Agencies Advertisers had a very poor 2002. At best, the dialog marketing agencies believe that things will improve quickly.
With gross operating income (GOP) of CHF 386.42 million, the members of the BSW (Swiss Association of Advertising and Communication Agencies) had to accept an 11.4 percent drop in income compared to the previous year. "Some agencies are likely to have ended the year in the red," says BSW President Hanspeter Detsch. As in previous recessionary phases, agencies experienced that the budgets for marketing communication were cut first or even completely eliminated because these are among the few variable costs of a company. In 2002, agencies suffered from the weak economy, increasing price pressure from clients and the growing trend towards globalization. In line with the development of brands, products and media, a large proportion of advertising campaigns are now designed across borders. For Swiss agencies, the task is therefore often reduced to local adaptations. Around half of all BSW members today are branches or associated members of an internationally active network. In the case of the ten largest agencies, it is even all of them.
A lot of advertising for little money
With the sell-off of traditional Swiss brands, agency assignments are increasingly moving abroad. Internationally active Swiss companies are also increasingly appearing with global campaigns that are developed in London, Paris or Frankfurt. A small glimmer of hope here: "Swiss agencies are used to doing a lot with little money. This is our opportunity," Hanspeter Detsch is convinced.
Thanks to the addition of nine new members, the decline in the association itself was only 6% at the end of the year. BSW members account for 70 percent of the advertising volume generated by agencies in Switzerland. At the end of 2002, 80 leading advertising and communications agencies were members of the BSW - 61 of which were advertising agencies, 10 media agencies and nine dialog marketing and specialty agencies. The admission of the IGMA members (Interessengemeinschaft Mediaagenturen) to the association in November can be seen as a milestone in the history of the BSW.
At Board level, efforts were made to better position the members. For the first time, an association-owned agency portrait book was published under the title "Leading Swiss Agencies". In 2002, the BSW introduced a so-called "pitch list" in response to the increasing number of competition presentations, some of which were taking on grotesque proportions. Members voluntarily notify the office if they are invited to a competition presentation. With the overview gained, the agencies can assess the opportunities and risks of their participation more carefully.
In addition to the unfavorable economic development, the agency business is also threatened by political activities. The trend towards more advertising bans is increasing. Under this impression, the BSW has joined the alliance against advertising bans, which was founded by the Swiss Trade Association. At European level, the BSW is a member of the EACA (European Association of Communications Agencies) and is closely linked to events in the EU with a seat on the EACA board.
The advertising and communications agencies in the BSW are not yet forecasting a recovery for 2003. According to the BSW Monitor, traditional agencies are expecting a further decline of 2.2 percent. Dialog marketing, on the other hand, is hoping for an increase of 6.4 percent. After agencies were initially very responsible and reluctant to make personnel and structural adjustments, these will be unavoidable in the current year.
"The Swiss are cutting back less quickly than German agencies," Detsch knows. However, public speculation from agency managers who speak of around 20 percent job cuts "are probably not far from reality". Around 2,500 people are employed at 80 BSW and 90 ASW agencies as well as around 550 other companies in the advertising sector in Switzerland. Of these, "many are currently looking for a job". The BSW job platform www.bswjobs.com alone currently has 138 dossiers. In 2002, only 17 people were successfully placed.
The signs in the advertising skies point to a storm. The "unpredictable" cannot be "predicted" - as the La Suisse campaign claims.
Dialog marketing and specialty agenciesRank Agency BBE in € million
2002 2001
1 Fish Meier Direct 11,115 14,651
2 Futurecom Interactive 10,012 10,855
3 Burson-Marsteller 9,448 -
4 OgilvyOne (1*) 5,157 4,152
5 Alex Schmid 3,480 5,528
6 Wunderman (2*) 3,247 -
7 Grey Direct Concept 2,452 2,900
8 MRM Part. Worldwide (3*) 1,991 2,322
9 Catapult 1,607 2,229
1 * Name change as of September 2002
2 * New member
3 * Name change as of December 2002
Media agenciesRank Agency BBE in € million
2002 2001
1 Optimedia Switzerland 5,905 5,162
2 CIA Switzerland (1* ) (2*) 5,722 -
3 Universal McCann 5,434 5,011
4 OMD Switzerland (3*) 4,300 2,500
5 MediaCom Zurich 2,761 2,800
6 MediaCutter (1*) 1,766 -
7 Initiative Media (1*) 1,703 -
8 The Media Edge (2*) 1,663 1,534
9 Media Planning (2*) 0.922 -
10 The whole Media (1*) 0.350 -
1 * New member IGMA in BSW
2 * Legal merger of CIA Switzerland and The Media Edge to form Mediaedge:cia is completed in 2003
3 * Previous year's figure only OMD Zurich
Advertising agenciesRank Agency BBE in € million
2002 2001
1 Publicis 1* 28,467 31,743
2 AY&R 23,909 30,800
3 Lowe 17,789 21,097
4 Wirz Advertising 17,641 25,070
5 TBWA Switzerland 2* 16,100 15,500
6 McCann-Erickson 16,005 19,562
7 Contexta 14,980 13,620
8 Euro RSCG 13,154 14,551
9 Grey Worldwide 11,200 13,100
10 Jung von Matt/Limmat 11,168 10,205
11 FCB Leutenegger Krüll 9,100 12,650
12 Grendene Ogilvy & Mather 9,034 8,315
13 JWT+H+F 8,836 8,890
14 DDB Zurich/Bern 7,700 -
15 AY&R Business Comm. 7.640 8.475
16 Lang Gysi Knoll 7,060 8,115
17 Favo 5,945 6,425
18 Saatchi & Saatchi 5,931 6,126
19 Zogg Kettiger Gasser 5,320 3,600
20 Cosmic 5,300 5,400
21 Lesch + Frei 4,960 4,710
22 MetzgerLehner Worldwide 4,950 5,400
23 cR DDB Basel cR 4,850 4,440
24 Sulzer Sutter 4,701 3,857
25 GGK Zurich 4,400 4,800
26 Dachcom Gmeiner (3*) 4,242 -
27 Freicom B + K (3*) 4,232 -
28 Polyconsult (4*) 3,600 4,000
29 Matter & Partner 3,525 3,900
30 Erat Thoma & Herzog 3,450 3,750
31 Schneider Berthoud 3,069 3,620
32 Ottiger & Partner 2,905 2,900
33 Guye Benker 2,878 3,018
34 Pucci Sulzer 2,856 3,299
35 Schmid Riedmann & Part. 2,855 3,165
36 Scotti 2,700 2,740
37 Heads Corporate Comm. 2,296 2,530
38 S&W 2,228 2,022
39 Wyss & Partner 2,080 2,320
40 Hilfiker 2,030 2,380
41 Diem & Partner (5*) 2,000 -
42 Trio Comm. Marketing 1,742 1,865
43 Knaus & Knaus 1,389 -
44 Synthèse 1,260 1,480
45 Cobalt 0.992 0.740
46 Thomas Vetter 0.400 0.398
1* Previous year's figure incl. Publicis Lausanne
(activity discontinued from the beginning of 2002)
2 * Berne branch closed in October 2002
3 * New member
4* formerly Polyconsult Bern AG
(Basel AG closed in January 2002)
5* Name change as of February 2002,
formerly Diem Seiler DDB
(pan)