BSW: Results of survey and ranking published

2012 will be a mixed year for the leading Swiss agencies. According to a survey conducted in September, 60 percent of BSW advertising and communications agencies will end the 2012 financial year with a slight increase in fee income of up to 4 percent. This is in line with the expectations expressed by the majority of agency heads a year ago. Media agencies are also expecting an increase in income compared to the previous year. Profit expectations, on the other hand, are restrained. Around two thirds of all agencies expect another decline in EBIT compared to 2011, while only one third of all agencies expect to maintain or improve on their 2011 results.

The pressure on agencies is increasing

The main reasons for the erosion of margins are the high personnel and technical investments in online skills, the still tight personnel market (on average 65 percent of total fee income is spent on personnel costs) and the increasing demands from clients for additional services for which they do not wish to receive additional compensation.

The requirements of clients are increasing

The professional requirements for advertising, media and communications agencies have also increased. In addition to the basic expertise in digital media that is required by all clients, 84% (previous year: 74%) of agencies report an increased demand for cross-media campaigns and 68% (previous year: 60%) for more strategic input. The demand for social media campaigns, on the other hand, appears to be declining somewhat, at 70% (previous year: 91%).

The framework conditions for clients are getting worse for agencies. The high quality of advice and service desired by clients requires careful resource planning, which is becoming increasingly difficult. Decisions on the client side are being made at ever shorter notice and are increasingly project-related. Budgets change more frequently 83 percent (previous year 77 percent), strategies change more quickly, 71 percent (previous year 65 percent) and the quality of agency briefings is declining. This means that the majority of advertising clients are under intense pressure. Agencies have identified a great need for training here.

BSW agencies take on the digital challenge

For BSW Leading Swiss Agencies, there is no question that the BSW agencies will also master these challenges. Nevertheless, it is appealing to clients to increasingly return to partnership-based and professional cooperation and to tackle their own homework. This means better groundwork, better planning and better briefings. Today, BSW agencies advise and support their clients across all disciplines in all areas of marketing communication, thus meeting the demand for total communication solutions. 60 percent of advertising, media and communications agencies have therefore invested heavily in digital training and further education. 83 percent of advertising and communication agencies have already hired specialists and are developing online solutions in-house and integrated. Creation and development teams increasingly consist of text / art direction / online specialists. 100 percent of media agencies and 45 percent of advertising and communications agencies have also entered into partnerships with specialized agencies.

2012 Advertising and communication agencies of the BSW Leading Swiss Agencies by size

(Basis BBE 2011)
BBE = gross operating income: agency's own services charged to clients, incl. freelancers: fees from consulting of all kinds, compensation for textual, graphic and other work according to the income statement, excluding VAT and transitory items or income of other kinds. The agencies are listed within the respective category according to effectively achieved BBE.

2012 Media agencies of the BSW Leading Swiss Agencies by size

(Basis BBE 2011)
The ranking was compiled on the basis of the actual gross operating income (GOS) and is published without figures - but with details of the employees.

Teaser image: BSW President Nadine Borter