The weakness of the euro means additional challenges for many Swiss creative and media agencies:

1. if the current euro-franc exchange rate remains unchanged, I expect the economic slump in the second half of the year to be higher than currently forecast: - 2 to - 3.5 percent.

2. as experience teaches, there will be budget cuts at agencies - when companies are forced to lay off employees due to cost pressures and quickly invest in more efficient production processes, anti-cyclical advertising is unfortunately wishful thinking.

3. in global mandates, Swiss agencies are already coming under pressure with high wages compared to key European markets.

4. economic pressure favors alternatives: online and especially data-based performance marketing will benefit from this (and is therefore the area in which we are currently investing the most).

5. I am very happy if I am wrong with my forecast.
 

2015 could once again prove that so-called experts and forecasters are often wrong. I do not think that a recession is imminent (unless it is conjured up), but rather I believe in the strength and wisdom of our consumers and industry leaders. The Swiss have sufficient reserves and can afford to behave anti-cyclically. Therefore, I can well imagine a slight increase in advertising sales.
 

The current economic situation is having a noticeable impact in the form of slow or delayed budget commitments and increasing requests for costing and free concepts. A further indication is the desire of internationally active clients who are serviced from Switzerland to obtain additional quotes from network colleagues abroad.

As a result of this number-oriented thinking, a lower awareness of quality can often be observed, which is extremely dangerous. It is precisely now that it is important to focus more on the central values of successful communication in order to get the most out of every advertising dollar. The following 8 simple principles are central to effective communication:

1. courage instead of hesitation and procrastination
2. idealism instead of stubbornness
3. curiosity and daring to try something new instead of running with the crowd and doing the same as the competition.
4. playfulness instead of uptightness when it comes to ideas and creative implementation.
5. authenticity of the message instead of exaggeration and mediation.
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6. intuition instead of checking off checklists
7. independence instead of blind faith in defaults
8. perseverance instead of permanent change.
 

The impact of the euro exchange rate is leading to delayed decisions and a certain reluctance to carry out planned marketing activities in some sectors in the short term - how are market participants reacting? How will consumers behave? - and, as experience shows, a shift in favor of tactical measures of a promotional nature. This benefits media and channels that can quickly build up reach and make an impact. But also brands with a strong owned media universe and credibility in social networks. The "digital channels" also fulfill these requirements particularly well thanks to their networking expertise. But not exclusively. In the medium to long term, a new price/performance structure will emerge, which will raise the question of efficiency along the entire value chain once again/more sharply. From today's media and advertising market perspective, the shift in budgets in favor of digital transformation will continue. The SNB decision has accelerated the already "rolling stone".
 

The strength of the Swiss franc and the weakness of the euro are causing opposing trends. Over the past few years, we have already seen an increase in the purchase of media services abroad in the area of digital advertising, as CPMs are significantly lower there than in Switzerland. The technologies for targeting Swiss users on German websites, for example, have made cross-border purchasing possible. The weak euro will reinforce this trend, also with regard to the outsourcing of agency services outside Switzerland. On the other hand, it is not only the automotive industry that is currently focusing on greater awareness and additionally advertising euro discount campaigns, for example. The advertising pressure on Swiss companies will therefore not decrease, but the added value is increasingly being created abroad. Furthermore, an even stronger focus on performance-oriented media plans is to be expected. This trend has prevailed in all difficult economic times to date - most recently during the financial crisis in 2009. As a result, digital advertising channels will benefit and receive a further boost.
 

Unlike in the currency crisis of 2010/2011, many companies are reacting quickly and strongly to the removal of the Swiss franc peg to the euro. Even if it is still too early to take stock: Cost reductions will first show up in the export-oriented industry and then in all budgets of customers, the media and agencies. In my opinion, anyone who feels safe in the inland port is wrong. Ultimately, every company faces international competition, directly or indirectly. And that includes media and agencies.

In marketing communications, I expect to see a shift from image-oriented measures to those focused on sales, efficiency and effectiveness, such as dialog marketing, POS measures and online media. Because times of crisis are always drivers of innovation and therefore also offer opportunities, I see an acceleration in digital transformation - from product development to marketing. It is also likely that technology-based marketing automation in brand and content management, publishing and collaboration will accelerate."
 

The strength of the Swiss franc is logically a competitive disadvantage for the domestic communications industry. It will affect us all directly or indirectly.

Since employees are the main cost drivers for advertising agencies, the potential for savings through innovation in technical equipment is very limited. An art director costs about 60 to 70 percent less in Germany than here. We can't work 70 percent more efficiently than our competitors in the EU to make up for the huge wage gap. That is impossible. What we have left is the advantage of being close to the market. No one knows Swiss customers as well as we Swiss agencies do.

Nevertheless, even before the minimum exchange rate was lifted, a trend of budget migration towards the north was noticeable. This was only marginal in the case of image and major promo campaigns, but more pronounced in the case of packaging design, catalogs, and the design of digital implementations. This trend will accelerate dramatically in the coming months and years due to the strength of the Swiss franc.

The formula here is "the less Swissness is needed, the bigger the northward pull". Creativity, once the highest asset of Swiss agencies, will be less important as an argument for staying than desired. Thus, Swiss agencies and creative freelancers will pounce all the more on the remaining "Swiss" market volume. This will in turn increase the pressure on prices. And force us all to take a painful slimming cure.

There is no reason for optimism in this situation. It can only be hoped that Swiss advertising clients will see that at least part of the communicative value creation should still remain in the country, otherwise they will soon have no customers left to consume their products and services. And - and this is important! - that the possible cost-cutting measures at the communications agencies actually account for only a tiny fraction of the total price of a product or service!
 

The Swiss filmmaker Fredi M. Murer once said, "If you don't film, you'll be filmed." In the realm of the moving image, this assessment is probably true. But what about the written word? "He who does not write, is written about?" At least in advertising, the statement is hardly true. In my 15 years on the editorial staff of Werbewoche, we constantly strove to report on communications professionals who also had something as interesting as possible to write, copy or design themselves. More than 20'000 pages were created in this way during my time together with the Werbewoche team. What has remained of it?

Today I am cleaning up. The issues of the last two years are piled up under my desk, sorted by date. At home, a little less sorted, there are another 200 or so advertising weeks from the last 10 years. Who will ever read that again? My decision is therefore tough, but fair: I will put all the stacks in the waste paper. Then the magazines will be recycled and can serve a hopeful young copywriter once again as the famous "white sheet". Maybe his text will make it back into Advertising Week or even into the ADC yearbook. This means that the copywriter has not yet written a book himself. But he is at least one page closer to his secret dream.

However, ADC has also recognized the signs of the times and now only lets its book shine on the net. Books - see above - can be thrown away. The Internet is for eternity. Clever tongues say, however, that ADC only decided in favor of eternity because printing costs have become too expensive in recent years. But this is not to say that everything was better in the past. Advertising certainly wasn't. There was no targeting yet, and storytelling was relegated to the realm of storytellers. Nevertheless, I was drawn to the world of Mad Men.

When, in my early days as a trainee copywriter at GGK in Basel, I was unceremoniously put into Martin Suter's office on my first day due to a lack of other free places, he reacted a bit disturbed at first. Instead of being able to continue dreaming of a future as a writer in the peace and quiet of his solitary cell, he now had to explain advertising to me. Suter did it. I let myself be permanently taken in by this industry and have since spent a large part of my life between being and design. Occasionally far away in exotic places, because advertisers know where to communicate best.

While researching for over 150 "Head of the Week" portraits, I got to know countless exciting life plans. I was able to experience valuable attitudes and many sensible, but in each case completely different, motivations for a commitment in the communications industry and then recommend them to a larger readership. For my discussions of new campaigns, I was able to visit many very creative agencies during meetings with the creators.

This not only gave me an insight into the most diverse office worlds. I was also able to get to know very different work cultures and take something away from them.

With this in mind, as I say goodbye to Werbewoche, I would like to thank all my interview partners over the past 15 years. Their input will remain in my head, even if the magazines now go into recycling. And I already know: I will create something new again from all this learning.

I'm looking forward to that, even if the dormant ideas are not yet ready for printing. Either way, I want to buy a package of 500 white sheets from the recycled waste paper just to be on the safe side. Raw material for it, after all, I have supplied enough. Otherwise, it won't be stupid to follow Fredi M. Murer's advice. After all, my cell phone is suitable for video.

Andreas Panzeri

A crisis has never harmed anyone. Because crises have a positive effect. They raise awareness and sharpen the focus on things that are obvious but are often suppressed without the necessary pressure. Swiss consumers may have been surprised by the SNB's move, but they are enjoying their increased purchasing power. After all, there has never been such a high and sudden revaluation in European economic history. The cut comes as less of a surprise to large and multinational companies. They have always seen the franc as both an opportunity (margin) and a risk (costs). Cost-intensive processes, such as the printing of magazines, were relocated to neighboring countries some time ago. Conversely, products that are produced in the eurozone are sold in local currency. In plain language: money is earned in francs and invested in media francs. The exchange rate has little influence here. And anyone who produces, advertises and sells in Switzerland doesn't need to worry about the euro. Right up to the point where the beloved Swiss watch is exported. We need not expect an immediate and drastic fall in media budgets. Instead, the floating of the franc will force a strategic rethink in the media and advertising market and significantly accelerate the change that has been underway for some time. The focus will certainly be on digital media, but less on channels than content. Customers are interested in content and not necessarily in haptic newspapers or tablets.

This development is not new, but it will continue to push publishers to focus on stories and less on printing and distribution. The same applies to moving images. TV is on its way to becoming the second screen, while the primary screen is now in our pockets. The fact is, Swiss consumers have just as much money as before (or more), and locally available products are also becoming cheaper. But what if purchasing power turns into shopping tourism? In order to maintain domestic sales, few clients will want to reduce their marketing budgets. However, they expect quality for their money. And this is precisely where the strong franc will hit the Swiss media and advertising industry. The costs for high-quality services are effectively comparable 1:1 with the eurozone.

Ideas and concepts know no borders, and it shouldn't really matter whether they are developed in London or Bern. Controlling takes a different view. Agencies must clearly differentiate themselves through their positioning and local added value. This is how they are measured by their clients. This is nothing new and has always been the case. Only with the new market conditions, the strategic rethink - the digital & data shift - is becoming an absolute necessity for everyone in the media and marketing business.

Our industry will have to tighten its belt in line with the overall economic trend. How hard an agency will be hit in the short term depends on its customer structure (e.g. car importers). Personally, I am convinced that the slump will be smaller than in the crisis years of 2008/2009. The budget shift to content and performance marketing will increase. Print will (unfortunately) continue to lose ground unless new, more creative forms of advertising are offered.
 

The latest evidence: Blatter awards the World Cup to Qatar, which submitted by far the worst bid of all participants. Because it is much too hot for soccer in Qatar in the summer, Blatter moves the World Cup to the winter without further ado. And finally, despite all these wrong decisions, he wants to be re-elected as Fifa president.

Notwithstanding: Blatter has high entertainment value. A man who, free of self-doubt, makes the world as he pleases, who disregards all rules of decency when "güeti Fründe" are rustling with bills in the background, must first be watched in disbelieving amazement as he works. But when is it enough? Blatter has been Fifa president for 17 years, and his middle name is corruption. Next to Putin and Berlusconi, whom he likes to embrace, Blatter easily passes. People talk about it openly, laugh about it, rant about it. And now Blatter wants to get at it again. Isn't this getting embarrassing? Not only for Fifa, which is after all the world's football association. For Switzerland, too.

Moving the World Cup into winter naturally opens up new gateway opportunities for marketing and merchandising: think of a World Cup Christmas market, the referee in a Christkindl costume or, for the little ones, complete soccer equipment for Christmas. But it poses serious scheduling problems for the clubs and especially for ARD and ZDF, which are broadcasting the World Cup. After all, in a world that has not succumbed to madness, winter sports events are broadcast during this period.

Nevertheless, we can't get beyond an indignant, astonished "That's not possible! The fact remains that only the emperor can dethrone the emperor. And if it suits Blatter, the ball is square and a game lasts 79.2 minutes. Wikipedia knows about the Valaisan: "In his education, he was a fighter, skipping the second grade of primary school. A model student, he got only very good grades in all subjects except discipline and singing." That explains a lot, but not everything.

Can it really be that the media, the fourth power in the state, namely ARD and ZDF, can do nothing about these blatters? If the two broadcasters had not long ago bought the broadcasting rights for 2022 for what is probably a shameful sum, they could now do a lot for their acceptance and credibility. They could cancel the broadcast of the World Cup with a joint shoulder instead of bending over backwards. But chasing an egg-laying cash cow out of the barn that you've already fed? The president of the German Football League, Reinhard Rauball, had more courage. He at least considered withdrawing the European Football Union UEFA from FIFA. Nothing happened. But what would actually happen if the next World Cup were simply cancelled?

Camera panning: We say goodbye to Andreas Panzeri, who shaped Werbewoche for 15 years with commitment and apt ideas. Anyone else would be talking about retirement, but Andreas is of course moving on: as a freelancer with his own film production, a return to his roots as a filmmaker. We wish him strength and endurance, success and fun, and look forward to meeting him again soon as "Head of the Week" in Werbewoche. Many thanks and all the best.

Anne-Friederike Heinrich, Editor-in-Chief
[email protected]
 

I don't want to join in the great lamentation. Metaphorically speaking: The SNB has turned the room temperature down a little. Instead of moaning and philosophizing about how cold it could get, it is now wise to put on a long-sleeved shirt and move around more. Companies have always had to demonstrate this flexibility. In concrete terms, many clients are actually behaving anti-cyclically: they sense that they have an increased need for communication and want to be seen now. They are looking for fast, flexible and cost-efficient measures and channels. I think that online in all its forms is also benefiting from this development.