Publishers Stock markets are trending upwards, but Swiss business newspapers are stuck in a slump in readership and advertising. A new campaign for the expanded Stocks aims to change this quickly. Are the advertising and readership markets missing out on the economic upswing that the stock markets are leading worldwide? Or are traders once again building towers in the (investment) sky on shaky foundations, as they did in the New Economy era? The fact is that private investors are currently still extremely sceptical about the clear recovery on the financial markets. And this skepticism continues to affect business publications (see chart), with circulation and advertising volumes for practically all business publications not budging. Or worse still, they are continuing to decline. Even if only a few publishing houses publish the corresponding figures, they are likely to look equally bad for all titles. Tamedia's Finanz und Wirtschaft, for example, suffered a 23.8 percent drop in sales. A look at the advertising statistics of the Swiss press illustrates the misery: Between January and July 2003, the volume of advertisements in the business titles shrank by 16 percent (HandelsZeitung) to 40 percent in the case of Stocks.
When asked about the slump in the investor magazine Stocks just six months ago, publisher Ralph Büchi was positively surprised by the drop in circulation of "only" 18 percent to 21,000 copies. "Our target group has shifted heavily towards wealthy private investors," he reassured Werbewoche at the time. Because this exclusive core apparently does not want to grow despite rising indices and consequently advertising from the financial sector is also failing to materialize, Stocks editor-in-chief Reto Lipp and the publisher pulled the emergency brake two and a half years after the magazine's launch and reduced the publication frequency. Instead of weekly, the investor magazine is now available at newsstands and in mailboxes every two weeks.
Relaunch in the business doom
To compensate for the reduction in expenditure, the bitter pill has been sugar-coated: "Stocks is expanding its editorial section and providing more analyses, more background information, more selected ratings and more investment topics that would otherwise not be covered in the media," explains Lipp. This goes hand in hand with a gentle facelift of the magazine, which will be presented to the public for the first time on August 29 and will be supported by the in-house agency Matter & Partner with a new advertising campaign. For these innovations, the creative team asked the editors-in-chief themselves to appear in front of the camera - not as proud representatives of the editorial carpet, however, but in a classic spy pose. The "economic agents" hide behind an issue of Stocks and make it clear: The investor magazine gives readers a look behind the scenes of the stock market. Advertising manager Musti Asaf does the same job for advertisers: he provides media planners with the most important information about Switzerland's most affluent readership.
As an accompanying measure, a funny e-board spot is being broadcast at Zurich main station. "In it, a stock market curve begins to rise just as the new Stocks appears," CD Daniel Matter explains the content.
Matter & Partner hid the Stocks boss as an "agent".
Slump at a low level: Stocks must turn the tide.
Advertising statistics business journals Cumulative figures January to July 2003 "The potential for stocks is there"
Anlegermagazin Reto Lipp, Stocks editor-in-chief, on the new editorial direction of the money magazine, which is now published every two weeks.
WW Some publishers seem to be looking for a way out of the slump in readership and the advertising market. For Stocks, they chose the
The recipe for reducing publication costs. What convinced you that you were doing the right thing?
Reto Lipp: Ultimately, it's not about brains, it's about getting the content right. The financial market has changed a lot in the last three years. Investors have become more critical and mature, are no longer chasing every trend and have realized that you have to look at and manage your portfolio holistically. We are trying to take this into account with a thematic expansion into other investment categories such as bonds, structured products and funds as well as an improved advisory and service section - without, however, neglecting our core competence, the analysis and valuation of equities.
When Stocks was launched, 34 percent of Swiss people held shares directly or indirectly, which is why your publishing house saw great potential for an investment magazine. How large is the proportion of investors today, and what does this mean for your magazine?
According to the latest survey by the Swiss Banking Institute at the University of Zurich, the proportion of investors who hold shares directly is still almost 25 percent. But that is not the end of the story: we are all ultimately linked to equities via funds, personal and occupational pensions, and even the AHV. This means that interest in them remains high, as the spectacular upswing on the stock markets since mid-March shows. Despite the crash of the last three years, shares are absolutely indispensable as an investment category.
Your parent publisher Axel Springer has adopted the classic divestment strategy for similar problem products in Germany. What is holding it back from taking similar steps in Switzerland?
The situation in Germany is completely different. There were many similar products at the height of the stock market boom. In Switzerland, Stocks is unrivaled as an investor magazine. In addition, Switzerland is a classic investment country with a very mature financial sector and a large number of wealthy people. The proportion of equities in the portfolios of Swiss investors is also almost three times as high as in Germany, which means that the equity culture in Switzerland is very different from that in Germany. The potential for stocks is therefore clearly there.
The targets for Stocks were very ambiguous: when do you now expect to break even?
With the significant reduction in costs brought about by the switch to a fortnightly publication frequency and the improved situation on the advertising market, it is realistic that we will be able to present a balanced account next year. We have noticed a good response from the advertising industry for our next issues. The new publication rhythm, which we introduced at the beginning of July, has been well received by readers and advertisers alike.
What changes to Stocks apart from the cover?
Of course, the editorial team will approach the stories differently. The cost-cutting measures in the daily press in particular have meant that there are fewer investment topics to be found there. The field that Stocks can cover is therefore expanding. As diversification will become even more important in the future, we have also broadened our content, as mentioned above. This includes a whole range of investment-relevant statistics that cannot be found in this form anywhere else in the Swiss media. With more research and comprehensive analyses, Stocks aims to be an indispensable tool for anyone who wants to make more of their money. Interview: Luca Aloisi
Luca Aloisi