No to "No Billag": What does this mean for the advertising industry?

On March 4, 2018, the "No Billag" initiative was rejected with 71.6% of votes against. Voters agreed to continue paying broadcasting fees and thus ensure the continued existence of the SRG. However, although the initiative failed, calls for fundamental SRG reforms have not ceased.Gilles Marchand, the Director of SRG, has therefore already announced the abandonment of certain advertising measuresFeature films should no longer be interrupted by advertising, targeted advertising is not being developed as a new business segment. A general ban on advertising after 8 p.m., as is the case with CVP Councillor of States Beat Vonlanthen brought into the discussionMarchand did not initially respond to these questions.

Ban would be a "frontal attack on the economic freedom of advertisers"

Roland Ehrler, Director of the Swiss Advertisers' Association (SWA), doesn't think much of such restrictions: "A ban on advertising from 8 p.m. would be almost as bad for advertisers as a complete ban on advertising! After all, most viewers are still sitting in front of their TV sets in the evening and that's where the advertising market is at its busiest," says the expert. After more than 50 years of coexistence between programming and advertising, this would be "a frontal attack on the economic freedom of advertisers." Roland Ehrler is more conciliatory when it comes to SRG's self-restriction in the area of feature film advertising: "In the context of the No Billag vote, I have a certain amount of understanding here," he says, "but it is still a restriction that we as an association cannot approve of in the interests of our members. "Overall, he would like to see more innovation instead of a debate about ever new restrictions. The less advertising the SRG stations could show, the more the corresponding budgets would be shifted to private, foreign TV stations and the internet. SWA Director Erler says pointedly: "Google and Facebook would be delighted with such unnecessary regulation of Swiss competition."

VSM calls for a clear definition of SRG's public service mandate

The Swiss Media Association (VSM), on the other hand, maintains its criticism of SRG advertising structures. In a press release, the VSM demands the following wording:"SRG will continue to limit itself to radio and television with a national bracketing function. Only what it broadcasts in its linear programs will also be offered online. SRG will not launch any press-like digital offerings or audio-visual formats produced exclusively for the web. SRG refrains from new forms of commercialization, in particular online advertising (including targeted advertising on TV). When entering into cooperation agreements, it avoids market distortions and adheres to the principles of equal treatment, fairness and transparency. It will withdraw unconditionally and as quickly as possible from the market-distorting Admeira advertising alliance."So it seems that the last word on the matter is far from being spoken.