
Yes, German advertising has arrived internationally. We have worked hard on ourselves in recent years and taken the criticism to heart. The question of where we stand in an international context is no longer asked so often. That's a good thing. But it is also necessary in the age of the Internet. German companies that are internationally oriented with their products and services also want to cross borders in their communication.
You don't sound like a Swiss abroad, but like a native German. What else is typically Swiss about you?
(laughs) I still have a Swiss passport. And when I discuss a topic with my wife and start to say something, she's often very quick to ask: Well, is there anything else coming up?
Basel native with agency in StuttgartAs the son of a Basel judge, Michael Preiswerk decided to go to graphic design school. There he studied under Samson "Cioma" Schönhaus, who was able to save hundreds of doomed Jews from the Nazis with his forged passports. After graduating and completing an internship in London, he joined GGK in Düsseldorf as an AD, where
Michael Schirner is his mentor.
Preiswerk's unconventional work soon earned him awards at home and abroad - including the Cannes Golden Lion for Advertising. After several years at McCann-Erickson Frankfurt as CD/CCO Vice Chairman, he set up his own business and founded the agency GPP with Peter Godenrath, of which he is now Managing Partner. His clients included major brands such as Puma, Club Med and Camel. Today, the spokesman for the board of the German ADC mainly looks after medium-sized companies. (la)
Interview: Luca Aloisi

Peripherals Kensington Europe, manufacturer of computer accessories, has launched new designer mice and keyboard kits at CeBIT, including the new PocketMouse Colour notebook mice. Kensington has also introduced the PocketMouse Max Glow, which lights up in bright blue with every touch. All mice can be conveniently connected to a desktop computer using the USB cable extension supplied and are compatible with both PCs and Macs.

The Zurich-based search engine marketing agency Angelink Yourposition is now responsible for the concept, content and performance measurement of the international keyword campaign for the international headquarters of Siemens Building Technologies.

Fundraising The new spot for "Brot für alle/Fastenopfer" by Advico Young & Rubicam Zurich deliberately avoids Third World clichés with starving children or sick people in the sands of the African desert.fundraising The new spot for "Brot für alle/Fastenopfer" by Advico Young & Rubicam Zurich deliberately avoids Third World clichés with starving children or sick people in the sands of the African desert. In order to create new awareness for the slums of this world, the commercial works with surprisingly new images: images that arise in the viewer's mind. Throughout the entire commercial, all that can be seen is a white surface. In addition, the voiceover addresses the misery of the people and questions the consternation only on the basis of compassionate images. The final chart says: "We believe. In you too." Because only those who don't see the misery in the world as a cliché will think about the causes and be prepared to donate.

Outdoor Advertising: Jean-François Decaux, Co-CEO of JCDecaux, on his strategy, the partnerships with Wall and Affichage, and the German business.
WW In Germany, JCDecaux is the third-largest outdoor advertising company and holds a 35 percent stake in Wall, the fifth-largest. How do the two companies complement each other? Jean-François Decaux: Perfectly. JCDecaux operates in about half of Germany’s 15 major cities with over 500,000 residents; with Wall, we’re present in nearly all of them. The only ones still missing are Frankfurt, Duisburg, Hanover, and Essen. However, a decision is pending in Frankfurt: Wall has submitted a bid for advertising-funded restrooms. If it wins the contract, it will break into the exclusive agreement held by Ströer/DSM (see box on the right).
How does the partnership with Wall work?
I serve on Wall’s supervisory board. Unlike at Affichage, where we hold a 30 percent stake, there is no share transfer restriction clause at Wall, so our voting rights there correspond to our ownership stake.
How were you able to get so deeply involved with Wall a year ago?
We acquired an 11 percent stake in Wall three years ago. After that, Wall entered into a strategic partnership with Clear Channel (CC), our main global competitor, but that fell through. The Wall family then decided to form a strategic partnership with us. We were able to acquire CC’s 20 percent stake, as well as 50 percent of Wall USA. Specifically, this involves the city contracts with Boston and St. Louis. We’ve been responsible for marketing in Boston for a year now and have increased revenue there by over 75 percent. The reason: We can offer Boston in combination with other U.S. cities, such as Chicago or San Francisco, which goes over well with advertisers.
Is there a possibility that Wall will acquire additional shares?
Although we have a right of first refusal, the Wall family would like to maintain the current shareholder structure. So there is currently no basis for an increase in our stake.
Wall is considering an IPO. What do you think about that?
It remains to be seen whether the company can achieve the growth and scale necessary for an initial public offering.
Wall believes, however, that he will be the German market leader by 2010.
So he also wants to challenge JCDecaux's position.
Wall will never be able to achieve market leadership in Germany without JCDecaux. However, we joined Wall with the goal of working together with him, as a local partner, to achieve market leadership in Germany. If Wall grows, we have no problem with that—after all, we hold a 35 percent stake. For example, at the end of 2004, Wall won its first major contract in Freiburg im Breisgau against Ströer/DSM. The more cities Wall wins, the better it is for us as well.
Why did you decide to
Did they pull out prematurely from the sale of DSM a year and a half ago? At the time, there was an opportunity to secure market leadership and 200,000 outdoor advertising locations nationwide in one fell swoop.
That’s true, but we had the impression that the DSM sale could lead to a double sale of the cities: first, when the municipal advertising rights at the time were sold as part of the overall DSM package. And again when the individual advertising contracts expire and are put out to bid. The latter will happen soon, since the DSM concession contracts were only valid for six to seven years. That’s why we pulled back to organically capture these cities with Wall. We are now investing the money we didn’t spend back then in cities like Freiburg, which we are gradually winning over in competition with Ströer/DSM. This strategy is working.
So you turned your competitor, Wall, into a partner.
Yes, in Eastern Europe as well. In Ljubljana, the capital of Slovenia, Europlakat International (EPI)—our joint venture with Affichage—submitted a bid for the city contract three years ago, competing against Wall. EPI won, and Wall filed an appeal. However, I was then able to persuade Wall to withdraw its appeal. Now we’re one big European family: Wall, Affichage, and JCDecaux. Last year, the three of us submitted a joint bid in Hungary’s capital, Budapest, for 250 Citylight display cases and Citylight boards with rotators each—and we won together.
So was Wall's inclusion in Budapest a quid pro quo for his decision not to appeal in Ljubljana?
No, there was no such agreement. We included Wall in Budapest because the synergies were very strong.
Would you like to have Wall participate in EPI sooner or later?
Budapest was a unique situation. I don't know if something like that will happen again. In general, though, Affichage is our partner in the EPI countries—and it will remain so.
At Affichage's request, EPI withdrew from the Czech Republic two years ago. Will you be integrating Wall there?
JCDecaux continues to operate in the Czech Republic through a wholly owned subsidiary; there is no reason to change the ownership structure.
Or are you planning to use Wall to expand into countries that EPI hasn't served yet?
No, we would primarily talk to Affichage, because I feel a sense of commitment to Affichage in the spirit of the EPI partnership. For example, we are currently discussing an expansion of EPI into Romania.
Back to Germany: The sale of Deutsche Eisenbahn Reklame GmbH (DERG) is currently pending there. JCDecaux intends to bid. Do you see any competition law issues given your size and your stake in Wall?
Why? Even with Wall, our market share would be no more than 18 percent. Ströer/DSM also wants to bid, and they have a 50 percent market share. If they don't see a problem, I certainly don't see one for us either.
How did you vote on the supervisory boards of Wall and Affichage when the question arose as to whether the two companies should ever bid for DERG?
No such decisions have been made yet, as the application materials have not yet been submitted. However, Affichage has made a policy decision to double its overseas revenue. This implies that a DERG proposal will also be reviewed. As a major shareholder of Affichage, I supported this decision. After all, it’s better to have two irons in the fire than just one.
You even have three irons in the DERG fire. But are genuine competing bids possible if you sit on the board of directors at all three companies?
Why not?
Because you have a clear view of everything.
We are a major shareholder in all three companies, and a portion of our funds is being offered in each case. That is why I take a pragmatic approach: I support the offer that has the best chance of being accepted and yields the most synergies.
So you wouldn't recuse yourselves at Wall and Affichage when it comes to the DERG bid?
You obviously see a certain conflict here. I don’t. Because I’m certainly not going to tell Wall how Affichage makes its offers—and vice versa. Take the example of Budapest—it was exactly the same there at the beginning as it was with DERG: We considered how best to proceed and then decided to submit a joint bid as a trio. This is possible because we’ll also be bidding with a partner for DERG.
However, Affichage now wants to submit a bid on its own in any case and, if necessary, look for a partner only after the contract has been awarded.
To be honest, I don't think Affichage can acquire DERG on its own. Not because I question Affichage's ability, but because JCDecaux has usually only been able to win contracts in Germany when we partnered with a German company. Based on this experience, I believe that Affichage will also need a local partner.
Another look across the Atlantic: Word is that Viacom wants to sell off its outdoor advertising division. Is JCDecaux ready to pounce?
Viacom decided last week to split into two companies. In my view, this is a step toward selling off assets—such as outdoor advertising—that don’t fit its core business. What you’ve heard is therefore very plausible. Viacom also announced a loss of seven billion dollars in its outdoor advertising division a few weeks ago. They’ve likely made a huge mistake with overpriced acquisitions. Regarding the second part of your question: Yes, we’re interested in Viacom’s outdoor advertising business, because it and JCDecaux complement each other perfectly: We’re number one in Europe; Viacom is number one in the U.S. We’re number two globally; they’re number three. Our family has therefore already announced that we would be willing to reduce our stake in JCDecaux from the current 73 percent to facilitate a major transaction. The only major transaction in the outdoor advertising sector that would be conceivable is this one with Viacom.
What time frame do you have in mind?
That will probably take another two to three years.
Winner Decaux: «If Wall grows, we won’t have a problem—after all, we hold a 35 percent stake.»
Consolidation in Germany: The outdoor advertising market in Germany is fragmented among a large number of providers; outdoor advertising accounts for about 3 percent of the total advertising market (compared to 15 percent in Switzerland). However, a consolidation process began about a year ago when the industry leader, Deutsche Städte-Medien (DSM)—a joint billboard company owned by local municipalities—was put up for sale.
The contract was awarded to Ströer, then the industry’s second-largest player, for whom the acquisition—which was financed entirely with debt—was worth 270 million euros. As a result, Ströer/DSM has now become Germany’s largest outdoor advertising company, generating gross revenue of 548 million euros last year (including operations in France, the United Kingdom, and Turkey).
In second place is AWK-Freund with 210 million euros (as of 2003), followed by JCDecaux with 155 million euros (in Germany alone), followed by Deutsche Eisenbahn Reklame GmbH (DERG) with 125 million euros, and finally Wall with 111 million euros. It has been known since last December that another round of consolidation is likely to take place this year in the German outdoor advertising market: Deutsche Bahn plans to sell its advertising subsidiary DERG (WW 8/05). Several companies, including JCDecaux, Viacom, Ströer/DSM, Wall, and Affichage, have announced bids. (mk)
JCDecaux by the Numbers (in millions of euros)
Change 2003 2004 in %
Revenue 1543.4 1631.4 + 5.7
Operating
Result 230.1 271.6 + 18
(EBITA)
Group 40.9 78.1 + 91.0
result
Cash Flow 330.5 360.1 + 9.0
Global portfolio: 658,000 advertising spaces in 45 countries, 155 airports, 3,500 city contracts (with populations of over 10,000), 150
Contracts related to transit advertising and more.
Interview: Markus Knöpfli

PR The web agency Ground 15 has commissioned Newton 21 Switzerland with its communications, including media relations and corporate communications projects such as the creation of a company brochure.