Print Before it can prove itself journalistically, the "Bern model" must be economically viable. The new Bund marketing partners Espace Media and Publicitas believe that there is no need to expand the regional advertising market. The Bernese version of the Stuttgart model - two newspapers that compete with each other in the reader market merge their printing, sales and advertising operations - has already been ready for signature twice, most recently in November 1994. At that time, the deal between the then Bund owner Ringier and the publisher of the Berner Zeitung (BZ) failed for two reasons: the lack of reserves of the up-and-coming Bund competitor and its associated fear of having to bury the venerable central organ of the Bernese patriciate itself and thus creating influential enemies in the domestic market against its will.eight and a half years later, this fear seems to have evaporated. The main reason for this is probably the financial strength of the BZ publisher, which in the meantime has become the astonishingly crisis-resistant Espace Media Groupe (2002 profit: 22.6 million francs), but also a bargain offer from the recession-hit NZZ Group. The latter had stepped into the breach for the Bernese in 1994 and is now giving them half of its 80 percent majority stake in Bund. Publicitas continues to hold the remaining 20 percent. As a shareholder and advertising agent, Publicitas has a dual interest in the rapid recovery of the struggling capital city paper, which from the beginning of 2004 will only be marketed as part of the overall BZ edition - piquantly, the "P" has joined forces with its former favorite enemy, BZ.
However, Publicitas boss Otto Meier does not expect this relaxation to lead to an expansion of the regional advertising market. "I would be pleased to see such an effect, but I would also be somewhat surprised. In our experience, maximum market exploitation requires economic competition as well as journalistic competition." The only way "P" can influence the success of the new BZ edition, which has a circulation of 230000 copies and therefore a much wider reach, is through its advertising price policy. And even this is only consultative: Espace Media Groupe has the final say here, as in all other Bund Verlags AG business.
Its CEO Polo Stäheli also does not expect the advertising volume to increase in 2004 once the integration of Bund is completed and operational. However, he tells Werbewoche that he is convinced that the expanded BZ total edition will make the national advertising industry in particular "an irresistible offer". "A good 40 percent more circulation for a maximum surcharge of 30 percent", is how Stäheli summarizes the advantage of his "sustainable business model", which is intended to reduce old costs and at the same time generate new income to finance two full editorial teams - and must do so.
Stäheli, who went into the negotiations with NZZ with "scepticism" and claims to have calculated everything down to the last detail, used the net-net revenue that the Confederation was still able to realize nationally and locally in the first half of 2003 as the basis for calculating the announced break-even in 2006. Meier also considers this to be "the only realistic, because current, basis for keeping the promise to ensure the survival of one and a half newspapers".
P" also cuts jobs
The task for the two sales organizations is now to exploit synergies. In contrast to Espace Media, Publicitas already has know-how in such interface optimizations. According to Meier, the creation of the in-house title Aargauer Zeitung (AZ)
organized a similar exercise. And with great success, as the AZ confirms. "We were able to fully exploit the savings potential at the time," says publisher Peter Wanner on request. And would like to take this opportunity to clarify that he never wanted to take over the Bund, but merely submitted an offer for the delivery of the AZ jacket section. "The impetus for this came from our Solothurn partners at Vogt-Schild, who would have liked to print the Bund in their Subiger printing center," says Wanner.
Meier anticipates a restructuring phase of three months and a reduction of "some jobs" for the "P" branch in Berne. The reason for this is the disappearance from the advertising market of the Bund, which was previously marketed exclusively by his organization. At the traditional title itself, which will continue to exist as a publishing brand, all 25 jobs in the publishing division will be cut by the end of the year.
Mutates commercially into a BZ supplement: Der Bund.
Oliver Classen