While the umbrella organization Swiss Advertising exuded optimism during its anniversary year in 1999, the tide has since turned.The downturn of the year: Following a stellar 2000 (with 4.4 billion Swiss francs in advertising spending nationwide), the advertising industry in particular has felt the economic slowdown acutely. After all, this sector tends to feel such fluctuations earlier and to a disproportionately greater extent. Failed startups and suspended IPOs, rolling waves of mergers and the faltering New Economy, job cuts and consolidations. The “Black Autumn” and its events dampened consumer sentiment to such an extent that even interest rate cuts failed to stimulate consumer spending. Consequently, the stock prices of most international advertising giants—as well as those of unlisted agencies—plummeted: Compared to their prices at the start of the year, as of the reporting date of December 11, Interpublic Group (including McCann-Erickson and the Lowe Group) was down 34.9 percent; Havas Advertising (Euro RSCG) was down 42.2 percent; WPP Group (Young & Rubicam, Ogilvy & Mather, J. Walter Thompson) was down 18 percent; Omnicom (BBDO, DDB, TBWA) was the exception, trading a full 5.8 percent higher, while Publicis (Publicis, Saatchi & Saatchi) was down 15.6 percent.The agency with the most turmoil this year: On December 6, Publicis CEO Fredy Collioud let the cat out of the bag: The Lausanne office will close at the beginning of 2002. The move was triggered by a budget restructuring at key client Nestlé, which at the time separated Publicis Lausanne from Nestlé’s in-house Bureau des études publicitaires (BEP). In the future, clients will be served by the sister agency in Zurich or by Saatchi & Saatchi in Nyon, which is also part of the Publicis network. The closure in Lausanne is also leading to changes in Publicis’s management in Zurich: Starting in January 2002, Cornelia Harder will take over the role of Managing Director from Fredy Collioud. Collioud, who has led Publicis Zurich for 15 years, will remain Chairman of the Executive Board. In contrast to this abrupt withdrawal, two positive developments occurred: In February, the Swiss Publicis Group acquired a majority stake in Switzerland’s largest direct marketing agency, Fisch Meier Direkt in Adliswil. And on August 9, Optimedia and BG Media announced their merger, effective at the start of 2002, to form the leading media agency. With cumulative billings of approximately 310 million francs, the company ranks ahead of industry leaders Best of Media/CIA and m&m Holding.
The Liberalizers of the Year: In the coming years, a gradual deregulation of the domestic market is expected to bring it more in line with market conditions in the European Union. Experts say that the best way to achieve open markets is through free market access for international competition. To date, a general market opening in the telecommunications sector took place on January 1, 1998, affecting basic infrastructure. Postal services have been partially liberalized since the same date. One year later, the rail sector had only made minor adjustments to the future market situation. Among other affected groups, this liberalization has led—and continues to lead—to patriotic reactions in their communications: Eat Swiss cheese, choose Swiss bread, and opt for Swiss meat. This was the main message that advertising for these product groups conveyed to consumers last year. In the energy sector, interest groups such as Axpo, Swisspower, and 1to1-Energy have formed to give competitors entering the local market a proper welcome: by creating and establishing Swiss electricity brands to make the market a rocky one for them.
The Brand Grounding of the Year: In Advico’s Brand Asset Valuator 2000 study, the Swiss carrier no longer ranked among Switzerland’s top 20 power brands, even though the airline frequently won industry awards and the brand was said to be worth several billion. Or so it was said. On October 2, when Swissair could no longer take off due to its insurmountable debt burden and was forced into a chaotic grounding—unlike anything typically seen in Switzerland— one would have hoped to use the intangible brand value to come up with the necessary kerosene and settle its obligations to partners and employees. But neither CEO Mario Corti’s rebranding effort—which was cut short on the runway—nor the image campaign launched in July at the AY&R hangar could save the airline from the turbulence. In its cool, purist «We care» campaign—which reflected the airline’s premium attributes in white-on-white—the former pride of the nation seemed to have already disintegrated into its constituent atoms. It wasn’t just thousands of jobs at Swissair that vanished into thin air. In addition to the Swiss national identity, the tourism and communications industries suffered the most. In the latter, Swissair spent a good 6.2 million francs in Switzerland alone during its final year. According to its own statements, the in-house agency AY&R—which also handles Kuoni and its subsidiary Helvetic Tours—has not yet had to issue any layoff notices. The future of Target Publishing, the publisher of the in-flight magazine, however, hangs in the balance, and the company is seeking a new home.
The Most Creative of the Year: There was little change in the top ten Swiss creative agencies. Publicis, Zurich, was knocked from first to second place by Advico Young & Rubicam (AY&R), Zurich. The new leader achieved a rare feat: After AY&R’s thought-provoking commercial for Médecins sans Frontières had already been voted “Campaign of the Year 2000” by *WerbeWoche* readers, the Gockhausen-based agency went on to win the coveted Golden Lion in Cannes. McCann-Erickson, Zurich, remained in third place. Newcomers included Jung von Matt/Limmat in seventh place and the web agency
RØSA in ninth place.
Advertising Savers of the Year: The year 2001 was quite a year: Even in the previously bright blue skies of the thriving telecommunications industry, storm clouds of instability began to gather. This eventful year in telecommunications began with the merger of Diax and Sunrise, with the Diax brand falling by the wayside. Shortly after the merger, Sunrise switched from Lowe Lintas GGK (LLGGK), Zurich, to Wirz Werbung, Zurich. Orange, which is served globally by Lowe network agencies, also reallocated its budget—much to the chagrin of Frank Bodin’s Euro RSCG Switzerland and much to the delight of Mark Stahel’s LLGGK. According to Media Focus, in the IT/Office sector—which includes telecommunications—the decline in advertising spending during the first three quarters of this year was 18.3 percent, or 228.2 million Swiss francs. In the same period last year, this same category spent 279.4 million Swiss francs on advertising. Telecom companies played a major role in this decline, cutting their advertising investments by a total of 29.2 percent. Orange leads the decline with a 43.8 percent drop. The «Greenland brand» spent just 17.4 million on its communications, whereas its budget for the same period last year had been a whopping 30.9 million. The former monopoly holder, Swisscom, got off lightly. It had to reduce its advertising spending by only 3.9 million Swiss francs—or 7.2 percent—from 55 million to 51.1 million Swiss francs. On the list of the top 50 advertisers, the Swiss telecom provider currently ranks third, followed by TDC Switzerland (Sunrise), which ranks 12th with spending of 20.5 million francs. Orange Communications ranks 19th.
The Party Flops of the Year: The graduation ceremony organized by the Marketing and Communication students was unworthy of the industry—an industry that prides itself on conveying, distilling, and visually bringing emotions to life. In the seminar room at the X’01 marketing trade show, a few sponsor banners were hastily slapped up, and the 100 or so attendees were scattered among 250 chairs, only to be bored by panelists who had already participated in the event ten or more years ago. Like a military roll call, the new graduates filed onto the stage in groups of three to receive their diplomas. Mediocre wine and soggy sandwiches put the final nail in the coffin of this dreary affair. The juniors deserved better on this important day! The only bright spots: the speech by SW President Carlo Schmid-Sutter, who has a brilliant knack for crafting concise and intelligent statements with just a few words; and the hopeful anticipation in the graduates’ eyes that the future will be better.
The party highlights of the year: Advertisers know how to party. In 2001, there were more great events than ever before. Some deserve a mention: The SonntagsZeitung’s Gambling Night and the Plakandafest are surefire hits. Both deserve bronze! The Goldbach Center inauguration and the ADC Gala deserve the designation “valuable” and thus silver! At both events, Michelin-starred chef André Jaeger showcased his—not exactly inexpensive—culinary skills. And that says it all about the quality. But gold goes to the Bernese! Though we like to dismiss them as “provincial,” this year’s coolest parties took place in the federal capital—or were conceived there. It all kicked off with the Bund party at the crazy Hunziker-Mühli-Päsche in Rubigen. Everything was free, everything was great! The Berner Zeitung capped it off with the Bodega aperitif in Zurich. Lang Gysi Knoll brought the festivities to a close. The invitation to the annual party featured a CD by Simone Quast in a dominatrix look. And the party was just as wild.
The year’s biggest advertiser: A veritable barrage of marketing innovations propelled Switzerland’s second-largest retailer to the top in 2001, clearly surpassing Migros—the long-time leader—in advertising spending. The «So macht’s Freude» (“That’s What Makes It Fun”) image campaign by cR DDB, Basel, kicked off the sales and communications strategy at the beginning of the year, communicating the Coop Forte vision both internally and externally with the new logo designed by Külling & Partner. While building the new brand identity is certainly not cheap, it is already bearing its first fruits. Impressive gains in market share across all sectors speak for themselves. According to Media Focus, Coop’s advertising spending from January through October rose by a solid 8.8 percent compared to the same period last year (2001: 161 million / 2000: 148 million francs), while Migros, in the year following its 75th anniversary, cut its gross advertising expenditure by 14.8 percent (2001: 144 million / 2000: 169 million francs). The many advertising agencies that work for Coop have reason to remain optimistic. If CEO Hansueli Loosli’s clear brand strategy and statements are followed, the Basel-based retailer’s advertising strategy is unlikely to change significantly in the future.
The Big Exodus of the Year: When former Optimedia CEO Andy Lehmann announced at the end of June that he was founding his own independent, owner-managed media agency, people suspected that this might have personnel consequences for Optimedia. However, the sheer scale of the exodus from the Publicis network agency came as a shock: Of a total of about twenty employees, no fewer than ten had decided to join Lehmann’s media agency, Seefeld. Publicis resolved the issue by announcing in early August that the depleted Optimedia would merge with the previously independent media agency BG Media, effective January 2002. But the exodus was not quite over yet, because in mid-September, BG Media’s Outdoor Advertising unit announced that it would not participate in the merger of the two media agencies and would instead also work for Mediahaus Seefeld, which launched on December 1. Meanwhile, BG Media not only restructured its outdoor advertising unit (with Florian Walz at the helm), but also filled the other vacant positions. The client list for Mediahaus Seefeld, announced at the beginning of the year, is now eagerly awaited. Here, too, poaching of clients is expected.
Media Overhaul of the Year: For years now, the weekly newspaper *Die Weltwoche* has been the subject of unsuccessful restructuring efforts, endless discussions, and constant grumbling. However, it became Switzerland’s undisputedly largest print media construction site as of early June of this year, when the two new co-editors-in-chief, Roger Köppel and Kenneth Angst, took the reins. This marked the beginning of an even more difficult period—at least temporarily—for an editorial staff already facing an uncertain future. As was to be expected, numerous employees had to vacate their desks during the restructuring process to make room for colleagues who better fit the new vision. In October, the speculation about *Die Weltwoche*’s future format was finally resolved: As of January 31, 2002, the long-established newspaper will transform into a magazine—slightly larger in size but, in terms of page count (104 pages), about one-third thinner than *Facts*. In the advertising market, it aims to generate the revenue—and in the reader market, to attract the curious magazine readers—that had been sorely lacking in the past. The Basel-based media group itself describes the upcoming relaunch as its last chance to finally put a bottom back in its Zurich “bottomless pit.”.
Troublemaker of the Year: When Michi Frank changes employers, trouble—that is, a whole arsenal of new competing products—is guaranteed. After six years at Belcom AG, Frank joined IP Multimedia (Switzerland) on January 1, 2001. Just eight months later, new marketing projects were pouring out of the Küsnacht-based company’s cornucopia. Each one more controversial than the last: The one originally aimed at the
The advertising slots planned for October 1 on M6 initially sparked outrage among Bakom, then TSR, and half of French-speaking Switzerland. Even today, negotiations are still underway with individual cable network operators regarding the launch of the advertising slots, which is why their start has been further delayed. IPM’s announcement that it would also sell advertising time for regional TV stations in the future met with fierce resistance as well. This time, the opposition came from Radiotele, the marketing arm of TeleNewsCombi. Only IPM’s two other new initiatives—its entry into nationwide local radio marketing and the advertising block on Vox set to launch in January—went off without a hitch, escaping fierce verbal attacks from the competition.
The "Rising Star" of the Year: No sooner had Christian Stärkle joined Schawinski’s Belcom as CEO this spring than the company was sold, and Stärkle was already shown the door by Jürg Wildberger and Kurt W. Zimmermann. To make matters worse, the members of his radio association also deserted him. Some people thought: Now Chrigel is out of the radio and TV industry for good. But what doesn’t kill Stärkle makes him stronger. Remember: When he was trying to launch a private TV combo, he was even mocked by the great Roger Schawinski. Today, Schawinski is out of the picture, but Stärkle heads TeleNewsCombi. Want to bet that, following the demise of TV 3 and Tele 24, he’ll also revive his Prime TV idea? One thing is certain: Schawinski, Wildberger, Zimmi, and whatever the other TV executives are called—they’re leaving, but Stärkle is staying. As Belcom CEO, of course.
Ascetic of the Year: Walpen earns about 450,000 francs a year; the SBB conductor makes a bit more; and Honegger from Swissair is also raking in an outrageous amount. The wage gap between executives and rank-and-file employees is widening more and more. But in the midst of this social disaster, one man provided a refreshing counterpoint: Kilian Gasser. He moved from Facts to the WochenZeitung (WoZ) as advertising director, fully aware that he was giving up half his previous salary in the process. Anyone who thinks Gasser could be lured away somewhere else with just a few francs more should be warned: they’ll have a hard time getting past Gasser’s idealism.