Winter: No, but it’s a company with a strong affinity for the media industry and robust digital capabilities. And it’s precisely the latter that «Madame» has lacked in recent years. «Madame» has always been a great magazine; in print, I think we’ve always done a good job and developed well. I’ve been with the magazine for nine years now, so looking back, I’m in a good position to assess this. But on the digital front, we often fell short due to complex structures within the publishing house, lengthy decision-making processes, indecision, and perhaps a lack of vision. And that’s why I thought: Something has to happen urgently now, or else we really won’t be around anymore at some point. No compromises on print quality and strong innovations in the digital realm. Dominik Wichmann from Looping and I then said relatively quickly, «Let’s do this together!» And I’m very, very happy about that.

You are one of Germany's best-known journalists in your field, and you would certainly have found a high-profile position elsewhere if it weren't for the Madame was not continued. The question—asked with a wink—is: Why did you «take on» that business risk?

Winter: (laughs) You don’t just give a child up for adoption the moment things get a little tough. Back then, when Bauer was considering selling the brand, I had grown very attached to our team—16 wonderful colleagues for whom I felt responsible. I didn’t want to have to tell them: «We won’t be around tomorrow—it’s all over.» I’m deeply attached to the brand, to our product. As Chief Creative Officer, I’m still responsible for the editorial side of the magazine; at the same time, I’m really enjoying my new role as an entrepreneur. Simply because the impact of every single decision affects you much more directly; because nothing is decided over your head. I don’t shy away from responsibility—it actually lets me flourish.

Ms. Billerbeck, a few months ago you joined the editorial board of the Madame got on. Before that, you Beautiful Living run by Gruner+Jahr, Europe’s largest home decor magazine. Major publishing house or compact media company: Which business model holds the key to the future?

Bettina Billerbeck: I think it really depends on the genre. For premium magazines, I’d say small, independent companies have a clear advantage as publishers. This also has a lot to do with the fact that large publishing houses always have these historically established structures—those massive central departments. And of course, you don’t have that in a «fast-moving» operation like ours. That has its pros and cons: While you have to do an incredible amount yourself, you don’t have to help fund the central departments—at the expense of your own bottom line. And, to be perfectly honest: working at the big publishing houses is no longer nearly as comfortable as it once was.

Winter: Publishers have always been spoiled by the insane profit margins they’ve enjoyed for many decades—returns of 30 percent or more were not uncommon. That was, of course, phenomenal, which is why so many publishers are so incredibly wealthy. (laughs) Furthermore, almost all major publishing houses in Germany are family-run and tend to operate conservatively. These two factors combined have meant that in many places, people probably realized too late when something was no longer working. They should have asked themselves, «What does the future look like?» And a lack of flexibility or weak vision then leads only to short-term solutions. Are margins falling? Then we’ll just cut costs.

«… that’s why I thought: Something has to happen right away, or else we really won’t be around anymore at some point.»

But do you want to address declining margins—and advertisers’ growing skepticism toward print ads—in a different, more proactive way?

Winter: Yes. The Madame We’ve been around for exactly 70 years, and during that time we’ve built strong relationships with decision-makers in the fashion and lifestyle industries—from Armani to Chanel. We know the brands, and we understand their target audience because it overlaps with our readership. And that’s why brands are increasingly coming to us and asking, «Don’t you have an idea for how we can showcase our new collection, our new product, or our new service?» Our storytelling skills are an asset that can be used to generate new business.

Could you give us an example? I'm sure this would also be of interest to our colleagues at Swiss media companies.

Winter: Last year, we worked with the Giorgio Armani brand on what’s known as a «One-Production.» This is a communication product invented by Looping: In this case, it involved a day of filming with the client, featuring men’s and women’s styling done by my fashion director, Konstantin Spachis. It was designed for a target audience that was still in lockdown at the time. We generated social media content for our channels, created images for Armani’s CRM and its customer base… and were able to increase the brand’s revenue by over 50 percent during the campaign period. This goes far beyond the traditional transaction of “media client pays, media outlet delivers an ad.” And the content created ultimately belongs to the client, so it can be reused time and time again.

So, is traditional advertising a thing of the past?

Winter: There are still some clients for whom it’s important to also make an «impact» in print—in addition to other activities. Chanel, for example; they design their campaigns with all media channels in mind. According to a recent study, magazine ads are still the number one driver of brand awareness. Others no longer create dedicated print ads and, while they still want to be in magazines, prefer to do so through advertorials. Perhaps this will mean we’ll have to raise our copy rates over time, but we’re counting on our readership to go along with it—because they’d consider the product worth a higher price. What is certain, however, is that it will lead us to diversify our revenue models and introduce new offerings—in both the B2B and B2C sectors.

Billerbeck: What I find extremely interesting, though, Petra, is that you can tell some advertisers are a bit disappointed with display advertising. I keep hearing that this can even be a reason for a partial «return» to print. In any case, we can be very satisfied with the ad performance right now. And as I said, we’re working on new models for the future.

And in terms of new media formats: With «Maison Madame,» for example, you’ve launched a «luxury healthness» brand that’s specifically aimed at middle-aged women and men. Is this a target group that has been neglected in the media and advertising until now?

Billerbeck: We work with a very mature brand, but we’re also dealing with a mature readership. In the past, people were considered out of the relevant advertising target group by age 50—and of course, we don’t see it that way at all! The typical «Madame» reader is in her mid-40s, and the «Monsieur» by her side is perhaps a bit older. They have a lot of financial freedom, but they’re not getting any younger either. And when you’re putting out a magazine like ours or developing related products, you have to think carefully about how your readers« needs are changing: What challenges do they face, and where can we offer help and ideas? »Maison Madame” operates at the intersection of luxury, wellness, and health—stylishly, yet in a relaxed way. And with a realistic perspective on “real” women and men who want to treat themselves to something special.

«The more fractures appear in the world, the greater the need for beauty and distraction.»

In light of the pandemic years and the current political situation: What role can—or should—luxury, «treating oneself,» or aesthetics play in all of our lives?

Billerbeck: I believe they can help us stay sane during difficult times. Pleasant experiences—a short trip, a change of scenery—are so important for maintaining our resilience. And we need that resilience to be able to help others effectively. Added to this is the aspect of sustainability, which is making us rethink luxury: Many people have realized, especially during the pandemic, that they don’t actually need that many material things, but that what they do buy should be of better quality. Nothing is more sustainable than what I don’t throw away.

Winter: The more fractures appear in the world, the greater our need for beauty and distraction becomes. And that’s okay. A certain hedonism, a «Carpe Diem» attitude, can sometimes be liberating. By the way, I really like Bettina’s phrase, «rethinking luxury»: When we were still part of Bauer Publishing, the company conducted a survey among employees in the middle of the pandemic: «What does luxury mean to you?» And people didn’t primarily say, «A designer handbag!» They said that too, but that came much later. For most people, luxury is spending time with their loved ones—quality time—eating together, getting together, and sharing experiences.

«When it comes to premium magazines, I would say that small, independent companies have a clear advantage as publishers.»

Do you also want to reflect this shift in awareness in your journalism?

Winter: We always say: Our readers want not only beauty, but also quality. Of course, we know that not everyone can afford expensive luxury products that offer a special commitment to sustainability in terms of both quality and price. Younger people, in particular, are increasingly shopping for vintage fashion instead of filling their bags with cheap T-shirts at fashion discount stores. And this isn’t just a trend; it’s here to stay.

Billerbeck: It is right and proper that we feature items that can remain part of our readers’ lives for 15 or 20 years. Whether it’s a sweater or a piece of furniture, the entire industry—including both brands and publications in the premium segment—bears responsibility for sustainability. We take this responsibility seriously.

m&k: Duncan Wardle, you worked for the Walt Disney Company for more than two decades, most recently as Global Head of Innovation & Creativity. What was the first Disney story you ever encountered?

Duncan Wardle: «The Jungle Book,» 1967. It was my fifth birthday, and I went to the movies with my mother and my twin sister. You're probably too young to remember this, but back then, 80 percent of the moviegoers smoked there. (laughs). And then there was the little non-smoking section for the «weirdos» who didn’t like cigarettes. That’s where we sat. I could barely see anything through all the smoke, but I still remember the snake’s eyes. They scared me to death, even through the tobacco haze. That says a lot about Walt’s talent for bringing his characters to life, don’t you think?

But the snake in *The Jungle Book* didn't stop you from pursuing a career at Disney. According to my research, that career began with a rabbit—and what about Diana, Princess of Wales?

It actually started a little earlier—but I know which incident you're referring to (laughs). My career at Disney began in the 1980s at the company’s London office, in what was known as the Parks and Recreation Department. I called there every day for a whole month and kept bugging the secretary until I was invited for an interview. Eventually, I got a job as a temp, folding dozens of press kits and running out to get cappuccinos for the team. After about three weeks, I was told: «Duncan, you’ll have to step in as character coordinator for the royal premiere of *Who Framed Roger Rabbit* next week. Diana, the Princess of Wales, will be there—so this is a very important event for us.» To be honest, I had absolutely no idea what a «character coordinator» actually does (laughs).

I'm curious to see what happens.

I was simply told that at the premiere, an actor dressed as a rabbit would come down a flight of stairs to shake the princess’s hand. I was just supposed to make sure nothing «unexpected» happened. I guess I was a bit naive and thought there was no way I could mess that up… and that day I learned what a contingency plan is: because I didn’t have one. A contingency plan would have made me realize beforehand that—if you’re having a very large rabbit with very long feet walk down a flight of stairs toward the Princess of Wales—you might want to measure the width of the steps first. Had I done that? No, of course not. So the rabbit steps onto the first step of the staircase, stumbles… and falls straight toward Princess Diana, very quickly, whereupon he is subdued by two Royal Protection Officers. Just imagine that: Roger Rabbit on the floor, two officers on his back—and next to him, a young, 21-year-old PR guy from Disney thinking to himself, «Oh my God, I’m so fired.»

However, they were not fired; they were promoted.

The next day, I went to the office, where I received a call from Disney’s CMO in Los Angeles. I was convinced they were going to fire me. But he said, «That was great publicity!» And I thought: Well, if that’s the case, I can make a career for myself! (laughs) During my first twenty years at Disney, that’s exactly what I did: I tried to develop and implement the boldest and most outlandish ideas.

What ideas are we talking about here?

I had my son’s «Buzz Lightyear» doll sent into space by NASA to celebrate the premiere of «Toy Story.» Buzz spent eighteen months on the International Space Station—making him the most experienced astronaut in history! I had an Olympic-sized swimming pool built at Disneyland so Michael Phelps could swim laps there. I helped Pixar develop storylines and characters and assisted Lucasfilm with integrating «Star Wars» into the Disney universe… and then I got a call from our CEO. He was very nice to me; we chatted a bit, and finally he said, «You’re the guy with the big ideas, aren’t you? And you actually seem to be able to bring those ideas to life, despite all the hierarchies and approval processes we have in the company. I think you should become our Head of Innovation & Creativity.» My first reaction was pretty spontaneous. I replied, «Okay, but… what does that mean?» (laughs)

You were tasked with introducing a culture of continuous innovation at Disney. How did you accomplish that?

I’d like to give you a few specific examples of challenges we’ve faced—and tell you about the solutions we found. That’s actually what led to what I do today—and what I want to share in my talks.

You're very welcome.

Here’s an example from 2011: Back then, my team and I—to put it simply—were tasked with finding ways for the Disney Parks to generate more revenue. The first thing that naturally comes to mind is raising ticket prices. You could raise ticket prices by three percent, boost the quarterly results—voilà! But we approached the issue from a completely different angle from the outset: What, we asked ourselves, was the biggest «pain point» for our guests?

Let me guess: waiting in line?

Exactly! So we set out to find the longest lines: We found them at hotel check-in and check-out, at the park entrances, at meet-and-greets with our characters, at certain rides, and when paying for food or merchandise. Then we looked outside our industry for insights and good ideas. And we found a small company in Tokyo that manufactured RFID chips that could be used to make restaurant reservations. We adapted this technology: We embedded an RFID chip into a plastic wristband; it’s located under Mickey’s head, right here (points to his wrist). This is now the room key for every Disney hotel. It’s also the admission ticket to the theme park. You can use it to make reservations for meet-and-greets with Disney characters and your favorite rides, and you no longer have to wait in line. When I buy merchandise, a simple «tap» on the wristband lets me pay the bill—and if I want my purchases shipped directly to my home, that’s no problem either. The list goes on and on.

«I called Disney every day for a month and kept bugging the secretary until I got an appointment.»

So you’ve been thinking about how to improve your guests’ experience, rather than focusing primarily on increasing revenue. In the end, that approach has still led to an increase in your revenue.

Yes. If we’d just asked ourselves how we could make more money quickly, we could have done that simply by raising ticket prices. But that wouldn’t have been sustainable, and we would have had to raise prices again a short time later. Instead, we implemented a technology that now gives Disney guests two more hours of free time in the park than they had a few years ago. And what do people do with that free time? They spend more money! (laughs) RFID technology and the wristbands have proven to be one of the most profitable innovations in Disney's entire history. And as an added bonus, the technology helps collect real-time data on what guests like, how they behave, and what they don’t like—a perfect foundation for developing new products and offerings.

Can you learn this way of dealing with challenges?

Absolutely. But I think it’s important to give people a simple set of tools to work with. If you ask people what the biggest barrier to innovation is in their respective companies, you’ll hear things like: «Well, we don’t have time for strategic thinking, we’re risk-averse, we have to meet our quarterly targets, we operate in a highly regulated industry…» Okay, so there are rules. But do people break them when the boss isn’t looking? Of course they do. Think about it: What if there were a toolkit that allowed you to break the rules—mentally, so to speak—without actually having to cross any lines? And what if this toolkit could help you think «differently» and come up with new ideas? Walt Disney himself, by the way, worked exactly this way.

That sounds exciting!

Walt produced the film *Fantasia* in 1940. He wanted warm air to be blown into the theater during certain scenes and fog during others, but the theater owners said, «That’s too expensive, Walt; we could never do that.» So Walt observed the industry—at first without any personal judgment—and wrote down the «rules.» When I go to a movie theater, I have to sit down. I have to be quiet. I have to sit in a specific seat. I have to leave at a specific time. I have to pay money to be let in. I can only watch one movie at a time. I can’t control the environment in which people watch my movies. That’s the first step: List the rules of your industry as objectively and impartially as possible.

And then?

Choose one of these «rules» and ask the boldest questions that come to mind. Walt Disney did just that. He asked, «What if I could control the environment in which my films are shown?» Well, he couldn’t, because he didn’t own the movie theaters. And that idea wasn’t broad enough either. The broader your «what if» considerations are, the more likely you are to step outside your own «River of Thinking.» So Disney said, «What if I took my movies out of the theater and into a different setting?» – «Don’t be silly, Walt, they’re two-dimensional—you need a screen!» – «What if I make them three-dimensional?» – «How on earth are you going to pull that off, Walt?» – «Well, I could have real people walking around. What if I put them in costumes? That way, people would believe they’re dealing with a real princess, a real cowboy.» – «»Yes, but Walt, Cinderella can’t stand next to Davy Crockett—people wouldn’t be able to focus on their stories at all.« – »And what if I placed the characters in different themed worlds, different countries… what if I called the whole thing Disneyland?”

The «River of Thinking» is a constant stream of routines and everyday problems that occupy us in both our professional and personal lives. Many people would like to think more like Walt Disney in the story mentioned above—but to do that, they’d have to step out of this «River of Thinking,» wouldn’t they?

When I give keynote speeches, I regularly ask the audience where they come up with their best ideas. How many, do you think, say, «At the office»? I can tell you: zero percent. Because when we’re at work, our brains are usually in a state I call «Busy Beta.» We use about thirteen percent of our mental capacity to deal with the problems of day-to-day business, while the door between our conscious and subconscious minds remains firmly closed. The subconscious, however, is where the big ideas come from. So we try to enter a state I call «Amazing Alpha»—you’re still able to make rational decisions, but the door between your conscious and subconscious minds is opened wide enough to allow great ideas to emerge.

How do you reach the state you call «Amazing Alpha»?

My advice to companies: If you want to tackle a challenge with your employees, brief them well in advance. Don’t give them a task and expect them to come up with a creative solution on the very same day—instead, create space for a certain degree of «playfulness.» The «Amazing Alpha» state often arises quite spontaneously when people have a challenge in the back of their minds but then do something else first. Go for a jog, take a hot shower—yes, even if they wake up in the middle of the night and exclaim, «Eureka! That’s it!» (laughs) Of course, companies can do even more: Toy manufacturer Hasbro gives each of its employees five dollars per quarter for new desk decorations … it can be anything—just not toys! Simply to get people talking to one another. At Pixar, team desks aren’t arranged by department—the lawyers sit right next to the animators. And why? Well, that goes back to the great Steve Jobs, who was convinced that «unplanned collaboration» is a major asset for almost any company. But on a personal level, too, there’s a lot we can do to spark new ideas: We can try a different radio station, listen to a new podcast, or talk to a friend—or even people on social media—who don’t share our views. We can choose a different route to work once a month. Often, it’s the simplest things that spark new ideas.

You're an expert on innovation and transformation. In your opinion, how has the pandemic changed the business world?

No one is going back to «business as usual.» From now on, it’s «business as unusual.» We used to go to restaurants; now the restaurants come to us—here in America, for example, with Uber Eats. We used to go to the supermarket; now the supermarket comes to us via home delivery. We used to go to the movies; now the movies come to us, via Amazon, Disney+ or Netflix. I hope that in a year’s time, the pandemic will be completely behind us—but the things I’ve just described aren’t going away. They’re here to stay, at least to some extent. Part of the market as we knew it is irretrievably lost. However, an endless number of new opportunities are emerging. Of course, technology will play a decisive role.

What developments do you expect to see here?

There are quite a few things that I believe will happen. Imagine a world that is truly and completely connected. Imagine that the bulky virtual reality headsets we use today will become lighter and more affordable, completely transforming the way we live, work, and relax. A child in Cairo or New York will soon be able to buy a ticket for one dollar and use it to sit virtually in the stands at Bayern Munich’s stadium. For five dollars, they can get a virtual seat on the sideline. And for ten dollars, the child can virtually sit on the bench and listen in on the players’ conversation. All without leaving their bedroom. As I said: We’re not talking about some distant future here, but rather three to five years from now.

Not only are you an international keynote speaker, but you also work as a consultant for some of the world’s best-known brands. What advice do you give them when they ask how they can prepare for the future?

For example, I tell them that they finally need to think about their purpose. Because most companies don’t even know what that is—they have no idea! They might think it has something to do with philanthropy, with charity… but they couldn’t be more wrong! The biggest challenge the Western world will face regarding the workforce in the next decade will be Generation Z—specifically, their unwillingness to work for the established companies out there. And why? Because they don’t believe in what these companies stand for. And if they don’t believe in what the companies stand for, they won’t buy their products and services either. My daughter lost her job in the spring of 2020 due to the pandemic; in August, she was offered another position—with double the salary! But she turned it down: «I don’t believe in what this company stands for.» That was the end of the matter for her. (laughs). And there are many in Generation Z who think the way my daughter does. In any case, I can't think of a better argument for focusing on purpose—true purpose.

Duncan Wardle He spent a large part of his professional career at the Walt Disney Company—for more than two decades, he was responsible there for global communications, among other things, and most recently served as Head of Innovation & Creativity. Today, the British-born executive is a sought-after international keynote speaker, writes regularly for publications such as *Forbes* and the *Harvard Business Review*, and advises leading companies. Duncan Wardle lives with his family in New York City.

Swiss publishing houses are in the midst of a major transformation. You may not hear jackhammers or heavy excavators, but there’s an ever-increasing buzz and hum in the large media headquarters, as the business of these former publishers is becoming more and more digital. Over the past 12 years, Ringier has invested more than two billion Swiss francs in the company’s transformation. The former publishing house has evolved into an internationally active media and technology company with three operational pillars: Media, Digital Marketplaces, and Tech & Data. The company is now active in 18 countries across Europe, Asia, and Africa.

The technology hubs in Poland, South Africa, and Switzerland will be further expanded. «We are continuously investing in our digital offerings and marketplaces,» says Johanna Walser, Head of Communications at Ringier. In March 2021, the company acquired the Bulgarian Sportal Media Group to accelerate Ringier’s sports media strategy, and in August, it announced the merger of various digital marketplaces from Ringier and the TX Group to form SMG Swiss Marketplace Group. «In terms of market capitalization, SMG is by far the most significant Swiss media company that has ever existed,» says «Weltwoche» columnist Kurt W. Zimmermann. The newly founded company will increase in value tremendously in the coming years, says the media expert.

The Swiss Marketplace Group itself is not yet able to share any financial figures at this time. It has only just begun to build the new organization. However, Zimmi’s forecasts are likely to prove accurate. The focus is on platforms in the real estate, finance & insurance, automotive, and general marketplace sectors, which already bring together 5.5 million listings and attract a total of about 80 million visitors per month.

«Our focus is on further developing our services and marketplaces in Switzerland for our Swiss users and customers,» says SMG Head of Communications Daniel de Carvalho. However, the company’s DNA is international: The conglomerate brings together around 1,000 employees of over 40 nationalities at various locations, including not only Switzerland but also Goa, Kerala, Valbonne, Ho Chi Minh City, and Berlin.

M&K wants to know from the new online giant whether it is on the lookout for more online marketplace gems. «As part of our ongoing development, we don’t rule out investing in thematically relevant or complementary products,» explains de Carvalho. However, the spokesperson emphasizes that the company wants to focus on its current portfolio first.

The Media Companies' Booster

According to Zimmermann, digital marketplaces are now «the only highly profitable business» that media companies have. Therefore, the usual thing will happen: «The market leader, SMG, will sweep the other competitors out of the market. As a result, there will be no more major mergers, only acquisitions.» SMG will buy whatever is worth buying, and the rest will «fade away into some niche or another,» the former Tamedia (now TX Group) executive board member is convinced. In addition, TX Group and Ringier will eventually integrate their joint job platform, JobCloud, into SMG: «Then it’ll be all over for good,» concludes Kurt W. Zimmermann.

As de Carvalho says, however, the integration of JobCloud is not on the table. The focus is currently on existing areas. «JobCloud remains part of the separate joint venture between TX Group and Ringier, which has been operating successfully for years,» adds Ursula Nötzli, Head of Corporate Communications at TX Group. JobCloud serves a very specific market, and there are too few points of overlap in terms of content with SMG’s other platforms.

No to Cross-Subsidization

Let’s stay with the TX Group for a moment: 80 percent of the Zurich-based media company’s current business has been developed and acquired over the past 20 years. The share of digital revenue has risen from 2 to 56 percent. In addition to brands such as Homegate, ImmoScout24, and Tutti—which are now consolidated under SMG—the TX Group also holds stakes in Doodle, Zattoo, Neon, and other fintech ventures.

Is journalism at TX Group’s media outlets cross-subsidized in any way by SMG’s involvement and by the other platforms? According to Ursula Nötzli, the companies are positioned independently and are also financed autonomously. «Overall, there has been and continues to be no cross-subsidization between the various companies or divisions.»

«In the past, the money came from ads; now it comes from digital commerce.»

«We don’t believe in cross-subsidization,» says Ringier Chief Communications Officer Johanna Walser. A publication—whether print or digital—is judged on its own merits. However, if a company like Ringier has enough resources to create something new, then individual instances of cross-subsidization would naturally help. Let’s quote Ringier’s CEO, Marc Walder, at this point (as many media outlets have done recently). In 2019, the CEO said in an interview with *Werbewoche*: «All journalists who work for diversified media companies can sleep more soundly than those who work for a non-diversified media company.» This still holds true today, Johanna Walser explains.

«In the past, the money came from advertising; now it comes from digital commerce,» says Kurt W. Zimmermann. “Revenue has never come predominantly from journalism—that is, from subscription revenue.” Which is why nothing is changing. Out of long-standing tradition, the diversified media groups Ringier and TX Group will certainly continue to produce journalism—after all, that’s where the publishing houses originated. “But that’s more of a museum piece than a vision for the future.”

The Journey of Somedia, CH Media, and NZZ

The «old lady» is deliberately capitalizing on its core competency and focusing on journalism. «Our strategy is to offset declining advertising revenue with growth in the user market,» says Karin Heim, head of corporate communications at the NZZ. There, the NZZ has been able to significantly increase revenue through its consistent subscription strategy and thanks to the strong demand for the media company’s offerings. In the long term, therefore, these goals will remain unchanged, and the strategy focused on quality journalism will be maintained. In particular, the company plans to further develop its digital portfolio, including through increased market development efforts in Germany.

«In addition, we are certainly open to new business areas in profitable niches and already have relevant offerings in our portfolio, such as nzzjobs.ch and Achitonic ArchDaily, which merged with the leading online design magazine Designboom in January to form DAAily Platforms,» said Heim.

«In profitable niches, we are certainly open to new business areas.»

CH Media focuses on media offerings in Switzerland. «At our core, we focus on the two pillars of publishing and entertainment—and thus on quality journalism and entertainment,» as Stefan Heini, Head of Corporate Communications at CH Media, puts it. Its own platforms, such as zentraljob.ch, the Eastern Switzerland obituary portal, osthome.ch, and myjob.ch, have good to very good market positions and optimally complement the digital offerings in the regions. CH Media does not disclose figures for competitive reasons.

Somedia operates südostschweizjobs.ch and the newly launched portal lehrstellencheck.ch. «We’re also investing in education and continuing education,» explains Susanne Lebrument, Delegate of the Board of Directors at Somedia AG. For example, the publishing house recently founded «Somedia Learning,» an agency for digital learning media. «Traditional business models are eroding, so we’re looking for new, attractive business models and products,» explains Lebrument. However, the family-owned company believes in «unconditional journalism»—particularly local and regional journalism.

To diversify, media companies are increasingly offering consulting services as well. A very recent example of this is AZ Medien’s business unit «AZ Konzept,» which provides strategy, content, and storytelling. The «Ringier Brand Studio» specializes in the further development of advertising formats such as native advertising and content partnerships. «NZZ Content Creation» is a service provider for journalistic storytelling. Essentially, these «small business areas» are about producing paid content in-house rather than through external PR agencies, says Zimmermann. «It’s a nice offering for advertisers, but nothing more.» He also takes a critical view of certain media companies trying their hand at event organizing. In this industry, he says, all that’s needed is a strong business model.

Companies like CH Media, NZZ, and Somedia would still have to make their bottom-line profits from print and TV audiences. They would be able to survive that way, says the media expert. «But the returns will be meager compared to their wealthy cousins in the online retail sector.»

This article first appeared in the m&k print edition 1-2/2022.

"Employees need to be empowered to participate internally in collaboration and knowledge sharing."

In the case of distribution systems, this must take into account the autonomy of system users on the one hand and the desire for consistency and integration on the other. From the perspective of the system provider, therefore, two essential questions arise:

1. What role can the communication of all partner organizations play in the digital transformation? (Goal: Strengthening the brand among customers and employees)
2. How can the partner organizations be taken along on this path? (Goal: common understanding and acceptance by the system users).

The role of communication in digital transformation

Digital transformation is not limited to the introduction of new technologies. It also leads to changes in operational processes and business models. For this reason, organizational structures, management and corporate culture, and also the competencies of employees must be further developed and an understanding of this change process must be created both internally and externally. The role and tasks of corporate communications in the digital transformation can thus be described on three levels with a view to the entire sales system (see figure):

1. At Level of the communication function (micro level) communication can enable transformation. To this end, communication must have a strategic status in the organization. The communication strategy should be aligned with the organizational goals with regard to digital transformation, and communication between the system users and the relevant stakeholders must be integrated in such a way that a consistent brand image can be created in the minds of customers and employees. One approach to solving this problem could be jointly formulated standards for communicating with the most important stakeholders. The communication units and departments within the sales system must also transform themselves. This is in terms of strategy, organization, culture and technology. Among other things, this involves the development of a target-oriented content strategy.
2. On the Level of the organization (meso level) the change of the entire sales system and also of the partner organizations must be shaped and accompanied. To this end, corporate communications needs consultative access to management. Employees must be empowered to participate internally in collaboration and knowledge sharing. This is the only way to create the necessary agility and learning ability that are essential for the digital transformation of the organization. At the same time, employees act as important ambassadors both internally and externally. Managers can play a pioneering role here. To promote this, employees need access to social media in their work environment and corresponding guidelines. The communications department provides appropriate interaction spaces and platforms, shapes and moderates the dialog there, and empowers employees to participate in this discourse.
3. On the Level of exchange with market and society (macro level) is to create internal and external acceptance for the digital transformation of the company. To this end, digital transformation topics must be an integral part of the dialog with stakeholders. To this end, internal communications management maintains dialog on the company's own and external platforms. Since direct contact with customers only takes place via system users, they play a key role here. Not only in the implementation of communication measures, but also in the observation and analysis of customer needs and attitudes. From the perspective of the system provider, it must be ensured that this information can also flow back so that the overall system can benefit from these findings.

   

A common understanding as a success factor

So how can system providers take their system users along with them on this journey? One thing is clear: a consistent brand experience for customers and employees of the overall system presupposes a similar level of communication at the three levels among the "system users". For system providers, it is therefore a matter of convincing the partners of the importance of strategic and integrated communication. Ideally, the dialog about this will result in a jointly supported communication strategy that the system users recognize as the basis for their own communication. In addition, system users and their employees must be sensitized and empowered for their communication task vis-à-vis the stakeholders.

In order to develop a common understanding, it may be useful for "distribution system providers" and "recipients" to regularly survey and discuss the maturity of communication at the three levels. The IAM Digital Transformation Navigator can provide support here. A questionnaire-based assessment can be used to determine the various maturity levels, compare them in moderated workshops, discuss the need for action, and coordinate the next transformation steps. The goal: effective communication of the entire sales system with regard to digital transformation.

MSc. Katharina Krämer (left) is a lecturer and consultant in organizational communication at the IAM Institute for Applied Media Science at ZHAW.

Prof. Dr. Nicole Rosenberger (right) is Head of Research and Work Area Organizational Communication and Management at the IAM Institute for Applied Media Studies at the ZHAW.

Learn more here about the IAM Institute for Applied Media Science and the IAM Digital Transformation Navigator.

On February 16, 2022, the Federal Council largely lifted the nationwide measures against the pandemic. Public and private facilities are once again accessible without masks or certificates, and there is no longer a permit requirement for large-scale events. What does this mean for Switzerland as a trade fair destination?

Tom Winter, CEO of Bernexpo, is relieved by the easing of restrictions; at times, he says, the pandemic-related restrictions were tantamount to a ban on working. Even though the pandemic hit the industry hard, the company did not simply wait for the «good old days» to return, but instead actively used the time without events to its advantage. Over the past two years, the company has had the opportunity to rethink how people come together and to systematically review, adapt, and expand its capabilities in the areas of organization, digitalization, hospitality, and overall strategy. In addition, Bernexpo has been able to move forward with its flagship project, the New Festival Hall, designed for conferences, business, and cultural events. It is scheduled to open its doors in 2024 and, together with the eight exhibition halls, the outdoor grounds, and the conference infrastructure, will round out the venue’s offerings. For Winter, this is an absolute must, as the needs of customers and partners have changed significantly during the pandemic: «We can’t be naive—the formats have changed: Today, there is a much greater need for flexibility and space, for in-person meetings, and for the ability to exchange information directly.» Thanks to the additional infrastructure, Bernexpo will be able to respond more flexibly should the number of participants change or if an event suddenly needs to be organized in a more digital or hybrid format. “We’re facing new planning cycles and a new way of collaborating with our partners—everything is becoming more volatile; you can no longer assume that an event will remain virtually unchanged from one edition to the next,” says Winter. At the same time, managing the diversity of offerings is one of the biggest challenges. From the BEA consumer trade show, which runs from April 29 to May 8, to professional conferences and cultural events, it’s a major balancing act when it comes to expectations, presentation, and hospitality.

Higher Prices and Supply Issues

The MCH Group is also facing changing conditions. «The pandemic has caused prices to rise in many sectors, which means higher costs for exhibitors and organizers when it comes to live events,» says Jonas Scharf, Managing Director of Venues at the MCH Group, who is responsible for the Basel Trade Fair and Congress Center as well as the Zurich Trade Fair. Added to this are global supply chain issues, some of which also affect exhibitors« display materials. Another challenge is the significant shift in focus among certain professional groups. This has led to staffing shortages among service partners that need to be filled. »Our goal is to use our flexibility and innovations to rebuild and strengthen trust in and enthusiasm for trade shows and exhibitions, despite these challenges,” explains Scharf.

«The past two years have been difficult for our industry, and digital alternatives have only been a stopgap solution for live events.»

Due to the pandemic, risk tolerance has declined on all sides, which is why a drop in exhibitor and visitor numbers has been recorded. «The last two years have been difficult for our industry, and digital alternatives have only been able to partially make up for the lack of in-person events,» says Scharf. Nevertheless, the company used the time without trade shows to build expertise in virtual technologies, set up its own streaming studio, and thoroughly explore software for virtual and hybrid events. «It was important for us to maintain close contact with our customers and to continuously analyze how their needs have changed,» Scharf explains. Numerous events are planned for the coming months, starting with Swissbau in Basel, which will take place from May 3 to 6.

Investing in Innovation

According to Director Christine Bolt, the event calendar at Olma Messen St. Gallen is also continuing to fill up. In addition to hosting the major trade shows OFFA, OBA, and OLMA, the organization will also serve as a co-organizer this year—for example, at the Deep in Love Festival 2022. Currently, there is a great sense of excitement among partners, exhibitors, and within their own teams. At the same time, however, they have to overcome hurdles caused by the pandemic. «Before the pandemic, Olma Messen St. Gallen was a financially sound company. Today, we face major financial challenges because, due to the restrictions, we were able to carry out our core business only to a very limited extent for nearly two years. This is particularly challenging because we’re pursuing a growth strategy with the construction of the new Hall 1 and must invest not only in infrastructure but also in innovation and sales,» says Bolt. The company sees potential in new trade shows covering various topics. If events are strongly focused on knowledge transfer and participants and stakeholders have to travel from far away, hybrid formats, for example, would be a good option. However, this applies more to conferences and events than to trade shows, which continue to thrive on in-person interaction.

«The pandemic has accelerated certain projects»

m&k: Recently, large-scale events in Switzerland have once again been allowed to take place without mask mandates or certificate requirements. What does this mean for you?

Lukas Lauwiner: The gradual return to normalcy and the resulting ability to hold large-scale events has, above all, allowed us to breathe a huge sigh of relief. We’re looking forward to all the opportunities for people to come together and the events we’ll have the chance to support and produce with creative solutions. This finally gives us a longer-term outlook again, and we’re incredibly excited about it.

How has your company prepared for the post-pandemic era?

Even before the pandemic, Richnerstutz had been focusing on optimizing processes, driving innovation, and advancing digitalization. The pandemic accelerated and intensified these efforts. We were able to become more flexible and agile.

What are the biggest challenges?

In resource planning. Even though the pandemic appears to be behind us, the order situation remains volatile and clients are cautious. We, too, had to reduce our workforce during the pandemic. Now, as the economy recovers, appropriately rebuilding our team of skilled professionals is a challenge.

How has the pandemic changed things in your field, and what innovations were developed during the period without trade shows?

Workloads across the various departments and teams varied greatly during the pandemic and were not as balanced as usual. Thanks to our successful invention—the CountMe customer flow management system—and the resulting expansion of our expertise in people counting, we were able to partially offset the period without trade shows and events.

I like to delegate, but of course I also want to set a specific goal, a specific direction, and a specific tone. And then I have to make sure I bring the right people together to achieve those goals. I’m not a «micromanager»—because I firmly believe that anyone working at a company like Nestlé knows what they’re doing. And that every employee’s work has value. I always start with trust, and if it doesn’t work out, then it just doesn’t work out. But trust—and with it, the willingness to delegate responsibility—should always be the starting point. And: humility and respect for employees’ experience and skills are incredibly important.

Can you elaborate on that?

Marketing, as a discipline, is by its very nature in a state of never-ending transformation. Just as the world and technology change, we marketers must change as well. There is no final goal we can reach. We make a plan, implement it—and we think, okay, we’ve done it. But then things have already shifted again; so we start over, and it’s on to the next round. And when you join a new company—as I did in 2020—that’s been doing so well for so long, there’s a reason for it: the employees understand the transformative power of marketing, and they know how to harness it. I don’t presume to know everything better than my team; rather, I want to help provide the right impetus in the right places.

Entire doctoral dissertations have been written about Nestlé’s marketing, and of course there are differences among the various brands owned by the company. So, unfortunately, we can’t go into all the details here. But: Is there a «guiding star» that you use to steer all your marketing activities?

That’s a good question. The key—and this is something Nestlé does well—is understanding what a brand stands for. That creates long-term stability. We’re doing a lot of work on brand equity and «Brands with Purpose.» This leads us to sustainability, an area where we’ve done a lot of work over the years and are now consolidating our ambitious goals from recent years under «Generation Regeneration.» We need to talk about the impact our work and our products have—on society, on the lives of consumers and suppliers, and on the climate. And what changes are necessary to meet the standards of tomorrow. Furthermore, I believe we need to evolve toward «always-on marketing»—meaning we must always be exactly where consumers are looking for us. And not just make an appearance when we think we have something to say or something to promote.

In the early 2000s, there was talk for a while of the—metaphorical—«death of the CMO.» People said the role was becoming obsolete. How «alive» do you feel?

It’s a very dynamic field. But to be successful as a CMO within a large organization today, you need a pretty broad range of expertise. You really have to understand at least the basics of everything—from marketing and consumer behavior to various aspects of digital transformation. You have to know how TV advertising works, but you also need to be familiar with Google’s ad platform; understand Google Search and its parameters, YouTube, Instagram, Twitter, Pinterest… and it doesn’t stop there. How do I use CRM tools? How can Salesforce help me optimize my business? I could go on and on. But in recent years, some of the fundamentals of marketing may have been lost, which is why people are once again looking more to CMOs—you have to have something to say.

Managing multiple channels while staying true to a core message: That's never been more complex than it is today, right?

Absolutely. In the past, you might have had just a handful of ways to communicate your brand value and purpose. Now you have practically endless options. Sometimes you have a shorter format available for this, and other times a longer one. If you’re on Twitter, you use a different style of expression than in an Instagram feed—but the goal you’re pursuing is ultimately the same. So you need to be able to adapt your message to the different channels without losing sight of your «North Star.».

Now we've talked about a lot of technical details. What I find exciting is that when people search for you on Google, Ms. Gandon, the first thing they find is not business statements from you - but a plea for the need to be able to combine family and career. Why is it so important to you to champion this issue?

Because I want all parents—all women and men—to understand that you can have both. It’s not easy; it can be a lot of work at times, and you need the right support. But it’s possible. Fortunately, companies are becoming increasingly aware of this as well: When I think back to when I had my first child, more than two decades ago… I was working in England at the time and was only granted six weeks of maternity leave. That’s much less than what Nestlé offers today, and fortunately, we’re not the only company to do so. It was never easy, but my children are now 23 and 19 years old—very well-adjusted and happy. They’re motivated to set goals for themselves and to stand up for what they want. And if I was able to set an example for them, even just a little bit, it was all more than worth it.

Nevertheless, in some executive circles, the belief still prevails that family and leadership cannot be combined—that the desire for flexibility means a lack of commitment to the job.

I think it all depends on how you organize yourself as a leader—how you establish structures and boundaries, and how you communicate to your team that you might not be working on a particular day. Of course, in emergencies, you have to be reachable. If that’s guaranteed—why shouldn’t a company offer flexible models to employees and leaders? Marketing teams, in particular, need to be very diverse in order to understand the perspectives of as many people as possible and to develop brands and products for them. But if company policy makes it impossible for people with diverse needs to join an organization, then there won’t be diverse teams either. As long as there’s a good team spirit and everyone pulls together, the work will always get done well in the end. And that’s what matters, isn’t it?

What advice would you give to young people who want to break into advertising, communications, or marketing today?

You have to stay curious, enjoy working with others, and have a passion for brands. I’m interested in everything that’s happening in the world, and I believe that helps me understand our female consumers much better. The team and the work environment are also very important. People who are desperate to climb the career ladder quickly sometimes forget that. If someone wants to be entrusted with responsibility, they first need patience, empathy, and the ability to compromise. If you have these qualities, you’ll be successful—and have fun doing it, too.

About the person

Aude Gandon is Senior Vice President, Global Chief Marketing Officer, and Digital Officer at Nestlé. Previously, she served as Global Managing Director, Brand, at Google; Worldwide Account Director at Publicis Groupe; and Worldwide Account Director at the McCann Group, among other roles. A native of France, she is married and the mother of two adult children.

«Advertisers are considering whether they should continue to invest the same amount of their budget in TV as they have in the past.»

This trend had a particularly devastating impact on the ratings forecasts, especially for the channels marketed by Goldbach Media. In the fourth quarter, during primetime in the 15- to 49-year-old target demographic, only 68 to 71% of the projected performance was achieved, depending on the channel group. Only 4plus and RTL9 exceeded the forecast during this period. Here, the actual advertising block ratings achieved during primetime were 5% and 23%, respectively, above the forecast figures. Larger networks such as RTL and Pro7 achieved only 61% and 66%, respectively, of the forecasted values. TV24 and C8 fared even worse, achieving 40% and 43%, respectively, of the forecasted performance. Outside of primetime, forecast accuracy was somewhat better in some cases. However, since the majority of the advertising budget is often allocated to primetime, this only offset a portion of the loss.

The SRG’s leading broadcast networks performed better. On the one hand, the forecasts were more conservative; on the other hand, the SRG networks benefit from their target audience—people aged 15 to 59. This demographic is generally more «TV-friendly» than the target audience for the channels marketed by Goldbach. Nevertheless, even these channels fell slightly short of their projected primetime figures for the fourth quarter of 2021, though they posted significantly smaller losses than the competition: SRF1 reached 96% of the forecast figures, and RTSun 90%. The second-tier networks, on the other hand, fell short of the forecast by well over 20% in individual months. The channels TF1 and TMC, also marketed by Admeira, fell significantly short of the forecast only in December, whereas TFX fell short for the entire quarter. The channel achieved only 66% of the forecast ratings.

Trends in Viewing Time in Minutes, German-Speaking Switzerland

Adults ages 15–49, Mon–Sun, 24 hours

Trend in Viewing Time (in Minutes), Western Switzerland

What conclusions have broadcasters and marketers drawn from these developments for the current year? Apparently, they’ve relied on the «principle of hope.» But those hopes have not been fulfilled. Initial analyses for 2022 show that viewing time in the first weeks of the year is also significantly below the previous year’s figures, meaning that the ratings forecasts were set too high. As a result of these developments, some broadcasters have announced adjustments to their forecasts. Depending on the broadcaster, these adjustments will take effect as early as March 1, 2022. However, as far as is known at this time (as of the end of February 2022), block rates will not be reduced to the same extent. This means nothing less than that the price-performance ratio will become significantly more expensive once again. Depending on the broadcaster, this will result in inflation rates in the double digits.

So is TV still appealing? The answer is: «Yes, but!»

Television continues to offer advantages over other moving-image channels (screen size, viewing context, strong reach depending on the target audience, and a controllable environment). Furthermore, performance declines are at least partially offset by the performance guarantees provided by media buyers. However, due to the sharp price increases, many advertisers will consider whether to continue investing the same amount of their budget in TV as before or whether it would be better to reduce their TV budgets and allocate more funds to online media. And in doing so, they will not necessarily consider Swiss online offerings. That would then be a double loss for Swiss media and advertisers.

«Unfortunately, there's no form for finding the perfect match, like on a dating platform.»

Advertisers looking for the right agency face a similar problem: They’re searching for a relationship in which they’re willing to invest a lot; the conditions have to be right; they need to get along well; and, ideally, they’ll stay together for a while and create something new together. The problem, of course, is this: The selection is huge; everyone looks great and presents themselves in the best possible light—but unfortunately, there’s no form for finding the perfect match, like on a dating platform. At least, we’re not aware of any such platform for agencies and clients having been launched yet (a gap in the market?).

Define what you need

So how do marketing decision-makers and clients find the right agency for their communication campaigns, and what matters most in their search? Is a large network agency—one that can offer a comprehensive portfolio ranging from PR to media planning—a better fit, or is the small advertising agency just around the corner the better choice? «The key factors are the client’s specific needs and the expertise required to solve the problem,» says Catherine Purgly, managing director of Leading Swiss Agencies, the association of Switzerland’s leading communications agencies. «Whether this is an agency that combines the required expertise under one roof or a boutique agency with a network of specialists is something the client must evaluate on a case-by-case basis.» This means the client should first clearly define exactly what they want and need: Is it a broad-based brand campaign with a communication strategy, a specific focus—such as video content—or is it influencer marketing, radio campaigns, PR, or digital initiatives? Are there already existing campaigns, or is the agency starting from scratch? Is the focus on an industry—such as healthcare marketing—that requires specialized knowledge, and how important is a thorough understanding of local conditions? Once these questions are clarified, the pool of potential partners naturally narrows.

Size matters

Of course, size also plays a role in the decision. From two-person creative studios to massive network agencies with 100,000 employees in 100 countries, there are agencies of all types and sizes—but which one is the best fit? «It depends on how you define size: the quality of the brainpower that hatches ideas, or the number of people per se?» says Miro Pfister, co-founder and Creative Director of the Swiss agency PAM Advertising, which recently celebrated its fourth anniversary. He adds: «We define it based on brainpower. Good ideas usually come from one or two people exchanging ideas. They’re rarely the result of a process involving as many people as possible.» Another advantage for clients working with smaller agencies is that the boss is often right there at the table; processes aren’t overly drawn-out, and decisions can generally be made quickly and flexibly. Large network agencies, on the other hand, have the advantage of operating globally and across disciplines.

«Marketing decision-makers look for agencies primarily within their personal networks—and, of course, on Google.»

But even clients with smaller budgets don’t need to be afraid of big names: «As a client with a limited budget, you’re usually better off with a small agency. However, if you’re looking to build a long-term relationship, even a small but recurring budget can certainly be attractive to medium-sized and large agencies,» explains Jean-Marc Grand, Managing Director at gfm Swiss Society for Marketing. «Smaller, mostly nationally focused agencies often understand national client needs very well. For projects with an international focus, however, network agencies often have the advantage,» says the expert.

The chemistry has to be right, too

More important than size, however, is the final result. To assess this before entering into a potential partnership, clients have numerous options: They can review rankings, such as the creative rankings by Werbewoche.ch and m&k, or the Media Research Group’s advertising agency rankings. Browse competitions such as the Swiss Effies, ADC Awards, Clio Awards, or Cannes Lions. However, not all agencies participate in competitions—even though they still produce excellent advertising. Clients should also take a look at the agencies’ portfolios: For example, almost all agencies showcase clients and selected case studies on their websites to demonstrate their capabilities. The power of recommendations should not be underestimated either. If people you trust have already had positive experiences with an agency, it might be worth reaching out to them yourself.

«Some agencies never enter competitions, but they still do a good job of advertising.»

Once a shortlist has been drawn up, however, soft factors also come into play. «It’s just as important that the agency and the client get along as it is to consider the agency’s size,» explains Parvez Sheik Fareed, co-founder of PAM. Catherine Purgly of LSA underscores this point: «The goal of any agency selection process must be to find the ideal partner through a fair and efficient procedure, regardless of factors such as budget or agency size. After all, the complexity of communication tasks requires close collaboration between the client and the agency. Process management, mutual understanding, and cultural fit are crucial to successful collaboration.» And according to Purgly, you don’t necessarily discover what this fit looks like in elaborate competitive presentations. Rather, it’s found in chemistry meetings or strategy workshops. During these sessions, the agency has the opportunity to introduce itself and its projects, showcase individual case studies—and the client gets a sense of whether the chemistry is right.

Factors Influencing the Choice of Agency

A recent study by the design agency stay golden examined which factors have the greatest influence when companies choose design or advertising agencies. The findings revealed that, in addition to creativity and expertise, the key factors are reliability, proactivity, passion, speed of work, empathy, and the quality of the relationship. Awards are less important. By the way: Decision-makers primarily look for agencies within their personal networks—and, of course, on Google. If you use the search engine to look for the agency PAM, for example, you’ll find a piece of information in the page description that immediately catches your eye: «PAM Advertising. Probably not the right agency for you,» it says. And it gets even more unusual: Anyone visiting the website will find 28 (!) reasons right on the homepage why you shouldn’t call the agency («Don’t call us if you won’t tolerate uncomfortable questions,» «Don’t call us if you find happily smiling people »emotional,«» “Don’t call us if you want to please everyone,” …). For many, this is certainly a reason to pick up the phone right away. Because in the end—as in any good relationship—it’s important to be able to laugh at yourself sometimes.

Practical Tips for Choosing an Agency

1. Workshop Instead of a Pitch: Don't just have an agency «pitch» to you—get to know each other during a one-day workshop. That way, you'll get a sense of what your future collaboration might look like.
2. Feelings matter! Does your agency make you feel like an important and valued client? It’s important that you’re high enough on their priority list—even though the agency naturally has a variety of clients.
3. Proactive Innovation: Be open to unconventional, proactive suggestions; but also pay attention to whether your agency makes such suggestions—or whether it’s just working through items on a fixed to-do list.
4. Extreme «turnover»? If the agency you’ve chosen has an extremely high employee turnover rate, this could be a sign of difficult working conditions. This could have a negative impact on the work being done on your project.