New creative office sets sail

It's been official since February 2015: Raise your Flag is a new creative agency in Lucerne and Bern. The two founders, Fabian Gallati and Daniel Lötscher, bring years of agency experience to the table.

Fabian Gallati most recently worked as a consultant and typographic designer for three years as a member of the management of a Lucerne agency. Daniel Lötscher, Graphic Designer HFP, has worked as an art director in several agencies.

The core competencies of strategy, conception, design and realization - this is what the two write on their banner. In line with their own credo, they have developed a conceptually strong Website was realized, the young agency announced in a press release on Thursday.

"We weigh anchor early in the morning, set sail and head for open waters. We are always on the lookout for hidden treasures and dive for fresh ideas. Whether trout, boxfish or algae, we find the most beautiful and nutritious specimen. We always have unforeseen delicacies with us in the harbor - ready for you to try," the two creative minds announce in the press release. 

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Campaign planned for Bernaqua

An initial campaign for the launch of the new "Annual Adventure Pool Pass" from Bernaqua Erlebnisbad & Spa in the Westside shopping center in Bern is already in the starting blocks and will soon be seen in the greater Bern area. Fabian Gallati and Daniel Lötscher are looking forward to further unique projects.

Survey "Euro Shock": Fréderic Renzen

Werbewoche survey on economic developments following the «euro shock» and its impact on the communications and advertising industries: Frédéric Renzen, CEO, Renzen & Partner

Larger internationally active companies for which we work in Switzerland seek discussions and ask for discounts. We have not yet experienced any cutbacks. Some active, marketing-oriented companies have even increased their budgets in order to gain market share, while others have maintained their budgets. Advertising is seen as an instrument for positioning oneself on the market. We have full order books and will increase sales by 10 to 15 percent compared to 2014. However, this certainly also has to do with budget gains, which are not representative of the industry as a whole. In general, the measurability of advertising is becoming more and more important. Image campaigns that are barely measurable are on the decline.
 

Campaign planning - The tool that does it all

Accelerom, an international consulting and research firm, has developed a new algorithm that calculates the optimal multichannel marketing mix. It works for products, target groups, and markets in both B2B and B2C, and the company promises that it delivers verifiably better results than best practices.

The new 360° Touchpoint algorithm simplifies media and marketing planning quite considerably. It enables companies, organizations and institutions to review their current marketing mix or find out where there is potential for improvement or savings. This means that either more impact can be achieved with the budget used or the same impact can be achieved with a lower budget.

And this is how it works: At the push of a button, the algorithm calculates uniform key figures for millions of combinations and compares their impact - whether for different target groups, product categories or countries. The result is, for example, the most effective media combination for the previously defined target. Through its calculation, the algorithm reveals via which media and other touchpoints online and offline customers are led to purchase, and assesses the combined effect of different online and offline touchpoints both qualitatively and quantitatively. The spectrum of instruments analyzed ranges from owned, paid, and earned media to the classic media mix, online campaigns, POS, measures in sales and CRM, and social media. This total audience measurement is the unique selling point of the algorithm.

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Better than best practice

In contrast to conventional methods, the entirety of the contact points examined by the algorithm is not limited to advertising media or online activities, but up to 100 marketing and sales measures can be included in the analysis. In this way, the algorithm delivers verifiably better results compared to best practice. Accelerom has already been able to prove this with existing customer projects.

The algorithm's multi-layered simulations are made possible by combining various measurement methods from artificial intelligence, machine learning and metaheuristics. Accelerom developed the algorithm over several years in collaboration with NZZ and the multidisciplinary "Institute for 4-D Technologies (i4Ds)". The development research project was funded by the Commission for Technology and Innovation (CTI) of the Swiss Confederation.

Anne-Friederike Heinrich

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"The output of the machine is better than best practice".

Werbewoche spoke with Christoph Spengler, CEO of Accelerom, about the background of the new 360° Touchpoint algorithm.
 
WW: How long did you work on the new algorithm?
Christoph Spengler: We launched the first CTI-funded project in 2011. The main focus was on the topic of total audience in the multi-channel world. There are already almost too many analyses on this, but we wanted to look at it holistically, i.e. bring together online interaction points owned, paid and earned as well as offline in a single currency. In 2013, we won another research project that focused on artificial intelligence. And this ultimately gave rise to the new algorithm. 
 
What requirement did you start with?
We wanted to develop a tool that compiles the best mix from the entire potpourri of interaction points - ad, billboard, TV spot, website, etc. - as a recommendation in the decision-making process. This requires a huge database from which the best multi-channel mix is calculated with the help of several algorithms, and this across all categories, on- and offline, owned, paid and earned. And after several validations in practice, we can say that the output of the machine is better than best practice.
 
What information do you have to enter and what information do you get? Can you demonstrate this with an example?
Gladly: You want to develop a multi-channel mix, a strategy or a campaign with the target group of young people in the beverage sector that generates attention, promotes engagement and boosts sales. We have about 100 touchpoints to choose from, spread across advertising media, POS, social media, etc. Furthermore, we still choose that we don't want a mix with 30 instruments, but one with a minimum of 10 and a maximum of 15 instruments. After this input, the machine starts to calculate. The output is the mix with the 13 most effective media for attention, the best social media combination for engagement, and the mix of measures for sales at the POS. The tools that the algorithm identifies are the ones that are most effective for achieving the defined goals, not just for generating attention, but for carrying the consumer from attention generation to transaction. We call this the top conversion path.
 
Is there always just one?
No, the output is three top conversion paths with different online and offline interaction options - because target groups do not always behave the same way, of course.
 
But I still have to decide for myself what measures I take ...?
You're right, things can get a little scary. But of course, the top conversion paths are primarily an orientation aid for us to subsequently develop a campaign or other strategies. That's an extreme help, but it's still a long way from implementation. For that, you need creativity and a lot of other things that a machine can't do. In addition, there is another dimension: the cost. We judge the top three conversion paths by cost, and of course there are cases where our customer says: Top 1 I can't afford at all. But our algorithm makes certain calculations possible in the first place: a customer operates in three countries or markets, has two target groups, six product categories - that quickly becomes confusing. And since everything can be measured qualitatively and quantitatively, the results are also verifiable.
 
How long does the algorithm take to calculate the top conversion paths? 
Depending on the task, this can take a few minutes or even longer. It depends on how many calculations have to be made.
 
But how exactly does the algorithm calculate which is the most effective marketing mix?
For each touchpoint, for each instrument, we collect performance values from our customers, for example, reach, attractiveness, performance information. This information is collated in the algorithm, assessed, additional values are added, what does not offer added value is excluded, values are added again, and so on.
 
How do the results of the new algorithm differ from best practice?
In best practice, of course, you don't have combined values, you can't compare a website with an ad. Because of this information gap, you can't make a clear assessment in multi-channel communication. So in Total Audience, there is a relatively large amount of information missing today.
 
So the previous planning of the marketing mix went out into the blue?
Yes. Even if I don't make many friends now: It's a patchwork. Everyone is measuring something somewhere. But the question is: Where is the measuring point? Our measuring point is the actual buyer of products, not the TV viewer, not the newspaper reader, and not the Internet surfer. For that reason alone, we have a much higher degree of precision. It's like a racing bike: What kind of gears do you have, what kind of fork do you have, what kind of frame do you have? That ultimately determines how well and how fast you ride.
 
Sounds like an egg-laying jack-in-the-box ...
At the present time, this statement can be left as it is. Of course, the algorithm does not answer all questions, because we are moving at a certain altitude. But it offers the best prerequisites for strategic control of the marketing mix.
 
What questions remain unanswered?
With certain topics, there are indications where you have to go more in depth. For example, if you ask me why a certain target group is not satisfied with an interaction, then you have to look more closely there. But there you would also reach a limit with other instruments. Often it's enough to draw cross-connections. For example, the contact form is very important for a target group - but the customer doesn't have one. Problem solved.
 
Have you already been able to verify in practice whether the mix combinations suggested by the algorithm are more effective than classic success methods?
We tested the algorithm on data from old and current customer projects and on strategies that have been implemented. And we came to the conclusion that we get better results this way than with best practice.
 
How can the algorithm assess measures that have not yet been used, e.g. social media or online sales?
We don't just measure what our customer does, we look at what is being done in the entire target group. And in this way, we also see what the qualitative and quantitative benefits would be if the customer were to implement a measure that he has not yet used. For example, if a customer doesn't have an online store, we can tell them very specifically how many people they would reach if they had one. And we can also tell our customer how best to market his store to this target group.
 
You claim that you can indicate quite precisely which are the optimal marketing and media measures. Can your customer ONLINE can you be one hundred percent sure that the measures you recommend will have the desired effect?
Yes, our touchpoint analysis has a high degree of precision. In recent years, social media measures have been in vogue. We were now able to use the algorithm to precisely predict what has developed in this area, both positively and negatively. We got tangible information out of it, for example that a target group cannot be activated with certain means used or that engagement will be very weak. So we can make quite precise statements about the potential of measures and channels. There is also the case that customers want to reduce and focus their measures. Then, of course, they can eliminate one or more instruments. We can determine which ones would be best. Impact thresholds and advertising pressure are also becoming more and more of an issue. Some clients therefore have us check their media plan.
 
How much does the new service cost?
Prices vary depending on the consulting project. However, the costs are roughly comparable with investments for market research. The projects with 360° Touchpoint all have a positive ROI per se, because the various measures can be reduced, bundled and thus more budget remains for the individual measure. Accordingly, their impact improves.
 
Compared to other countries, is your development state of the art or a revolution from Switzerland for international marketing and media planning?
We have held talks with many protagonists from the media world, including internationally, and all of them have confirmed to us that they have never seen a planning tool like this before. We think we can use it to gain a foothold internationally as well. There is already a lot of interest.
 
Interview: Anne-Friederike Heinrich

Ruf Lanz: VBZ artfully advertises for skilled workers

1000 of around 2400 VBZ employees drive neither buses nor streetcars and are hardly visible to the population. Because VBZ wants to win over 100 such invisible talents every year, they are putting four of them in the spotlight of their personnel campaign.

At first glance, the pictures show familiar things like the ETH or the Quai Bridge. But if you take a closer look, you will discover an almost invisible person whose full-body painting blends in with the city backdrop. Four VBZ employees served as models for this, exemplifying many important invisible talents from the most diverse occupational groups of VBZ, according to a statement on Thursday.

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Inspired by Chinese artist

VBZ was inspired by the Chinese artist Liu Bolin. He celebrates great successes because he succeeds in merging with the background by painting and making himself practically invisible. Right in the middle and yet barely visible - like many VBZ employees.  

In keeping with the spirit of art, the images of the new VBZ staff advertising will be unveiled for the first time at a vernissage in the Hard streetcar depot. Afterwards, they will appear as advertisements in high-circulation newspapers, in cinemas in Zurich and Aargau, in VBZ vehicles and on VBZ's social media channels. On the website Invisiblevbztalents.ch the four VBZ ambassadors and their professional careers are also presented.

Responsible at Verkehrsbetriebe der Stadt Zürich: Jörg Buckmann (Head of Human Resources Management); Natascha Hufschmid (Specialist Human Resources Marketing). Responsible at Ruf Lanz, Zurich: Markus Ruf, Danielle Lanz (Creative Direction); Marcel Schläfle (Art Director); Markus Ruf, Florian Birkner (Text); Dave Schellenberg (Graphics); Rico Rosenberger (Photography); Pascal Thalmann, Rainer Kiefer (Photography).

Silverspot turns Grumpy Cat into a Happy Cat

A commercial for the cat food brand «Qualicat» shows how you can make even a grumpy cat happy.

"And you can still make them smile," says Remo Civatti, Managing Director of Silverspot. With the help of Qualipet's cat food brand "Qualicat" and thanks to state-of-the-art 3D animation from Silverspot, the new TV commercial shows what it takes to turn even a grumpy pussycat into a happy kitten. "I never doubted the success of the commercial and am very proud of our production," said Creative Director Nicolas Vonlanthen in a statement issued by the agency on Thursday.

Euro Shock" survey: Thorsten Schoen

Werbewoche survey on economic developments following the «euro shock» and its impact on the communications and advertising industries: Thorsten Schoen, Chairman of the Executive Board, M&M Media Holding

We suspect that the strength of the Swiss franc will have a major impact on the advertising industry. The pressure on margins will continue to increase for many clients. As in the past, communication budgets will generally be reduced as a first measure. Unfortunately, it is unlikely that companies will behave anti-cyclically, as the current mindset is too short-term. The weakness of the euro will not really relieve the cost prices of media providers, as well over 90 percent of costs are incurred in Switzerland. It can therefore be assumed that although the pressure on media prices will increase, they will not move much. It can be assumed that advertising budgets could fall by up to 10 percent, but this depends on the further development of the Swiss franc. It is difficult to estimate which media types will benefit and which will not. We expect a certain shift to "cheap" media such as online. But there will also be a shift to daily and weekly newspapers, as many sectors will limit themselves to sales price communication and euro bonuses. What is certain is that communication will move away from image and brand towards tactical advertising.
 

Smoke free - quit, but how?

Havas Worldwide Zurich launched the FOPH's new tobacco prevention campaign ten days ago. Many have already criticized that this is tantamount to paternalism, with nine million francs of state money going up in smoke. But is that true?

The declared goal of prevention is "a smoke-free society". This may sound a little patronizing, and above all utopian, but it is not quite as far-fetched as one might suppose. Looking back, one can see that many things have already changed as far as smoking is concerned. For example, until recently, smoking was still common in almost every office. Even cartoon characters smoked. "Not so long ago, it was also taken for granted that presenters on television smoked and you almost couldn't see people in discussion rounds for all the smoke," recalls Havas CEO Frank Bodin. A change in thinking had already taken place. This rethinking is now to be continued. However, there is no question of paternalism. The campaign is primarily about information and motivation for smokers who are ready to quit. The "Smoke Free" campaign therefore addresses those smokers who already want to quit. According to Suchtmonitoring Schweiz, 57 percent of smokers expressed this desire in 2013. They don't really enjoy smoking anymore. The campaign is designed to help and motivate smokers who want to quit.

The prevention measure and the entire "Smoke Free" campaign are paid for by smokers themselves: The campaign is financed by the Tobacco Prevention Fund (TPF), which is funded by a levy of 2.6 centimes per pack of cigarettes sold. The nine million Swiss francs used for the "Smoke Free" campaign are divided between the preparation period in 2014 and the implementation from the campaign launch in February 2015 to 2017. It was developed in collaboration with non-governmental organizations (NGOs) active in tobacco prevention, the cantons and the FOPH.

"Who is stronger: you or me?!"

The slogan "I am stronger" was born out of personal experience. "Quitting smoking is doable - but hard," says Frank Bodin, explaining the claim. This, he says, was inspired by his partner's father, who, living on an island, took up the challenge one day from a cigarette: "Who is actually stronger now: you or me?" Nevertheless, the slogan is in no way to be understood in a judgmental way, he said. "Of course, there are also people who are weaker - or become weak," says Bodin. But these are in no way to be condemned or even patronized with the claim. Instead, the slogan wants to motivate quitters to quit without condemning the smoker's weakness. Therefore, a cloud hovers around the head of all protagonists. The subject is thus intended to portray negative effects of smoking with a smirk. "We all know that smoking is not a healthy thing, so the image of a black lung does not change that," Bodin elaborates. "The

Prevention campaign does not want to moralize, provoke or shock", says also Caroline Ronzani, Senior Account Director at Havas Worldwide Zurich, "but to advise and motivate ". In this context, three concrete phases 2014-2017 have been set up. In the first phase, in addition to providing information about the harmfulness and increasing the motivation to quit, the support services are to be made better known. These include regional specialist and counseling centers, a mobile and online stop-smoking line, as well as family doctors and pharmacists. In addition, people who want to quit can take advantage of a support offer to quit together. The tool brings friends together to quit smoking. It will be launched in fall 2015 and is intended to lead to greater self-motivation. The campaign has also had an impact internally at Havas; two smokers at the agency have already decided to quit as a result of the campaign and have stuck with it so far. "Here you can see the efficiency of the campaign," says Frank Bodin with a wink. To ensure that this remains the case for all those willing to quit, the second phase of the "Smoke Free" campaign will involve the social environment as a multiplier. The storytelling will be continued and the willingness to quit will be strengthened. Phase three will then confirm non-smoking as a matter of course in society. In total, the 3-year "Smoke Free" campaign is accompanied by six commercials. The storytelling takes a surprising turn. The addiction doesn't go up in smoke, but the end of the campaign clearly confirms to those who want to quit: A smoke-free life is somehow simply more beautiful. We can be curious.

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Euro Shock" survey: Catrin Rubenson

Werbewoche survey on economic developments following the "euro shock" and its impact on the communications and advertising industry: Catrin Rubenson, CEO, Admazing

The last crisis had a threatening impact on the global economy. The current crisis mainly affects Swiss exports. Companies have more room for maneuver and can adapt. If these adjustments are quick and good enough, the slump - especially for our industry - will probably be less severe than in 2008/2009. As long as there are no exaggerated panic reactions, the decline in advertising expenditure will hopefully be in the single-digit percentage range. Of course, an anti-cyclical reaction would be desirable. So far, digital channels have always won during crises. If companies now want to work more efficiently, there is hardly any way around increased digitalization. However, in addition to digital media offerings, digital tools for increasing productivity will also win. Performance models are particularly attractive in difficult economic times. Good performance providers will certainly continue to be successful. Content marketing is one of the most important trends, as shown by the corresponding investments by companies and agencies. Paid media will therefore come under pressure and must deliver new models, solutions and ideas - whatever happens: new formats, automated trading, flexible booking models, data-based delivery, integrated campaigns with comprehensive tracking. The industry is not sleeping.
 

"NET-Metrix provides an incomplete picture of online usage."

Microsoft Advertising withdrew from NET-Metrix as of January 1. *Die Werbewoche* spoke with Vanessa Marr, Managing Director of Microsoft Advertising Switzerland, about the reasons behind this decision.

WW: Microsoft Advertising has dropped out of NET-Metrix. Why?
Vanessa Marr: First of all, there are technical reasons. NET-Metrix collects reach data on the basis of page-related measurement tags. Inserting such local measurement tags in global consumer products such as Skype or Outlook.com has become increasingly impossible for Microsoft. For this reason, we have only been able to correctly report the msn.ch portal in the last 18 months, but not Skype, Outlook.com or Xbox. However, since we market our entire portfolio in Switzerland, a coverage representation only for MSN is not a sufficient solution for us: After all, our performance values are incompletely represented and do not allow a fair comparison with other local providers - and this was always the most important reason for us to participate in NET-Metrix. In addition, agencies and customers are increasingly buying and booking target groups or ad impressions, and thus the advertising medium is moving into focus. Incidentally, these assessments also coincide with the research-related demands as formulated by the IAB Europe or the IAB Switzerland. The reach of individual websites, as provided by NET-Metrix, is thus becoming increasingly secondary. They play a central role in the strategic decision as to which site makes it into the media mix, but not in the operational sales process. Third, NET-Metrix provides an incomplete picture of overall online usage because it is limited to specific end devices and to participating websites.

What would NET-Metrix have to offer to bring Microsoft back?
We like to come back to the table when the advertising material is at the center of the research, when it is possible to track what was actually delivered in the course of a campaign and which target groups were reached and how often. Furthermore, the research should cover our entire portfolio of offers. For us, it is not a viable way to be able to report only a part of our inventory. Online has evolved massively, and research has to reflect that. We need to move away from media marketing research and towards campaign-oriented research. Only then can we collect accurate reach data for a campaign. If NET-Metrix offers the possibilities we need for our business, we will be very happy to be back.

Do you have a replacement for the NET Metrix numbers?
As an international company, we have been working in parallel for years with Comscore, a third currency that is not officially accepted as a market currency in Switzerland. Comscore works with user panels, so it's a sampling model similar to TV research. For large offers in Switzerland, the Comscore data is quite representative and surprisingly similar to the data from NETMetrix. We will now use this data in customer communications. We regret that we are no longer directly comparable in the market. Media agencies and publishers do not use Comscore at all, or only in a rudimentary way. So we present ourselves on the basis of the data and pass the reports on to our customers. By the way, other international online marketers do the same.

If the NET-Metrix and Comscore data are comparable, don't the systems have the same strengths, but also the same weaknesses?
Yes, Comscore is not a replacement for NET-Metrix. For one thing, Comscore is not the locally accepted currency, and for another, it does not yet offer a campaign-oriented measurement solution - at least in Switzerland. Comscore does, however, provide user-centric measurement. This helps the complete representation of our portfolio and has the great advantage that we see Google, Facebook, etc. mapped, which gives a more complete picture. Still, Switzerland needs a new solution and NET-Metrix would be predestined to provide it.

How does the exit from NET-Metrix affect your business?
We have already pointed out our withdrawal to some customers, and some have also asked us why we have not appeared in the NET-Metrix audit for some time. However, since we can explain our reasons in detail, our step meets with understanding. Besides, people know our reach and it will not change dramatically from one month to the next. For those who would like to have specific figures on the user profiles, we can provide Comscore data. Since NET-Metrix, as mentioned, plays a secondary role in the planning, it is not necessarily missed.

But if neither you nor your customers miss NET-Metrix and it works well with Comscore, why go back?
When NET-Metrix makes the switch to advertising-centric research, forms a basis for planning and booking, and plays a role similar to TV and print for the designation of a campaign, it becomes very relevant again. Because only with NET-Metrix we are comparable in Switzerland and remain transparent. We do not intend to run an extra train. But we want to be able to map our entire offering correctly and thus be comparable.

What is the importance of Switzerland as a location for Microsoft Advertising?
A high one. We have recently expanded the Swiss market in programmatic advertising, are active in the IAB, and also want to be a relevant player locally. We have international products, but they are very popular and in demand in Switzerland and are used heavily. Skype and Xbox are part of Mr. and Mrs. Swiss' equipment. And we successfully relaunched MSN with Swiss content last fall.

What can the Swiss market expect from Microsoft Advertising this year?
That we actively seek dialog with our customers - after all, we can't currently show certified ranges. That also has its advantages, because then we argue about other qualities: What makes us different from other vendors? Microsoft has a technological DNA, which creates a lot of dynamism. And our advertisers also benefit from this dynamism: they can play advertising material on all three screens if they want to. Or they can decide which audience they want to target. They can choose implementations that make them stand out from the crowd, for example with advertising on Skype or X-Box - keyword branding. We make advertising that stands out, but doesn't disturb our users.

Interview: Anne-Friederike Heinrich  

Vanessa Marr (39) has been Country Manager of Microsoft Advertising Switzerland since November 2014. She is responsible for the strategic and operational management and further development of the global marketer of digital advertising space in Switzerland. Marr has over 12 years of experience in the marketing and communications industry. Before joining Microsoft in 2009, she was responsible for market and media research and communications at Goldbach Audience. She also worked in the research department of SRG SSR. Microsoft Advertising markets all advertising spaces of the Microsoft portfolio: the MSN portal, Skype, Outlook, Xbox, Bing as well as the performance networks and content on mobile devices. 
 

In demand

The advertising week has Dr. Rolf Schmitz, CEO of NET-Metrix, for a statement on the subject. His answer: "Our measurement model requires a strong interaction with the respective customer in order to implement a uniform measurement logic for all customers according to the specifications of the Swiss market. Due to their supply and company structures, large international groups are sometimes interested in using uniform, strongly synergetic models across all country markets. Specific solutions for individual country markets can then unfortunately not be implemented, or only with disproportionately high effort. Naturally, we will remain in contact with Microsoft Switzerland and hope to have sufficient points of contact for a continuation of the partnership in the future. afh

Euro Shock" survey: Curdin Janett

Werbewoche survey on economic developments following the «euro shock» and its impact on the communications and advertising industries: Curdin Janett, CEO, Publicis

"It's too early to say." I think with a forecast today for the future or even just for 2015, you can only come out as either an optimist or a pessimist. Of course, some sectors will be affected very directly and very severely. And just as naturally, companies that are thinking about short-time working or worse will not engage in anti-cyclical marketing spending. But there is also a sunny side. There are certainly companies that have more costs in euros and income in Swiss francs. As with every change, new opportunities for new business ideas or even models are emerging.

One thing is for sure: talking up a recession really doesn't help anyone right now. Those directly affected felt it on the same day. There is no need to sensitize anyone to the issue. There will also be some companies that use the situation for a general cost exercise - simply because it is so normal at the moment.

However, as always, the winners will be the market players who seek the opportunity in the situation. Companies that find new, unique ideas and models, and agencies that can help their clients to do so.
 

Euro Shock" survey: Ronny Schmid

Werbewoche survey on economic developments following the «euro shock» and its impact on the communications and advertising industries: Ronny Schmid, co-owner, Konnex Agency for Media Communications

The lifting of the Swiss franc's lower limit against the euro confronts many advertisers in Switzerland with new general conditions. In the short term, these are even leading to additional investments being made in some cases. This can be seen in all the campaigns that focus on the euro discount. In the medium to long term, however, advertising investment in Switzerland is expected to fall. After all, the euro discounts now granted have to be financed somehow. This is where savings in marketing costs come in, as infrastructure and personnel costs cannot be reduced so quickly.

In addition, many international advertisers keep their budgets in euros. They will hardly accept 20 percent higher costs in euros and therefore cut budgets in Swiss francs. Of course, it would make more sense to invest in communications activities now and thus secure the strongest possible position for the next upswing. Experience shows that such an approach pays off in the long term. However, since most companies need to show the highest possible profits in the short term, it is unlikely that many advertising clients will seize this opportunity.

Offline media are likely to suffer more from a decline in advertising investment than online media. In tougher times, topics such as performance marketing and programmatic buying are likely to become more important. Whether this is always the right way to go, however, remains to be seen.

In any case, it is recommended that advertisers use partners who understand - even with reduced budget resources - how to develop target-oriented strategies and concepts that ensure the highest possible efficiency and effectiveness.
 

Euro Shock" survey: Beat Krebs

Werbewoche survey on economic developments following the «euro shock» and its impact on the communications and advertising industries: Beat Krebs, CEO, ZenithOptimedia Switzerland

One thing can be said with certainty: It will be a challenging year for the Swiss advertising industry. Swiss advertising agencies in particular will probably be put to the test even more than before, because a TV spot can also be produced in a cheaper EU country - whether it is just as good remains to be seen. Media agencies have less of a problem, because German agencies are not easily able to offer their services in Switzerland.
 

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