...anointing helps everywhere
More than half of the top 50 advertising clients increased their budgets in 2001
More than half of the top 50 advertising clients increased their budgets in 2001By Hans-Jürg Gränicher After an advertising year with an overall decline in investments, the two largest Swiss retailers are still at the top of the top 50 biggest spenders. However, a massive reduction in budgets has relegated Migros to second place behind Coop.
Since August, Swiss advertising clients have invested rather cautiously in advertising, which is also reflected in the overall result for the 2001 advertising year: 3.0 percent or CHF 121.4 million less was spent on advertising than in the previous year.
The balance sheet for advertising clients is mixed. 29 of the 50 largest advertising clients increased their investments in commercial advertising compared to the previous year. In the top ten, however, only three of the ten leading companies (Coop, Amag, Procter + Gamble) increased their advertising expenditure.
With a 7.8 percent increase in its advertising budget, Coop became the new leader among clients in 2001. Meanwhile, the previous leader, Migros, cut its expenditure by a hefty 15.5 percent compared to its anniversary year. Swisscom, in third place in the rankings, gave advertising another big boost in the final months of the year and closed the advertising budget just 1.1 percent below the previous year's figure.
The top ten includes three telecom companies and three global branded goods groups: Procter + Gamble, Nestlé and Effems. Amag is once again the representative of the automotive industry with the highest advertising expenditure. UBS, the largest Swiss bank, is in 9th place in the corporate hit parade. Its advertising budget has shrunk by 24.9 percent compared to 2000.
In turn, 20 of the 50 most advertising-friendly companies increased their expenditure by double-digit percentages. Zürcher Kantonalbank was the most positive, with an increase of 89.5 percent, followed by Interdiscount with a budget increase of 81.6 percent. The bronze medal for the third-largest increase in investment goes to Möbel Pfister - the furniture retailer's advertising budget grew by 54.2 percent compared to the previous year.
TV gains market share at the expense of print
The market shares of the media groups are also on the move. Although print media continued to lose ground, publishers can still be pleased: two out of three advertising francs are still invested in print media. Newspapers, which were hit hard in 2001, still secured two out of five advertising francs.
Television stations increased their market share by 1.5% and were able to claim 17.7% of annual advertising expenditure. The poster companies increased by 0.7% and achieved a market share of 10.8%.
A breakdown of gross advertising expenditure across the various TV channels shows that the SRG channels recorded gross advertising income of CHF 27 million less last year than in 2000. However, their market share is still 58%. The Swiss TV windows increased their advertising income by 25.5 percent, which corresponds to a gross figure of CHF 38 million.
The private channels increased by 32.2% and generated around CHF 26 million more than in the previous year. However, these high growth rates are likely to cease in future following the closure of TV 3 and Tele 24.
The media are at the top of the list of advertising sectors. Their gross advertising expenditure amounted to CHF 545 million in 2001. It should be noted that Media Focus charges for fillers and self-advertisements at the normal insertion price.
The silver medal goes to the transport sector with gross advertising expenditure of CHF 438 million, followed by the food sector with investments of CHF 341 million.
The IT and office sector is massively down on the previous year. The decline in gross advertising expenditure is primarily attributable to telecom companies, which cut their expenditure by 17.5%.
In the retail sector, it is primarily the consumer and cash-and-carry markets as well as the department stores that massively increased their advertising investments. The reported 30.7 percent drop in investment in the services sector is not representative because until the end of 2000, all Internet advertising was integrated into this sector. Since January 2001, expenditure on Internet advertising has been allocated to the sectors actually advertised.
A lack of elections and votes as well as the reluctance of political parties and associations led to a larger drop in the investments/associations segment. Cigarette manufacturers also cut their expenditure by 8 percent.
On the other hand, massively higher advertising expenditure for hair care, perfumes and fragrances led to a 7.1% increase in the cosmetics/personal care segment compared to the previous year. Manufacturers of household cleaning and care products also invested more than in the previous year and increased their advertising expenditure by 9.5%.
Since August, Swiss advertising clients have invested rather cautiously in advertising, which is also reflected in the overall result for the 2001 advertising year: 3.0 percent or CHF 121.4 million less was spent on advertising than in the previous year.
The balance sheet for advertising clients is mixed. 29 of the 50 largest advertising clients increased their investments in commercial advertising compared to the previous year. In the top ten, however, only three of the ten leading companies (Coop, Amag, Procter + Gamble) increased their advertising expenditure.
With a 7.8 percent increase in its advertising budget, Coop became the new leader among clients in 2001. Meanwhile, the previous leader, Migros, cut its expenditure by a hefty 15.5 percent compared to its anniversary year. Swisscom, in third place in the rankings, gave advertising another big boost in the final months of the year and closed the advertising budget just 1.1 percent below the previous year's figure.
The top ten includes three telecom companies and three global branded goods groups: Procter + Gamble, Nestlé and Effems. Amag is once again the representative of the automotive industry with the highest advertising expenditure. UBS, the largest Swiss bank, is in 9th place in the corporate hit parade. Its advertising budget has shrunk by 24.9 percent compared to 2000.
In turn, 20 of the 50 most advertising-friendly companies increased their expenditure by double-digit percentages. Zürcher Kantonalbank was the most positive, with an increase of 89.5 percent, followed by Interdiscount with a budget increase of 81.6 percent. The bronze medal for the third-largest increase in investment goes to Möbel Pfister - the furniture retailer's advertising budget grew by 54.2 percent compared to the previous year.
TV gains market share at the expense of print
The market shares of the media groups are also on the move. Although print media continued to lose ground, publishers can still be pleased: two out of three advertising francs are still invested in print media. Newspapers, which were hit hard in 2001, still secured two out of five advertising francs.
Television stations increased their market share by 1.5% and were able to claim 17.7% of annual advertising expenditure. The poster companies increased by 0.7% and achieved a market share of 10.8%.
A breakdown of gross advertising expenditure across the various TV channels shows that the SRG channels recorded gross advertising income of CHF 27 million less last year than in 2000. However, their market share is still 58%. The Swiss TV windows increased their advertising income by 25.5 percent, which corresponds to a gross figure of CHF 38 million.
The private channels increased by 32.2% and generated around CHF 26 million more than in the previous year. However, these high growth rates are likely to cease in future following the closure of TV 3 and Tele 24.
The media are at the top of the list of advertising sectors. Their gross advertising expenditure amounted to CHF 545 million in 2001. It should be noted that Media Focus charges for fillers and self-advertisements at the normal insertion price.
The silver medal goes to the transport sector with gross advertising expenditure of CHF 438 million, followed by the food sector with investments of CHF 341 million.
The IT and office sector is massively down on the previous year. The decline in gross advertising expenditure is primarily attributable to telecom companies, which cut their expenditure by 17.5%.
In the retail sector, it is primarily the consumer and cash-and-carry markets as well as the department stores that massively increased their advertising investments. The reported 30.7 percent drop in investment in the services sector is not representative because until the end of 2000, all Internet advertising was integrated into this sector. Since January 2001, expenditure on Internet advertising has been allocated to the sectors actually advertised.
A lack of elections and votes as well as the reluctance of political parties and associations led to a larger drop in the investments/associations segment. Cigarette manufacturers also cut their expenditure by 8 percent.
On the other hand, massively higher advertising expenditure for hair care, perfumes and fragrances led to a 7.1% increase in the cosmetics/personal care segment compared to the previous year. Manufacturers of household cleaning and care products also invested more than in the previous year and increased their advertising expenditure by 9.5%.
