Regional TV Despite its success in the audience market, TeleZüri has not yet reached its advertising revenue target, according to Head of Marketing Tarkan Özküp. WW TeleZüri still has until the end of 2005 to break even.regional TV Despite its success in the audience market, TeleZüri has not yet reached its target with advertising revenues, according to marketing director Tarkan Özküp. WW TeleZüri still has until the end of 2005 to break even. Despite rapidly rising audience figures, there is still a huge amount of marketing work to be done.
Tarkan Özküp We still have some work to do, that is clear. This year we need 15 percent more revenue and another 15 percent increase in 2005. Only when we achieve this will we be able to talk about a balanced account at TeleZüri.
One way to boost advertising revenue quickly would be with erotic and soft porn. Most other private broadcasters let their clothes off after midnight, and they earn a lot of money from it. Is that not an issue for TeleZüri?
I did the math. Just with the offers that came to me without any action on my part, I could raise around one and a half million a year. We could immediately increase our advertising revenue by around ten percent. But we are deliberately not doing this.
TeleZüri a prudish broadcaster?
That has nothing to do with it. But Markus Gilli, Andreas Meili, Head of Electronic Media at Tamedia, and I agree that such a change to the program would dilute our positioning. The content of a channel must be predictable; at TeleZüri the audience expects news, talk and magazines. If we were to abandon this pattern after midnight, it would not strengthen our profile. I also fear that eroticism and soft porn would damage our image.
TeleZüri has more innocuous potential when it comes to the proportion of national advertising. Here, the Zurich station is far ahead of all other local television stations.
National advertising is very important to us. In January and February of this year, its share even rose to 90 percent. However, these are absolute peak values that will not continue at this level. For the current year, I expect the share of national advertising to be a good 70 percent, which is about the same as in 2003.
With this high proportion of national advertising, the catchment area - the densely populated and economically strong greater Zurich area - certainly plays a central role. How important are the clout and potency of TeleZüri's marketing department?
The requirements for selling advertising time are much higher than for marketing print media or radio. The TV market has completely different service and documentation requirements. Customers and media agencies expect postal checks and evaluations the day after broadcast - this is standard for television. This means that we have to offer the same quality and efficiency as the market leader, Publisuisse. Today, no TV marketer can avoid this high level of performance if they want to be among the advertising customers.
Not so long ago, however, TeleZüri cut TV research and added another position to its marketing department.
This does not mean any reduction in our service. The Tamedia research department, which is now doing the job for us, is doing it to the same extent and with the same quality as before. It was important for us to strengthen our sales team, which now consists of five people. Regional television is more time-consuming and labor-intensive to sell than any other type of TV. Because customers in Berne or Basel cannot receive our television, our consultants have to do more convincing work.
TeleZüri is the leader among local TV stations and always one step ahead of the others. Are the other local stations doing enough for their marketing?
If marketing is set up in the same way as for print or radio, I don't see it working. Because, for the reasons mentioned, you can't match the budgets of national advertising customers. There is no way around having to meet the high standards expected. I'm afraid that the marketing departments of most other local TV stations haven't really understood this yet.
But this is also bad for TeleZüri, because the Swiss-German broadcasters work the advertising market together in TeleNewsCombi (TNC).
The TeleNewsCombi is marketed by Radiotele, and they offer a comparable standard of service to Publisuisse and us.
What additional potential can TeleZüri expect from the TNC?
The TNC is absolutely important for us, both in terms of the image component and because of the additional revenue it brings us. Last year, around 15 percent of our advertising revenue came from the TNC. This year, this share is likely to grow to around 20 percent.
The joint reporting of major events and the exchange of broadcasts has worked well within the TNC. Do these stories also bring the desired commercial success?
Joint productions not only guarantee the high quality of the programs. They are also profitable in the advertising market. That is why offers in this area are certainly interesting. This year we will be broadcasting the Prix Walo (May 2) and Mister Switzerland (May 22) in a joint production. We are also trying to get a European Championship magazine off the ground together.
It is more difficult to place TeleZüri programs such as "SwissDate" or "Lifestyle" on the other channels. TeleBasel recently refused.
There is still an anti-Zurich reflex. But we don't have a "Zurich dictate". We intend to generate additional revenue for everyone with a successful format from our region. The others can acquire regional sponsors for these programs themselves. And if they don't, then each broadcaster will receive its share from us according to its performance.
Local television stations are soon to receive two or more million francs in fee money per year per station. However, this could quickly turn out to be a Trojan horse for marketing. With such a large grant, people don't try as hard ...
Our planning is not geared towards fees. However, the payment of fees is a clear requirement for us so that we can operate in the market on an equal footing with SRG. TeleZüri provides an important public service in the greater Zurich area, which is why we are entitled to fees. For me, however, they are by no means the light on the horizon. For me, more leeway in the commercial sector would be more important. For example, for more sales programs, for light alcoholic beverages or political advertising. It's not particularly interesting for the commercial boss to say: I take fees, but in return I'm subject to various restrictions. If the proportion of fees becomes current, the pros and cons will have to be carefully weighed up against each other.
Where should TeleZüri be in five years?
First we want to break even in 2005. After the political decision on fee contributions, the sales strategy must be reviewed. Then it will be a question of the size of the broadcasting areas. My dream is to increase the size of our license area.
Interview:
Tarkan Özküp, Head of Marketing at TeleZüri, is optimistic.
Daniel Schifferle