The needs of TV audiences have changed in the digital age.The small Swiss media and advertising market has been the subject of heated debate, and not just since the publication of the Federal Council's public service report. On the one side are the private media companies and on the other the public media of the SRG. With the launch of the joint marketing unit Admeira by Ringier, Swisscom and SRG, this dispute has come to a head once again. This ultimately led to Ringier and Axel Springer leaving the Swiss Media Association (VSM).
Lobbying from all sidesThe public service report is now the subject of heated debate in the federal parliament and in public, and there is strong lobbying from all sides. The VSM is very actively involved in efforts to rein in the SRG, including new advertising restrictions and a ban on targeted advertising on television. But the publishers' association also wants SRG to exercise restraint on the internet, both with regard to content financed by the license fee and even more so with regard to online advertising.do such demands fit into our digital age? Or shouldn't SRG be allowed to continue to develop in the media and advertising market in order to meet the changing needs of its audience and advertising customers?
The interests of advertising clients must be protectedThe SWA does not wish to make a political statement on the structure of the future public service. However, when it comes to freedom of advertising in the media, the interests of advertising clients must be protected. After all, companies have been allowed to advertise on SRG TV channels for 50 years and this should continue to be the case in the future, as there is already a duopoly in the Swiss TV advertising market today and therefore not much competition. In addition to the SRG channels marketed by "Admeira", only "Goldbach Media" plays a significant role here. Goldbach markets almost all domestic and foreign private TV channels and was able to extend these contracts again just this year. The role of the regional TV stations marketed by some publishers is of secondary importance in the Swiss advertising market because they reach too small an audience.
A massive step backwards for the Swiss TV advertising market?If SRG had to restrict advertising more severely in future for political reasons, the advertising clients would lose important and high-reach offerings in the TV market. The majority of SRG's TV advertising money would shift to the foreign advertising windows marketed by Goldbach and even more to the internet, to global players such as Google, YouTube and Facebook. This would be a massive step backwards for the Swiss TV advertising market and an encroachment on the advertising freedom of advertising clients.
"Targeting" on public and private TVInstead of new advertising restrictions, the TV business in Switzerland would be better led into the digital future by all parties involved. To achieve this, politicians would have to abolish outdated advertising restrictions and allow innovative forms of advertising such as targeting on TV, both for private and public broadcasters. The Federal Council's proposed revision of the Radio and Television Act (RTVA) into a new "Media Act" is therefore an important step in the right direction.
Media that do not adapt will lose outBut it is urgent, because the audience decides every day how it accesses information, sport, culture and entertainment. All media that do not adapt quickly enough will lose their connection to the audience and thus their share of the advertising pie. Media financed by fees, such as SRG, should therefore be allowed to distribute their high-quality content in all vectors demanded by the public without restriction, and if the Federal Council continues to adhere to mixed financing with fees and advertising, advertisers should be allowed to advertise wherever the public is. Of course, with due consideration for other private media and the press in particular, as stipulated in Article 93 of the Federal Constitution. However, this consideration must not go so far that the SRG ends up bypassing its audience.
Author: Roland Ehrler, Managing Director of the SWA