Transparency even in tough times
BPRA market statistics Unlike the advertising agencies, the Association of PR Agencies is also presenting a ranking this year: this transparency could become a competitive advantage.
BPRA market statistics Unlike the advertising agencies, the Association of PR Agencies is also presenting a ranking this year: this transparency could become a competitive advantage.
Communication is their business. But when it comes to its own market statistics, the industry has to be careful: Legislative measures in the USA (Sarbanes-Oxley Act) also prevent a large number of advertising and PR agencies from publishing their business data here in Switzerland. As a result, no industry figures and rankings are available for the Swiss communications market. The only exception - even internationally - will soon be the Swiss Association of Public Relations Agencies (BPRA). The predominantly owner-managed agencies were recently able to present their current ranking - only two of 26 agencies had to step out of the limelight (see box).
Association President Ulrich Bollmann describes the fact that the BPRA can present representative figures for the Swiss PR market as a "happy coincidence". However, the ranking of agencies is more than just a coincidence: "It is absolutely important for our clients that we have a ranking like this," says Bollmann. The ranking list offers potential new customers in particular an initial point of orientation in the industry.
Will the BPRA ranking now become a serious competitive advantage on the Markom marketplace? It is possible, because it is now clear that there will definitely be no ranking of advertising agencies this year (and probably next year too): According to Walter Merz, Managing Director of the industry association Schweizer Werbe- und Kommunikationsagenturen (BSW), there will also be no survey of structural data and salaries in 2004. Merz does not expect the legal situation to change for another year or two. For the BSW Managing Director
the lack of a ranking is a "clear disadvantage". Like BPRA President Bollmann, BSW man Merz also mentions the orientation function of an agency ranking based on quantitative criteria for clients. Especially as a representative of an "industry with a reputation for not being very transparent", Walter Merz regrets that his own efforts to open up are now being "undermined by a US congressional decision".
For BPRA President Bollmann, it is not clear from the outset whether the difference in transparency between PR and advertising agencies will become a competitive advantage. According to Bollmann, its ranking does not represent an arrow in the BPRA's quiver to be used proactively. What is more important to him is that the publication of BPRA statistics is undisputed, even in a difficult economic environment: "Our members have to live with positive or negative figures."
As far as business figures are concerned, according to BSW Managing Director Merz, advertising agencies also have to make do with "facts" that cannot be glossed over. The fact that the phase without an advertising ranking coincides with an economically stagnating situation is only of limited benefit to the BSW: It is true that the gross operating income of advertising agencies also fell by 12 to 15 percent in 2003 compared to the previous year. And so, as Merz confirms, there are certainly individual members who are quite happy that there is currently no ranking. But the BSW managing director also knows: "Some agencies are only members of the BSW in order to be included in the ranking." The BSW is therefore endeavoring to be able to present an up-to-date, representative ranking list at international level as soon as possible.
Hoping for an upswing
However, it is still unclear when the communications industry will be able to present better business figures of its own again - in whatever form. According to a survey conducted in the fall of 2003, most agencies expect a slight recovery in 2004. The "gut feeling" of BPRA President Ulrich Bollmann also tells him that the bottom has been reached, "the only question is how long it will last".
Swiss PR market: less net turnoverThe BPRA statistics on the agency market in 2003 show that 29 agencies
are included - 26 of which are member agencies. New members are: Peter Bütikofer & Company, Zurich, Freicom, Balgach, Zahner & Partner, St. Gallen, Panta Rhei PR, Amriswil, In Marketing, Schwerzenbach, and Creafactory, Zug.
In 2003, total net fee income fell by 10.7 percent to CHF 73.8 million (2002: CHF 82.7 million). This was after the industry, which had previously been accustomed to growth, had already experienced a decline of
8.7 percent. The number of employees fell from 373 to 335. On the other hand, per capita turnover remained stable at CHF 22,000.
Trimedia and Burson-Marsteller are ranked 2nd and 4th in the current statistics, although they are not allowed to publish their business data for legal reasons (see main text).
In structural terms, the industry normalized somewhat for the first time in 2003: The long-standing dominance of the "Big Five" has waned. Nevertheless, there are still differences between the individual PR agencies.
big differences. While the leader Farner "only" suffered a loss of 12 percent, Wirz Corporate recorded a slump of more than 46 percent.
Contrary to the industry trend, a number of smaller and
medium-sized agencies, such as Freicom (+10.8%),
PR Access (+ 52.8 percent) or Panta Rhei (+ 12.2 percent). BPRA President Ulrich Bollmann explains this with the different organizational forms and core competencies of the individual agencies. In addition, the dependence on individual clients also plays a greater role in the results of medium-sized and smaller agencies. (ps)
Clear-cut: The BPRA ranking shows how Swiss PR companies are performing in the market.
Patrick Steinemann
Communication is their business. But when it comes to its own market statistics, the industry has to be careful: Legislative measures in the USA (Sarbanes-Oxley Act) also prevent a large number of advertising and PR agencies from publishing their business data here in Switzerland. As a result, no industry figures and rankings are available for the Swiss communications market. The only exception - even internationally - will soon be the Swiss Association of Public Relations Agencies (BPRA). The predominantly owner-managed agencies were recently able to present their current ranking - only two of 26 agencies had to step out of the limelight (see box).
Association President Ulrich Bollmann describes the fact that the BPRA can present representative figures for the Swiss PR market as a "happy coincidence". However, the ranking of agencies is more than just a coincidence: "It is absolutely important for our clients that we have a ranking like this," says Bollmann. The ranking list offers potential new customers in particular an initial point of orientation in the industry.
Will the BPRA ranking now become a serious competitive advantage on the Markom marketplace? It is possible, because it is now clear that there will definitely be no ranking of advertising agencies this year (and probably next year too): According to Walter Merz, Managing Director of the industry association Schweizer Werbe- und Kommunikationsagenturen (BSW), there will also be no survey of structural data and salaries in 2004. Merz does not expect the legal situation to change for another year or two. For the BSW Managing Director
the lack of a ranking is a "clear disadvantage". Like BPRA President Bollmann, BSW man Merz also mentions the orientation function of an agency ranking based on quantitative criteria for clients. Especially as a representative of an "industry with a reputation for not being very transparent", Walter Merz regrets that his own efforts to open up are now being "undermined by a US congressional decision".
For BPRA President Bollmann, it is not clear from the outset whether the difference in transparency between PR and advertising agencies will become a competitive advantage. According to Bollmann, its ranking does not represent an arrow in the BPRA's quiver to be used proactively. What is more important to him is that the publication of BPRA statistics is undisputed, even in a difficult economic environment: "Our members have to live with positive or negative figures."
As far as business figures are concerned, according to BSW Managing Director Merz, advertising agencies also have to make do with "facts" that cannot be glossed over. The fact that the phase without an advertising ranking coincides with an economically stagnating situation is only of limited benefit to the BSW: It is true that the gross operating income of advertising agencies also fell by 12 to 15 percent in 2003 compared to the previous year. And so, as Merz confirms, there are certainly individual members who are quite happy that there is currently no ranking. But the BSW managing director also knows: "Some agencies are only members of the BSW in order to be included in the ranking." The BSW is therefore endeavoring to be able to present an up-to-date, representative ranking list at international level as soon as possible.
Hoping for an upswing
However, it is still unclear when the communications industry will be able to present better business figures of its own again - in whatever form. According to a survey conducted in the fall of 2003, most agencies expect a slight recovery in 2004. The "gut feeling" of BPRA President Ulrich Bollmann also tells him that the bottom has been reached, "the only question is how long it will last".
Swiss PR market: less net turnoverThe BPRA statistics on the agency market in 2003 show that 29 agencies
are included - 26 of which are member agencies. New members are: Peter Bütikofer & Company, Zurich, Freicom, Balgach, Zahner & Partner, St. Gallen, Panta Rhei PR, Amriswil, In Marketing, Schwerzenbach, and Creafactory, Zug.
In 2003, total net fee income fell by 10.7 percent to CHF 73.8 million (2002: CHF 82.7 million). This was after the industry, which had previously been accustomed to growth, had already experienced a decline of
8.7 percent. The number of employees fell from 373 to 335. On the other hand, per capita turnover remained stable at CHF 22,000.
Trimedia and Burson-Marsteller are ranked 2nd and 4th in the current statistics, although they are not allowed to publish their business data for legal reasons (see main text).
In structural terms, the industry normalized somewhat for the first time in 2003: The long-standing dominance of the "Big Five" has waned. Nevertheless, there are still differences between the individual PR agencies.
big differences. While the leader Farner "only" suffered a loss of 12 percent, Wirz Corporate recorded a slump of more than 46 percent.
Contrary to the industry trend, a number of smaller and
medium-sized agencies, such as Freicom (+10.8%),
PR Access (+ 52.8 percent) or Panta Rhei (+ 12.2 percent). BPRA President Ulrich Bollmann explains this with the different organizational forms and core competencies of the individual agencies. In addition, the dependence on individual clients also plays a greater role in the results of medium-sized and smaller agencies. (ps)
Clear-cut: The BPRA ranking shows how Swiss PR companies are performing in the market.
Patrick Steinemann
