Thoughts on the world of tomorrow

Together with its partners IP Deutschland, Microsoft, Frankfurter Allgemeine Zeitung, G+J Media Sales EMS, and Radio Marketing Service, the Serviceplan Group celebrated its tenth Innovation Day in Munich.

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The program of the tenth Innovation Day at the "Haus der Kommunikation" in Munich started with a keynote by futurologist Magnus Lindkvist and ended in the "Talk of Fame" with entertainer Thomas Gottschalk. More than 400 inquisitive decision-makers from business and the media met again this year to get new impulses, ideas and inspiration.

The major trends of our time, such as sustainability, social media, e-commerce, entertainment and sports marketing, are discussed annually at the Innovation Day in Munich, embedded in the current economic policy framework. The 2014 event was hosted by the Serviceplan Group and its partners IP Deutschland, Microsoft, Frankfurter Allgemeine Zeitung (FAZ), G+J Media Sales EMS and Radio Marketing Service (RMS).

The guests were welcomed by Florian Haller, Managing Director of the Serviceplan Group. Matthias Müller von Blumencron, Editor-in-Chief of Digital Media at F.A.Z., guided the guests through the day. The keynote speech on the world of tomorrow was given by the Swedish trend spotter, futurologist and author Magnus Lindkvist. With a lot of mischievousness, he took a look at the future in his talk and called for active action. Because in his opinion, the future is open and malleable. "When it comes to how we should run our lives and our businesses and what we should invest in, we have to rely on ourselves." A small aside: Lindkvist has been living in Zurich for a few months because his wife wanted to take a job in the Limmat city. But for his latest book, "When the Future Begins," the trend researcher spent three months doing research in Los Angeles.

In her presentation, Julia Jäkel, CEO of Gruner + Jahr, gave impulses from the publishing industry and showed how digital disruption can also be successfully mastered in other industries. According to Julia Jäkel, the media industry has long since adapted. Change is now part of everyday life there. There was then some time for discussion around the question: How do you create a creative corporate culture that quickly adapts to constantly changing conditions?

Football was and is on everyone's lips, and not just in the 2014 World Cup year. Christian Seifert, Chairman of the DFL Management Board, addressed the challenges that need to be considered when expanding the online and offline presence internationally in his presentation entitled "The Bundesliga - Moving into International Markets and Cultures. After all, following the record proceeds from the national media rights tender, the DFL must also increase the Bundesliga's desirability internationally. Seifert could tell of already 70 million euros in revenue from TV licenses of German Bundesliga matches abroad as well as advertising around YouTube films on the subject of soccer. To generate this content in a wide range of world languages, the Bundesliga employs its own TV editorial team of around 50 people.

Fashion designer Wolfgang Joop and founder of the brands "JOOP!" as well as "Wunderkind" stopped by the "Haus der Kommunikation" shortly before his onward journey to the fashion fair in Paris. In an interview with FAZ editor Alfons Kaiser, the "GMNT" jury member explored the question of whether free creativity is compatible with commercial success and what role the customer's opinion plays in the creative process. Joop still employs 36 people in his various companies. What's interesting is how he got started back then. Because little Wolfgang had to grow up in very poor circumstances, he often had to wear shabby and torn clothes. "I made my style out of that," he wanted to reveal, saying, "the important thing is to have an attitude."

Jonathan Oliver, Digital Strategist at Microsoft, addressed the question of how innovation can be defined and why we first have to get it wrong for true innovation. In his presentation, he analyzed from a marketing perspective why high-risk true innovation cannot fulfill current conservative marketing goals.

How the music industry deals with radical upheavals and technical innovations was the focus of the speech by Jonathan Forster, General Manager Europe and Vice President Ad Sales at Spotify. For several years, download services such as iTunes appeared to be a successful answer in the fight against piracy and music piracy. Currently, according to Jonathan Forster, music streaming is the most innovative solution. Here, the focus is no longer on owning a product, a particular album or song, but on access to a much larger selection of different titles. But even Forster could not yet predict what will come next.

As expected, the closing of the afternoon with Thomas Gottschalk was quick-witted and witty. The conversation with Britta Poetzsch, Head of Lifestyle at the Serviceplan Group, was intended to shed light on how personality brands can develop successfully and sustainably in today's multi-layered, multi-channel world. But more than that, viewers learned why "Wetten dass ...?" really can't be saved in an age when videos with the most impossible stunts are soon being uploaded to YouTube every minute.

The crowning glory of the day was the "CMO of the Year" award. In an online survey of industry experts, a shortlist of the ten best-known candidates was drawn up. From this, a jury of marketing and media experts - including Capital, n-tv and the trade magazine Werben & Verkaufen - selected Germany's best marketing chief based on an assessment of the three dimensions of success, innovation and internationality. At an exclusive gala dinner at the Haus der Kunst, the award was presented to Ian Robertson, member of the Board of Management of the BMW Group and responsible for Sales and Marketing. Pan

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In Munich's "Haus der Kommunikation", the headquarters of the Serviceplan Group, around 400 influential industry representatives met at the 10th Innovation Day.

Photos: Andreas Panzeri

Thinking outside the box for the future

Florian Haller, Chief Executive Officer Serviceplan Group, on the ideas behind the anniversary innovation day.

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WW: What were important innovations for you at this 10th Innovation Day?
Florian Haller: Our speakers. I think Magnus Lindkvist gave an excellent presentation on disruptive innovation management. Microsoft showed us that they make the web the nucleus of your brand, and from Spotify we learned how the music business can be turned upside down within two to three years. But I have also found creative lateral thinkers like Wolfgang Joop and Thomas Gottschalk very inspiring.
 
What does Serviceplan want to offer the industry with this?
We want to address and discuss the key megatrends that are changing the triangle of brand leaders, media and agencies, away from day-to-day business. We also want to create a platform for networking.
 
You have been able to present top speakers. What criteria were used to make the selection this year?
The big topics this year were: Disruption in business models, the internetization of media, content and storytelling, music and social, and creativity. In addition, there is always a personality as part of our "Talk of Fame.
 
A very broad-based jury selected Ian Robertson from the Board of Management of BMW as "CMO of the Year". Did this choice surprise you?
No. BMW has been an enormously successful company for many years. The brand is ranked number one worldwide. And with the introduction of BMWi, the first large-scale electric series from a premium manufacturer, BMW's brand management has set standards. I think that was a clear choice.
 
Serviceplan also launched the blog www.innovation-loft.com around Innovation Day. What is the intention behind this project?
We want to carry the topics of the Innovation Day on through the year. My vision is that we create a year-round discussion platform on brand, medium and agency.
 
Interview: Andreas Panzeri
 

Playful squirrel

The Swiss chocolate bar brand Minor is relaunching its brand. As part of a 360° communication strategy, a game also opens up the world to a new kind of brand experience.

No Schoggistängeli in Switzerland has more hazelnut chips than Minor. According to a recipe developed as early as 1936, it is exactly 24 percent. This still makes the treat one of the most popular chocolate brands in Switzerland. The supported level of awareness is outstanding, and the recipe continuously receives top marks. But extensive market research in 2013 also revealed a few areas for improvement. Some consumers rated the brand as "dusty," and the emotional connection was losing intensity. Younger consumers in particular felt that the established cult brand did not appeal to them enough. This was a challenge that an SME like Minor could not solve exclusively through advertising print. What was needed, therefore, was a convincing charm offensive with ideas.

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The St. Gallen advertising agency Vitamin 2 won the pitch for this nut together with freelance creative director Martin Fuchs from "Washing Line". In doing so, they dramatized the fact that no Schoggistängeli has more hazelnuts with a true nut expert: The minor squirrel "Split" was born. A truly winning creation not only with a "yay" effect, but also with plenty of potential for creative applications of all kinds. The likeable little animal was captured in the search for a "symbiosis of strategic considerations and conceptual ideas," explains Jan Hasler of Vitamin 2.

However, the team doubted that a key visual alone could solve the brand problem. "The days are gone when a pretty poster was enough to emotionalize a brand. Today, the omnipresent smartphones, as well as second screens, steal advertising's attention. So why not make them part of the solution right away," says Fuchs. Vitamin 2 and Martin Fuchs therefore brought a third partner on board: the animation studio Boutiq. So the squirrel "Split" not only learned to walk in a completely 3-D animated world. In an "inspired collaboration" that also actively involved the client, a 360° concept was created that targets the target group's new media usage.

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The 360° concept for Minor also includes sponsoring the TV hit "Bauer, ledig, sucht ...". On the website of the channel 3+, the squirrel has crept in among the participants of the series as a "guerrilla candidate". Below right are screenshots from the game developed by Boutiq.

Corporate entertainment creates emotions

Classic and digital advertising merely acts as a "portal" that arouses consumers' curiosity - and lets them enter the new Minor world. To this end, classic and digital advertising media such as TV commercials, posters, flyers, and the website are interwoven cross-medially - and even "below the line" measures such as sponsoring, POS, or on-pack information set bait to engage with the brand.

The real heart of the campaign is the extensive promotion and entertainment program, which provides incentives without discounting - and subtly helps to increase sales. From the TV show to highly emotional campaigns, the interdisciplinary link is always sought. For example, a "lucky package" promotion will also find its way onto the TV show "Bauer, ledig, sucht ...", where Minor is a TV sponsor. Viewers will learn how they can surprise their friends with a chocolate package on the Minor website. A campaign that is also "played" in commercials and on the packaging of the multipacks. And a Facebook app was programmed for the campaign, which can now be adapted for all other social media promotions.

The promotion program aims to involve consumers. "Through continuous, charming measures with emotional added value, Minor is to become a love brand again," explains Michael Schopper, Minor's brand manager and initiator of the relaunch. To this end, Minor is also using a new discipline that has become an integral part of everyday life for the majority of the population: a large game for tablets and smartphones. This was developed by Boutiq in collaboration with Martin Fuchs.

Minor game as a new brand experience

Thanks to social games, women now make up around half of the gaming community. Minor can therefore win over a target group of the future on this channel as well. With the advantage that potential Minor fans engage with the brand much more intensively and for longer than they ever would with conventional advertising media.

The branding in the minor game is discreet at first glance. But the protagonists and brand messages are subtly integrated into the gameplay. "The focus is on fun, but the brand essence remains in the memory," say Philipp Zünd and Mike Huber from Boutiq. This is also ensured by the monthly draw for a year's supply of Minor among all players who successfully master the first 25 levels. And to ensure that the fun never ends, new levels and chances to win - for example VIP tickets to "Art on Ice" - are posted every three months. The communication concept is designed for the next three years. Special experiences will be sought on all channels - and linked with social media marketing. For example, the "Art on Ice" sponsorship will be staged with a walk-in 6-meter 3-D poster. There, the audience can take selfies, which in turn will generate new contacts and attention on social media.

Andreas Panzeri

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A 6-meter 3-D billboard is designed to encourage the audience to post selfies at the "Art on Ice" show.

 

Online TV remains a supplement

Internet usage continues to rise. Video and TV content online is very popular, especially among young consumers. This is shown by the results of the latest ARD/ZDF Online Study 2014, for which around 1,800 German consumers aged 14 and over were surveyed by telephone.

However, the results of the survey also make it clear that online TV remains a supplement to traditional television, which is appreciated by consumers: Habitualization tendencies in the sense of daily use are hardly noticeable.

ARD and ZDF have been systematically examining Internet use in Germany for more than 15 years with the online study series. According to the latest edition of the study, at least occasional internet use in the neighboring country has risen slightly by 2% to 79% compared to the previous year. Every day, 58% of people aged 14 and over are online (2013: 57%). On average, an internet user is online 5.9 days a week and spends 166 minutes a day online.

What is the situation regarding the use of video content on the internet? If we look at the at least occasional use of video content, it becomes clear that video content is generally very popular. 75% of internet users watch video content online at least occasionally. Compared to 2013, this figure has risen slightly by 1%. Specifically, 35% of internet users at least occasionally watch time-shifted TV programs online (-1%), while 25% watch TV programs live online at least occasionally (-1%). 64%, i.e. almost every second online user, uses video portals such as YouTube (+4%). So have videos and especially TV content on the internet become part of consumers' everyday lives?
 
Probably only in part. A look at weekly usage already gives an idea of this. Overall, 45% of online users watch video content on the internet every week (+2%). Video portals are used by almost one in three internet users every week (34%, +2%). However, only 14% (+1%) use the option of watching time-shifted television programs via the Internet within a week and only 8% watch television programs live on the Internet every week (constant).

A genuine habitualization in the sense of daily use is certainly not discernible. As before, only 14% of online users watch video content on the internet every day. The daily reach of YouTube & Co. is only 10%, that of media libraries and TV live streams 1% each.

Overall, online TV therefore remains a useful addition to traditional television. But does this also apply to the particularly video-savvy target group of 14 to 29-year-olds? Among them, 79% use one of the many forms of moving images online within a week. It is therefore not surprising that the weekly use of online TV - 26% of 14 to 29-year-olds watch time-shifted TV at least once a week and 13% watch live TV online once a week or more - is also higher than the average.

However, there is no real habitualization of online TV among young people either: A total of 53% of 14 to 29-year-olds watch TV every day, but only 2% of them use live TV streams or media libraries every day. 85% of the total video viewing time of 14 to 29-year-olds is therefore accounted for by traditional TV on the TV set, while around 5% is spent watching online TV and 10% with other online videos on YouTube & Co.
 
Clemens Koob

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Key facts

- Video content on the internet is popular: 75% of online users use it at least occasionally (+1% compared to 2013), 45% weekly (+2%).
- 35% watch time-shifted television on the internet at least occasionally and 14% at least weekly. 25% watch TV live on the internet at least occasionally and 8% weekly.  However, there is no evidence of any real habitualization of online TV: only 1% of online users use the internet daily to watch time-shifted or live TV.
- Online TV therefore remains a supplement to traditional TV.
- This also applies to 14-29 year olds with an affinity for video: although they use online TV more often than average on a weekly basis (time-shifted: 26%, live: 13%), their daily usage is only 2% each.

"Print must make itself indispensable"

Since September 11, the parenting magazine Fritz+Fränzi has been published with a new look and new content. Werbewoche spoke with Dr. Ellen Ringier, president of the Elternsein Foundation, which publishes Fritz+Fränzi, about the relaunch and the direction Fritz+Fränzi will take in the future.

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WW: Ellen Ringier, Fritz+Fränzi has been published since 2001. Did the new layout and content concept date back to that time?
Ellen Ringier: No, there have been various changes in between. I'm a lawyer and had no idea how to make a magazine. For example, I wasn't aware that you need a publishing director and I also waited far too long to take other professionalization measures. It wasn't until 2007, seven years ago, that we had the layout professionally developed by Beling Thoenen Design, thus creating the face of Fritz+Fränzi that we had known until then. And a year later, in September 2008, we appointed Thomas Schlickenrieder as publishing director.

What made a relaunch necessary?
The old layout was up to date and very attractive for a long time. But we thought we needed to tidy up the magazine a bit. And modernize it.

The new design is reminiscent of "wir eltern". Was that intentional?
No, not at all - that just gives me a fright. But I don't feel that way either. We no longer wanted the white space at the top, but a full-page title image instead. And of course there's only limited scope for positioning the title, it's always at the top of the page. Apart from that, of course, we also follow certain design trends. I think we have created something very unique.

The magazine also has a new name: "The Swiss parents' magazine Fritz+Fränzi". Why the unwieldy title?
Many people who didn't know the magazine thought Fritz+Fränzi was a magazine for children. That's why there was always a need for clarification. We therefore wanted to indicate in the title that it is a magazine for parents. But at the same time, we didn't want to give up the name Fritz+Fränzi, which has long since become a brand. Today, nobody would call a magazine "Der Stern" or "Der Spiegel" either, but at some point such titles simply take on a life of their own. For those who know the magazine, it will remain Fritz+Fränzi. And for the others, the focus and target group are now clearer.

What has changed in terms of content?
We want to be even more solution-oriented and have even more of the character of a guide for parents. This is reflected in the way the topics are presented, right down to the graphic elements. Our readers should get as close as possible to a solution for their problem through boxes, charts, graphics and small text summaries. We see ourselves as a service magazine that pursues the same goals as the Stiftung Elternsein: Firstly, to strengthen parenting skills in a subject area in which there is no other parenting magazine. Secondly, public awareness, i.e. informing the public that families sometimes have serious problems. We must finally stop looking the other way in our country. And thirdly, networking. Originally, the idea was that we would work together with all other non-profit organizations. We wanted to be a mouthpiece for all NGOs - but that still doesn't really work.

What is the weight of the print edition and the online edition?
The print edition is clearly a priority for us and we will continue to focus on print, because our readers demand the printed edition. But we are expanding online step by step. We are giving a lot of thought to the divergence between print and online: What do we bring to print, what online, what becomes the subject of a podcast - which topic takes place in which medium and how? Everything we do, we do with a time horizon of five years. In five years' time, we will see where we stand and whether we still need a print edition at all. I find it difficult to read on a tablet, but the next generation of young people may not know anything else.

The use of augmented reality is also new. Why did you decide to do this?
We wanted to be able to offer additional explanatory or in-depth material on important topics in the magazine, including moving images, which are always more engaging than text alone. And since we decided to focus on print, we didn't want to simply place the additional content online, but rather make it available on the smartphone alongside the magazine using augmented reality. I think every magazine will soon be doing this. We're just a bit ahead of the game. And it's not just our readers who are happy about the additional information, but also our advertising customers about the additional possibilities. They can significantly enhance their advertisements with augmented reality, tell stories, add a short advertising film, etc. The advertising and media agencies at the roadshow were delighted with the range of options.

What influence does the foundation have on the magazine? As President of the Board of Trustees of the publisher Stiftung Elternsein, are you involved in setting the topics?
No, perhaps I didn't do that enough. But of course we have already set the direction by selecting and briefing the editor-in-chief. And if I have ideas for topics, I naturally pass them on to the editorial team. But they are free to choose the final topics. That is also important to me.

How is the magazine financed? Primarily through the Elternsein Foundation, which publishes the magazine and collects donations? Most print products suffer from low advertising revenue, Fritz+Fränzi should be no different ...
Fortunately, that's not the case with us. We never thought it would turn out like this, but at least half of our funding comes from advertisements. Some advertisers have said: "We're placing ads in Fritz+Fränzi because this magazine simply has to exist. We are doing something good and reaching a considerable number of customers at the same time. And fortunately, more and more people think this way.

The magazine will have eight more pages in future and the editorial team also wants to go into more depth thematically. Have new journalists been hired for this?
No. The team is well-rehearsed and has a good network of specialist authors with whom it has also been working for a long time. Briefings are quick and uncomplicated, so the larger scope and the new thematic focus can be handled well.

Fritz+Fränzi is your baby in a way. How do you rate its development?
Yes, exactly, and this baby kept me awake at night for years because I had to somehow find advertisements and donations. But Fritz+Fränzi has long since learned to walk, has grown up, and the more people become aware that there are a lot of unresolved problems in families with children, the more people are interested in the topic and the more people want to find out about it regularly. But Fritz+Fränzi still needs godparents who are prepared to support the magazine financially.

What do you want to achieve with Fritz+Fränzi in the next two years?
I was on Facebook very early on, but then left my account dormant due to time constraints. Now I've been back on it for a week and would like Fritz+Fränzi to be active on social media too. Because I think the importance of Facebook, Twitter and the like will continue to grow. We can use social media by drawing attention to articles in the magazine and on our website, for example. The only chance that print has is to make itself indispensable. The advantage of print can no longer lie in the speed of information flow, but in its depth. And print can interact with online and social media. We absolutely must take advantage of this exciting opportunity.

Interview: Anne-Friederike Heinrich

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Dr. Ellen Ringier (60) holds a doctorate in law and is President of the Board of Trustees of the Stiftung Elternsein foundation, which publishes the Swiss parenting magazine Fritz+Fränzi. The magazine is edited by Dr. Eveline von Arx, a scientist who used to lead the Dr. Sommer team at the German youth magazine Bravo. A total of five editors work on the editorial team, four for print and one for online. The old Fritz+Fränzi.

Big Data is still only Small Data

When data of all kinds is integrated into business processes, it not only transforms companies but also gives rise to a new economic system.

Big data: "Big Brother" resonates here, which in view of the NSA revelations is perfectly suited to stir up surveillance fears among the public. The term, which a few years ago was only familiar in specialist circles, is now increasingly ubiquitous as a buzzword and thus defies a precise definition. Basically, it is about deriving benefits from the rapidly increasing amount of data that is being collected everywhere. For the individual, for business, for society, for the planet. It is clear to everyone that there is more and more data. But it is not the flood of information on the web and in social media that is primarily responsible for this. It is mainly machine-generated data that is growing like an avalanche. In telecommunications connections, web access, goods registration in logistics, in the financial industry. Hardly any sector of the economy is exempt from this. And this development is only just beginning: with the Internet of Things, billions and billions of sensors will ultimately be constantly supplying data. Seen in this light, what is referred to today as big data is only a small precursor of what is yet to come. In his book "The Zero Marginal Cost Society", social philosopher and economics professor Jeremy Rifkin diagnoses the emergence of a new economic system (the collaborative commons). Because marginal costs are tending more and more towards zero due to digitalization and networking, capitalism will no longer be worthwhile in the future.

Old hands know: we've seen it all before. Ten or fifteen years ago, it was called CRM (customer relationship management) or came in the form of business intelligence (BI). Back then, too, mountains of customer data were compiled and analyzed. It was expensive and complicated and did not live up to expectations. This observation is sometimes correct, but it is wrong to assume that big data is also a hype that is top today and flop tomorrow (and can be safely ignored and sat out). Just as videotex was a precursor to the Internet and paved the way for awareness of corresponding processes, big data is the next wave after CRM technology. Back then, data was stored in a so-called data warehouse; today, the term "data lake" is used. Whereas back then data was analyzed using data mining, these processes are now known as big analytics (and are often included in the term big data). The promises (competitive advantages) were the same and the price for the necessary systems (high) too. Then as now, there was a lack of specialists who could handle the new technology skillfully. Added to this (at least in Europe) are fears about data protection and, as a result, (anticipated or real) restrictions that can hinder the benefits of big data.

Introduce company-wide

The comparison with CRM systems is useful for learning from the mistakes of the past. Because CRM (and big data) required new technical infrastructures, such projects were often managed by IT. Sooner or later, the corresponding systems were reported to be working and the investments were justified, even though the operational business units did not see any benefits. If companies want to launch a big data initiative today, all areas must be involved from the outset. Delivery drivers, for example, need to understand why their journeys are being recorded and evaluated in real time (e.g. to save time and money by choosing a better route), and they will learn to explain certain incidents in such a way that this data can be better evaluated in the future. In marketing and sales, it is important to understand how analysis results are obtained and to what extent they are useful for business decisions or merely provide vague indications. In production, the use of sensors is constantly being improved and in order to make processes more efficient, production specialists and data analysts must be able to discuss their evaluation on an equal footing. Science fiction illusions must be put aside: No matter how many computers are used for Big Data, they still do not know anything (in the human sense). There is therefore a great danger of assigning the wrong meaning to correlations that can be found in the data volumes (especially if the results are presented as attractive graphs) and moving in the wrong direction (because everything was so expensive, it must be right ...). It is therefore not only important to be able to store and manage the data, but also to draw the right conclusions from it. Last year, management consultants Bain & Company analyzed the experiences of more than 400 companies that got off to an early start. The frontrunners are characterized by these advantages:

- they are twice as likely to rank in the top quartile for their financial performance within their sector
- it is five times more likely that they can make decisions much faster than competitors
- it is three times more likely that they will be able to execute decisions as intended
- it is twice as common for them to use data very frequently in their decisions.

The management consultants therefore conclude: "Many of these leading companies are currently pulling ahead of their competitors, leaving them lagging behind and struggling to catch up."

America ahead, the EU behind - and Switzerland?

But it's not just companies that have to fight to keep up with big data, countries do too. And it looks like Switzerland is not among the leaders here - although the conditions would be good. The USA, where the Obama government provided a budget of 200 million dollars for the Big Data Research Development Initiative in spring 2012, which will benefit various American authorities, is ahead of the game. This is entirely consistent: After all, Obama's last election campaign was the first big data campaign in history. The Democratic Party's election strategists are using big data analytics and behavioral research to target voters individually. In addition, there are numerous other extensive research programs and applications in companies in the land of opportunity - not least in the area of online advertising, where real-time bidding (RTB) is used to determine placements and their prices based on large volumes of data on surfing and consumer behaviour.

The EU has also woken up to big data and at the beginning of July, the EU Commission's Directorate-General for Communications Networks, Content & Technology (CONNECT) presented a communication (well worth reading) for a "thriving data-driven economy". This is an action plan for the EU to keep pace with the global data economy, in which the EU's research and development funding program, Horizon 2020, plays a significant role. It is worth noting this section: "This global trend holds enormous potential for various areas, from health and food security to climate policy, resource efficiency, energy, smart transportation systems and smart cities. Europe cannot afford to miss this opportunity. But compared to the US, the digital economy in Europe has been slow to embrace the data revolution. There is also a lack of comparable industrial capacities in this country. Research and innovation funding in the field of data is insufficient in the EU and the relevant activities are also largely uncoordinated. There is a lack of data experts capable of translating technical advances into concrete business opportunities. The complexity of the current legal framework, combined with the insufficient accessibility of large data sets and corresponding basic infrastructures, creates barriers to entry for SMEs and hinders innovation." The EU Commission summarizes its demands in these points:

- Support "lighthouse" data initiatives that can help increase competitiveness, improve the quality of public services and improve the lives of citizens. Possible areas include healthcare (personalized medicines), integrated transport and logistics management for entire regions, food supply chain management by tracking food from farm to fork

- develop the basic technologies, infrastructures and skills, especially for the benefit of SMEs

- make their public data and research data infrastructures available for shared use on a large scale and also use and further develop them

- focus public research and innovation on existing technological, legal and other bottlenecks

- ensure that the legal framework and policy requirements, e.g. for interoperability, data protection, security and intellectual property, are data-friendly in order to increase legal certainty for companies and strengthen consumer confidence in data technology

- swiftly complete the legislative process to reform the EU data protection framework and network and information security and support the exchange and cooperation between the relevant law enforcement authorities (e.g. in relation to data protection, consumer protection and network security)

- accelerate the digitization of public administrations and public services to increase their efficiency, and

- help to ensure that the results of new data technology reach the market by awarding public contracts.

Such a strategically oriented big data initiative is lacking in Switzerland. The State Secretariat for Economic Affairs (SECO), which is (co-)responsible for this, at least comes to the conclusion in the 2014 E-Economy Report: "The phenomenon of big data should be analyzed in detail."

Christoph J. Walther

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Tyler Vigen is a law student at Harvard Law School and describes himself as a statistical provocateur. On his website (tylervigen.com), he uses numerous examples to show that a correlation between two variables does not necessarily imply causality - although the temptation to do so is often great, especially when presented in a visually attractive way. In the search for optimization potential, many of the current big data algorithms come across such apparent correlations that are not based on causal relationships. This is one of the great dangers of big data: anyone who relies on algorithms in good faith can easily come to the wrong conclusions. This can not only lead to costly wrong decisions, but also to discrimination and other disadvantages.
 

Masses of free e-papers on the market

The 2014 circulation figures from WEMF show that newspapers’ e-editions are booming. What’s surprising, however, is that the proportion of free or very low-cost subscriptions is considerable—often exceeding 50%. Even major titles have doubled or tripled this share compared to 2013; one publisher is even distributing 95 times more free copies. Publishers are thus using free subscriptions as a lure to attract paying subscribers. So far, however, this strategy hasn’t really paid off.

When the WEMF published the 2014 circulation figures on October 1, the NZZ immediately sent out a communiqué in which it communicated its increased Replica circulation (e-paper). The statement read: "Thanks to the increased replica circulation, the Neue Zürcher Zeitung (Swiss edition) was able to compensate for the decline in print: With a total distributed circulation of 114,209, it remained virtually stable (-0.9%), while the NZZ am Sonntag even managed an increase of 2.5% to 135,805."

Half of the NZZ replicas are free of charge

The word "compensate" makes you sit up and take notice. After all, it's every publisher's dream to make up for the losses in (sold) print circulation with digital subscriptions. But the WEMF figures show that most publishers are still miles away from this. According to WEMF, many publishers are currently giving away a large proportion of their e-papers - including the NZZ. They are well aware of this at Zurich's Falkenstrasse. NZZ publishing boss Steven Neubauer, for example, had already indicated to persoenlich.com in mid-September that around 25 percent of the digital NZZ subscriptions were being given away for free. However, that was a bit of an understatement. In fact, the NZZ is giving away 8489 e-papers free of charge or at a discount of at least 80% (cheapest trial subscriptions), while the NZZ am Sonntag (NZZaS) is giving away 8879 subscriptions, i.e. a total of 17 368. That is not 25% of the digital subscriptions, but 51%. Important: Such a high proportion of free or cheapest subscriptions is neither forbidden nor disreputable, but absolutely legitimate and perhaps also clever in marketing terms. But if a press title gives away more than half of its (digital) subscriptions almost or completely free of charge, then it is foolhardy to speak of compensation. Even if the distributed circulation remains stable or increases as a result. Rather, the case of TagesWoche (see box) is a distant memory.

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E-paper subscriptions do not outweigh print losses

In any case, there can be no talk of real compensation until the newly gained paid digital subscriptions outweigh the losses in paid paper subscriptions. And that is not the case with the NZZ. The two NZZ titles have lost a total of 12,142 print subscriptions within a year, and with declines of -6% (NZZaS) and -7% (NZZ), they are also among the top ten losers. In the same period, however, they gained "only" 5461 paying digital subscribers.

But that's not all: NZZ and NZZaS also sold fewer single copies. On weekdays, 460 fewer paid copies were sold, and on Sundays as many as 1679 fewer. The total loss was 2139 copies. These have to be added to the print subscription losses, because the NZZ titles do not yet offer an EV in the digital area. So NZZ and NZZaS together currently sell 14,281 fewer print copies than in 2013. This is offset by 5461 newly acquired paying e-paper subscribers. The loss is therefore offset by a "mere" 38%. In other words, the NZZ dream of compensation has been shattered - at least at this point in time. (Unfortunately.) While we are on the subject of NZZ: Here is another aspect that is interesting. Already a year ago it was noticeable that the "Alte Tante" and its Sunday edition gave away many free e-papers - at that time there were 5782 copies or 34% of the distributed digital circulation. These free copies have since tripled (+300%) - to the aforementioned 17,368 copies, which now account for 51% of the total digital circulation. The number of e-papers sold, on the other hand, increased by "only" 48% or 5395 copies. However, this includes not only new gains, but also subscription conversions. The question therefore arises as to whether this type of subscription marketing, which the NZZ has been pushing since 2011, is really sustainable and efficient.

All newspapers have the same problem

But the NZZ is by no means alone in this - what it is doing is now common practice in the industry, in some cases to an even more pronounced degree. Because almost all titles have the same basic problem: their distributed circulation (print and digital combined) is falling - with a few exceptions. In addition to NZZaS, these include St. Galler Tagblatt (SGT), which increased its circulation by 16% because it was able to integrate three former partners of Südostschweiz into its header system at the beginning of the year. However, La Regione Ticino, SonntagsZeitung and Basellandschaftliche Zeitung bz (4% each) and - to a lesser extent - La Liberté, Walliser Bote and Freiburger Nachrichten also gained in circulation.

The general decline in circulation is manifested - as at the NZZ - in two circulation categories: Paid print subscriptions and newsstands. The range of losses is wide: Ostschweiz am Sonntag shows the biggest drop in subscriptions with minus 32% (Werbewoche reported, see WW 17/14), while the Fribourg News shows a drop in subscriptions of only 1%. The others are in between. With three exceptions: Paying print subscribers were gained by Le Matin Dimanche (9%), bz (6%) and SonntagsBlick (0.5%). The decline in single-unit sales (EV) is even more drastic: with a minus of 90%, TagesWoche lost the most, while bz lost the least with minus 2%.

At least four newspapers were also able to increase their newsstand sales: The Zürichsee-Zeitung was able to increase by 21%, the Zürcher Oberländer by 12%, the Bieler Tagblatt by 1% and the Nordwestschweiz by 0.1%. To illustrate the latter, Peter Wanner's newspaper sold an average of two more EV copies per day than a year ago.

Digital circulation increased x-fold

The situation in the digital sector is quite different: as with the NZZ, there is obviously a spirit of optimism here - e-paper circulations are rising almost everywhere. Although the NZZ and NZZaS are the market leaders with 18,199 and 15,803 e-paper copies distributed, it is the Neue Luzerner Zeitung (NLZ) that has seen the most significant increase in the past year - from 222 to 2498 e-papers. An increase of more than ten times! The related Zentralschweiz am Sonntag (ZaS) is in second place, having increased by a factor of 7 to 1760 e-papers. Bronze goes to the SGT, which increased its digital circulation fivefold to 2623 replicas. Fourth place goes to Schaffhauser Nachrichten, whose digital circulation grew by 442% to 667 replicas. The other titles in the top ten: Zürcher Unterländer (+186%), Schweiz am Sonntag, Nordwestschweiz edition (+162%), NZZaS (+129%), Tages-Anzeiger (+117%), Landbote (+108%) and Schweiz am Sonntag, entire edition (+106%).

However, there are also three titles that have suffered losses in digital circulation: La Regione Ticino, for example, shows a decline of 21%, Südostschweiz 1% and Le Matin 0.3% (which corresponds to an average of two copies). Furthermore, three pay newspapers do not have digital circulation certified: Blick, Sonntags- Blick and TagesWoche.

Free e-paper: Almost everyone follows the "Old Auntie

Almost all titles that have their digital circulation certified have greatly increased their share of free copies compared to the previous year. The NLZ is once again in the lead, having distributed 21 free replicas in 2013, but now has 2468, i.e. 95 times more. ZaS uses this channel 66 times more than a year ago, the SGT 22 times more. This is followed by Schaffhauser Nachrichten (9× more), NZZaS (4×), Tages-Anzeiger and Zürcher Unterländer (3× each) and NZZ and Landbote (2½× each). Some newspapers that did not give away free e-papers last year have now also jumped on this marketing method, including BaZ, Nordwestschweiz, Berner Zeitung, Bund and Ostschweiz am Sonntag. The Walliser-Bote and Freiburger Nachrichten, on the other hand, continue to refrain from handing out free e-papers.

As already shown with the example of the NZZ, the current digital circulation therefore contains a very large proportion of free or low-cost e-papers almost everywhere (see upper chart p. 24). At the NLZ, the free share is the highest - it now amounts to 80%. ZaS, La Regione Ticino and Schaffhauser Nachrichten each have 79% free e-papers, Le Quotidien Jurassien has a share of 76%, Südostschweiz 65%, Le Matin semaine 64% and Corriere del Ticino 62%. The NZZ titles and their free shares follow only in 11th place (NZZaS, 56%) and 14th (NZZ, 47%).

Replica sales increase less strongly

However, not only the free replicas, but also the paid digital subscriptions have increased within a year. The SGT, for example, increased its paid e-papers by 853 copies or 220%, the Zürcher Unterländer by 127 copies or 186%, Schweiz am Sonntag, Nordwestschweiz edition, gained 809 paying subscribers (+178%), NLZ 295 subscriptions (146%), Le Matin Dimanche 587 copies (135%) and Tages-Anzeiger gained 1397 paying subscribers thanks to or despite the paywall introduced in spring, more than doubling its number (111%). NZZaS and NZZ follow in 17th and 18th place with increases of 53% and 46% respectively.

But the most important question is whether there are any paid newspapers that can make up for their print subscription losses with new paid digital subscriptions. The answer is clearly no. But the differences are big. The most successful at compensating is La Liberté, which loses 596 print subscriptions and gains 386 paid EPaper subscribers. The e-paper subscriptions thus substitute the print subscription loss by 65% (see bottom chart p. 24). However, if the losses from retail sales were also included here, the degree of coverage would be somewhat lower. With 59% the second best compensator is L'Express, followed by L'Impartial with 48%. In 4th and 6th place are NZZ (47%) and NZZaS (42%), with La Regione Ticino in between with 45%. The lowest compensation success is achieved by Zürcher Oberländer (2%) and BaZ and Le Quotidien Jurassien (3% each).

Online user figures confirm e-paper trend

The fact that more and more publishers are now launching free e-papers on the market is also partly reflected in the user figures from NET-Metrix-Audit. Whether unique clients, visits or page impressions - the newspapers are registering increasing accesses. Of course, there are also exceptions: The Tages-Anzeiger, for example, has seen a significant drop in traffic since the introduction of the paywall in March. But beware: The Total Audience study by WEMF and NET-Metrix, which once a year reports the user base of newspaper titles and their digital offerings without any overlap, essentially confirms what is also evident in the circulation figures: Very few titles can replace their lost print readers with online users. However, the WEMF is trying to clear the fog here. In order to provide publishers with a more detailed breakdown of the use of their digital offerings in the future, it will supplement Mach Basic with reader figures for e-papers in a year's time. And before the end of the year, a test study will show which devices are used to access newspapers' digital offerings. In parallel, the Internet research company NET-Metrix is working on a technical measurement solution. This should be ready next year, they say.

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Special cases TagesWoche and BaZ

At the beginning of the year, it emerged that the Tageswoche (TW) delivered around half of its paid circulation (26,358 copies at the time) to the airports in Basel and Zurich and had it placed there free of charge in a countertrade. Although this was in compliance with the rules, it was non-transparent. As a result, TW cancelled the "airport subscriptions", which is now also reflected in the new circulation figures: The sold circulation is only 5682 copies, but the free circulation increased to 18 164 copies (plus almost 9000%!). The latter is now distributed weekly to households in the Basel region for marketing purposes. At the Basler Zeitung (BaZ), too, the sold subscription circulation included around 1800 airport copies daily, also in return business. According to publishing director Sabine Galindo, there are now 1700 copies, but they are no longer counted as subscriptions, but now also as free circulation. Part of the loss of subscriptions at BaZ (which has a total of 5626 fewer subscriptions) can therefore be attributed to this shift. Incidentally, the WEMF has decided that countertrades must be reported separately at the next certification in summer 2015. mk
 

"Love life" campaign will not be stopped

The Federal Administrative Court has decided not to halt the «Love Life» HIV prevention campaign for the time being. It appears questionable that the campaign poses a risk to children and adolescents. The decision is an interim ruling; the final judgment is pending.

The Federal Administrative Court first had to decide whether the campaign should be stopped as a precautionary measure until the court proceedings had been concluded. 35 children and young people aged between 4 and 17, or their legal representatives, requested the Federal Office of Public Health to stop the campaign. The authority did not respond to the request, which is why the complainants have appealed to the Federal Administrative Court.

The group is supported by the Christian-oriented Stiftung Zukunft Schweiz. It bases its demand on the fact that the images and films of sexual acts disseminated as part of the campaign are "highly likely" to "endanger and impair the development of children and young people".

The Federal Administrative Court discussed the complainants' arguments in its ruling, stating that there was "generally no significant public interest in the representations, as the prevention message was not recognizable to the public and was therefore not suitable for promoting the relevant interests of health protection".

Scoring permitted

The Federal Administrative Court does not share this view. Rather, the court finds it questionable whether the sexual images could endanger or harm children and young people. However, it is up to the viewer to "judge the images as offensive or distasteful".

According to the court, the purpose of the images can also be "comprehensibly explained by the parents who are obliged to care for the children and young people".

Following this decision, the Federal Administrative Court must now make a final decision on the precautionary measures.

Lack of understanding at the foundation

The Swiss Future Foundation finds the Federal Administrative Court's ruling "incomprehensible", as it writes in a press release. With the deletion of the Lovelife.ch website, "no achievements will be lost". It is incomprehensible how the portal, "which obviously serves more to promote an uninhibited lifestyle than HIV prevention, should be of public interest".

The foundation is now hoping for a definitive decision from the Federal Administrative Court. It has also lodged a supervisory complaint with the Federal Department of Home Affairs regarding the Lovelife campaign. (SDA)
 

RBS relies on crowdsourcing

Regionalverkehr Bern-Solothurn (RBS) is taking a new approach to rolling stock procurement to replace old trains: it’s letting customers have a say. Customers can use a crowdsourcing page to share ideas on how to maximize comfort on the trains.

The private company from Bernese-Solothurn gave the Platform free on Monday and by Wednesday morning there were already over 180 entries on the aforementioned website. Two customers, for example, suggest installing systems that inform passengers when seats are free. Another says: "Nothing that raises prices again, please." This "participation" of RBS customers will run until November 10, when the company will evaluate all ideas according to the criteria "suitable for mass use", "feasible" and "sustainable". The company management will then incorporate constructive and feasible ideas into the specifications for the new trains, as RBS announced on Wednesday.

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RBS needs 16 new trains on the Bernese S-Bahn line 7 from Bern to Worb at a unit price of seven to eight million francs, as RBS communications specialist Caspar Lösche said on request. These trains are to replace the current compositions from 1973, known as "Mandarinli" because of their orange color. A project group is already preparing the tender. In 2016, RBS wants to know which manufacturer should build the 16 trains. The first vehicle is due to enter service towards the end of 2018. The S7 is used by an average of 24,000 passengers on weekdays. According to RBS, this makes it the most heavily used line on the entire Bern S-Bahn. As early as 1973, RBS customers were allowed to have their say, as can be seen from the RBS blog on the company's website: back then, customers were able to decide on the livery of the "Mandarinli" trains.

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Images: RBS.ch

BLS also listens to customers

According to company spokesman Michael Blum, BLS, the second railroad company with particularly strong roots in the canton of Bern, also listens to its customers. Passengers were not as directly involved in the last rolling stock procurement, the purchase of 28 so-called Mutz double-decker trains, as they were with RBS. However, BLS asked customers to rate the new train on the Internet. This and other feedback received through other channels was incorporated into operations. For example, BLS has been able to better adjust the air conditioning systems, said Blum on request. According to Blum, BLS is already "considering" involving customers in the next rolling stock procurement. "But we don't know how yet". (SDA)

3+ broadcasts "Bachelor" season

3+ will still air the third season of «The Bachelor» even after contestant Sofia’s fatal car accident. The decision was made following extensive discussions with her family, the network announced on Wednesday. The entire season will be dedicated to Sofia.

Last Wednesday, the 40-year-old dancer was killed in a traffic accident in Zurich-Höngg. Six weeks earlier, she had returned to Switzerland from filming for the "Bachelor". Together with 19 other women, she had fought for the heart of "Bachelor" Rafael Beutl. After the woman's death, a discussion had arisen about whether the broadcast was justifiable under the circumstances. The station has held intensive talks with the relatives of the accident victim, with the "Bachelor" and with the other candidates, according to the statement.

The mother as well as Sofia's daughter would have declared that the broadcast "would have been their wish". Sofia's closest friends, Rafael Beutl and the other candidates would have also emphasized this. "They all emphasized to us how much Sofia loved being in front of the camera and how full of life she was throughout the entire shoot," 3+ station boss Dominik Kaiser is quoted as saying. Finally, the station decided to broadcast the "Bachelor" season in its original form. Nothing will be cut out and nothing will be rearranged, according to the statement. In a "tribute," 3+ remembers Sofia and lets relatives have their say. In addition, the channel dedicates the entire season to the deceased. (SDA)

Planet 105 wins in court in name dispute

The Zurich Commercial Court has dismissed a lawsuit against Planet 105. The former operators of the bankrupt station 105 had demanded that the radio station not be allowed to use the name "Planet 105.

The request for precautionary measures has now been rejected. The plaintiff had argued that its Italian station 105 was broadcast from Milan to Ticino and could be received everywhere via the Internet. The court rejected this argument. In addition to court costs of 6'600 Swiss francs, the Italians must also pay Planet 105 compensation of 7'500 Swiss francs, Planet 105 wrote in a statement. Planet 105 - formerly Radio 105 - was rescued by Roger Schawinski in January 2014.
 

Flawa on the ball in a double pass with E,T&H

To promote the Super League sponsorship in honor of the 100th anniversary of Flawa, a family-owned business based in Eastern Switzerland, the Rorschach-based agency E,T&H created a cross-media campaign.

The family business Flawa from Flawil in eastern Switzerland, manufacturer of innovative hygiene, care and medical products for domestic and foreign markets, is taking a sporty approach to its 100th anniversary. Under the slogan "100 years of Flawa. So much experience keeps you young." the traditional company is using the anniversary to present its green and white love as a premium sponsor of the FC St. Gallen Super League team in a media-effective way.

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To this end, it commissioned the Rorschach agency E,T&H to develop a cross-media communication campaign. A 25-second spot produced especially for stadium television (which will also run at the POS and at trade fairs in a later phase) is an essential component of the campaign, as are football-oriented sampling campaigns in the vicinity of the matches. The well-known Flawa plasters (slogan: "We'll plaster you up for your round birthday!") are just as popular with football fans as the fresh soles (slogan: "We'll spank you for your round birthday!"). Further measures are currently being planned, according to the press release.

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//www.youtube.com/watch?v=O_fJGoZ7cd8

Responsible at Flawa: Nicolas Härtsch (CEO), Andreas Bauer (CFO). Responsible E,T&H advertising agency BSW: Erich Koller, Axel Thoma (consulting); Enno Wassmer (text/concept); Brigitte Andres, Erich Koller (graphics). TV commercial production: Vitronic, St. Gallen.

 

Blickamabend.ch cracks the million mark

In the first survey conducted by the independent industry organization Net-Metrix in July 2014, Blickamabend.ch reached over 800,000 unique clients. In the current survey period, the platform has now surpassed the one-million mark for the first time.

Net-Metrix certifies the online portal Blickamabend.ch In the record month of September, Blick am Abend's website achieved new record figures: 1,015,000 unique clients. The portal also recorded 3,367,658 visits and 16,828,599 page impressions.
Blick am Abend editor-in-chief Peter Röthlisberger: "We are very proud that we are already at this altitude after nine months. Nobody would have bet on this in December."

Blick am Abend launched its additional online channel in December 2013 with the aim of presenting news and entertainment in an attractive, visually powerful and interactive way (Werbewoche.ch reported). The strong Blick am Abend brand has thus also successfully established itself online, Ringier said in a press release on Wednesday.
 

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