Best Swiss Brands: Nescafé remains undisputed number one

Nescafé remains the undisputed number one on Interbrand’s Best Swiss Brands list this year as well. The coffee brand tops the 2014 ranking of the 50 most valuable Swiss brands, ahead of Roche and its parent company, Nestlé.

The Interbrand study, published once again in collaboration with the Swiss business magazine *Bilanz*, shows that despite its continuing decline in brand value, Nescafé—with a value of 10.242 billion Swiss francs—remains the world’s leading coffee brand and thus the most valuable Swiss brand in 2014. Roche follows in second place, with its brand value rising by 12 percent to 8.569 billion Swiss francs. Nestlé takes third place this year, with a brand value of 7.238 billion Swiss francs. The food manufacturer has thus displaced the former number three, Novartis. Despite a 4 percent increase in brand value, the pharmaceutical company has fallen to fourth place.

The winner of this year’s ranking is Julius Bär. The bank’s brand value has surged by 19 percent to 2.061 billion Swiss francs. This is due in part to the values embodied by the company, its excellent performance, and the acquisition of Merrill Lynch’s wealth management business in 2012, the value of which is now being reflected in the rankings. With its expansion strategy into Asia and the Arab world, the Swiss private bank is meeting the needs of the newly wealthy. However, an ongoing legal proceeding involving allegations of aiding and abetting tax evasion is currently casting a shadow over the brand.

Hublot (to 349 million Swiss francs), Lindt (to 2.121 billion Swiss francs), and Swatch (to 853 million Swiss francs) can also celebrate significant increases in value of 16 percent and 13 percent, respectively. Swatch, in particular, has thus been able to offset a slight loss from the previous year. However, due to the overall sharp rise in value for most brands in the ranking, as well as six strong new entrants, Julius Bär, Hublot, Lindt, and Swatch have nevertheless dropped a few spots in the overall ranking.

The Newcomers of 2014

Asea Brown Boveri, or ABB for short, is a successful newcomer. The energy and automation technology group, headquartered in Zurich, has been one of the flagship companies of Swiss industry for decades. Through consistent brand management, ABB conveys a high level of technical expertise and performance and clearly demonstrates the company’s contribution to solving global challenges.
Partnerships such as the one with Solar Impulse underscore the company’s mission of «Power and productivity for a better world.» Thanks to this success, ABB has jumped directly to seventh place with a brand value of 4.929 billion Swiss francs.

In addition to ABB, five other brands have made their debut in the ranking. Swiss Re (1.948 billion Swiss francs) is the world’s second-largest reinsurer and embodies Swiss tradition, customer focus, and integrity, placing it at No. 17. Syngenta is committed to comprehensive food security and aims to actively address issues such as food shortages as well as environmental and social problems through its «The Good Growth Plan» initiative. Syngenta enters the ranking at No. 18 with a brand value of 1.856 billion Swiss francs. The building materials manufacturer Holcim (1.246 billion Swiss francs) has built a remarkable brand personality, earning it a spot among the top 50 Swiss brands. Holcim stands for strength, performance, and passion—values that have earned the brand the 23rd spot. The Sandoz brand (1.106 billion Swiss francs) disappeared from the spotlight for three years when Novartis was formed from the merger of Ciba-Geigy and Sandoz, only to make a comeback as Novartis’s generic drug brand and immediately enter the Best Swiss Brands ranking at number 25. Also new to the ranking is Sulzer (320 million francs) at No. 41.

The Importance of B2B Brands Is Growing

This year, for the first time, B2B brands are also represented in the Swiss ranking. The reason for this is that they represent a very important economic sector in Switzerland that should no longer be overlooked. These B2B brands—such as this year’s newcomers—have now achieved a high level of recognition among the Swiss public and leave a lasting impression.

«The role of branding in the B2B sector has steadily grown in recent years. This is because many companies have recognized that, in highly competitive global industries, branding is one of the few long-term levers for differentiation and thus represents an absolute competitive advantage,» notes Michel Gabriel, Managing Director of Interbrand Zurich.

Strong Industries

The luxury goods industry, with the Swiss watch industry still dominating the sector, posted another increase. In addition to Hublot and Swatch, Vacheron Constantin (up 12 percent), Longines (up 11 percent), and Breguet (up 10 percent) saw particularly strong growth in brand value. Rolex, with 7.211 billion Swiss francs (ranked fifth), and Omega, with 3.709 billion Swiss francs (ranked ninth), further solidified their top-10 positions with brand value growth of nine and eleven percent, respectively. Only Davidoff suffered a 6 percent decline in brand value to 1.749 billion Swiss francs. Slowing growth in the Asian region led high-end watch brands to lose market share to more affordable brands such as Tissot, Longines, and Rado.

«Thanks to its unique reputation, the Swiss watch industry remains in an excellent position and, despite the slowdown in growth in China’s luxury goods sector, has posted solid growth,» Michel Gabriel notes.

Only the chemical and pharmaceutical industry has performed even better, with overall growth of about 28 percent. This is due not only to the strong performance of Roche and Novartis, but also to the newly added brands Syngenta and Sandoz.

The financial services sector also performed very well. The eleven brands in total—seven banks and four insurance companies—increased their combined brand value by more than four percent. Credit Suisse (3.733 billion Swiss francs) and UBS (3.700 billion Swiss francs) were able to maintain their brand value—and, in the case of UBS, slightly increase it—despite difficult circumstances, ranking eighth and tenth, respectively. In addition to the successful newcomer Swiss Re, the other insurance companies are also performing well. Zurich, for example, increased its brand value by three percent to 3.627 billion Swiss francs. Die Mobiliar (295 million Swiss francs) and Swiss Life (270 million Swiss francs) also improved by seven and nine percent, respectively.

Removals from the 2014 Ranking

Due to the generally strong performance of many brands in the ranking and the success of new entrants, some brands were unable to maintain their position in the Best Swiss Brands list. Sika, Tally Weil, Franke, La Prairie, Kaba, and Emmi are no longer among the top 50.

Michel Gabriel concludes: «Anyone who manages a brand today acts as its moderator and sets the tone. Modern brand managers face fascinating challenges. They must constantly learn and work at a fast pace. The proof of this is strong brand value. It translates to a price premium in the target market, appeal to consumers, and the assurance of future earnings. Because that’s what it’s all about: Brands create value for their owners and for consumers.»

Best Swiss Brands 2014 – Top 50 (PDF)
 

Tamedia acquires Publigroupe shares from Tweedy Browne

Tamedia is acquiring the 235,465 Publigroupe shares previously held by Tweedy Browne LLC at 190 francs per share. In addition, on Tuesday, May 13, 2014, Tamedia acquired another 5,057 Publigroupe shares from other sellers.

The shareholding of Tamedia and its affiliated persons in Publigroupe SA will thus increase from 170,294 shares or 7.3 percent to 410,816 shares or 17.6 percent. This makes the media group Publigroupe's largest shareholder, Tamedia announced on Wednesday.

On April 17, 2014, the Swiss media group Tamedia submitted a pre-announcement of a public tender offer for Publigroupe SA (Valor 462630, ISIN CH0004626302, PUBN). This envisaged a price of CHF 150 per registered share. Publication of the offer prospectus is scheduled for the end of May. The focus of the planned takeover is the participation in the directory business Local.ch, which Publigroupe operates jointly with Swisscom.
 

Last but not least: Everyone’s favorite Easter egg, of course…

«Wozu Urlaub in Italien, wenn man das beste Eis ab sofort in Österreich bekommt?»: Demner, Merlicek & Bermann werben für das neue Eis-Sortiment von «Ja! Natürlich» mit einer Kampagne, die den Hörer sprachlos zurücklässt.

Beworben werden die vielen, innovativen Geschmacksrichtungen des Bio-Eis über Plakate, ein Geschicklichkeits-Spiel online und einen Radio-Spot, in dem das Schweinderl dem Bauern erklärt, wie er die Bio-Lehrerin dazu bringt nicht nur vor Genuss dahin zu schmelzen:

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Die Kampagne ist ab sofort on Air. Hören und sprachlos zurückbleiben!
Sollte der Spot bei Ihnen nicht denselben «Kinnlade-runter»-Impuls auslösen, steht unsere Kommentarfunktion gerne zur Verfügung. (uma)

 

Exclusive marketing of Spotify in Switzerland

With immediate effect, Spotify will be marketed in Switzerland exclusively by Goldbach Audience and Swiss Radioworld. Both are subsidiaries of the Goldbach Group.

In order to be as close as possible to existing and potential customers in the future, Spotify has decided to cooperate in Switzerland with Goldbach Audience and Swiss Radioworld, which already manages the digital audio inventory of Swiss private radio stations on the web. For Alexander Horrolt, Managing Director Goldbach Audience (Switzerland), it is clear where the cooperation is heading: "In the longer term, Spotify should be able to benefit from the successful network products of Goldbach Audience. We are pleased to be able to offer our advertising customers a high-reach premium brand with excellent targeting options for Swiss target groups."

By linking audio advertising with online advertising formats, digital audio bridges the gap between radio and the web. Furthermore, by booking on Spotify, advertisers have the opportunity to place their message in an environment designed by the consumer himself. "Furthermore, digital audio is the only advertising medium that goes directly into the ear via spoken language, which is an additional argument," says Martin Baumgartner, Head of Marketing and Business Development at Swiss Radioworld.

With over 24 million active users worldwide, Spotify has been rolling up the music market since its founding in 2008. The Swedish streaming service, which plays songs legally from a music library of over 20 million tracks, has also been available in Switzerland since 2011. The free service allows advertisers to choose from a versatile range of standardized and individual ads: In addition to billboards and homepage takeovers, branded playlists and the integration of customized microsites are also available as advertising media with a high level of attention and personal relevance.
 

Thousands of complaints to the federal government about unsolicited advertising calls

Unerwünschte Werbeanrufe und andere unlautere Geschäftspraktiken haben innert zwei Jahren zu über 12'000 Beschwerden bei den Bundesbehörden geführt. Das Staatssekretariat für Wirtschaft (SECO) reichte in diesem Zusammenhang 62 Klagen ein.

The revised Unfair Competition Act (UCA) has been in force since April 1, 2012. Among other things, the revision has restricted telemarketing. Since then, companies have been acting unfairly if they call people who expressly do not wish to receive calls for advertising purposes with an asterisk entry in the telephone directory.

By the end of April 2014, SECO had received 12,314 complaints about violations of the revised UCA, SECO spokeswoman Marie Avet confirmed to Blick on Wednesday. Around two-thirds of the complaints concerned unsolicited advertising calls.

Of the 62 court cases, about half are still pending. According to the law, the federal government can only sue if certain conditions are met - especially if several people are affected.

SECO has also issued warnings to a total of 121 companies. According to Avet, they were made aware of the violation of the law in writing. About half of these companies have changed the criticized business behavior, it said. (SDA)
 

Gruner + Jahr with new International Key Account Director

Lina Belinska joined the Gruner + Jahr (Switzerland) team in Zurich this month. In her new role, she will be responsible for Gruner + Jahr's international clients.

International clients include in-flight media from airlines such as British Airways, Lufthansa, Qatar Airways, United Airlines, KLM, Privat Air, as well as the titles of Gruner + Jahr China Publishing, Elsevier Media in Amsterdam and the media of the French Groupe Prisma Média. Gruner+Jahr wrote this in a statement on Wednesday. Lina Belinska has many years of international experience and extensive knowledge in advertising sales. She most recently spent a total of three years at Publicitas International Switzerland as Area Sales Director Magazines and thus brings valuable experience to her new position at Gruner + Jahr in Switzerland.

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Previous stations in her career - after a business degree and an MBA with a focus on the luxury industry - include various branding and marketing positions in England. She was also co-founder and manager of a travel and culture magazine in Greece.
 

Partner & Partner launches Coop Baby Week

Coop is launching «The World of Little Explorers,» a promotion featuring 10 partners. Partner & Partner conceived and produced the campaign.

The promotion takes place in three phases and builds on the website as the core element. This is designed as a discovery page and offers parents and their children an overview of all products in action, a quiz and a baby photo competition. Small discoveries play a major role in Coop's current Baby Week. Because "small things arouse great interest and first experiences are a formative experience for the little discoverers," writes Partner & Partner in a statement. The world of discovery also includes an educational element on the topics of animals, nutrition and nature.

The launch of the website and the theme takes place via a 4-page ad street in the Coop newspaper. Online, this first phase is supported by a newsletter to Coop "Hello Family subscribers" and a banner campaign on Coop.ch.After experiencing the products and the baby world on the website, consumers are taken to the POS in a third phase. In the Coop, the week of the little discoverers is staged with various POS elements and a competition.

This partner promotion is initiated by Coop and implemented together with Nestlé, Milupa, Pampers, Huggies, bibi, Penaten, Johnsons' Baby, Weleda, Nivea, Fisher Price and MAM. Partner & Partner is responsible for strategy/concept, ArtWork (graphics, text and implementation) as well as screen design and programming.

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FCB Zurich brings eyes to the street

Following a successful pitch, FCB Zurich is launching the new prevention campaign «Keep Your Eyes on the Road» on behalf of the Swiss Insurance Association and the Touring Club Switzerland.

The aim of the campaign is to ensure less distraction and greater safety on Swiss roads. The topic is more topical than ever: distracted driving is now one of the most common causes of accidents in Switzerland. But instead of pointing a finger, the Zurich agency uses two likeable characters. The pair of eyes Lefty and Righty embody the campaign motto "Eyes on the road" in the truest sense of the word.

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They have had enough of drivers making phone calls at the wheel, reading and writing text messages, searching for music from the playlist or even adjusting the navigation system while driving. That's why they are launching their very own movement to get their message across: Distracted driving is dangerous driving.

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The three-year campaign comprises four TV commercials, five different print and poster motifs each, a website and Facebook page as well as the specially developed Drive Mode app for smartphones and other advertising materials. All measures pick up on the positive tone of the campaign without neglecting the urgency of the message. For example, the Drive Mode app playfully encourages users to deliberately not use their smartphone while driving. Those who do so collect safe kilometers and take part in a prize draw every week.

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Responsible at SVV: Heinz Roth (Head of Prevention & Health Promotion), Petra Hieber (advocacy ag). Responsible at TCS: Jean-Marc Thévenaz (Head of Road Safety), Helmut Gierer (Communication & Campaign Manager). Responsible at FCB Zurich: Cornelia Harder (CEO), Dennis Lück (ECD), Flavio Meroni (Senior Art Director / Deputy ECD), Nemi Gajic (Text), Mateo Sacchetti (Text), Elgee Wee (CG Artist), Cinthia Stettler (Art Direction), Javier Santillan (Graphic Designer), Marie-Theres Ott (BGL), Karin Zanghellini (Consulting). Film production/CGI: Elephant Studios. Photography: Michel Jaussi. Sound Design: Sound studios Z.

 

Digital Olympics

The Adobe Summit EMEA will take place at the Olympic site in London on May 15 and 16. Around 3,500 experts will be in attendance. Adobe has already presented a new version of Adobe Media Optimizer today.

Around 100 keynote speakers will present new ideas at the leading trade fair for digital marketing and web-based innovations in marketing. Werbewoche will be on site at the Adobe Summit EMEA and will report on it in the print edition of May 23.

Adobe Media Optimizer

Today, Wednesday, Adobe presented a new version of Adobe Media Optimizer, the company's digital advertising platform for search, display and social marketing campaigns: Thanks to new forecasting algorithms, campaign performance can be predicted more accurately, optimized across channels and thus increased by up to 25 percent. The new user interface simplifies campaign management, offers innovative data visualization and enables campaign adjustments within seconds.

"Accurately predicting campaign performance on desktops and mobile devices is imperative to maximizing success in the programmatic advertising market," says Justin Merickel, Senior Director Advertising Solutions at Adobe. The Adobe Media Optimizer is the first solution on the market that actually performs optimization based on algorithms. "This allows customers to capitalize on big data to accurately predict campaign results and achieve the highest possible return on investment."

Through integration with the Adobe Marketing Cloud, Adobe Media Optimizer offers customers improved data management, collaboration tools, single sign-on, tag management and segment sharing. The most important new functions at a glance:

- New generation of forecasting algorithms: New algorithms use Big Data to predict campaign performance and ROI across platforms. Marketers can evaluate different options to increase performance in real time and automate budget allocations based on campaign simulations and spend recommendations. Mobile bid adjustments in Media Optimizer also allow marketers to flexibly adjust search engine campaigns based on device type, location, target audience, time of day or other attributes.

- Consistent campaign analysis: Thanks to the integration with Adobe Analytics, engagement data from websites is passed on to the Media Optimizer, while the latter sends search engine metrics (e.g. impressions, click volume, cost per click, etc.) to Analytics. This provides marketers with standardized analyses and holistic insights into their campaigns. The integration can increase search campaign performance by between seven and 25 percent, with an average increase of 16 percent.

- Greater reach: Audience management features allow marketers to efficiently manage and optimize remarketing lists for Google search engine ads. New predictive capabilities allow marketers to identify potential audiences whose characteristics and behaviors are similar to those of key existing customers. This allows the reach of a campaign to be extended. A unified view of all target groups also enables marketers to quickly identify the most valuable customers and send them targeted messages to encourage them to take action.

- Real-time campaign management: A completely new user interface makes it easier for users to create, adjust, monitor and optimize campaigns in real time across multiple channels. New performance features provide marketers with high flexibility when budgets or goals change and ensure that the right message reaches the right audience at the right time.

- Retail advertising optimization: By integrating feed and campaign management, retail campaigns can now be scaled and simplified. This makes it possible to manage Google Shopping campaigns and creative assets for display advertising via a single, optimized feed. In addition, the optimized feed and reporting structure provides precise attribution to drive sales.
 

Mediapulse wants to regain the trust of its customers

Problems with the new TV audience measurement system took a heavy toll on the Mediapulse Group last year. Among other things, the system transition led to a legal dispute. Mediapulse now aims to regain its customers' trust.

The broadcasters' trust in Mediapulse has suffered, said Executive Board member Urs Zeier at the annual conference in Bern on Tuesday. Since the beginning of 2013, Mediapulse has been using a new system to collect data on TV consumption in Switzerland - among other things, the new method now records time-shifted TV consumption. The system did not deliver data as planned in the first weeks of 2013 due to "teething problems," Zeier explained. The system change also resulted in a legal dispute with private broadcaster 3+. As part of the settlement reached with 3+ at the end of July, Mediapulse only measures TV consumption via computer from households that also have a normal TV set. The problems had highlighted the importance of Mediapulse's measurements for the more than CHF 700 million TV advertising market, Zeier said. The Media Science Commission (MWK), which oversees Mediapulse's work, now describes the revised TV measurement system as good, he stressed. Partly because of the squabbles over the new TV measurement method, the Mediapulse Group's 2013 profit fell from about 705,600 francs the previous year to about 273,500 francs. The Group comprises the Mediapulse Foundation and the two subsidiaries Mediapulse and Publica Data.

New radio measurement system from 2017

Unlike TV measurements, radio consumption surveys cover all distribution types. However, Mediapulse wants to optimize the radio measurement method. A new method is to be used from 2017 at the latest, announced Mediapulse Executive Board member Manuel Dähler. (SDA)
 

Print is premium - daily newspapers on their deathbed

Unter dem Motto «Ansicht, Sichtweise, Weitsicht» haben am Papyrus Symposium Frank Bodin, Rolf Dobelli und Friedhelm Lammoth ihre Print-Sicht dargestellt.

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At this year's Papyrus Symposium in the Kursaal in Bern, the focus was on future perspectives and foresight - and of course print in coexistence with the possibilities of new media. The first speaker, Rolf Dobelli, known for his works "The Art of Clear Thinking" and "The Art of Clever Action", presented some fascinating examples. For example, the following simple question: A slim man with glasses is standing in front of you. He likes to listen to Mozart. What would you say, is he a professor of literature at the University of Zurich or a truck driver? Correct, the attributes "glasses and classical music" give no indication of the man's profession. Nevertheless, most people tend to think that a man described in this way is a professor. If you yourself have just guessed that he is more likely to be a truck driver, this is possibly for many reasons - but also for the following? There may be a few professors of literature at university, but there are thousands of truck drivers. Statistically, it is therefore much more likely that the man is a truck driver. This is a classic fallacy called "base-rate-neglect" or "disregard of the basic distribution". In keeping with the motto of the event, "View, viewpoint, foresight", such mental elements aim to throw old prejudices overboard in order to make way for new perspectives. Another "classic fallacy", as Dobelli calls it, is the success monkey.

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The successful monkey is the animal that remains when you remove the 50 percent or so of a million monkeys that bet on the "wrong horse" on the stock market. What remains at the end is a monkey that was always right. Now you have a successful monkey that can read and assess the stock market - or has at least done so more successfully than the 999,999 other monkeys. The thinking here was wrong in a predictable direction: According to Dobelli, humans tend to overestimate the role of skills and underestimate the role of chance. On paper, or presented out loud with a clear example, this error seems easy to see. Nevertheless, it apparently goes unnoticed by many.

Print and digital: what now?

Frank Bodin addressed another misconception in his presentation: The advance of online "is just a fad, print will remain irreplaceable". Such a view is the "hope of a carriage builder", said Bodin. Because one thing is clear to him: just as the horse was displaced by the car, the daily newspaper will also be displaced by the digital age. At the very least, the daily newspaper will no longer be a business model. However, this does not mean that Frank Bodin is already eulogizing the print industry in general. We should simply start thinking about what will happen next. Frank Bodin sees two main barriers to success on this path: firstly, EBIT optimization at the expense of investments and secondly, a false pride in the traditional. Bodin cited the free newspaper 20 Minuten as a shining example. It is successful, "whether we like it or not, it is simply a fact". 20 Minuten has developed an interesting model. In a nutshell, it can be summarized as follows: Pictures, teasers, keep on zapping - and a good distribution idea.

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As far as print advertising is concerned, Bodin revealed his quality criteria at the Papyrus Symposium. You should be able to answer yes to the following three questions:

- Does it make sense?
- Does it move people and the brand?
- Is it exemplary? (socially and ethically)

He cited the "dumbest ways to die" prevention campaign as an obvious example of such a campaign. The corresponding song was uploaded and liked all over social media channels, was played on the radio on the music list and generated millions of clicks on YouTube.

//www.youtube.com/watch?v=IJNR2EpS0jw

Nevertheless, Bodin is convinced: "Print is and will remain an important part of the cross-media mix". It just has different qualities than Facebook, for example. Because print means "pause, slow down". Accordingly, Frank Bodin sees print primarily as a premium product. Because while online is better suited to fast news, the quality market remains for print. In the subsequent discussion with the evening's moderator, Ellinor von Kauffungen, Bodin answered what this means in concrete terms: "There are still magazines".

Dialogue marketing expert Friedhelm Lammoth, the third speaker at the Papyrus Symposium, blows the same horn - only with a slightly more culturally pessimistic mood. "Never before have people communicated so much," he says. MMS, feeds, emails and tweets are chasing each other, so we have to be careful that attention is not absorbed in a scattered way and people feel pressured. This is because the increasing mass of advertising only slightly increases the effect. And even a digital day only has 24 hours. Lammoth warns that this could soon lead to "ego exhaustion". Nevertheless, the "as well as" of online and print is also a huge opportunity. You just have to be careful not to annoy customers to death and instead choose which medium is more suitable in each case. In contrast to online media, print can serve all five senses. The personal touch is also important in an age of excessive communication on all channels. Lammoth concludes: "We have never done marketing, we have always just loved our customers.

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Swiss Print Award

In the spirit of print as a premium product, the Swiss Print Award should also prove that "printers will not only print on paper in the future". Accordingly, the award itself is a cast concrete slab. The Swiss Print Award emerged from the Druckmarkt Award, which the Swiss management magazine first announced in 2004. The Swiss Print Award was presented to the company Kasimir Meyer for the work "Trend. World. Pictures", a print product with pop-ups and three-dimensional paper images. DE Druck was honored with the Swiss Print Award for its "Lovebox". Here, the company's own paper sample book was provided with a number of additions and thus compiled into a collection of different print products. Heller Druck received the Swiss Print Award for its work "Everything is possible". According to the judges, this self-promotion covers the entire spectrum of printing and finishing. The Peter Grob Prize was also awarded. This was in memory of ASW Managing Director Peter Grob, who passed away in 2012 and who helped promote the award from the very beginning. This prize is intended to recognize outstanding work in the field of "self-promotion by print shops and agencies" and thus commemorate the roots of the Druckmarkt Award. This year's Peter Grob Award went to IDFX with the justification: "You can hardly do better self-promotion in combination with online and print".

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Text and photos: Ursina Maurer
 

Newspaper and advertising still belong together

A representative study conducted by the HSG on behalf of Publicitas shows that the newspaper of the future - in print and on the web - will not have to do without advertising. Media users know better than expected how media content and advertising are connected.

However, this acceptance does not come about by itself, but presupposes more creative forms of advertising and better targeting, according to a statement. On behalf of Publicitas, the MCM Institute of the University of St. Gallen (HSG) conducted a representative survey of 1,066 people in all three parts of Switzerland in March 2014 on the question - Will the newspaper of the future have to do without advertising? - was conducted. The answer is no. 75 percent of respondents have a positive attitude toward newspapers (print + web), and one-third (31 percent) have a clearly pronounced, positive attitude toward advertising. Justifications are found in the sense of reality - it takes advertising to finance newspapers - followed by the desire for advertising to inform and surprise. In general, the value of advertising is more pronounced in print than online.

Need for funding of news offerings recognized

Although there is a higher willingness to pay for media without advertising, the advertising losses would by no means be offset by the extent of any resulting additional revenues. On average, respondents were willing to pay CHF 24.17 for a monthly subscription to a printed newspaper with advertising and CHF 30.76 for one without advertising. The willingness to pay for a monthly subscription to a website is lower overall: 11.07 Swiss francs with advertising and 17.37 Swiss francs without. Users are realistic about advertising and recognize the value of advertising and the fact that media are largely financed by advertising.

Perceived media quality and advertising acceptance correlate

The community of interest between media offerings and advertising is not only financial. The study shows that the more media users value their medium (print or online), the more positive their attitude toward advertising. In addition, the study shows that people who look for social experience, distraction and surprise in their media use are particularly willing to accept advertising. Conversely, if advertising entertains, this increases its acceptance among users.

Considerable difference between print and online advertising

Online advertising is perceived as significantly more annoying, which in turn influences willingness to pay. Users would pay an average of 27 percent more for a printed newspaper without advertising, but an average of 57 percent more for a news website without advertising. One explanation for this result can be found in the motives for using websites. On the web, it is particularly about quick, easy access to information; with the printed newspaper, it is also about information, but more so about orientation and, most strongly, about surprise.

Frequent surfers, frequent viewers and frequent readers

In general, the data analysis shows that three user groups of media and advertising can be delineated: They differ not only in demographic structures, but are also characterized by important differences in media use and advertising acceptance. 34 percent of respondents, the frequent readers, read newspapers (print and online) frequently, earn good money, show the strongest awareness of the relevance of media brands and also exhibit the greatest openness to advertising. The frequent surfers (27 percent of respondents) use printed newspapers, television and radio less, but online news offerings on the Internet and social networks intensively. This group includes an above-average number of younger, well-educated and high-earning men. They have the most critical attitude toward advertising. 39 percent of those surveyed, the frequent viewers, stay away from media offerings more overall and make below-average use of the printed newspaper, websites and social networks. For them, television is the most important medium. Women are overrepresented in this group, the average age is 46, and education and income levels are below average.

Alain D. Bandle, CEO Publicitas: "Advertising is necessary and can enrich, but it must be tailored in format and content to the appropriate type of user. The study shows that even more creativity needs to be invested in the development of new advertising offers and formats. With the right address strategy - content, format and choice of medium - market potential in the individual media can be exploited even more optimally. At Publicitas, we see it as our mission to find the right 'time-of-day-compliant' medium for advertising customers to address their target groups as efficiently as possible."

Miriam Meckel, full professor at the MCM Institute at the University of St. Gallen: "Users know better than expected how media content and advertising are connected and accept this connection. They do not have a fundamentally negative attitude toward advertising, but rather a benevolent-neutral one. Advertising acceptance goes hand in hand with perceived media quality. Accordingly, advertisers are best off addressing very positively assessed media, and such media then conversely benefit from a high level of advertising acceptance."

Teaser image: Keystone

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