How to continue without cookies?

The end of third-party cookies has been a hot topic, at least since Google announced that they will be phased out in the popular Chrome browser by the end of the year. What does this mean for Swiss publishers and advertisers?

Image: Unsplash.com

User tracking—particularly cross-site tracking via third-party cookies—has gotten out of hand in recent years. In some cases, a single visit to a news website resulted in over 50 cookies being set, all of which tracked the user across pages. Constant retargeting only added to the problem. And this at a time when data privacy—especially since the Cambridge Analytica scandal—has become increasingly important. Users don’t want to be tracked—period. But they also don’t want to pay for content on websites, so in the past they’ve accepted a certain amount of tracking in exchange for free content—though, in reality, they don’t want that anymore either. That’s the real crux of the whole issue. This led to pressure for new laws (GDPR, etc.) on the one hand, and on the other hand, browser manufacturers have addressed this need.

What role do browsers play?

Smaller browsers in particular, such as Firefox and Safari, see data protection as an opportunity to differentiate themselves and take market share away from Chrome, the market leader. They are focusing on data protection, thereby addressing customers’ interest in not being tracked. In doing so, they often go further than lawmakers and block third-party cookies even when users have given their consent to be tracked by them. Currently, Chrome is still the exception, but that will definitely change by the end of 2021.

What does this mean for Swiss publishers?

As is well known, publishers have so far struggled to make money online—or, more specifically, to earn as much money as they used to from print. The problem is that users don’t want to pay for content, so revenue must come from advertising. And the more targeted this advertising is, the more it can be sold to advertisers and their agencies. In addition, Swiss publishers also need some kind of targeting product to compete with Google and Facebook and their data. And it is precisely this data that was collected in the past via third-party cookies, which are now being phased out. The alternative: so-called ID solutions. These work as follows: When a user logs in with their email address or phone number—for example, to comment on an article or subscribe to a newsletter—an ID is generated. The email address or phone number is used as the basis for the ID and is hashed (encrypted) for identification purposes.

On the one hand, one might wonder whether this is really the future—after all, email addresses and phone numbers are quite sensitive data when used as a basis. And what if lawmakers ban these as well in the medium term, or if browser providers block them? Google shares these concerns and will not support ID solutions within its advertising ecosystem (Google Ads, Google Display Network, YouTube). On the other hand, this is nothing different from what we already know from Google and Facebook and their «walled gardens»—and what we’re forced to accept in order to use their services. When in doubt, publishers are now following suit and building their own «walled gardens.».

One thing is clear, though. In the future, consent will increasingly be obtained through the login process—and not just on publishers’ websites. And the only real alternative that avoids data protection issues and doesn’t rely on email addresses or phone numbers is contextual targeting, which will certainly regain importance among Swiss publishers as well. That said, compared to ten years ago, the contextual targeting product available today will certainly be better.

Why does Google play such an important role?

Google plays a dual role in this context. On the one hand, it is a browser provider with the Chrome browser, which has an estimated market share of 40–45% in Switzerland. As the market leader, however, Chrome must hold its own against competitors who are trying to take market share away from it by offering privacy features. On the other hand, Google is an advertising network (primarily the Google Display Network and YouTube) and has, until now, stored targeting data in third-party cookies and «tracked» users across all websites in the GDN.

Starting in 2022, Google will also phase out third-party cookies in the Chrome browser—and, more importantly, individual tracking—or, to put it another way, block them in the same way other browsers do and implement alternatives. Unlike other market players, however, Google will not support ID-based solutions as an alternative; instead, it is pursuing its own approach with the Privacy Sandbox. For users, this is slightly more privacy-friendly than before, as only cohorts (approximately 5,000 users) are tracked, rather than individuals. For publishers—and thus advertisers—this approach is slightly less effective, with Google estimating it at 95 percent of third-party cookie performance. Retargeting will also continue to exist in some form. The Privacy Sandbox currently applies only to Chrome. It is doubtful whether other browsers will support it as well.

However, it should be noted that third-party targeting has often been quite inaccurate in the past—this problem, which is often glossed over, is not solved by the new approach and may even become even less accurate. Is contextual targeting, then, perhaps really the better alternative, since it doesn’t pose a data privacy issue and is, at worst, less inaccurate?

So what does this mean for advertisers?

First things first: Advertisers can still use their own first-party cookies and the data they collect, but they can no longer use personalized one-to-one advertising (retargeting and third-party targeting). They can also continue to use targeting options within «walled gardens» such as Google and Facebook, just as before. The changes primarily affect the open web outside of Google and Facebook. It’s often said that advertisers should therefore rely more on first-party data and cookies, which are not affected by the changes. But what exactly does that mean? Here are a few examples: A TV manufacturer could build a new app with valuable features, such as controlling the TV via the app—the data collected from this can be used for segmentation and upselling/cross-selling. Or a laundry detergent manufacturer could set up a blog with fabric care tips and thus collect first-party data and email newsletter addresses from blog visitors—the data from this can be used for segmentation and more targeted messaging.

From the advertisers’ perspective, standardization of ID solutions is essential; a proliferation of new ad identifiers and a confusing jungle of ad tech providers must be avoided at all costs. The other extreme—increasing market concentration among one or a few market participants (particularly Google and Facebook)—is, however, also not a viable alternative. A joint effort must focus on making it even clearer to users than before that free content on the internet requires funding and, therefore, advertising. Login alliances such as the Swiss Onelog, in particular, face a significant communication challenge: Consumers must be convinced to use such accounts and to grant all participating websites consent for personalized advertising.


The demands of the SWA To the digital players in a future without third-party cookies:

  • A sufficient number of new ID solutions as alternatives to Google and Facebook.
  • Solutions that continue to enable cross-platform reach management and cross-platform frequency capping.
  • Publishers should better communicate to their users that free content on the Internet requires funding and, therefore, advertising.
  • New high-quality advertising products focused on contextual targeting.

The future of television

Where is television in Switzerland headed? At Screenforce Day 2021, four industry insiders shared their visions and hopes with us.

Alexander Duphorn, CEO of Goldbach Media (Switzerland)

«Switzerland is a pioneer in technical innovations and personalized TV viewing. Here, technology has been spurred on by consumer-friendly rights. As a result, viewing habits have evolved in Switzerland that allow for a more personalized linear TV experience than in any other country in the world. The future of television is personalized, versatile, and cross-device: Viewers want to access their personalized content anywhere. After all, media platforms are converging. Great content remains the most important factor: shows, live sports, series, and movies that stir emotions among the masses and become the talk of the town. The broadcasters» high-quality content forms the foundation of the television experience. If, in the future, video advertising tailors the benefits of audiovisual messaging to individual viewers, it will also create an experience for the Swiss public. Then we can look forward to a future full of exciting content and the greatest possible benefits for broadcasters, brands, and audiences.”

Alexander Duphorn, CEO of Goldbach Media (Switzerland)

 

Roger Elsener, Managing Director of Entertainment at CH Media

«We will offer our TV viewers the television of the future through both linear and non-linear channels, including live TV, catch-up TV, our website, and our streaming platform oneplus, which we will launch later this year. This will allow TV viewers to enjoy our content with maximum flexibility—anytime, anywhere. The UEFA Champions League final will be watched live, news or the latest episode of *The Bachelorette* will be consumed as close as possible to the original broadcast, and our viewers prefer to binge-watch series. We’ll now also generate revenue through subscription fees, though of course we’ll continue to rely on advertising as well. The advertising market is interested in personalized, non-skippable video ads in high-quality programming environments that are viewed in full-screen mode on the big TV in the living room. That is exactly what we will do, offering the advertising market the combined net reach of live TV, catch-up TV, and oneplus.»

Roger Elsener, Managing Director of Entertainment at CH Media

Martin Walthert, CMO of Digitec Galaxus

«The television of the future will likely be characterized by a few major live events with wide reach and, otherwise, primarily non-linear content. The channels and devices through which these formats are delivered will continue to converge, and the distinction between them will become increasingly irrelevant to the viewer. We will likely no longer speak of »traditional TV vs. online” or “YouTube and the like”; we will simply be watching video content in different contexts. For advertisers, this digital transformation presents enormous opportunities—consider, for example, addressable TV. Video advertising will not lose its relevance as a result. In terms of content, it is and remains the best mass-media vehicle for conveying emotional brand messages.”

Martin Walthert, CMO of Digitec Galaxus

Karin Estermann, Executive Creative Director / Owner of the agency Inhalt und Form

«Linear television will be a thing of the past. The TV will be wherever we are, showing us what we want—when we want it. Highly connected and personalized. One screen will be the bathroom mirror; another will be the closet door. Gesture control will replace tablets and remote controls. Screens will be enhanced with hologram features, or you’ll be able to perceive smells through them. Imagine, for example, a cooking show where you can not only see a meal but also smell it! Or a smoking detective from *Tatort* filling your living room with smoke—a funny idea. Then: social TV, or interactive TV, will become a major trend. Live streams of contestants from their living rooms directly into the casting show… and ads will be able to be delivered in an even more personalized way! For example, with a single swipe, the news anchor’s jacket could end up in a viewer’s shopping cart. For those who want to watch without ads, subscription services will remain an option.»

Karin Estermann, Executive Creative Director / Owner of the agency Inhalt und Form

Safely through the crisis

Swiss companies invested in advertising in very different ways during the pandemic year of 2020. A recent study shows which strategy yielded the greatest brand success.

There’s actually no shortage of tips and recommendations on how to run a successful marketing campaign even during a recession. «Don’t hit the panic button!» is the advice you hear most often. But a situation like the one Swiss companies faced in March 2020 doesn’t follow a playbook—and a global pandemic is, after all, quite different from a «normal» recession. Nothing about this situation could have been planned—and yet budgets still had to be allocated, media plans created or adjusted, and ad slots booked.

«Nothing about this situation could have been planned—and yet budgets still had to be allocated.»

In this situation, Swiss companies have pursued strategies that vary considerably: Some have decided to reduce their overall advertising investments as a precautionary measure in light of uncertain sales forecasts; others have remained true to their existing strategies; and still others have reacted countercyclically, even increasing their advertising spending in the face of the crisis. A recent study conducted by zehnvier research & strategy (Zurich) and Scion Research Labs (Munich) on behalf of Screenforce Switzerland reveals which of these strategies was particularly successful in terms of brand management and brand success.

Media Data and Brand Desire Score

The study drew on media data collected by Media Focus from 2015 to 2020, as well as data on the Brand Desire Score (BDS) collected by Ipsos Switzerland in two waves in March 2020 and March 2021. The analysis covered a total of 20 brands in the «insurance» and «soft drinks» sectors. In each of the two Brand Desire Score survey waves, 1,200 Swiss consumers between the ages of 18 and 74 were surveyed in German-speaking and French-speaking Switzerland. Using media data spanning six years, it is possible to track which of the brands under review deviated from their previous advertising strategies during the crisis year of 2020—both in terms of their overall budget and in terms of shifts between individual media types. The longitudinal analysis of the Brand Desire Score, in turn, provides insight into brand success in the spring of 2021, as well as into how consumers’ brand perceptions changed between March 2020 and March 2021.

Long-term advertising investments help brands weather even uncertain times

The first part of the study examined the question of long-term advertising strategy. To this end, the Brand Desire Score measured in 2021 was compared to long-term advertising investments (i.e., the average of advertising investments from 2015 to 2020), and regression and correlation analyses were used to examine any relationships between them. Key finding number one—not entirely unexpected: Long-term advertising investments play a significant role in brand success. It turns out that the brands that had already invested heavily in advertising in the years leading up to the crisis were able to achieve a particularly high Brand Desire Score in the March 2021 measurement. In the overall model of all 20 brands examined, these long-term advertising investments explain approximately 41% of the variance in the BDS. The effect is particularly pronounced for the insurance brands under consideration; here, 54% of the variance in brand success can be explained by long-term advertising investments—a statistically significant and, in terms of magnitude, very pronounced effect. A more in-depth analysis of investments at the level of individual media types shows that it is primarily long-term investments in OOH media, TV, and print that have a strong impact on brand success.

«Perseverance and consistency, but also courage and a proactive approach, pay off.»

It is well known that brand perceptions develop and change slowly; in this respect, it is of course not surprising that brand success depends to a large extent on long-term investments in brand communication. What is interesting, however, is that these effects are strong enough to carry brands safely through even an extraordinary crisis year. Yet the primary objective of this study was different. The focus was less on long-term advertising strategy and more on the question of how any tactical adjustments to the advertising strategy during the pandemic year of 2020 affected brand success. In other words: Given the uncertain outlook for the future, what was the right response?

Focus on short-term changes

For further analysis, therefore, the absolute values of the 2021 Brand Desire Score and the 6-year average of advertising investments were no longer used; instead, the focus was on the change in the Brand Desire Score between 2020 and 2021 and the change in advertising investments between the base year 2019 and the pandemic year 2020. The Brand Desire Score was not only considered as a whole but also broken down into its three individual components: «Brand Consideration,» «Brand Closeness,» and «Brand Performance.».

Enhancing Emotional Brand Building

Initially, no statistically significant results emerge for the sub-aspect of brand consideration. In contrast, the measured change in brand closeness is positively correlated with the change in advertising investment (with r = 0.36 in the overall model for all 20 brands). A short-term increase in advertising investment in 2020 compared to 2019 thus results in a measurable increase in emotional brand loyalty after a relatively short period of time. This effect is particularly pronounced for the «Insurance» brand set (r = 0.57). The fact that not only the total budget but also the media mix plays a role is also evident in the example of insurance: The change in brand closeness is particularly strongly associated with the change in TV investments (r = 0.62). One possible explanation for these effects lies in the fact that, especially in uncertain times, consumers increasingly seek reassurance and security. Exposure to familiar brands can provide precisely this reassurance and comfort, especially when the message is also emotionally charged («We’re in this together»)—the brand becomes an anchor of trust in turbulent times and draws closer to consumers. Television, in turn, takes on special significance because, on the one hand, as an audiovisual medium, it is particularly effective at conveying emotions, and on the other hand, because it is considered a highly trustworthy medium.

The brand's perceived functional performance benefits

The third aspect of the Brand Desire Score relates to brand performance—that is, the brand’s functional performance from the consumers« perspective. Here, too—similar to emotional brand loyalty—positive effects are evident in response to a short-term increase in the total advertising budget, and quite clearly so both in the overall model of all 20 brands (r = 0.56) and in the two industry subsets »Soft Drinks« (r = 0.65) and »Insurance” (r = 0.67). A detailed analysis of the insurance brands confirms that there are also differences here in the importance of the individual media types. Once again, it is primarily increased TV investments that are associated with a more positive assessment of the brand’s performance (r = 0.55).

With regard to the study’s initial question, we can therefore conclude that a key factor in ensuring brand success during uncertain times is, first and foremost, the groundwork laid before the crisis. Long-term strategies and advertising investments are generally capable of steering brands safely through even an extraordinary crisis. However, the companies that were particularly rewarded were those that, in early 2020, demonstrated courage in the face of an uncertain future and increased their advertising investments at short notice: After 12 months, they are benefiting from an overall increase in their Brand Desire Score, stronger emotional brand loyalty, and a more positive perception of the brand’s functional performance among consumers. The study thus confirms once again that perseverance and continuity—as well as courage and proactivity—pay off, no matter how severe the crisis may be.


Key Findings from the Screenforce Study

1. Reassurance in Uncertain Times
Consumers seek reassurance, especially in uncertain times—and contact with familiar brands can provide that reassurance, particularly when an emotional component is involved. TV is the ideal medium for this.

2. Short-term investments can be effective
When used on the right channel, short-term increases in advertising budgets can lead to results relatively quickly. Once again, TV performs particularly well when channels are compared with one another.

3. Preparation is key
However, strategic groundwork laid before the crisis is also a key factor in ensuring a brand’s success in uncertain times. Long-term advertising investments can certainly help carry brands through a crisis.


* Dr. Kerstin Bolliger is Managing Partner at the Zurich-based strategy consulting firm zehnvier research & strategy. The firm advises companies at the intersection of marketing and strategy, particularly on issues related to market- and employee-oriented corporate management.

* Prof. Dr. Clemens Koob is the founder and Chief Scientist of Scion Research Labs. Scion is an agile research collective dedicated to science-based insights. He is also a professor of empirical research methods and management at the Katholische Stiftungshochschule (KSH) in Munich.

On May 20, 2021, Screenforce Switzerland will present, as part of the Screenforce Days The key issues shaping the future of Swiss television. Prof. Dr. Clemens Koob will present the Screenforce Switzerland 2021 study and discuss the implications it holds for the future.

The power of words

People don't feel like reading? And that's why ads should do without text? Two huge misconceptions.

Today, let’s take a look at a particularly strange exhibit in the gallery of tragic advertising blunders: the belief that people are now all too lazy to read, and that it’s therefore pointless to focus on copywriting in advertisements. To me, this assumption seems so preposterous that I can’t help but offer a critical commentary on it. I find myself wondering, for example: How do those who believe this explain, say, Amazon’s rise to become a veritable global powerhouse? After all, this is a company that, not too long ago, started out as an online bookstore (!).

Seriously, dear readers—don’t listen to the self-proclaimed trend analysts who try to tell you things like that. The fact is: People are reading more than ever. There are billions of websites online; and although obviously only a tiny percentage of them are actually «read,» it is precisely those that are extremely successful. Just take all the news sites, blogs, and the digital presence of large companies…

We read, we write

Yes: Not only do we humans still read (just think of all the growing social media channels), but we even write (!). Millions, if not billions, of people post not only pictures but also captions—both short and long—as well as statements and articles. Many of these are read, liked, shared, and commented on, even though they’re probably longer than the text in an average ad. Which brings us right to the heart of the matter: advertising and text. Sure, I’d hardly read a full A4 page of advertising for a new brand of gum. But I’d be interested in studying a page of advertising copy if I were thinking about a new car, a new sound system, a new house, a loan, a computer, or insurance… Do you see where I’m going with this?

Nothing held back

It’s a mistake to withhold important information from people in advertising just because someone on the client’s side thinks no one wants to read anymore. Advertising legend Helmut Krone, the art director behind one of the most successful advertising campaigns of all time (he created the ads for the VW Beetle), once put it very aptly: «I believe people are thirsty for information. But they get it all too rarely from advertising. […] People want to know this or that. Advertising should therefore simply give them the information they need.» I agree with that wholeheartedly. Yes, I’d even go a step further: You owe (!) your customers that information. People want (!) to know. Okay, you might say that Helmut Krone’s quote is from the 1960s—or perhaps the 1970s—but today everything is completely different, right?

Make the facts interesting

No, it isn’t. Because even back then, the exact same myth was being spread: «Attention! Attention! People don’t read anymore!» To which the San Francisco-based advertising executive Howard Luck Gossage replied with Solomonic wisdom: «People don’t read ads. People read what interests them, and sometimes that’s an ad.» This is probably the wisest thing ever said on the subject. It’s just as true today as it was back then, in the good old days of advertising.

Around the year 2000, BMW launched a spectacular campaign (created by Jung von Matt, if I recall correctly) in which, for the first time in many years, long-form copy was used in automotive advertising. As far as I remember, the campaign was a resounding success. Not only did it result in the sale of a great many high-quality cars, but it also generated media coverage, and BMW received a lot of additional publicity—simply because the ads used informative, long-form copy. Just imagine that!

I think David Ogilvy would probably have either laughed himself silly or shed bitter tears over the fact that an ad with a lot of text attracted such a great deal of attention in advertising circles. After all, that was exactly what he had always recommended; Ogilvy was a strong advocate of using text. His motto was: «Just the facts, but make it interesting.»

What has changed?

This raises the question of what has supposedly changed since the days of «David the Great.» Supposedly, we humans in 2021 have a shorter attention span; even some renowned marketing experts share this view. Science, however, refutes this: Our attention span—that is, the amount of time we can focus on a specific topic—hasn’t changed in a million years. What has changed, on the other hand, is the number of media channels available to which we devote our attention. Which, of course, is a real problem for advertisers. But do we actually have less time? I don’t think so. Twenty-four hours today are just as much twenty-four hours as they were a hundred years ago, right? If anything, we have more (!) free time available today than we did a hundred years ago. We may just be spending our time differently, but we’re still spending our free time on the things that interest us. And most of us still read. We read what interests us—in the media that interest us. So the challenge is simply to be interesting in a way that’s relevant to today’s world. Don’t get me wrong. I’m not saying that every ad should use long texts. There are so many great ads that need very little or no text at all, and I myself have often used primarily visual ads with very little text to great effect. But I’ve also successfully achieved my goals with ads featuring long texts, long sales letters, or emails. So generally shying away from text, as if it were a weakness or a flaw in advertising that must be avoided like the plague, is certainly the dumbest and most expensive mistake in advertising. It’s also the most common one, I believe.

Confucius himself once said …

Confucius is quoted as saying, «A picture is worth more than a thousand words.» Aside from the fact that the original quote was obviously mistranslated (the original quote actually reads, «A picture is worth more than a thousand pieces of gold»), we should take note of the fact that this quote has survived for 2,500 years not as an image, but in the form of words (!).

From left to right: (1) An ad for Volvo—without copy, it’s just junk. (2) Text-based ad for Timberland: Who can resist this headline? (3) Iconic ad by Howard Luck Gossage: Water in the Vatican. (4) Swiss Life flip ad: Everyone in Switzerland knows these ads. (Images: courtesy of the publisher.)

Here’s another example: If you take away the words from the Volvo ad (1), what’s left? Exactly: just junk. Here’s another example: a text ad for Timberland (2) that’s truly worth reading. It was written by Tim Delaney. Can you tell me how anyone could resist an ad with a headline like that?
Or another ad by Howard Luck Gossage (3) that’s packed with text. Are you really going to claim that this headline doesn’t make you want to read the ad? Come on now…

Finally, here’s an ad that just about everyone in Switzerland is familiar with (4). Can you think of any image that would make this masterpiece look even better? Exactly. In conclusion: We’re still capable of reading. And we do read when something interests us. That’s why large ads will never be able to do without big words entirely.


* Thomas M. Braun He is a marketing and communications consultant and gives lectures and seminars on these topics. Previously, he was the head of marketing at a leading global packaging company and owned his own advertising agency with an international client portfolio.

Short stories from the year 2050

XR, avatars, holograms.

XR, Avatare, Hologramme.
Illustration: PutraArt.

Grandpa is looking for his granddaughter. «Hello!» No answer. «Hellooo, Lena»—Lena is just sitting up from lying down: «Yeah, Grandpa, what’s up?»—«Where were you?» – «Oh, I was just at an ABBA concert.» – «Excuse me? They’ve been dead for ages. They were the iconic band of the 1970s.» – «Yeah, I know. They’re a cult phenomenon again today.» – «Did you watch a concert from back in the day?» – «No, they have brand-new songs.» – «Wow, that really blows my mind. How is that even possible?»

Lena: «Well, unfortunately, ABBA never got back together because one member flat-out refused. So they used artificial intelligence and holograms to make it happen. Thanks to AI, you can replicate anyone’s vocal tone. Thanks to AI, we can compose new songs that sound as if they were written by the group themselves. And the new songs sound absolutely amazing. And they’re performed by holograms of the original band members.» – Grandpa: «But how did you get to the concert?» – «Today we can take part in it via XR—Extended Reality. It looks as if we’re right there. But my VR Transformer goes much further than that. You probably remember me telling you that I recently bought the Transformer for 1,000 LT.» – «Yes, that’s right. So how does it work?» – «It’s very simple. I lie down, put on the VR Transformer, and suddenly I’m right in the middle of the action with my avatar. It’s just like being there. I can’t get infected either. After the COVID-19 pandemics, we’ve all become more cautious and have created virtual worlds as a substitute. Now we can participate in events without masks or social distancing rules without any restrictions.»

«Wow, can I join in too, Lena?» – «Sure, Grandpa. But first you’ll have to go through an XR training program; otherwise, you’ll feel sick during the performance. But most people feel that way, and it goes away.» «We use technologies like XR, avatars, and holograms not only for concerts, but also for meetings, training sessions, and so on. We no longer have to travel and can still participate.”.

»Ultimately, that benefits the environment, too.« – »Well, Lena, you've really got me curious. Since I retired, I haven't really kept up with these things. I wanted to distance myself a bit from the digitalization craze of the last few years.« – »Oh, come on, Grandpa. These are all very sensible developments, aren’t they?« – »Of course they are. Please don’t keep me in suspense. I’d finally like to see and hear ABBA perform their new songs again.”


* Jörg Eugster is «The Ambassador of the Future». In his column, he regularly reports from the year 2050 on how technology and lifestyles have evolved.

Jacqueline Krause-Blouin: The Boss

In an interview with Anna Kohler of m&k, Jacqueline Krause-Blouin, editor-in-chief of Annabelle, talks about what drives her and how she plans to lead the magazine into the future.

(Photo: Chis Reist)

The Annabelle, a cult magazine, both highly praised and widely reviled. Published by Tamedia, now TX Group. But that’s all in the past. The future looks bright—as bright as the lettering hanging in the center of the new editorial offices in the Viadukten in Zurich. Since the publisher Medienart took over the Annabelle After buying the space, they looked for a new home and found it in trendy Züri West. New location, new ways of working. Everyone picks their own spot; there are no assigned desks. Even the boss, Jacqueline Krause-Blouin, is no exception. «I love the day-to-day of editorial work and would get completely lonely in a private office.» When she needs to make a phone call that isn’t meant for everyone to hear, she retreats to a soundproof phone booth, which is very stylishly situated in the middle of the room.

The Annabelle It employs 26 staff members, representing every age group, including men. That makes sense, since the magazine aims to reach a diverse audience. Jacqueline would love for her daughter to discuss the magazine’s content with her mother and grandmother. Annabelle would discuss. And, of course, the man in the group would also Annabelle would still catch on. «By the way, a quarter of our readers are male,» she says proudly, adding with a grin, «And those are just the ones who admit it.»

The Annabelle wants to become more politically active

But what does that mean? Jacqueline explains it this way: «The key is that we don’t operate along party-political lines; it’s about everything that matters to us as women—that’s where many generations come together.» Topics like equality, diversity, and feminism are discussed across all channels just as much as pop culture, fashion, and lifestyle. Rounded out with features and new sections like “Bodybuilding.” Excuse me? The editor-in-chief laughs. What sounds like muscle-building is actually a section where women talk about their relationship with their bodies. You see scars, sagging breasts, and love handles. You don’t see their faces, which grants the women a certain degree of anonymity.

At the same time as the relaunch, a study was published in which the Annabelle In collaboration with the market research institute Sotomo, 6,000 Swiss women were asked how they were doing. The survey revealed that many women still have fairly conservative views and feel comfortable with traditional gender roles. This surprised Jacqueline Krause-Blouin, and she wants to open up a discussion about these role models in her magazine. However, the survey also revealed that young women in particular identify as feminists—a term that has long carried negative connotations. The path toward gender equality is well underway, and more and more companies are championing equality. Hopefully, this isn’t just for show, but reflects a genuine commitment to achieving pay equity, diversity, and equal career opportunities within the company.

Mother, Boss, Wife—A Reality Check

Jacqueline Krause-Blouin works full-time, has a young daughter, and a husband by her side. What’s her daily life like, and what does gender equality look like in reality? «I often have days when I don’t want to leave the house; it breaks my heart when my daughter clings to my leg and says, »Don’t go, Mom.« Every day I ask myself, »Is this lifestyle still right for me?«» Her husband stays home; he’s an actor and therefore has more flexible working hours. «But when he’s filming for weeks on end, like he was recently, our family descends into chaos—if it weren’t for my mother, this setup wouldn’t work.» This leads Jaqueline to a conviction she also wants to address in the magazine. “Family is still considered a private matter in Switzerland, and I think that’s wrong.” What do you mean? “Without women like my mother, the whole system wouldn’t work—she helps when we need her. The family system shouldn’t be a private matter. That’s my conviction. Our system in Switzerland is designed so that we have children, in part so they can help fund our pensions. But once the children are here, you have to manage on your own. Or you fall back into the old gender roles and stay home as a mother. That can’t be right. In old age, women are at a disadvantage with many gaps in the pension system; we still have a lot of structural changes to make.”

Jacqueline Krause-Blouin with her daughter Eliza at an Annabelle event in October 2019. (Photo: Johanna Hullár / Annabelle)

Women in Leadership

As the editor-in-chief, she has to be careful not to just manage, but to keep creating moments for herself to be creative. After all, she misses writing, being around people, asking questions, and writing profiles. What’s a typical day like in the newsroom? With COVID, everything’s different; they managed the relaunch entirely from home, she explains. Normally, the online team would have a meeting every morning. Once a week, there’s an editorial meeting focused on the mix of content, diversity of topics, creating synergies, and thinking across media platforms. Then there are the department meetings for reporting, fashion, and lifestyle. She herself tries to attend them all. «But I also have a lot of meetings with clients; they show me new products, and we look at where we could develop stories.» Travel is also important to her—especially to fashion shows and festivals—but that’s not possible right now. Unfortunately, she adds.

What happened before the Annabelle?

How it all began: After completing her music studies, Jacqueline Krause-Blouin joined *Rolling Stone*, the renowned music magazine in Berlin. But not as a music journalist—they wouldn’t hire her for that without any experience—but as an executive assistant. A strategically smart move. «I had to run errands like buying kebabs and nasal spray.» She laughs. «But then, very discreetly, I showed one of my articles to the editor-in-chief—and bam, it worked. It got published, and I ended up getting the internship I wanted.»

When the officials at the Annabelle Get in touch with Jacqueline; she works at *Spex* magazine, where she covers fashion and pop culture. «Annabelle »They wanted to reprint one of my articles,« she says. »Then a position opened up as a lifestyle editor, and they asked me if I could imagine moving to Switzerland. Since my family lives here, that was easy, of course. After two months, I became deputy editor-in-chief."

So what's next?

After pushing off from the Annabelle The TX Group left a void, but now they’re part of the Medienart publishing house. «We feel wanted and in good hands.» The editorial board has also been restructured—three women and one man—with all departments represented. Things can get heated at times, but that’s exactly how the boss likes it. With 26 staff members, the editorial team is well-staffed, and she still has big plans.

Signs of our time

Measuring distances, counting customers, and guiding them in the right direction: Digital screens in retail offer numerous advantages during the COVID-19 pandemic. Through this new application, retailers are constantly getting to know their customers better.

Digitale Screens im Handel

The customer is standing in front of the store: Can they just walk in, or is it too crowded inside? Rules that are constantly changing during the COVID-19 pandemic—and aren’t the same everywhere—make them hesitate. However, retailers can do a lot to welcome their customers right at the door. «A lighting system signals when they can enter the store, and storefront screens provide them with important information about the hygiene measures,» says Simon Lütenegger, Chief Consulting & Sales Officer at the digital signage provider JLS in Lucerne.

Lütenegger implemented such a concept for a pharmacy chain. Screens in the storefront inform visitors not to enter if they have symptoms of illness, but to call an emergency number instead. «The correct local numbers for over 100 locations are displayed automatically,» he explains. All it took was producing a single ad spot. According to the JLS manager, this solution has been well received: «Especially during lockdowns, measures sometimes changed again within just a few days. So the ability to quickly distribute new content at the push of a button was, of course, a major advantage.»

Indoor signage also helps customers inside the store: Digital displays at hand sanitizer stations, for example, remind visitors to maintain a safe distance and give them the opportunity to sanitize their hands. Simone Bächle, General Manager at Westiform in Niederwangen, has also noticed high demand for such solutions: «It’s becoming increasingly important to communicate transparently with both customers and employees about the measures being taken to protect their health.» Especially since the onset of the pandemic, systems for analyzing visitor flow have been in high demand—systems that also display general information on social distancing and hygiene, as well as company-specific content regarding safety protocols. Westiform offers its own solutions for this purpose, such as hand sanitizer stations with screens or the Clean Air Tower air purifier. «We combine hand sanitization, access control, and air purification with the clarity of digital signage,» says Bächle, describing the offering. This allows companies to ensure that their visitors aren’t overwhelmed by conflicting and confusing information on numerous signs.

Personalized Content

With this information, companies not only fulfill their duty of care—they can also communicate with customers in a personalized way. The data on customer behavior, which is collected by visitor flow analysis systems, lays the foundation for displaying relevant offers at the point of sale. «This ranges from suggestions for uses, combinations, or add-ons to recommendations, product availability, and personalized simulations—for example, with clothing,» says Bächle.

The challenge: Due to the risk of infection, standard touchscreen applications are no longer the first choice for accessing information in stores. Irene Stutz, a partner at the signage agency Signito in Zurich, says she never believed in touchscreen kiosks to begin with: «Customers who interact with a public screen don’t want others to see what they’re looking for,» she explains. «On top of that, nobody wants to touch something that someone else has already touched.» But Stutz sees a way out of this dilemma: «If the information can be transferred from the screen to the customer’s cell phone—their personal device—the customer has it with them and can save it there and access it from anywhere.»

In such scenarios, technologies such as Near Field Communication (NFC), Bluetooth beacons, and QR codes are used to connect display stands to smartphones. This allows customers to interact not only with display stands on the sales floor but also with screens in the storefront window. Fabio Vareni sees this as the future. «Flexibility is the buzzword of tomorrow,» says the managing director of Frontwork in Wallisellen. He expects that many companies will increasingly invest in innovative, digitized window display and in-store communication concepts in the future. «This will allow them to advise their customers remotely as well,» explains Vareni. «Information is delivered across various channels and seamlessly integrates with one another.»

When the Robot Gives Advice

Providing advice while maintaining the necessary social distance—robots can do that, too. The Wepro agency in Wolfhausen has launched its own signage robot, Chiara. She moves around the store independently and addresses visitors in Swiss German. She displays promotional videos on her screen to draw their attention to the latest special offers. If it’s raining outside, for example, these might be umbrellas, according to a press release from the agency. Using facial recognition software, Chiara also collects data on consumer behavior and visitor numbers and supports staff in the sales process—including by directly showing customers the location of the advertised products. She also assists staff by alerting customers if they are not wearing a face mask. Chiara is already in use at the TopPharm pharmacy on Zurich’s Europaallee. New signage concepts are also finding their way into communication with employees. New-work concepts have long played a role in modern companies. The COVID-19 pandemic has further reinforced this trend. The focus here is on how to best communicate in new workspaces, both on-site and from home. «Office spaces are being repurposed as hubs for collaboration, and remote work—whether from home or elsewhere—opens up new opportunities,» says Frontwork CEO Vareni. For him, digital room signs are an essential part of the setup—for example, those that allow workspaces and meeting rooms to be booked flexibly, or that indicate whether a room is available, occupied, or has just been cleaned.

Vareni also points out that modern—paperless—communication is made possible by screens that can be connected to laptops or freely movable interactive whiteboards, which can be used for presentations or online meetings: «Data dashboard displays visualize current company figures and KPIs on large screens for everyone to see,» he says. This also puts an end to the paper clutter in offices. It’s certainly more hygienic and sustainable.


Digital Signage: The Most Important Trends

  1. Effectively managing visitor flow: Digital signage provides clear information on current instructions and helps prevent customer confusion.
  2. Data reading: When collecting data on visitor traffic, indoor signage systems not only fulfill their duty of care but also create new opportunities for personalized content at the point of sale.
  3. Touchscreen? No, thanks! Because people are reluctant to use public touchscreens these days, personal devices must be incorporated into the process of conveying information.
  4. Networking Despite Working from Home: New Work concepts with digital signage: They enable employees—whether in the office or working from home—to view the same presentations.

Away from the touchscreen

If information can be transferred from the screen to the customer’s cell phone, the customer has it with them, can save it there, and access it from anywhere. In such scenarios, technologies such as Near Field Communication (NFC), Bluetooth beacons, and QR codes are used to connect the display stands to the smartphone.

One (online) store is not enough

Just having an online store? That’s no longer enough: Success in e-commerce requires perfect marketing and plenty of customer insights. But you shouldn’t write off the brick-and-mortar store just yet.

Ein (Online-)Shop ist nicht genug
The coronavirus inadvertently served as a boost for e-commerce. (Illustration: Fiverr.com / Magyarmelcsi)

You really have to call it «Corona-Extra» here: Just as the beer foamed during the first and second waves of COVID-19, so too did e-commerce business boom. Last year, members of Handelsverband.swiss shipped 14 million more packages than in 2019. The association has 370 members, ranging from A for Ackermann to Z for Zalando. In total, all members shipped 70 million packages in 2020 due to government-mandated lockdown measures. According to Patrick Kessler, managing director of the Swiss Retail Association, companies with both physical and virtual presences fared the best. «Customers of brick-and-mortar retailers who already had a strong online presence before the pandemic switched very quickly to the corresponding online store.» Stores like Ikea, Jumbo, and Ochsner Sport therefore recorded the highest percentage growth rates online during the lockdowns. In terms of absolute sales figures, Digitec Galaxus and Brack.ch saw incredible growth. Roland Brack’s Competec Group, with 920 employees, generated over one billion francs in revenue last year (see interview). Interdiscount and Microspot.ch are also growing strongly. These companies, which are part of the Coop Group, achieved net sales of over 1 billion Swiss francs in 2020. Microspot.ch is an online-only retailer. Interdiscount is an omnichannel player. Interdiscount, which has been in business for over 50 years, launched its first online store in 1997. Microspot.ch has been in operation since 2007. Both companies employ around 1,700 people.

«For a purely online store like Microspot.ch, the pandemic was a boost—an opportunity to reach new target groups in a long-term and sustainable way,» says Daniel Augustin, head of marketing at Microspot.ch and Interdiscount. Even older people or those who weren’t very tech-savvy have now jumped on the digital bandwagon and have «gotten used to» online shopping. Nevertheless, after brick-and-mortar stores reopened following the lockdown, the company noticed that customers had some catching up to do, according to Augustin: «There are certain purchases, services, or transactions that people simply prefer to handle in person at a physical location.» That is why Interdiscount’s network of brick-and-mortar stores remains important for maintaining this close relationship with customers.

A Decline for the Luxury Goods and Apparel Industries

COVID-19 was not a blessing for all retailers. During the pandemic, retailers of textiles and luxury goods performed below average. This was because consumers were unable to go out during lockdowns, fewer tourists shopped in Switzerland, and there were fewer weddings. According to Patrick Kessler, it cannot be ruled out that by the end of the year, online retail will feel the effects of the COVID-19 crisis in the opposite way: «I can well imagine that, as soon as life returns to some semblance of normal, overall consumption will decline, and the textile, restaurant, travel, and events industries could then benefit from a rebound.» The head of Handelsverband.swiss expects single-digit growth of about 5 percent for 2021 as a whole, following last year’s e-commerce boom. So the trend continues to point upward. «The sectors currently experiencing a real e-commerce boom are tourism, home improvement stores, waste management, IT suppliers, food and beverage, and outdoor gear like trekking and camping equipment for family barbecues in the woods,» says Christoph Glauser of ArgYou.com, the Swiss online market research firm. Since the start of the COVID-19 pandemic, search queries for market analyses have been more exciting than ever, because nearly 6.9 million active Swiss people are primarily browsing online and on mobile devices.

«An online store without marketing is like a storefront in the Sahara—no one will ever walk by.»

Online newbies should start very slowly

Digital strategist Mike Schwede is also convinced that e-commerce growth will continue. «Thanks to the pandemic, people have gotten used to online shopping.» Schwede doesn’t mean to suggest, however, that all companies should now immediately set up their own digital retail empires on the internet. «I’d start very small at first.» Designing a store with 1,000 products and trying to serve every part of the country is the wrong approach. «You don’t get a huge number of website visitors overnight, and not everyone will start ordering from you right away—after all, there are thousands of other options online,» says the digital marketing specialist, addressing the often misguided expectations of online newcomers. Customer service is also crucial when going digital—and is often overlooked. «With an online store, you also have to connect with people on an emotional level; you should always meet all their needs and answer their questions,» Schwede goes on to explain. «Customer service today has to be straightforward.» If you drive people away, it ends up costing much more.

(Illustration: Fiverr.com / Magyarmelcsi)

Don't forget about marketing

Anyone looking to venture into the digital business world with Swift needs more than just an online store; they also have to communicate and advertise. Simply having an online presence isn’t enough, says retail expert Patrick Kessler: «It’s like a storefront in the Sahara—no one’s going to walk by.» Brack.ch’s products are marketed through all standard channels, such as search engines, price comparison platforms, display advertising, social media, native advertising, as well as TV and print advertising—and, of course, through owned and earned media. «It’s crucial for us to constantly adjust the mix and experiment with new formats,» says Simon Thoma, head of marketing at Brack.ch. Lolaskitchen.ch has been marketing its cakes and treats primarily through Instagram and Facebook since 2017. «I founded LoLa’s Kitchen with zero capital, exclusively through Instagram,» says Alina Russ, CEO of the online bakery. From 2019 to 2020, the plant-based cake shop increased its revenue ninefold. In addition to the online store, Russ also opened a cake shop in Zurich’s Wiedikon neighborhood at the end of 2019. «I’ve always sought to be close to my customers—especially to their reactions and feedback.» This way, you can incorporate the offline world into your business as an important component of communication and for product understanding. Daniel Augustin from Microspot.ch / Interdiscount recommends getting to know your customer base from the ground up. «Try to consistently align your business with the needs of your customers.» One big no-no is trying to sell slow-moving items in your online store. «Only offer the best products, because slow-moving items won’t sell online either,» as Patrick Kessler explains. According to the managing director of Handelsverband.swiss, it doesn’t necessarily always have to be your own online store. «You can also sell your products effectively via social media, Ricardo, or Digitec.» A costly investment in your own e-commerce platform should be carefully considered.

Here's to the sales counter!

And will there only be online stores in the future, with no brick-and-mortar retail locations left? Mike Schwede sees opportunities above all for small, specialty local stores that foster personal connections. «The emotional experience in a huge store is poor. No one in the real world can offer the selection that Digitec and others provide anyway.» Patrick Kessler also believes that, in the near future, there will always be stores where people can talk, get things fixed, and get advice. «At least as long as I’m still around,» says the 52-year-old retail expert with a wink.


E-commerce in 2020

According to estimates by the Institute for Marketing Management (IMM) at the Zurich University of Applied Sciences (ZHAW), Swiss online retail grew by more than 50 percent in 2020 to 16 billion francs as a result of the COVID-19 crisis.


REQUESTED

«Online retail has gained a steady stream of new users.»

Roland Brack, owner and chairman of the board of directors of the Competec Group—which includes various retail and logistics companies such as Brack.ch and Medidor—in an interview with m&k.

m&k: Roland Brack, how long has Brack.ch been around? How did this platform come about?

Roland Brack: The company was founded in 1994. The URL has been in use since 1997, and the online store since 1998. We recognized early on that there was potential in online retail. That’s why we had an online ordering feature added to the website shortly thereafter.

 

How many products do you sell through your platform, and which products are the best sellers?

Over 200,000 electronics items still account for a large share of sales. We’ve seen the strongest sales growth in crafts and stationery, health, food, and near-food products. Part of this can certainly be attributed to the pandemic.

 

How has the coronavirus specifically affected your business?

The pandemic has accelerated our growth. While our group’s revenue grew by an average of 11 percent annually between 2016 and 2019, it grew by 27 percent in 2020 compared to the previous year.

 

What has been working best over the past year—that is, since the first restrictions were put in place? Were there any differences between the first and second waves?

Protective supplies such as disinfectants and masks have seen the highest growth rates. This business was practically nonexistent before. During the first wave, home improvement stores and garden centers were closed. Demand for potting soil and other items skyrocketed and was almost impossible to keep up with.

 

How do you think sales will fare after the pandemic?

We expect things to continue at a higher level than before the pandemic and that online retail has gained new users on a sustainable basis.

 

To what extent did your appearances as a judge on «Die Höhle der Löwen Schweiz» help drive more traffic to Brack.ch?

While a season is airing, our «Höhle der Löwen» landing page is among the most visited.

Show attitude

"Purpose" is more than just a buzzword, and companies would do well to live out their purpose rather than just talk about it.

Tijen Onaran, CEO of Global Digital Women and a new columnist for m&k.

Purpose is more than just a short-term fad. Marketing plays a central role in identifying and communicating a company’s purpose and highlighting its relevance. In my opinion, this only works if the company truly lives up to its claims. Purpose-driven marketing is therefore a matter of credibility.

Purpose is about the big picture. A company’s purpose forms the foundation of its values, from which both its business objectives and its products and services are derived, and which guides the entire corporate culture. Ideally, a company’s purpose is reflected in every single action taken by the company and its employees. But this also means that companies that do not consciously engage with their purpose will not be able to champion any purpose at all. That’s why it’s essential to start with yourself and ask: What do I actually stand for? How can I incorporate and reflect the values I stand for in my products and communications?.

Purpose is worth it

For economic reasons alone, companies should give this topic serious consideration. A study by the Organization of Advertisers in the German Brand Association (OWM) and Different, published in 2020, demonstrated that this effort is worthwhile. The study showed that purpose is not an aspect that interests only a small group of consumers. Rather, the entire spectrum of society is becoming increasingly interested in it: 60 percent of all consumers—across all socioeconomic groups—stated that they try to make purpose-driven purchasing decisions. Furthermore, a clear correlation was established between purpose and revenue. In addition, 51 percent of respondents said they were willing to spend more money on «good» consumption. So purpose pays off. In purpose-driven marketing, this raises some very fundamental questions: What does our product stand for, what do we stand for as a company, and where are we headed? Purpose-driven marketing, therefore, cannot be viewed in isolation from the company’s purpose. The two go hand in hand. This is precisely why the topic of diversity plays such an important role in the discourse on purpose, because purpose affects all employees equally. In other words: purpose-driven marketing must, to a certain extent, always be diverse as well.

Today, purpose-driven marketing is evident, on the one hand, in the way marketing is tailored to diverse customer groups—as seen, for example, in the case of Dove, whose campaigns consistently reflect the reality of its customers. On the other hand, it involves the people who develop the products or the marketing strategies; they, too, must be driven by a sense of purpose.

Customers are increasingly driven by political considerations and values in their purchasing decisions. This also means that the more diversity becomes the norm in society, the more naturally people think, act, and consume. As a result, the specific term “purpose marketing” will become obsolete in the future.


Tijen Onaran writes columns for m&k. She is the CEO of Global Digital Women and the author of the Mirror-Bestsellers *«Only Those Who Are Visible Are Taken Seriously»* and was named one of the ten most influential people on LinkedIn in 2020. Her areas of focus: diversity and inclusion.

 

Future à la Goldbach

While others are giving up, Goldbach Group AG is expanding its facility in Küsnacht. CEO Michi Frank says that even the prolonged pandemic has not dampened his optimism.

So far, they are almost the only ones who have seen Goldbach's new offices: Group CEO Michi Frank (left) and Roger Heis, Commercial Director at Goldbach Media. (Photo: Chris Reist)

Anyone visiting the Goldbach Group’s offices in Küsnacht these days will hardly see anyone there. Employees are working from home, and even management is only handling the bare essentials on-site. Pandemic prevention measures, just like everywhere else. Yet it’s not completely silent: the occasional sound of hammering echoes through the open-plan office with a view of the lake, and here and there you can hear a drill.

These are the final stages of a comprehensive renovation and expansion project that the advertising agency began in November 2020 and is now completing. While others have given up, Goldbach—a member of the TX Group—has invested countercyclically: 158 new, ergonomic workstations, more and more comfortable meeting rooms, an event space, and a nursing and relaxation room await staff upon their return, as well as desk-sharing solutions and twenty workstations that can also be used by external guests. Some outsiders might ask: What’s the point of all this?

An atrium worthy of the name: The Goldbach headquarters is sprucing itself up and awaiting the return of its employees. (Photo: Chris Reist)

After all, working from home is no longer just a trend—it has become the new normal; the Swiss media—and thus their media partners as well—have had an «annus horribilis.» So wouldn’t it make sense to reduce office space and cut costs wherever possible? Yes, perhaps. But anyone who argues that way hasn’t counted on Michi Frank.

On-site visit wearing an FFP2 mask

The Goldbach CEO arrives at the on-site meeting in Küsnacht dressed casually in sneakers, chinos, and a cardigan. The only thing formal about him is his FFP2 mask—which he doesn’t take off as he moves through the newly renovated offices; not even when no one is around. Frank wants to set an example. «Preaching wine and drinking water—I’ve always thought that was silly,» he says with a laugh.

With almost unshakable optimism, the manager is pursuing a plan that extends far beyond the pandemic. «Of course, what’s happening right now is very challenging,» he says, «but we’ll get through this. And then the next five, the next ten years will be important and very interesting.» The restructuring that Frank initiated together with Roger Heis, Commercial Director at Goldbach Media, was long overdue anyway—and is now intended to make the company ready for the future.

«Certainly,» the CEO says with conviction, «we’ll continue to work from home when necessary. The crisis has made us all more agile. But: We are and will remain a people business. And people need places where they feel comfortable.» He wants employees to be able to meet and exchange ideas again; he wants guests to come to the office to attend presentations or discuss new projects. Michi Frank says he misses that a lot himself: «I’m often here relatively early in the morning—and I always look forward to people arriving soon. Until I realize that no one is coming.»

However, the people who make up Goldbach are, after all, the key factor in its success when competing with the «GAFAs»—that is, Google, Apple, Facebook, and Amazon. These companies absorb a significant portion of Swiss ad spending and make life difficult for national advertising agencies. «We can only hold our own against them with creativity, cooperation, and a team with the right spirit,» says Manager Frank.

New Projects in the Pipeline

Accordingly, the interior updates can also be seen as a symbol of the innovations with which the advertising marketer intends to further develop its business in the coming months. The focus is on four major projects designed to solve well-known problems or address post-pandemic trends. One such project—both technologically sophisticated and eagerly anticipated by the market—is the implementation of a replay ad platform, which is set to enable the booking and delivery of new TV advertising formats starting in 2022. These formats are designed for time-shifted TV viewing and are specifically timed for moments when viewers want to fast-forward or pause the program. This is already familiar from clips used on YouTube or other streaming services. This approach could help prevent viewers from simply skipping ads—a phenomenon that advertisers find particularly frustrating.

Goldbach also aims to strengthen its expertise in outdoor advertising across the entire DACH region. «We want to establish digital outdoor advertising as a mass medium in our portfolio,» explains Iris Blättler, Head of Corporate Communications, «and to do that, we need reach among the relevant target groups.» Network marketing is also set to be intensified: «Through close collaboration with TX Markets, data quality will improve even further, allowing us to offer clients broad, high-quality reach in video and display advertising,» explains Blättler. «Finally,» says the Head of Communications, «we want to increasingly sell our 360-degree offering across multiple media channels. In doing so, it’s very important to us to simplify the administrative processes for our clients. Our goal is to be able to offer a »single point of contact for the customer.’” Two major cross-media campaigns are already planned for 2021, one for Easter and one for Christmas.


REQUESTED

«The second quarter of 2020 was pretty brutal»

Michi Frank, CEO of Goldbach Group AG, recalls the start of the lockdown a year ago.

Only outdoors without a mask: Goldbach CEO Michi Frank. (Photo: Chris Reist)

m&k: A year into the pandemic, Mr. Frank—do you remember how it all started?

Michi Frank: I actually remember that quite clearly. On March 13, I was still out in the city having lunch with a client; three days later, the «state of emergency» was declared. Let’s be honest: None of us would have expected things to happen so quickly—or for our lives to change so rapidly.

 

What has this meant for your business?

The second quarter of 2020 was pretty brutal. Business came to a complete standstill. Fortunately, we were able to regain some ground in Q3 and Q4, and our clients regained their confidence. Things got tougher again with the renewed lockdown in the winter.

 

Has your leadership style changed during the crisis?

I’ve become a total «heavy user» of new communication tools. I used to use Skype every now and then, but I’d still hop on a plane for meetings abroad. I don’t do that anymore, and I’ll be doing it even less once the pandemic is over. I think the quality of digital communication has simply improved tremendously. And, to answer your question: I also use these tools to stay in touch with our employees. Their need for information is even greater than in normal times—and I want to be there when someone needs me. My principles in this regard haven’t changed; if anything, they’ve become even more important to me.

 

During the pandemic, we’re seeing a dramatic increase in media usage and falling advertising rates—yet clients are still hesitant to allocate budgets. What does the future hold?

Most of the time, the pendulum swings a bit more strongly in one direction, then—after a delay—swings more strongly in the other direction. The lockdown will end, and things will return to normal. The economy will pick up, and advertisers will feel motivated to get things off the ground.


The companies of Goldbach Group AG market and broker advertising on TV, radio, print, online, mobile, outdoor, and performance marketing. The focus is on simple information, consultation, and booking processes. To reach end consumers at the right time, in the right place, and in the right context, the company pursues a consistent multi-channel approach. Goldbach Group AG is headquartered in Küsnacht and operates primarily in Switzerland, Austria, and Germany. Goldbach is a subsidiary of the TX Group.

Out of Home?

The lockdowns led to a decrease in mobility. With the first warm rays of sunshine, more people are flocking outdoors again. What does this mean for advertising in public spaces?

Out-of-home (OoH) advertising loses its effectiveness when physical contact decreases. This was precisely the case during the lockdown in the spring of 2020, and to a lesser extent during the second lockdown in early 2021. The Federal Council’s measures had, in some cases, drastic consequences for the out-of-home advertising sector. According to «Media Focus,» advertising spend in the out-of-home sector fell by 7 percent in 2020 (gross figure, excluding discounts or special terms). «Posters» were the only media category to record growth of between 8 and 26 percent over the summer and into the fall, following a slump in March and April. Significantly, out-of-home media increased their market share in the Swiss media mix last year from 12.3 percent to 13.2 percent.

«Overall, it can be said that, despite challenging conditions, OoH has held up exceptionally well in the media mix and has demonstrated great resilience thanks to its characteristics—rapid reach expansion, coverage of broad segments of the population, visibility, and good value for money,» according to APG|SGA. In the Digital-out-of-Home (DooH) sector, resilience to the crisis is likely to have been even greater due to flexible booking and cancellation terms. According to APG|SGA, growth in the DooH sector has been further fueled by the successful launch and implementation of programmatic offerings, which also bode well for the future.

Development of Tram Advertising

Working from home, online classes, and business closures affected mobility in Swiss cities. This had an impact on public transit advertising. While campaigns inside trams and buses declined in Zurich, advertising on the exterior of the vehicles was largely unaffected. As Alija Idriz, Head of VBZ Additional Services, explains, the company was able to reach an amicable solution with most clients in the form of time credits or rescheduling the campaigns. «It’s interesting to note that the »full-wrap’ segment was practically unaffected by the lockdowns,” says Idriz. Compared to 2019, VBZ actually sold more full-vehicle wraps last year. This is because the out-of-home (OoH) sector generally saw a smaller decline than other media formats; moreover, this type of advertising is one of the few ways to reach everyone moving around the city of Zurich.

Valentim Vilar, Account Manager at Moving Media Basel, reports a similar trend. The company has responded to the changed situation by improving formats, making permanent price adjustments, or lowering prices. In addition, Moving Media Basel has several new ideas for format development in the works, which are currently being evaluated for their feasibility and practicality.

«What's interesting is that the »full-body paint' sector was practically unaffected by the lockdowns."

VBZ Disney+ Tram Full-Body Wrap. (Photo: Richnerstutz)

Looking Forward to Spring with Optimism

What do these developments mean for spring 2021? Outdoor advertising companies and technicians are cautiously optimistic about the coming months. «The initial uncertainty has been overcome, processes and content have been adapted, and new, innovative campaigns are being launched,» says APG|SGA, summarizing current events. In early February, the advertising technician Plotfactory reported hesitant to cautious ordering behavior among customers, which it attributed to the uncertain situation. «As soon as the current restrictions are eased, there will be a certain degree of planning certainty. Then we expect a surge in demand for outdoor advertising,» explains Olivia Hähnel, Head of Marketing and Communications. Of course, she adds, adapting to the current circumstances and innovation are essential. In recent months, Plotfactory has had positive experiences with renting out mobile advertising media. A simple example is car trailers equipped with printed tarps.

Westiform reports an increase in the digital signage sector as well as in preventive products (in response to the pandemic, the company has developed innovations such as digital hand sanitizing stations with automated access control and the Clean Air Tower, which combines disinfection, air purification, and digital communication in a single device). «Our products and services are currently tailored to the uncertain situation and offer added value that is essential in these times,» says Dana Leitner-Schall, Head of Marketing for Switzerland at Westiform.

Ariane Piccinno, Marketing/Communications at Richnerstutz, explains that 2021 got off to a much slower start than the previous year, which is not surprising given the mandated lockdown and the requirement to work from home. Due to the uncertain situation, increased pressure to cut costs, and the difficulty of planning ahead, the company produced generic designs for various clients that they could supplement with temporary graphic elements as needed. On the other hand, Richnerstutz has formed additional strategic alliances, including one with the startup Magnwall, with which it is revolutionizing existing systems for point-of-sale (POS) and storefront displays.
«In general, we’ve seen the COVID-19 crisis as a tremendous catalyst for digital formats and dynamic opportunities,» says Piccinno. This includes not only digital products, but—surprisingly—analog ones as well. This symbiosis of two disciplines, combined with sustainable application, has increasingly taken center stage.

It is difficult to predict where, when, and in what form outdoor advertising will have the greatest impact in the coming season due to the uncertain epidemiological situation. Only VBZ and Moving Media Basel report an increase in inquiries regarding outdoor advertising starting in April. As soon as more people take to the streets, public transportation advertising clients will benefit, says Alija Idriz of VBZ.


Welcome back: At the end of the first lockdown, APG|SGA launched a nationwide campaign to support small and medium-sized businesses. Through both print and digital advertising, consumers were encouraged with a tongue-in-cheek «Welcome back Out of Home» message to say goodbye to the lockdown and look forward to visiting local restaurants and stores again. At the same time, APG|SGA matched every advertising franc invested by SMEs until August 21, 2020.


REQUESTED

«Uncertain times are probably the new »normal'"

m&k spoke with Diego Quintarelli, Chief Sales & Marketing Officer at Clear Channel Switzerland AG, about the evolution of outdoor advertising in uncertain times.

Diego Quintarelli. (Photo: Courtesy of the publisher.)

m&k: Mr. Quintarelli, how have the two lockdowns affected outdoor advertising in Switzerland?

Diego Quintarelli: It varied greatly. In the spring of 2020, the industry was in «shock mode.» The drop in volume was immediate and significant. By suspending our terms and conditions and showing goodwill, we were able to find a good solution for every customer.

 

And during the second lockdown?

In the winter of 2020/2021, the situation is significantly more stable, easier to assess, and mobility has not plummeted. That is why the Digital Convenience Network at Coop Pronto shops is in high demand. With Mobility Pricing, we’re also ensuring a solid return on advertising investment—with great success. Overall, despite some setbacks, out-of-home advertising has proven to be quite resilient in the face of the crisis.

 

What are the arguments in favor of outdoor advertising in uncertain times?

Uncertain times seem to be the new «normal.» Out-of-home advertising benefits from high visibility, appeal, and the fact that it doesn’t require specific media usage behavior. In addition, reliable metrics, a contact-based pricing model, and the option for programmatic booking ensure greater transparency and simplify cross-media campaign planning.

 

Is it possible to make predictions about the future of outdoor advertising this year?

We view this trend as generally positive. However, it requires innovation, a close relationship with customers, and fast, flexible offerings. Following the lockdown last spring, we recorded what was likely our highest-ever summer booking volume.

 

So you're expecting that this spring as well?

Restrictions will be eased; people are happy to be outside, have a lot of catching up to do, and the mood is becoming more relaxed. This plays right into the strengths of the poster medium.

 

This article first appeared in the print edition of m&k, Issue 3/2021.

The Next Normal

For a year now, COVID-19 has dominated our lives. Will we soon be able to meet up with friends, eat out, fly off on vacation, and hug each other again without worry? Trend researcher Karin Frick on the “new normal.”.

During the COVID-19 crisis, our own homes became the center of our lives 24/7.

Normal is what is taken for granted, what you don’t have to think about, what everyone does, and what goes unnoticed. What is considered normal also depends on the context. Flying on a plane to go on vacation was an exclusive experience 60 years ago; today, it is taken for granted by citizens of wealthy countries. Until the early 1990s, smoking was allowed on airplanes; today, that’s unthinkable.

Habits change very slowly; people tend to stick to what they’ve always done. It usually takes a generation or longer for new behaviors to become established in society—for example, the acceptance of same-sex marriage. But in an emergency, people are adaptable and change their behavior more quickly.

The COVID-19 pandemic is the greatest crisis since World War II. It has made normal life and work impossible around the world almost overnight and forced us to fundamentally change our behavior. How will this affect everyday life after the pandemic? What social shifts are taking place? There are no clear-cut answers to these questions.
We have examined which social trends the pandemic has reinforced and which it has tended to weaken. The following comparisons show how the balance of power is shifting, which developments are benefiting, and which are losing out.

Closeness – Distance

In recent years, the trend has been toward densification: high-rises instead of single-family homes, city centers instead of suburban sprawl, and microliving instead of penthouses. Ecological and economic considerations dictate that more people live together in smaller spaces.

But the pandemic has made physical proximity a risk, and the virus is forcing us to keep our distance. As a result, preferences are shifting: Instead of seeking out social contact, people are trying to avoid it and are increasingly choosing places to live, work, and shop that are located in less densely populated areas away from metropolitan centers.

Public Space – Private Space

When access to public spaces is restricted, social life shifts to private spaces, where people mainly interact with those like themselves. This reduces opportunities to encounter people from other social groups and increases polarization between different groups. Who has access to which spaces depends, on the one hand, on social connections and, on the other hand, increasingly on an individual’s health status—no entry without vaccination.

Outdoors – indoors

During the COVID-19 crisis, our homes have become the center of our lives—a place where we spend 24 hours a day, almost without interruption. Working, studying, shopping, and exercising now increasingly take place within our own four walls, where we feel safe and comfortable. A growing number of delivery services and new digital offerings ensure that we lack for nothing and hardly ever have to leave home. We are evolving into an “indoor species” that spends less and less time outdoors and minimizes direct contact with the outside world. When people go out less and spend less time away from home, everything that happens indoors becomes more important, and as a result, more time, attention, and money are invested in larger homes, indoor activities, home entertainment, and home furnishings.

Public Transportation – Private Vehicle

In recent years, most mobility providers have shifted their strategic focus from transportation to smart services. «Use instead of own» was the motto. Now, the pandemic has dampened enthusiasm for sharing and swapping. Those who want to protect themselves from infection prefer their own cars to public transportation, and those who flee the city for the countryside and want to remain fully mobile often have no other choice.

In local transportation, the bicycle—with or without an electric motor—is the winner of the crisis because it represents an environmentally friendly, safe, and healthy way to get around.

High-Touch – Contactless

Until now, the sensory experience has been considered the key advantage of brick-and-mortar retail, but during the pandemic, people don’t want to touch anything that others might have already touched: no hands, no door handles, no push buttons, no cash, no touchscreens. As a result, interest is growing in new technologies that allow for touch-free interaction. Examples include contactless payment, robots that deliver goods, doors that identify residents via facial recognition, and smart voice assistants like Amazon’s Alexa. As we practice social distancing, our relationship with machines is becoming more intimate, since they can now see and hear us and better decipher our emotions.

But even as machines become more empathetic, the need for hugs will remain. We’ll want to shake hands, cuddle, and kiss again once the pandemic is over, but we’ll be more cautious and take better precautions. Many people are more sensitive to touch, and cases of hypersensitivity and intolerance are on the rise.

«The poor and vulnerable are suffering more from the health and economic consequences of the COVID-19 crisis.»

The gap in understanding between the winners and the losers is widening, and with it, social tensions are rising. (Stock photo: Unsplash.com)

Just in Time – Emergency Supply

Consumers have grown accustomed to being able to get whatever they want, anytime, anywhere, and immediately. Then the pandemic disrupted global supply chains, leading to shortages of goods, empty shelves, and an uncertain supply situation. Under these circumstances, many consumers and producers no longer want to rely on the global exchange of goods returning to smooth, real-time operation anytime soon, and are starting to restock their inventories and seek out local producers. As confidence in global supply chains wanes, inventory management and local value chains are regaining importance. Consumer patriotism is on the rise; those who have a choice are more likely to opt for domestic products and are also willing to pay more for them.

Experience – Care

In recent years, we’ve been spending relatively less and less on physical goods and more on experiences—entertainment, travel, art, and wellness. During the pandemic, basic necessities suddenly came back into focus: staple foods, cleaning supplies, hygiene products, and protective equipment. Everyday essentials, comfortable clothes for working from home instead of fashionable outfits for the next party. This temporary break from consumerism has left its mark; many have realized that you can be happy with less—shoes, handbags, designer clothes. Many have resolved to consume less and more mindfully in the future as well. But there are also others who are making up for lost time and want to treat themselves «now more than ever» to all the luxuries they had to do without during the pandemic.

«When optimism is lacking, the willingness to take risks and act entrepreneurially also declines, and a focus on security takes center stage.»

Freedom – Security

The pandemic has shaken confidence in progress and the belief that the business and political sectors will soon find a way out of the crisis. Even if we succeed in ending the pandemic through vaccination, uncertainty remains high. Fear of loss, mistrust, conspiracy theories, social fragmentation, struggles over resource distribution, and generational conflicts are weighing on the collective mood. And when optimism is lacking, the willingness to take risks and act entrepreneurially also declines. Safety takes center stage, freedom of movement is restricted, and anyone who wants to travel, attend events, or go to the gym will increasingly need a health pass.

Conversely, we’ve also gained new freedoms. Anyone with a computer and an internet connection can work, study, and shop from anywhere, regardless of where they live. Without a commute, there’s more time for other things—family, friends, sports, gardening, everything we enjoy doing or haven’t had enough time for until now. The physical world has become smaller, but the possibilities in the digital realm have expanded; it has become richer, more diverse, and is constantly improving. So much so that future generations will hardly be able to distinguish between physical and virtual reality. They will move effortlessly between multiple realities.

What the “new normal” will look like depends not only on the success of the vaccination campaign, but above all on socioeconomic status. The poor and vulnerable are suffering more from the health and economic consequences of the COVID-19 crisis and need more time to recover. The disparities and lack of understanding between the winners and losers are growing, and with them, social tensions. This fuels fear and intensifies the sense of threat that shapes the new normal for the rich and the poor alike.


Karin Frick She is the Head of Research and a member of the Executive Board at the Gottlieb Duttweiler Institute in Rüschlikon. As an economist, she analyzes trends and countertrends in the economy, society, and consumer behavior, and regularly speaks on these topics at conferences and conventions.

 

This text was first published in the SWA Annual Report.

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