The biggest challenge is the complexity of the communication channels
At this year's Epiphany conference, the first insights from the 2016 advertising market study by Leading Swiss Agencies and the Swiss Advertisers Association (SWA) were announced.
For the third time, the University of St. Gallen's Customer Insights Research Center, on behalf of Leading Swiss Agencies and in collaboration with the Swiss Association of Advertisers (SWA), wrote to over 1,700 communications managers and asked them about their expectations for the current year. 110 managers, representing a response rate of 6.4 percent, responded. Due to the high industry diversity and expertise of the participants, a high generalizability and quality of the data can be assumed, according to the statement.
Despite subdued expectations for the Swiss economy in the next one to two years, clients assess their sales and profit developments positively
Despite the strong Swiss franc and the difficult competitive situation, the majority of companies are in a good position and are confident about 2016. 54 percent of respondents expect a slight increase in sales and 39 percent a similar increase in profits.
The biggest challenge in communication is still the complexity of the communication channels
The complexity and targeted use of communication channels are still a problem for around 60 percent of advertisers: How can I coordinate it all? How can I reach my target audience most effectively? Keeping pace with technical developments, defying the strong Swiss franc and the indifference of customers are seen by over 50 percent of respondents as the biggest challenge for 2016.
More than 50 percent of media funds invested in classic channels in 2015
According to advertisers, 24 percent of total media investment last year went to print media, 16 percent to TV, 9 percent to outdoor and 1 percent to cinema. Despite the trend toward digital media, 52 percent of media investments still went to traditional channels. Digital media continues to grow, with 35 percent of media dollars (including owned websites) invested in digital media. Most was invested in online advertising at 11 percent, search engine 6 percent, social media 5 percent and email marketing 4 percent.
No budget cuts for 2016
For 75 percent of respondents, the communications and media budget is not subject to any cuts in 2016. Around half of the clients report no change and just under a quarter of respondents even forecast an increase in their media budgets.
