Euro Shock" survey: Ulrich Tacke

A crisis has never harmed anyone. Because crises have a positive effect. They raise awareness and sharpen the focus on things that are obvious but are often suppressed without the necessary pressure. Swiss consumers may have been surprised by the SNB's move, but they are enjoying their increased purchasing power. After all, there has never been such a high and sudden revaluation in European economic history. The cut comes as less of a surprise to large and multinational companies. They have always seen the franc as both an opportunity (margin) and a risk (costs). Cost-intensive processes, such as the printing of magazines, were relocated to neighboring countries some time ago. Conversely, products that are produced in the eurozone are sold in local currency. In plain language: money is earned in francs and invested in media francs. The exchange rate has little influence here. And anyone who produces, advertises and sells in Switzerland doesn't need to worry about the euro. Right up to the point where the beloved Swiss watch is exported. We need not expect an immediate and drastic fall in media budgets. Instead, the floating of the franc will force a strategic rethink in the media and advertising market and significantly accelerate the change that has been underway for some time. The focus will certainly be on digital media, but less on channels than content. Customers are interested in content and not necessarily in haptic newspapers or tablets.

This development is not new, but it will continue to push publishers to focus on stories and less on printing and distribution. The same applies to moving images. TV is on its way to becoming the second screen, while the primary screen is now in our pockets. The fact is, Swiss consumers have just as much money as before (or more), and locally available products are also becoming cheaper. But what if purchasing power turns into shopping tourism? In order to maintain domestic sales, few clients will want to reduce their marketing budgets. However, they expect quality for their money. And this is precisely where the strong franc will hit the Swiss media and advertising industry. The costs for high-quality services are effectively comparable 1:1 with the eurozone.

Ideas and concepts know no borders, and it shouldn't really matter whether they are developed in London or Bern. Controlling takes a different view. Agencies must clearly differentiate themselves through their positioning and local added value. This is how they are measured by their clients. This is nothing new and has always been the case. Only with the new market conditions, the strategic rethink - the digital & data shift - is becoming an absolute necessity for everyone in the media and marketing business.