According to Bernhard Büchler, managing director of the Swiss Printing Industry Association (VSD), representatives of the printing industry have the best overview of what’s happening in the «Black Guild»—as the graphic arts industry used to call itself with justifiable pride. When asked about the future prospects of the print industry, he sees opportunities for those production companies that are able to «create real added value for customers. I’m thinking here of needs-based consulting services and customized, personalized, high-quality products using more efficient digital printing processes.» According to the VSD managing director, the printing industry can hold its own with its established strengths because it has possessed the necessary credibility in this regard for many years. «Where, then, do the dangers lie?» an outsider might ask after hearing this positive outlook. Bernhard Büchler says: “There are a few dangers… Print isn’t going to die out; in my view, it’s essential to know your customers’ needs precisely in order to meet them accurately with real added value.” According to the VSD managing director, the fact is that the number of printing companies has declined in recent years; this trend has been further accelerated by the COVID-19 pandemic.

Trends That Are Both Obvious and Subtle

When looking for the drivers of change in the print market, the observer first encounters the most obvious trends: Above all, technological developments in the media landscape, which have given rise to new media and brought about lasting changes in usage patterns—particularly among young people and the young at heart, i.e., future customers. As a result, print media—which had previously dominated the communications landscape—has been pushed into the background. However, there are also negative trends whose impact on print production tends to be less obvious. The digital transformation has significantly altered the production process; it has not only become shorter but also simpler, with the help of numerous software tools, so that even beginners can achieve acceptable results. In addition, modern prepress systems allow for the creation of content templates for various types of media. The advertising industry, in particular, took advantage of this to handle the production work in-house. This dealt a double blow to the graphic arts industry: an important customer group shrank significantly and, moreover, became an unwanted competitor. However, this trend can also be reversed. In this context, Bernhard Büchler of the VSD refers to the «comprehensive digital service provider,» which offers new services in addition to traditional printing. He explains: “Customers are looking for a competent partner for all their communication needs—one who can offer a solution for all types of jobs.”

The number of printing companies has declined; this trend was further accelerated by the COVID-19 pandemic.

To what extent does the size of the business matter?

What kind of companies are able to hold their own in this challenging market? The VSD offers a vague answer to this question: «The factor of »critical size of a company« is certainly relevant in this context; however, all businesses are heavily affected by the changes.» Let’s therefore pass the question on to one of Switzerland’s largest printers—Swissprinters, based in Zofingen—which is owned by the two media groups Ringier and NZZ. Stephan Gartenmann, a member of the executive board responsible for sales and marketing, explains: «Swissprinters» size enables us to deliver productions—even in large print runs—within the shortest possible time, ensure high production reliability through parallel production lines, and consolidate production at a single location, which offers both environmental and economic benefits.« When asked whether this is why the company is seeking additional printing partners, Gartenmann says: »We have no plans for further partnerships. However, we are open to collaborations, such as our current partnership with the Schellenberg Group. Through this in-depth, cross-location partnership, customers benefit from concentrated expertise and the widest range of printing processes available in Switzerland.” Let’s delve deeper into the topic of expertise and ask the marketing manager at Swissprinters what specific knowledge today’s customers demand. Stephan Gartenmann explains: “The primary goal is for the customer to receive a cost-optimized proposal. To ensure this, we must have the best possible knowledge of paper, production methods, and finishing techniques. Furthermore, we must identify and meet needs such as short turnaround times for publishers. Thanks to the very important cross-departmental collaboration, we produce efficiently and to the highest quality standards.”

Small but Mighty

In the printing industry, both in Switzerland and abroad, smaller print shops are particularly active. So, to wrap things up, the question is: «What does their future look like?» We asked Daniel Käser whether the size of a print company can be a selling point. The co-managing director of a small printing company says: «We don’t believe so, and we say: Being small to medium-sized is a selling point—better to be small and agile; the person who answers the phone is knowledgeable and can guide the customer through the entire production process.» Käser is more specific when asked about the ideal company size: «Small to medium, about 5 to 25 employees. In the past, people used to say at least ten employees; today, it can be a bit less than that, but not just a one-man show.» Käser Druck itself has expanded within its catchment area, in the Affoltern a.A. district, by adding a second production site. Daniel Käser clearly explains the rationale behind this growth move: «To have a location closer to our customers; we had an increasing number of customers from Affoltern and wanted to attract new ones there as well. In early 2021, we seized the opportunity to take over a location and decided, despite the difficult pandemic situation, to go against the grain and take a chance—for three reasons: the trend toward short runs / offering consulting services as an alternative to online platforms. But at the same time, specialized knowledge is essential. As Käser concludes: «A solid foundation of up-to-date expertise regarding print data and production machinery is a must.»

Digital transformation has significantly changed the manufacturing process. Not only has it become shorter, but it has also become simpler, thanks to a wide range of software tools, so that even beginners can achieve acceptable results.

Politics is creating new obstacles

Both large and small printing companies can hold their own if they recognize changing customer needs and adapt their offerings accordingly. However, there are further hurdles to overcome, as is evident in Switzerland and the EU. In our country, advertising for alcoholic beverages was recently severely restricted. This affects both print media and promotional printed materials. And further restrictions on communication—such as those on meat advertising—threaten to cause additional problems. In the EU, a ban on unaddressed advertising is also being considered. This would particularly affect large production companies—including those in Switzerland, should our country adopt such a legislative change.

What good are even the most amazing products without an emotional message? Companies rely on creating a buzz in the market that, in the best-case scenario, generates hype and brings in the cash. In most cases, advertisers work with agencies to achieve this. Depending on the goal of the advertising campaign, they scan the agency market to find the ideal partner and thus achieve the best results. To ensure the right fit, agencies must go through a pitch process. This can take months, tie up significant resources, and if no contract is ultimately awarded, it’s all for nothing. This puts a strain on agencies and causes frustration. But clients, too, invest a lot of time and money in consulting agencies, pitch fees, and administrative costs.

We wanted to know whether pitching is still relevant today, so we gathered a variety of opinions: From «pitch consultant» Roland Sutter, Leading Swiss Agencies (LSA), and the Swiss Advertisers Association (SWA), as well as from more than two hundred of our newsletter subscribers (Click here for the article on Werbewoche.ch featuring comments from the reader community).

m&k: Roland Sutter, when clients put out a call for proposals, a process known as a “pitch” begins. In fact, the pitch process actually starts much earlier: with market screening to identify eligible agencies. As a pitch consultant, how exactly can you offer your assistance?

Roland Sutter*: First, let’s address the term “pitch consultant,” which I don’t really like. Of course, supporting pitches is one of the services Observatory International offers on the market. But the group sees itself as a much more comprehensive service provider. Its area of expertise is the optimization of marketing resources—that is, providing comprehensive structural and organizational consulting for marketing decision-makers. Substantive aspects of marketing, however, are excluded. Agency partners are important and absolutely central marketing resources. Accordingly, sustainable, promising relationships with them are crucial. From our perspective, a pitch is not always the best way to restructure one’s agency relationships. On the contrary: it is actually a last resort. However, when it comes to having a pitch guided by a neutral expert, it is advisable to involve them as early as possible in the process. The key factors that speak in favor of such guidance are: market knowledge, professional network, reduced workload, experience, professionalization, objectivity, and audit compliance. Pitches are complex projects that tie up money and resources on both the client’s and the agency’s sides. They should therefore be planned and executed with the utmost care. Under no circumstances should they serve as a mere formality to rubber-stamp decisions that have already been made.

The selection process narrows as it progresses; a long list is being compiled. What exactly are the criteria, and roughly how many agencies are on this list?

Every pitch is different and requires tailored preparation and execution. First, we strive to identify the client’s true needs. These are not necessarily the same as what we hear from the client. To this end, we’ve developed a special tool called the Alignment Comparator, which gathers the requirements of all key internal stakeholders; from this, we then derive a binding and as specific as possible requirements profile for the subsequent search. Agencies that we believe fit this profile are placed on our initial long list. This list can easily include more than 20 agencies, as not all of those we evaluate are ultimately willing or able to actually participate in the planned pitch.

Will all the agencies on the longlist then be invited to an in-person interview?

We submit the longlist to the client for approval. We contact the candidates the client approves to gauge their interest and gather further relevant information that will either confirm or refute our selection. This is the RFI (Request for Information) phase, during which there is typically no direct contact between the client and the potential agency partner.

How do agencies make it onto the shortlist?

We compile the information received as part of the RFI into a presentation and provide a reasoned recommendation. At this point, there are usually about twelve agencies still in the running; in an open discussion with the client and based on a list of criteria established in advance, this number is narrowed down to about six—this becomes the shortlist. We invite all agencies on the shortlist to an initial in-person meeting, known as the “chemistry meeting.”​

So how exactly does this «figuring out the chemistry» between the client and the agency work?

The Chemistry Meeting offers clients and agencies the chance to get to know each other and find out whether they would like to work together for several years. This personal rapport is the be-all and end-all of any agency relationship. Only when the necessary trust and mutual respect are in place can a successful collaboration develop. These days, professional expertise is a given on both sides. But it’s not enough on its own if the emotional foundation is missing. For the Chemistry Meetings, we generally provide a binding framework. This includes, on the client’s part, a rough outline of the reasons and goals behind the current request for proposals, and on the agency’s part, credentials that must address specific points, but which can otherwise be freely structured, as well as—in most cases—selected case studies that relate as directly as possible to the task at hand and thus allow conclusions to be drawn about experience and suitability. In addition, there needs to be sufficient time for mutual exchange—a roundtable discussion fueled by targeted questions. As a result, a Chemistry Meeting can easily last two hours. It is unfair to require the agency to provide concrete preparatory work in advance of a Chemistry Meeting.

It is only now that the pitch process begins; at this stage, there are usually no more than 3 to 4 agencies on the list. How much time elapses between the market screening and the pitch?

A pitch process organized by the book typically takes between four and six months in total. About one-third of that time is reserved for the final round—the actual pitch—in which three to four agencies that have qualified during the preceding process present their solutions to a specified challenge. This phase is typically compensated, although the fee is, of course, disproportionate to the effort involved in a pitch.

Pitches are a resource-intensive process for agencies—in terms of creativity, administration, and time. Often, this work is «for nothing» if the client decides to go with another agency. As an independent «consultant,» how do you view this process?

That’s just the way it is, and there’s no getting around it. From a purely numerical standpoint, there are more losers than winners in every pitch. However, it’s also hard to say when something has truly been a waste of time. People usually cross paths more than once in their professional lives, especially in a relatively small market like Switzerland. A good impression you leave after losing a pitch will certainly lead to new opportunities, which you’ll hopefully seize next time.

Where do you think changes could be made that would benefit both sides?

Pitches should by no means be overused. There are alternatives that may require a bit more courage but can lead to equally good results. I’m thinking of trial assignments, recommendations from industry colleagues, and new projects for agencies with which you’ve already successfully collaborated in another field. Or why not decide right after a successful chemistry meeting to go with the agency you’d love to work with? The massive growth in the importance of procurement and compliance in recent years—even in the comparatively idyllic Swiss market—doesn’t necessarily have to stand in the way of that.

Is this process still relevant today?

What does “in keeping with the times” even mean? Pitches have always been—and will likely continue to be—a viable way to put agency relationships on a new footing. They are just as indispensable as architectural competitions. If they are conducted selectively and fairly, there is little to be said against them.

You spent nine years working with marketers at the agency Observatory International—what were the most important insights and lessons you gained?

I have found that professional guidance in shaping agency relationships is in the interest of both parties and is also viewed as such by both sides. Nevertheless, especially in a small country like Switzerland, most calls for proposals take place without such guidance. Clients rarely recognize the need for this, and their willingness to spend money on it is correspondingly low. For this reason, this service will likely remain a niche product for the foreseeable future.

You've been the owner of Sphynx Marketing for two years. Please describe what you offer.

Sphynx GmbH was established in consultation with Observatory International so that, now that I am no longer working full-time for the Observatory Group, I can also offer other marketing services that have nothing to do with the optimization of marketing resources. This may include all kinds of content-related consulting, which, as already mentioned, is excluded from Observatory International’s scope of services. However, due to my rather advanced age, my activities in this area are quite limited.

If you had the opportunity to streamline the process, where would you start?

I urge that long-term agency relationships not be subject to blanket suspicion of undue favoritism, and that pitches under no circumstances be used as a means of continuously driving down prices.

*Roland Sutter* has been working in the field of marketing communications for over 50 years and is an expert on client-agency relationships. He was a co-owner and managing director of Sulzer, Sutter, a rising star in the Swiss agency scene at the time with clients such as Bally, BMW, Swatch, and Unilever. In 2013, he took over as head of the Swiss branch of Observatory International, a global management consulting firm specializing in the optimization of marketing resources. Today, he remains the group’s point person for the Swiss market, though he is rarely actively involved in day-to-day operations.

STATEMENTS

What do Leading Swiss Agencies (LSA) and the Swiss Association of Advertisers (SWA) have to say about the pros and cons of pitching?

SWA: «The agency pitch is here to stay!»

Roland Ehrler, Director of SWA

«Advertisers hold competitive pitches to find an agency that can support them with ideas and work to address a communication challenge. Such pitches are also common in other industries—such as architecture—and have proven their worth over many years.”.

So it’s no surprise that many new accounts or budget shifts are still awarded through a pitch. In addition, it’s not uncommon for agencies—both domestic and international—to reach out directly to advertisers, pitch themselves for projects, or even offer up ideas right away. Although there are numerous alternatives to the pitch, this method of evaluating agencies remains popular. Clients could also opt for direct award of contracts, a “chemistry meeting,” a request for proposals, a strategy workshop, or a preliminary project.

However, companies running advertising campaigns must be aware that a competitive pitch involves a significant amount of effort for all parties involved. Although a pitch fee is not mandatory, compensation of a few thousand francs often does not cover the costs incurred by the participating agencies. This means that the agencies’ existing clients indirectly foot the bill for this effort. For this reason, no more than 3 to 5 agencies should be invited to a pitch. After all, you can only truly get to know an agency when you work with it one-on-one in day-to-day business. Fair compensation and competent staff are just as important for selecting an agency as the creative concept presented.

»The SWA actively supports its members on issues related to agency management, offering advice on choosing an agency, checklists, and preliminary assessments."

LSA: «There Are Alternatives to the Pitch»

Catherine Purgly, Managing Director of LSA

«Collaboration between a client and an agency is successful in the long term when the relationship is characterized by mutual understanding, respect, and trust. Finding the right partner doesn’t require elaborate evaluation processes like the traditional pitch. This selection process is too inefficient, too opaque, and, above all, too out of touch with reality: First, the traditional pitch says nothing about the quality of the collaboration. Second, the competing presentations are not always comparable with one another. Third, the preparation is often too time-consuming for clients, and the money spent on the presentations would have been better invested directly in the project implementation.”.

There are better ways to choose the right partner. When looking for a new agency partner, clients can consider alternative selection processes that place greater emphasis on cultural fit, an agency’s mindset, and its approach to work. For example, a “chemistry meeting” is an excellent way to determine whether there is a mutual understanding of the project and whether the chemistry is right. Reference projects also provide insights into an agency’s capabilities.

»The LSA's agency selection checklist is designed to assist in preparing for an agency evaluation. The primary goal is to ensure that the agency selection process is accurate, efficient, and fair, thereby ensuring a successful partnership between the client and the agency from the very beginning."

This year’s Screenforce Day will take place just a few days after this magazine is published. After one of the most important events in the Swiss TV and media industry could only be held «remotely» last year due to the COVID-19 pandemic, it will once again be held «live» this time: at the Kongresshaus Zürich, in front of a large audience.m&k had the opportunity to review the insights that will be presented there even before the event—and without giving too much away: they are, of course, fully in line with the Screenforce Day motto, «The Magic Of TV,» which promises great things. The event’s goal this year is twofold: On the one hand, Screenforce Day aims to show advertisers that their TV budgets are still in good hands (after all, companies like Admeira, CH Media, and Goldbach are behind the organization). The «most traditional» of the moving-image media, so the general consensus goes, has no reason to shy away from comparison with YouTube, TikTok, or Netflix. On the other hand, the event aims to demonstrate that, despite the medium’s long history, TV has by no means become rigid or stagnant when it comes to technological innovation. To paraphrase Galileo Galilei: «And yet it moves!»—the format that some streaming and social media prophets (including those in trade journalism) had long since written off.

A complex starting point

This willingness to be flexible certainly deserves recognition, because the starting point for the TV industry—that is, broadcasters, marketers, and ultimately advertisers—is no longer a simple one. Even if we assume that, due to the «truly unique» market situation in Switzerland, a large portion of the population has access to on-demand TV and thus more freedom of choice than with linear TV, television is still struggling to carve out its place in the infotainment mix.

Just a few weeks ago, for example, the Nielsen Institute (now world-renowned for its work) stated in its annual «State of Play» report: «Streaming services are the future.» The British «Daily Mail»—though, it must be said, not exactly a scientific journal—ran the headline as recently as April: «Television is dying along with its audience.» And a major German news site recently commented—citing AGF data from 2020, by the way—«Rest in peace, TV—we won’t miss you!»

It depends on who you ask

But as with any topic involving (advertising) funds and various stakeholders, it all depends on who you ask. Screenforce Day 2022 in Switzerland will seek to debunk the points mentioned—which have found their way into the minds of clients, at the very least as clichés or vague assumptions. To this end, the organizers are primarily presenting a survey designed and conducted by the Zurich-based Insight Institute. This survey demonstrates quite impressively that both linear and non-linear television operate on a currency that still puts them far ahead of other media formats: credibility.

A Study on Trust

Robert Schwarz, Managing Partner at the Insight Institute and director of the study «The Credibility Factor,» explains: «It was very interesting to see how much a channel’s inherent characteristics influence its credibility. The better a channel embodies these characteristics, the more credible it becomes to viewers. In this regard, TV continues to have a significant lead over other channels like Facebook or YouTube due to its long history and the familiarity most people have with it.» In other words: Perhaps younger people in particular today—though the figures vary depending on the study—watch TV at a lower rate than the generation(s) before them.

The starting point for the TV industry is no longer a simple one.

But they still feel positive about it; after all, they associate watching TV with fond memories. According to the Insight study, this also contributes to the fact that, for a majority of respondents, TV means «relaxation»: «For many, TV is a very familiar medium that they’ve known since childhood. It is therefore strongly associated with relaxation and trustworthiness. For many respondents, social media platforms still don’t feel quite as relaxing. However, it’s clear that younger respondents are much more comfortable with social media than older people,» explains Robert Schwarz. In any case, after a final review of the results, he is not concerned that television will become unattractive as an advertising medium: «TV will remain an attractive advertising medium, as established habits and learned patterns tend to change slowly,» the researcher is convinced.

Media Planning: A Technology Boost

Alongside credibility as a «calling card,» IGEM President Stephan Küng announced at Screenforce Day the launch of the planning tool EvoAd, which will replace the well-known MediaWizard. The large volumes of data that must be handled in the highly fragmented Swiss market (and which, according to Küng, «will grow massively once again» with the introduction of Mediapulse’s new hybrid measurement system) had pushed MediaWizard to the limits of its capacity. EvoAd, on the other hand, is a tool geared toward the future and replay ads, providing the market with «a valuable tool.».

Hope on the Horizon

And then there are also external factors that point to the successful continued existence of television as a medium—especially as an advertising platform: Television advertising may be comparatively expensive and, when delivered linearly, may not follow the trend toward «hyper-targeting.» But advertising on digital channels is also facing difficult times as the digital ecosystem changes and third-party cookies are phased out. Since data protection guidelines and regulations make it a priority to give users the option to refuse the storage of cookies on their devices, tracking and ad targeting are also increasingly being called into question. All of these factors are making investment in TV advertising increasingly attractive again. Marketers must, however, step into this gap before the OOH industry or print media marketers secure too much of the freed-up budgets.

«It's the content, stupid!»

Ultimately, content is what captures viewers’ attention. If television wants to compete with streaming services and apps, it must first and foremost offer compelling content. While this won’t be the main topic at Screenforce Day 2022, that’s exactly what screen-up—which takes place in September—is for.