TV Advertising windows are defying the crisis and continuing to grow. Advertising windows remain a controversial issue in the Swiss TV landscape, yet they have successfully asserted themselves in the market. Media experts recognize that they have given the entire Swiss TV advertising market a dynamic that would have been unthinkable without them. The record of success is impressive: since the introduction of the first window on RTL in 1993, the number of advertised products soared to 1,400 by 2002, almost doubling. In the same period, the number of companies advertising on TV increased from just under 400 to over 720, as Prognos AG calculated in a study published in spring on behalf of the advertising window marketers ("Facts and figures on the Swiss advertising market - a contribution to the discussion on the new RTVG").The accelerated expansion of the TV advertising market is also impressively demonstrated by the growth rates. In the still "windowless" years 1989 to 1992, total TV advertising sales grew by an average of 2.8 percent per year. However, if we look at the period between 1993 and 2002 (excluding the disastrously bad 2001), Prognos reports a record-breaking annual growth rate of just under 5%.
On the rise even during the crisisEven in the crisis years of 2001 and 2002, advertising windows continued to grow.
Attractiveness increased. "We were able to further increase sales, while SF DRS lost ground two years in a row," explains Michi Frank, CEO of advertising window marketer IPM. According to Mediafocus, this has continued in the current year. "In the first half of 2003, we grew by 4.7 percent, while the SRG stations lost 4.1 percent in the same period," Frank calculates.
Although all possible advertising windows are currently open (see box), sales are likely to continue to climb in the coming years. "For example, thanks to the increasing importance of special forms of advertising with a cross-media approach, which make the TV platform even more attractive," explains Frank.
An important impetus for growth is expected to come from the entry into force of the new Radio and Television Act (RTVA) in two or three years - when interstitial advertising, which is still prohibited today, will be permitted. Advertising windows will then be in a position to further reduce the existing "spill effects" (advertising pressure resulting from the use of advertising in foreign programs). By allowing additional advertising islands to be overlaid with Swiss advertising. At CHF 140 million gross (Prognos), the theoretical potential is considerable - this is how much the economy would have to spend on additional TV advertising in Switzerland if all spillover effects were eliminated. Even if it is unlikely that all advertising blocks on German private broadcasters will ever be faded - because TV advertising in Switzerland is around twice as expensive as in Germany, for example - the growth impetus is still likely to be considerable.
IPM and Publisuisse united? With the aim of further driving television sales, previous taboos could also fall. Frank is thinking aloud about a collaboration between IPM and Publisuisse. "We must work together to attract new advertising customers to television," he explains. He has already been in contact with Martin Schneider, the designated CEO of Publisuisse, about this. "Acquiring customers together should also be attractive for Publisuisse. Because the SRG channels are the indispensable basic medium for every television campaign, two thirds of all TV advertising investments go to Publisuisse anyway."
Does this mean that the long years of bitter competition between IPM and Publisuisse will soon be a thing of the past? Schneider is open: "There are certainly ideas that can be discussed with each other." At the same time, however, he points to the different product philosophies that set limits to cooperation. "IPM is pursuing an aggressive pricing strategy, which is their right. But this means that we are not compatible. Publisuisse is pursuing a premium strategy that focuses on qualitative aspects," says Schneider. However, his priority at the moment is to return to joint generic marketing (WW 28/03). He very much regretted the fact that IPM left Screen-up two years ago.
Innovative advertising program from IPM: Viviane Walder (picture) presents the multimedia advertising program "Ahead" on MTV together with Nadja Schildknecht.
(Almost) everything already openFor four years, the Swiss advertising window on RTL, launched in 1993, remained alone. But from 1997 onwards, things progressed rapidly: three new windows were added that year: ProSieben, Sat 1 and RTL 2, followed two years later by Kabel 1 and MTV. In 2002, the last advertising windows to date were launched on Vox and M6.
Of the current eight offerings, only the one on Sat 1 is marketed by Cinecom & Media, all other windows are in the portfolio of IP Multimedia (Switzerland).
The advertising window on M6, which came about after fierce resistance only with the exclusion of Lausanne and Geneva, means that the ceiling has already been reached. Among the German private stations broadcasting today, only Super RTL is still without an advertising window. "As this is a children's program, it is not of interest to us," explains Frank. There is another attractive candidate in French-speaking Switzerland: TF 1. Frank waves it off: "After the fierce opposition to M6, another advertising window would have no chance." However, IPM will hold on to M6 - even if there is little hope that the cable networks of Lausanne and Geneva will still switch on the Swiss offer. "Even without these agglomerations, our customers are participating," says Frank. "In the current year, sales have grown by over 30 percent." (dse)
Daniel Schifferle