Survival in crash market

Despite the downturn in the new economy, Netzwoche and Internet Standard are benefiting from trade shows and exhibitions

Netzwoche and Internet Standard profit from trade fairs and exhibitions despite the slump in the New EconomyBy Daniel SchifferleWhen they were launched, the two Swiss Internet titles Netzwoche and Internet Standard were caught right in the middle of the slump in the New Economy. But with thick special editions on trade fairs and exhibitions, they are still able to compensate for the insufficient take-up of the normal editions.
The environment for the launch of the two new Swiss Internet titles Netzwoche and Internet Standard could not have been more uncomfortable. For just as the B2B paper Netzwoche was launched on April 19, the crash of the New Economy in the USA had begun. In the aftermath, there was nothing but bashing for the Internet industry, whose players were almost being brought close to criminals.
And when the public stock Internet Standard hit the market on August 18, the crisis of the New Economy had fully spilled over to the Old Continent. The share prices of even the best companies shrank to small fractions of their original value. Many young Internet companies disappeared from the scene altogether.
Potential advertisers for the young papers thus died off, and the surviving companies have to be frugal with their funds. A sad reality for print products that were still being planned in the heyday of Internet speculation. But this development has not only caused the investment power of an entire industry to shrink. The never-ending flow of bad news has also thoroughly scared away the public's interest in the new economy.
This has a marked impact on potential readers' demand for the new papers. Both are still being coy about detailed figures. Claude Settele, publishing director of Internet Standard, confirms that his paper sells fewer than 1,000 copies per issue at newsstands. This is not a good sign, because this sales channel shows the vitality of a title like nowhere else.
But even in terms of subscriptions, the Internet Standard has only reached 5500 copies, according to Settele - far, far from the target that was once set. According to the original business plan, the target of 17,000 copies sold was to be reached by the end of 2001. Now Settele is cutting back and considers only 10,000 copies to be realistic by the end of the year.
Optimistic budgets are now being downgraded
At the newsstand, Netzwoche is doing very similarly to Internet Standard - also "under 1,000 copies sold per issue. However, the newsstand is also much less significant for a B2B paper than for a general-interest title. According to publisher Heinrich Meyer, the personally addressed circulation of Netzwoche fluctuates between 4000 and 6000 copies per issue, depending on marketing measures. In addition to annual subscriptions, this also includes trial and introductory subscriptions.
"The budget was made in a completely different time," says Settele, explaining the discrepancy between the original claim and current reality. The former publishing director of Internet Standard, Martin Meier, who has since died of a serious illness, had even aimed for a circulation of over 30000 copies in 2003. "I no longer consider that realistic either," says Settele, who switched from editor-in-chief to publishing director after Meier's death.
Too small a marketing budget now takes revenge
Settele also admits that Internet Standard invested too little in marketing in the first six months since it was launched. This will now be intensified. It wasn't until December that they found someone to really take care of marketing in Daniel Allemann (previously at Cash). The low marketing effort at the kiosk was particularly noticeable. Instead of increasing the pressure, the presence at this sales channel, which is so important for the image and awareness of a title, decreased more and more. In the meantime, the notice poster for the Internet Standard is only exceptionally encountered at a newsstand.
But it's not just in the reader market that the air has become thin. On the advertiser side, too, the reality looks very different today than it did six months ago. "The dotcom companies are running out of money, so now they have to use their funds in a very measured way," says Settele. Gone are the days when the cash reserves from IPOs were still bulging and the young start-ups could place ads as if they were already large, established companies.
Nevertheless, a rich source of advertisements is still intact: At trade fairs such as Internet-Expo, Orbit, Jobfair or Karriere-Expo, advertisements are plentiful, because at these hubs of the New Economy, every company that has something to do with the Internet wants to make its presence felt. At such exhibitions, both Netzwoche and Internet Standard can realize their big numbers. With the consequence that, whenever possible, two issues are produced at the same time for a trade fair.
Instead of three to four pages of advertisements, as encountered in the normal issues of Netzwoche, for example, there are twelve to fifteen pages in these special issues. The same can be observed at Internet Standard: Instead of an average of three or four pages of advertisements, as in the normal issues, there are also ten to fourteen pages of advertisements in the issues for trade shows.
Both titles made a serious miscalculation in their role as a platform for the job market. When they were launched, both Netzwoche and Internet Standard had banked on their importance for the IT industry's job market. Far from it. Because the job pages in the normal numbers rarely have more than one or two job offers. "We expected more," admits Netzwoche editor Meyer. "We thought it would take less set-up work," argues Settele. One main reason both blame for the weak demand: Good employees in the web sector would be contacted personally or via headhunters.
"If it goes further down, we'll have to go over the books".
But despite the catcalls in the New Economy, Netzwoche and Internet Standard are confident about their future prospects. Settele admits, however: "If things go down any further, we'll have to go over the books." For the time being, however, the situation is not dramatic, he says. He also points to the advantages of having a large and financially strong company behind him: "IDG produces around 300 print titles worldwide, and quite a few of them took a long time to become successful."
Likewise, no alarm bells are ringing at the moment at the B2B publication Netzwoche. It has its costs under control and will break even as early as this year, says Heinrich Meyer. He is convinced that demand for advertising space will not fall any further despite the decline of the new economy. "Because the so-called old economy is now investing consistently and gearing its organizations and operations to the Internet and e-business - hype or no hype."

Fashion only for the patient

Markus Ruf and Danielle Lanz are revamping the look of the Big fashion chain

Markus Ruf and Danielle Lanz revamp the fashion chain BigMankind has been divided into two camps in all areas since time immemorial. This is also true in fashion: On the one hand, there are the fashion victims. These are people who run after every dernier cri as soon as it is presented on the catwalk. And, appropriately, there are the true victims of the fashion victims, because they have to submit to their passion. The threat is particularly acute in the immediate vicinity of one particular fashion chain: Big.entrusted with the direct mandate again after four years, the freelance creative duo Danielle Lanz (1999 Advertiser of the Year) and Markus Ruf (reigning Advertiser of the Year) tailored a whole new communications outfit for the women's fashion chain. By every trick in the book, the two advertisers circumvented the standard implementation for fashion. Without draped beauties or massive taboo-breaking, the campaign dramatizes the fashion house's time-consuming selection. page 12

Muse & Musse: David Hanselmann

Muse & LeisureDavid HanselmannWhat cultural event did you last attend?David Hanselmann: While on vacation in the interior of Bali, I went to see some of those legendary cockfights. It was incredible to see the emotions there—

Muse & MusseDavid Hanselmann
What was the last cultural event you attended?
David Hanselmann: During my vacations in Bali, I watched some of these legendary cockfights in the interior of the country. It's gigantic how the emotions of the locals run high.
What are you reading right now?
Hanselmann: "Sneaker story" - the duel between Adidas and Nike. Sports used to be about sweat, today it's about glamour.
Which CD do you currently prefer to listen to?
Hanselmann: "Light Years" - Kylie Minogue.
Which movie would you most like to see again?
Hanselmann: "Snatch. Because it features the first squealing pit bull in film history.
What TV show did you fall asleep during the other night?
Hanselmann: I never fall asleep in front of the TV. On the other hand, I always need a few video clips in the morning to pick me up.
What is your latest discovery on the Internet?
Hanselmann: www.laforet.ne.jp
Love is ...?
Hanselmann: ...incredibly strong.

Also: The former Secretary General of the Swiss People's Party (SVP), Jean-Blaise Defago, joins the Executive Board of the communications agency Burson-Marsteller Switzerland as of June 1

In addition, Jean-Blaise Defago, the former secretary-general of the Swiss People's Party (SVP), will join the executive board of the communications agency Burson-Marsteller Switzerland effective June 1 and take over as head of the Public Affairs division.

In additionThe former Secretary General of the Swiss People's Party (SVP), Jean-Blaise Defago, joins the Executive Board of the communications agency Burson-Marsteller Switzerland as of June 1 and takes over as Head of Public Affairs/Corporate Communications Bern/ Western Switzerland.
Stefan Schär recently took over as head of marketing and sales at content provider Swiss TXT. Schär was most recently responsible for marketing expansion at Swisscom Real Estate.
Carla Fuhlrott-Capello joined Generation Media AG on March 1. She will work alongside Petra Kreussler in consulting management. Fuhlrott-Capello was previously with the media agency m&m.
Mario Aldrovandi takes over the business development of electronic media B2C at Medien-Z-Holding. Aldrovandi was previously Managing Director of Yellowcontent.
Heinz Billeter, previously Head and Business Manager of the Swiss branch of Reader's Digest, is leaving the company. He was succeeded by Tamara Tschuor on March 2.
Starting in April, Wirz's creative department will be strengthened threefold. Thomas Kurzmeyer and Christoph von Arb will work as copywriters/concept designers, Maria Schönbucher will contribute her experience in art buying.
Radio Sunshine's former Sales Manager, Pascal Köchli, is moving to advertising marketer Radiotele.
As of March 1, Bernhard Oehrli took over as Head of the Printed Products Division at Limmatdruck AG in Spreitenbach.

"Breaking up monopolies is cheaper than buying up companies"

Gérard Unger, President of Mediavision, on the gradual conquest of new markets

Gérard Unger, President of Mediavision, on the gradual conquest of new markets "Breaking up monopolies is cheaper than buying up companies".
Two years ago, the French cinema marketing company Mediavision expanded into the western Swiss market, breaking Cinecom's monopoly. Mediavision now has 44 cinemas under contract in western Switzerland, giving it a market share of 37 percent (see page 23). The move into the rest of Switzerland is prepared.
In 1999, Mediavision entered the Swiss market by marketing cinema advertising for the Balexert multiplex in Geneva, breaking Cinecom's monopoly. What do you gain from the Swiss market?
Gérard Unger: We are on an international expansion course. In doing so, we are following our most important business partners, i.e. those cinema groups that also operate outside France. For Switzerland, this is the Village Road Show (VRS), which operates the Balexert Geneva multiplex cinema. So our strategy is not just to mark presence, which usually involves losses. Besides, it is always easier to gain a foothold in a country without much competition. It is also no coincidence that duopolies or oligopolies exist in most countries. A monopoly is always very fragile.
Have you been able to break up any other monopolies with your expansion strategy?
Unger: Yes, in Holland.
Does Mediavision itself have a monopoly in a country?
Unger: No, but in France we control two-thirds of the market, in the Netherlands 50, in Poland 55, and in Spain are
it is around 30 percent. In French-speaking Switzerland, the figure is 37 percent for the time being. As I said, a monopoly is very fragile, which is why we are not aiming for that.
Which are the three most important cinema groups in Europe for Mediavision?
Unger: In France, this is Gaumont Pathé, which now operates under Europalace. In second place comes UCI, which is mainly active in Spain, Portugal, Italy and outside Europe in Brazil. In third place is VRS. Kinepolis is an important partner for us only in France.
Last year, Mediavision achieved 3 percent of cinema advertising sales in Switzerland - even though gross sales in this industry fell by 7.9 percent in 2000. How were you able to achieve such a result?
Unger: Balexert was the first large multiplex in Switzerland and is also located in such an important city as Geneva. That attracts a lot of people. That's why the result was surprisingly good.
Since the beginning of this year, Mediavision has contracted 31 more movie theaters. And next year, at least 13 more are to be added. What special offers do you have for cinema operators?
Unger: By breaking up the Cinecom monopoly, we have brought life to the Swiss market. Customers also feel like comparing. In addition, Mediavision was already known in French-speaking Switzerland. We enjoy a very good reputation here. We also bring over 70 years of experience to the table.
Generally speaking: What distinguishes your offering from that of the competition, i.e. Cinecom?
Unger: In addition to the rate structures, which hardly differ from the competition, and the advertising potential, service and advice certainly also play a major role. We also attach great importance to the chemistry between the partners. We can offer customized solutions, from which our Swiss customers will soon benefit.
But the Swiss market is comparatively very small. What are the special features of this market for Mediavision?
Unger: The size of the market is actually not that important for us. Much more decisive is the question of what and how much can be extracted from a market. The Swiss advertising market is highly developed. In terms of viewers, the potential is far from exhausted.
Last fall, RMB took over Cinecom. Wouldn't that also have been a way for Mediavision to penetrate the Swiss market more easily?
Unger: No, that's not our philosophy. Following a customer, that is, a cinema operator into a country to break up a monopoly, is much more effective and far cheaper.
Up to now, Mediavision has only been active in the cinema advertising market in French-speaking Switzerland. What's preventing you from moving into the German-speaking market or into Ticino?
Unger: It's more a cultural problem, and we don't speak the same language. But I can assure you that we have already taken steps and corresponding contacts exist. We are very interested in this part of Switzerland.
Have you contacted owners of small and medium-sized cinemas, or are you not interested in this clientele?
Unger: Oh yes, we do. If we dominate two-thirds of the market in France, it is also because we are interested in small and medium-sized operations. Here in French-speaking Switzerland, we have signed quite a number of contracts with small and medium-sized movie theaters.
At the time, Mediavision relied on VRS, which owns Balexert in Geneva, to become active in the Swiss market. VRS will sell Balexert and withdraw from Switzerland, if not leave Europe altogether. What are Mediavision's prospects now?
Unger: If this had happened six months ago, it would certainly have caused us headaches, because at that time we only served this one cinema center in western Switzerland. In the meantime, we have signed contracts with numerous other cinemas and have thus been able to gain a definitive foothold. Of course, we also hope to be able to work with the future owner of Balexert - whoever that may be.
The Swiss tobacco industry is thinking aloud about giving up cinema advertising for its products. That would mean a big loss for you. What long-term development do you see for the Swiss market?
Unger: It would only be a temporary loss. After all, we have experienced this in France. There, not only was advertising for tobacco products banned in cinemas in 1991, but also for alcohol. By 1993/94, we had overcome the crisis. We simply looked for other advertising partners who were geared to a young, culturally interested audience and who could offer products such as cell phones, jeans and perfumes.
Who were your most important advertising customers in 2000? And which customers have you already signed up for this year?
Unger: British American Tobacco BAT, Coop, Swisscom. New additions this year are Nike, Henniez, Nivea, Nestlé, Fiat, Amag and SSR-Reisen.
What possibilities does Mediavision use to control the broadcast of its advertising films?
Unger: On the one hand, we have inspectors who visit the cinemas anonymously on a random basis. On the other hand, the cinema operator has to fill out a form about the films that are shown.
Cinecom has just opened an office in French-speaking Switzerland. Does that bother you?
Unger: Mediavision and RMB are the biggest competitors in all countries. One time it's us who mark a success, the other time it's the competition.
You name it, Cinecom has just renewed contracts with Metrociné, or newly Europlex, the second largest cinema chain in Switzerland, for a longer period with 29 cinemas. Your offer apparently didn't stand a chance. Why?
Unger: We were probably too expensive. But we believe that a good service has its price. So if we want to provide our services correctly, we cannot engage in price dumping.
Interview: Anita Vaucher

Uncoole Arrogant.01

It was time for some event-hopping again. On Wednesday in Zurich’s Niederdorf, the premiere of Trio Eden’s new show, «That’s Amore.».

Event-hopping was once again the order of the day. Wednesday's premiere of the new Trio Eden spectacle "That's Amore" in Zurich's Niederdorf By Beat Fritsch A visit from Helmi Sigg, Guy Landolt and Midi Gottet was worthwhile, as the shortlist author was told that there was no end to the laughs and howls that followed. As a true Zurich native, he naturally spent last Wednesday in Basel listening to "Schnitzelbängg" and practising self-criticism:
"We made it, for the first time, from the Baanhof to the Barfi, no Metropol!
At 20 minutes, that's to be expected, there are black traces at the Fuudibutze."
With reference to the Stasi past of the Basel theater director, the "Nachtschwärmer" exposed themselves as agents of the "Clara-Boschte" (the name of the Basel police headquarters): "As agents, I like to protect and torture people with 20 minutes.
And if the cheeks aren't dry, it's off with the Metropol."
So much for the Basel carnival for Zurich residents and their publishers. Funnily enough, and to encourage further rumors, not a single "Bangg" mentioned the NZZ, Weltwoche or Matthias Hagemann! Has the Basel media group now also monopolized all "Bangg" poets?
The following day, a flying visit was made to the "Giesserei" in Oerlikon, where suchtreffer.ch celebrated its launch on the Swiss market. Then they made a pilgrimage to the neighboring "Rohstofflager", where Swiss media professionals were presented with dubious awards at Arrogant.01. The Geroldstrasse supermarket also introduced something new with G-17. This is the name of Urs Mühlherr's future Thursday evening event, known from the Massiv Ursives events with Yves Spink.
A changing of the guard was celebrated at suchtreffer.ch. Rolf Suter, formerly with IP Multimedia, took over the management of the search service, half of which is owned by Medien-Z-Holding and half by the German Suchtreffer AG. The latter's CEO Andreas Owen took the honor of making his presence felt at the event with his partner Klaus Kappeler.
Things really got going at Arrogant.01, where the organizers had the audacity to announce a buffet. It consisted of Migros canapés. They were served for exactly fifteen minutes - then the budget was exhausted. And the free drinks were alcoholized syrups. It was served at exactly one - hopelessly mobbed - bar. In the end, it turned out that pretty much everyone had one of those stupid VIP wristbands around their neck that they had received at the entrance. A complete success!
The event is the brainchild of mad hairdresser Marc Menden and cultist Rainer Kuhn. The most unpopular Swiss media professionals are honored at the awards ceremony. There are such incredibly original categories as "Best Widow Shaker" (SI boss Marc Walder thanks to Ilona Hug) and "Biggest Career Leap" - for Peter Rothenbühler. But there was also an incredibly coveted award such as "The most beautiful rolling R", which went to Alenka Ambroz.
Incidentally, the only title holder present was Detlev Munz (Tele 24), who stood his ground and had a new haircut for his second place for "Best TV hairstyles" right on stage.
Beat Fritsch

was harassed by paparazzi at Arrogant.01, just like others. He had finally landed a hit. No wonder he lost his appetite and left in the direction of the supermarket.
Anyone who behaves arrogantly anywhere else in the communications industry - and almost everyone does - will be spotted at various events in the scene. Do you already have something to report? Pick up the phone (01 296 97 98) or hit the keys ([email protected]). Event tips and further shortlist images are available online at www.werbewoche.ch

TV 3 involuntarily stops interrupt advertising

Now that the Federal Supreme Court has also insisted on strict compliance with the Radio and Television Act (RTVG) and declared commercial breaks on TV 3 to be inadmissible

After the Federal Court also insists on strict compliance with the Radio and Television Act (RTVA) and declares interstitial advertising on TV 3 inadmissibleTV 3 involuntarily stops interstitial advertising
There are no longer any possibilities for the Tamedia broadcaster to obtain protection against the outdated law. Last Monday, therefore, negotiations began between TV 3 and Bakom on how the objectionable programs interrupted by advertising can be made legally compliant in future. TV 3 boss Jürg Wildberger: "There will be programming changes." This will be about more than just cosmetics. However, he reassures the advertising industry: the current GRP services will be maintained even with the upcoming changes. Wildberger also believes it is unlikely that TV 3 will see a reduction in revenue as a result of the changes.
Ueli Custer, Managing Director of Interessengemeinschaft elektronische Medien (IGEM), still has no sympathy for the requested changes: "The ruling raises new questions. For example these: What is a broadcast? Millionaire' is recorded in longer sequences and deliberately divided into individual pieces. This proves how nonsensical such rules are." According to Custer, an early revision of the advertising rules is therefore becoming increasingly urgent (dse).

Market share taken from the private sector

SRG radio stations are gaining listeners, especially in German-speaking Switzerland

SRG radio stations gain listeners, especially in German-speaking SwitzerlandThe year 2000 was a milestone for SRG radio stations in German-speaking Switzerland, as they were able to regain market share (MA) from the private stations for the first time in 15 years. In French-speaking Switzerland, too, the trend towards private radio seems to have been broken, while in Ticino both SRG stations and private broadcasters were under pressure.Since the introduction of private radio at the beginning of the 1980s, the MA of SRG radio stations has always pointed downwards. A good 15 years later, SRG has succeeded for the first time in winning back an audience from the private stations. At least in German-speaking Switzerland. In 2000, SRG radio increased its market share by four percent to 51 percent. This was at the expense of both the domestic and the private stations occupying the airwaves from abroad, which each lost two percent of the audience share. Private radio stations in German-speaking Switzerland thus dropped to 38%, while foreign radio stations ended up with an 11% MA.
The trend in western Switzerland was similarly in favor of SRG. Here, too, the continuing trend towards the private stations was broken for the first time. SRG radio improved by two points to 46% MA, while the private stations suffered a loss of three points to 37% MA. In contrast to German-speaking Switzerland, however, foreign radio stations in French-speaking Switzerland escaped unscathed: last year they were able to maintain their 18% MA.
Ticino radio stations under increasing pressure from Italian broadcasters
Only in Ticino did fewer listeners tune in to SRG radio frequencies. And this was after having succeeded in the previous three years in taking audience away from foreign radio stations, which are particularly strong in southern Switzerland. In 2000, however, they were able to improve by a full three points to 17 percent MA. However, it was not only the SRG that suffered, losing two points and now with an MA of 75%. The private radio stations in Ticino also lost a point. They currently still have a measly MA of eight percent.
With the results for the year 2000, radio research is moving away from the method used since 1975, in which listener research data was collected using representative interviews. Radio usage is now surveyed using the "radio listening" clock, which has been providing valid data since October 1. As far as the reliability of the new system is concerned, the head of the SRG research service, Matthias Steinmann, immediately dispelled any doubts. The test was carried out by using the radio clock to measure TV usage. The results from Radiocontrol and Telecontrol matched more than 99 percent. Controller heart, what more could you want!
Daniel Schifferle

The Luchsinger elephant

You have to give Matthias Luchsinger and his crew credit for one thing. When they throw a party, it’s guaranteed to be a massive bash—and guests always flock there in droves.

You have to hand it to Matthias Luchsinger and his crew. When they organize a party, it's a massive party - and the guests tend to flock there in droves.by Beat Fritsch This was also the case last week, at the last ever Cinecom event. Well, those days are now sadly over! There will be no more Cinecom parties in the future! Over, dead, finished!
And that's exactly why they all came again! To hear Matthias Luchsinger's last official speech as head of Cinecom, to be carried away by the usual hot performance - this time it was dancers dressed as monks who soon stripped off their clothes - and to treat themselves once again to an evening of real excess at Cinecom's expense.
But don't worry, there are still plenty of other advertising parties. Of course, Cinecom will not be dissolved and abolished either, but simply renamed. All future parties organized by the cinema marketer from Zurich's Neugasse - and hopefully there will be many more - will be held under the RMB Switzerland logo. This change in the company's name reflects what is already a fact. Cinecom has been owned by the Europe-wide marketer Régie Média Belge (RMB) for some time now. And Luchsinger is now not only head of the Swiss branch, but also manages the Central Europe unit.
The Cinecom team, under the aegis of Jean-Claude Bruhin, therefore took the opportunity to give the boss a special surprise. Luchsinger was certainly amazed when his deputy took the floor and Nicole Steinegger entered the stage with a cute young elephant. The crew presented their boss with an elephant sponsorship, which was much more meaningful than Jelmoli vouchers or a bottle of wine, as Bruhin said. With the latter in particular, the wine specialist Luchsinger could make a huge mistake with the wrong selection. The idea was a hit! A successful surprise, Luchsinger was pleased to say, especially as this child of the gods would at least not be showered with presents every year for his birthday and Christmas. Animal rights activists, rest assured. The young elephant on stage was just a cardboard cut-out, the real counterpart lives happily in Amboseli National Park in sunny Kenya.
The double christening took place in Zurich's far West End, more precisely in the new "Labyrinth". A fact that tempted one or two visitors to take a look, especially as the "Laby" is not one of the places usually frequented by the advertising scene. Or only part of it - for non-insiders, let me explain: in the "Labyrinth" you normally meet men who love men, even platonically. At the current event, the gender ratio was certainly balanced, with an equal number of male and female advertisers. Among the guests we saw Flavia Schlittler, former shortlist columnist, local TV cook and Spozz presenter. Rumor has it that she will soon be working full-time in the communications industry again. Manuel Nappo, on the other hand, said his farewell to Rialto Film on the same day. And bought himself a Porsche (second-hand) as a farewell present, or perhaps because life without work is so boring.
Beat Fritsch

was invited to a special kind of elephant christening last week. On the one hand, the advertising time marketing elephant Cinecom was given a new name, and on the other, Cinecom boss Matthias Luchsinger was able to take over a real elephant sponsorship.
Anyone who usually meets in the communications industry will be found at a wide variety of events in the scene. Do you already have something to report? Pick up the phone (01 296 97 98) or get in touch (info@ werbewoche.ch). Event tips and further shortlist images are available online at www.werbewoche.ch

Side effects included

The U.S. pharmaceutical advertising market is booming, but the campaigns are formulaic and invite parodies

The U.S. advertising market for drugs is booming, but the campaigns are uniform and provoke parodyBy Thérèse BalduzziMore than three years ago, advertising for prescription drugs was liberalized in America. The impact of the mandatory listing of side effects on advertising effectiveness remains controversial. The only thing that is clear is that drug advertising has become a well-known genre that is already happily parodied.
A TV commercial for the allergy medication Allegra begins with a family of three driving into the countryside. Father and son get out of the car and look forward to hiking. Only the wife stays in the car and sneezes because she suffers from allergies. A little later, however, she enjoys the fresh natural air just as much thanks to the prescription Allegra, inhales it deeply. The voice-over announces that Allegra (active ingredient Fexofenadine) can cause headaches, upper respiratory infections and back pain as side effects.
In a commercial for the appetite suppressant Meridia, various women proclaim that they have their eating habits under control. "Cheesecake doesn't turn me on," declares one, "I don't confuse Love and Lasagna," the other. After that, an off-camera voice warns that Meridia is not suitable for people with high blood pressure, depression, anorexia, Parkinson's disease, glaucoma, or those with heart conditions, pregnant or breastfeeding women. Side effects could include headaches, constipation, insomnia and dry mouth. There is also a risk of becoming addicted.
Liberalization triggered ad and spot boom
When the Food and Drug Administration (FDA) liberalized regulations for prescription drug advertising in 1997, it paved the way for an incredible inflation of commercials and ads. Every day, dozens of drug commercials for all sorts of ailments flicker across the screen: Depression, allergies, herpes, obesity, asthma, flu, colds, impotence, irritable bladder, multiple sclerosis, Alzheimer's, heart disease, osteoporosis, arthritis, migraines. And the magazines are teeming with corresponding advertisements.
Billions flow into direct-to-consumer advertising (DTC), as drug advertising is known. Last year, DTC represented the sixth largest advertising category. Spending nearly doubled in 1999 ($1.8 billion) from 1997 ($1 billion). Spending on TV ads alone more than tripled between 1997 ($309.6 million) and 1999 ($1.1 billion).
The "Fair Balance Guidelines" of the DTC guidelines stipulate that side effects must be enumerated. Nevertheless, critics complain that patients are given only fragmentary information, which often creates false expectations. Since patients nowadays visit the doctor anyway with a load of printed information from the Internet, drug advertising only creates additional confusion. Doctors would be pressured by patients pumped full of advertising to prescribe them certain medications, even if they thought others made more sense or a medication was unnecessary.
Even the FDA is divided. On the one hand, it accepts the proponents' argument that drug information emancipates patients and promotes discussion between doctors and patients. Last year, however, the FDA was forced to issue a "public health advisory." This warned consumers that doctors were relying too much on the effectiveness of the new antiviral flu drug Relenza, which may have even caused the deaths of certain patients who might have needed stronger treatment.
Changes in the
Doctor-patient relationship
Also of concern is the FDA's accelerated pace at which newly approved drugs can become big sellers overnight. Under the old regulation, new drugs were distributed more slowly, which gave the agency time to monitor any side effects that may only occur with wider use.
Several studies on the impact of the new campaigns highlight how they have changed the doctor-patient relationship. One FDA study found that of 960 patients who had visited a doctor in the previous three months, 27 percent had been persuaded by commercials to discuss with the doctor a health problem they had never mentioned before. Seven percent requested a prescription for a specific drug they knew from commercials. Half of these had their request approved.
In another study, 329 randomly selected California residents were asked how they would react if their doctor did not fulfill their request. A quarter said they would get the prescription elsewhere if that happened. Fifteen percent would consider changing doctors forever because of it.
However, the extent to which doctors give in to patient pressure depends on the specialization of the doctors and the seriousness of the illness, according to a study by Scott-Levin in Pennsylvania, which measures the effectiveness of DTC advertising. For example, infectious disease specialists who treat AIDS patients are less likely to be talked into their decisions. Foot specialists, on the other hand, would be more likely to be persuaded to write a prescription for the nail fungus medication Laprisil. Women who want a prescription for the birth control pill Ortho-Tri-Cyclen, which also treats acne, almost always get it.
Tepid advertising effectiveness due to naming of side effects
The advertising effectiveness of drug ads and commercials, as in many other categories, is controversial. Various figures are published and passed around in this regard. For example, a survey conducted by the Television Bureau of Advertising (TVB), which covers local television stations in 210 U.S.
markets and benefited from drug advertising that 32.4 percent of respondents visited the doctor as a result of DTC advertisements. One-third of these received a prescription for a drug.
In contrast, a survey by consulting firm Morpace Pharmaceutical Group found that only just four percent asked for a specific drug based on a recent campaign. However, only four percent of the total population requesting a specific drug could represent a sizeable market for a pill maker.
Sometimes, however, the campaigns have the opposite effect: the listing of side effects required by the "Fair Balance Guidelines" can provoke negative reactions and discourage patients from taking a drug even if they urgently need it. It is believed that sales of the Hoffroche product Xenical have suffered quite a bit from the possible side effects mentioned in the ads and commercials, such as "bloating," "increased bowel movements," and "oily discharge."
In such cases, the solution can be found in the so-called Generic Ads: They draw attention to a specific health problem and encourage consumers to talk to their doctor about it, without mentioning a specific drug. This also means they are not obligated to mention side effects. Another option is to mention the name of a drug, but not the health problem it is intended to alleviate or cure. In this case, too, side effects do not have to be listed. The new campaign for Xenical follows exactly these two strategies.
This type of advertising relies on its indirect effect. Namely, on the fact that a certain percentage of viewers will visit the doctor and, in turn, some of the doctors will prescribe the particular drug.
Guidelines make the
Campaigns more credible
Although the "Fair Balance Guidelines" make pharmaceutical companies uncomfortable, another TVB survey suggests that listing side effects helps credibility. In one survey, for example, 62 percent of 2,000 respondents answered that they thought drug ads were more credible than ads in all other categories. 61.3 percent gave credence to nonprescription drug advertising and 56.4 percent to health product line advertising.
Thus, the credibility of drug advertising far exceeds that of other products. The listing of side effects in the campaigns is held responsible for this. In comparison, campaigns for small trucks, for example, achieved a lower level of credibility at 50.6 percent. Statements in ads and commercials for insurance were still believed by 41.8 percent of respondents. However, the degree of trust in the drug effect says nothing about how much respondents are willing to put up with the possible side effects.
Already there are spot parodies on drug campaigns
Many campaigns for drugs are designed according to scheme X: They start with a more or less successful visual presentation of the health problem, introduce the drug and its mode of action, and then show happy, cured people. Finally comes the obligatory litany of possible side effects, usually recited by a soft voice at incredible speed. Because of their frequency, they have become a cliché that has already been made fun of in numerous commercials for other products.
An ad for Energizer batteries by TBWA/Chiat/Day begins like a commercial for a hair loss remedy: a young man in a swimming pool explains how successful the drug has been, then turns around, revealing his unsightly, heavily hairy back. And just at that moment, the Energizer Bunny marches into the frame. Two spots by DeVito Verdi for TheStreet.com, an online business newspaper, use the knitting patterns for Alzheimer's and impotence drugs and parody them by alerting viewers to the possibility of being disoriented when buying stock.
Goodby, Silverstein & Partners also likes to use involuntary laughs, using DTC parodies for two different campaigns, for E-Trade and TiVo. A spot for E-Trade, an address for online investors, pokes fun at the frequent spots for allergy medications. An investor sees a spot for the fictional allergy drug Nozulla. In it, a woman dances around happily in a flowering meadow thanks to the drug. But when the off-screen voice lists the side effects, including hair loss all over the body and babies born with dog heads, the young man immediately sells his Nozulla shares.
Making the most sense with the nonsense is a spot by the same agency for TiVo, the digital recorder that can be used to turn off commercials while watching TV. It opens with an unsavory spot in which two older men talk about "masculine itching," an allusion to spots for "feminine itching" (vaginitis). But before one of them starts to grab the other's pants with a handful of unsightly white paste, an off-screen voice interrupts: "Get TiVo. Skip the stuff you don't want to see. TiVo, TV your way."

Head of the week: "Being able to manage a brand holistically convinced me".

ELKE ZAPPE, a former advertising executive, has been the head of WM Wirtschaftsmedien AG since January 1, 2001

ELKE ZAPPE, a former advertiser, has headed WM Wirtschaftsmedien AG since January 1, 2001Head of the week "Being able to manage a brand holistically has convinced me".
Elke Zappe has been at the helm of WM Wirtschaftsmedien AG, publisher of the business magazine Bilanz, since the beginning of January. Despite this position, the former advertiser does not see herself as a career woman: "Egoistic goal orientation has never influenced my career," she says. The 43-year-old attributes the secret of her success to her fascination and enthusiasm for her work. She sees her move to the publishing side more as a logical progression in her professional development process than as a career leap.
Nevertheless, Elke Zappe's curriculum resembles a storybook career: After completing a degree in economics in Duisburg, she took her first practical steps as an account manager at the Düsseldorf advertising agency Ernst & Partner. "The move into advertising gave me the chance to come into contact with different customers, products and markets," says Zappe.
After working for several years in German agencies, she moved to Switzerland for private reasons. At Aebi, Suter, Gisler, Studer/BBDO, the Düsseldorf native continued on her chosen path as Account Director. For around ten years, she worked in Swiss agencies, most recently as co-owner of the Studer & Zappe agency in Zurich.
The collaboration lasted three years. The desire grew in Elke Zappe to also work independently in the areas of marketing and management consulting. For the time being, a trip around the globe was to create the necessary mental space for the reorientation.
Back in Switzerland, she managed projects at home and abroad as an independent marketing and communications consultant. The offer to manage WM Wirtschaftsmedien AG and develop new multimedia products came "out of the blue" for Elke Zappe. But the possibility of exercising comprehensive responsibility and thus being able to manage a brand holistically finally convinced her.
Now Zappe wants to "inject new oxygen into the Bilanz brand. The way forward is to expand the Bilanz multimedia platform with new product ideas. In the first two months, she focused on bilanz.ch. "With content syndication, we are trying to make our online strategy affordable," she continues.
The next step will be to target television and radio: "These media are predestined for economic topics," the managing director is convinced, and emphasizes that "partnerships in this framework create good conditions for putting together high-quality broadcasts.
Carole Koch

Out for RØSA Berlin.

The Swiss multimedia agency RØSA is forced to close its doors in Berlin after My Media GmbH filed for bankruptcy and failed to pay the outstanding invoices for the multi-million project www.myweb.de

The Swiss multimedia agency RØSA must close its doors in Berlin after My Media GmbH filed for bankruptcy and was no longer able to pay the outstanding invoices for the multi-million project www.myweb.denicht. According to Marky Goldstein, the Swiss managing director, remaining German clients will be served directly from Zurich in the future.
Martin Spillmann is representing Switzerland in Cannes.
Martin Spillmann, Creative Director at Advico Young & Rubicam, will serve on the film jury at the Cannes International Advertising Festival (June 18–23). The Swiss entries are already facing the critical eye of the public: Through the «Swiss Entry Award,» visitors to the Swiss Cannes website can cast their votes and win tickets to the festival.
Election campaign advertising in Vaduz.
The Lampert Printing Center in Vaduz has livened up the political election campaign with a humorous poster campaign. Under the slogan «Make the Right Choice,» Lampert had the names Walch, Walser, and Wolf printed on a poster that was not meant to be taken entirely seriously. The explanation followed in the second poster: The so-called «candidates» are all members of the management team at the Lampert printing company, who, strangely enough, all have namesakes in various political parties. The campaign featuring the «surprise list» was created by Rainer Gassner at Komix AG for Marketing, Public Relations, and Advertising in Schaan.
Stronger warnings on cigarette packs.
The EU Council of Ministers and the European Parliament have decided that warning labels on cigarette packs must be larger in the future. The plan is for the warnings to cover 30 percent of the front and 40 percent of the back. The measure is set to take effect in Europe in October 2002, while it will already be in effect in Canada starting in June (see WW 6/01).
Snapshots from Behavioral Research.
The Tages-Anzeiger rewards its subscribers with discounted Carte Blanche offers for subscribing to the newspaper. In 2000, 200,000 subscribers took advantage of 257 different offers. In response, WHS in Zurich conducted a field study to investigate how readers behave when they want to benefit from these offers without taking out a subscription. Without exception, all those observed obtained discounts by smuggling a second person—hidden under their coat—unnoticed past a ticket inspection. The results are now being published in a campaign consisting of three ads.
Art on the Cover.
The new auction catalog 1/01 features 650 posters from Guido Tön’s collection. The illustrated catalog can be ordered for 40 francs by fax at 01 482 79 33. More than 250 travel posters dating from 1898 to 1985 are scheduled to be auctioned on Saturday, March 17, starting at 12:00 p.m. at the Swissôtel International in Zurich. Sixty cultural posters «of the finest quality» as well as another 300 items are awaiting bids.
Affichage is experiencing double-digit growth.
Affichage Holding posted strong growth in the past fiscal year. Revenue at APG’s parent company rose by 14.5 percent to 307.6 million Swiss francs. Consolidated net income reached 28.4 million Swiss francs (up 18.4 percent). Affichage stated that this result was attributable, among other things, to improved economic conditions in Switzerland. In Switzerland, the group increased revenue by 14.8 percent to 279.8 million Swiss francs. Revenue from international operations grew by 11.1 percent to 27.8 million Swiss francs.
No red tape at Zurich's government offices.
The City of Zurich is currently marketing an attractive advertising space with a creative idea. While Amtshäuser III and IV are being renovated, the scaffolding is being covered with posters ranging in size from 300 to 420 square meters each. Zürich-based BlowUP Media is responsible for the project. Since March 5, a new design by Eva Pauli has been on display on Lindenhofstrasse. The design is the winning poster from a design competition on the theme «Zürich on the Move.» All entries by the 19 creatives who participated in this competition can be viewed at www.stadt-zuerich.ch.
Horx sets trends in Hergiswil.
The Zukunftsinstitut, led by German trend researcher Matthias Horx, is opening a Swiss branch. In cooperation with the market research institute IHA GfM, the branch will open in Hergiswil in March. «Over the course of 2001, we would like to bring together a small group of Swiss trend and future researchers who wish to collaborate with the Zukunftsinstitut in Germany and Austria,» Horx told WerbeWoche.
Central Station for Sauber.
CS presented a successful promotional idea at the start of the Formula 1 season: Starting at 2:30 a.m. on Sunday morning, 600 racing fans watched the live broadcast of the first race on a big screen at Zurich’s main train station. As is well known, the cars bearing the CS logo finished in the sensational 4th and 6th places in Melbourne. That’s why there was a huge crowd at the Sauber pit even after the race, where passersby could watch a tire change on a real Sauber race car.
THE FEDERAL COUNCIL PREFERS WINE TO WOMEN. During his official visit to the Geneva Motor Show, Federal President Moritz Leuenberger showed little style but plenty of political consistency. He refused to shake hands with Miss Switzerland—who is traditionally present there—because he wouldn’t allow himself to be exploited for car advertising. The Mercedes driver showed less reluctance to mingle with the cervelat-loving crowd the following Sunday. On «Lüthi & Blanc,» the magistrate surprised viewers with a guest appearance on the Ticino TV show, where the socialist ordered a Merlot. What the staunch opponent of car advertising may not have known: One of the main sponsors of «Lüthi & Blanc» is the Rover car brand. But perhaps Leuenberger was less dismissive in this case than he was with Miss Mahara because the head writer of «Lüthi & Blanc,» Katja Früh, is the wife of Federal Parliament correspondent Hans Bärenbold. And, as it happens, this couple owns a house built by Leuenberger’s partner, the architect Gret Loewensberg. That’s how subtle advertising can sometimes be.
Editorial

It's All a Matter of Maturity
The erectile dysfunction drug Viagra, the weight-loss capsule Xenical, and the smoking-cessation aid Cyban—all prescription medications that have made headlines in recent years without appearing in the media’s advertising sections. Throughout Europe, including Switzerland, a ban on advertising prescription drugs remains in effect. The Swiss spend about three billion through their health insurance plans on medications, with an additional 1.5 billion paid out of pocket. And the trend is rising. Since early 1996, over-the-counter medications have also been allowed to be advertised on TV in Switzerland. The Americans went one step further: three years ago, they liberalized advertising for prescription drugs. According to a study by the Food and Drug Administration (FDA), this has permanently changed the doctor-patient relationship. Our article on page 14 describes exactly how. Interestingly, precisely because of the mandatory listing of side effects, Americans consider drug advertising to be more credible than any other form of advertising.
Even though the liberalization of the Medicines Act was rejected in Bern, the regulatory framework for pharmaceutical advertising continues to evolve. Pressure is coming primarily from the media. Lifestyle drugs with sex appeal, such as Viagra or the “happy pill” Prozac, are on everyone’s lips. Comprehensive coverage of health topics is steadily increasing in the media: the buzzword here is “wellness.” Even though newsrooms hardly see it as their job to promote products, medications are frequently named and compared in their reports. The second major issue is the Internet. The dissemination of information via the Internet—not to mention the even bigger problem of distribution—cannot be controlled by any national authority. Today, there are already thousands of websites that provide health information, including details about medications. The Internet circumvents government regulation intended to protect consumers and does one thing: it leaves the question of the maturity of the consumer of medicinal products unanswered.
Samuel Helbling

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