Tricky situation for media planners
Tamedia's direct booking discount is driving a wedge between media agencies and advertisers.
Direct booking discount Tamedia's move is dividing media agencies and advertising clients, and the direct booking discount for media agencies announced by Tamedia (see box) is by no means a source of joy among advertising buyers. "This is a very hot potato," says Robert C. Baier from the agency MediaBaier. Andy Lehmann, Managing Director of Aegis Media Group Switzerland, even speaks of a "legal minefield". "Essentially, it's about the question of who owns this money," he says. Peter Hofstetter, owner of Mediaxis-MTP AG, adds: "This topic is a bit explosive, but it's good for our market." Other people, however, limit themselves to generalities. Christof Kaufmann, CEO of OMD Switzerland, for example, only says a single sentence: "We are currently examining this new market situation." And the CEO of another large agency only wants to talk about this "highly political media development" behind closed doors. Others no longer even dare to do so, and very few are willing to answer the question of whether they have signed the agreement with Tamedia. Only Peter Hofstetter is open about it. He has also informed his customers accordingly, he says. Others, such as Rolf Suter from m&m and Ronny Schmid, co-owner of Konnex, want to let the customers decide.
In most cases, however, the Tamedia proposal is welcomed. For two reasons: Firstly, it once again addresses the fee pressure to which many media agencies are exposed. Another is the growing market dominance of Publimedia, which also receives significantly more than 1.5 percent for pure placement. "Tamedia is now putting us on the same level as Publimedia," praises Peter Hofstetter. And a CEO who does not wish to be named adds: "If we book directly, this benefits our customers more because we can then talk to the publishers about placements or certain conditions. Some customers also want this. But that is an additional expense that we would like to have paid for."
Nevertheless, Tamedia has also been criticized, above all for the way it informed the public and in particular the Swiss Advertisers Association (SWA). "The information provided to the SWA by Tamedia is honest, but it acted very naively," says Andy Lehmann, for example. However, the SWA, which had informed its members about Tamedia's offers by means of a warning e-mail shortly after Tamedia had informed them, received even more criticism. Lehmann: "The SWA has used this issue to construct a potential relationship of mistrust between the media agencies and the customers. The worst thing about it is that the media agencies once again look like rip-off artists." Hofstetter is also annoyed. "The SWA has totally exaggerated," he says. Elsewhere, the SWA's approach has been described as "premature". Lehmann also points out that the TV marketer Publisuisse has also had a direct booking discount for years, with which the SWA has had no problem to date.
Lehmann also points out another problem: "Tamedia is using the total agency turnover as a yardstick and thus creating further conflicts for customers - for example, the choice between large and small agencies." Various voices also point out that Tamedia's initiative should not be viewed in isolation. A certain amount of waiting is therefore advisable. On the one hand, PubliGroupe may counter with countermeasures (see also pages 34/35). "On the other hand, other independent publishers could follow Werdsträssler's example," says Robert C. Baier. In general, the former managing director of IG Media-agenturen (IGMA) advocates a pragmatic solution to the conflict. "Instead of SWA and agencies arguing and blocking each other, they should split the direct booking discount: one part for the agency, one for the client."
The offer from TamediaMedia agencies that book directly with Tamedia titles instead of via Publimedia and generate a total annual turnover of at least CHF 1 million there will now receive a direct booking discount from Tamedia.
discount of 1.5 percent. If sales also exceed those of the previous year, Tamedia even grants a four percent discount, up to a maximum of CHF 40,000. This offer, which is available to the agencies in the form of an agreement to be signed, has been in effect since January 1, 2005.
Jürg Brauchli, Head of Newspapers at Tamedia, wants to "strengthen free competition", which he believes has been jeopardized in the greater Zurich area since the merger of PubliGroupe and NZZ. Agencies can now determine their own booking channels, whereas previously they usually had to go through Publimedia for cost optimization reasons. From
He does not want to know anything about hidden discounts, but rather that the agencies are compensated for the higher costs of direct bookings, he says. An expense that Publimedia is also compensated for. However, because it also takes on the delcredere, the percentage is somewhat higher. (mk)
Media agencies that book directly with Tamedia titles now receive a through-booking discount from Tamedia.
Markus Knöpfli
In most cases, however, the Tamedia proposal is welcomed. For two reasons: Firstly, it once again addresses the fee pressure to which many media agencies are exposed. Another is the growing market dominance of Publimedia, which also receives significantly more than 1.5 percent for pure placement. "Tamedia is now putting us on the same level as Publimedia," praises Peter Hofstetter. And a CEO who does not wish to be named adds: "If we book directly, this benefits our customers more because we can then talk to the publishers about placements or certain conditions. Some customers also want this. But that is an additional expense that we would like to have paid for."
Nevertheless, Tamedia has also been criticized, above all for the way it informed the public and in particular the Swiss Advertisers Association (SWA). "The information provided to the SWA by Tamedia is honest, but it acted very naively," says Andy Lehmann, for example. However, the SWA, which had informed its members about Tamedia's offers by means of a warning e-mail shortly after Tamedia had informed them, received even more criticism. Lehmann: "The SWA has used this issue to construct a potential relationship of mistrust between the media agencies and the customers. The worst thing about it is that the media agencies once again look like rip-off artists." Hofstetter is also annoyed. "The SWA has totally exaggerated," he says. Elsewhere, the SWA's approach has been described as "premature". Lehmann also points out that the TV marketer Publisuisse has also had a direct booking discount for years, with which the SWA has had no problem to date.
Lehmann also points out another problem: "Tamedia is using the total agency turnover as a yardstick and thus creating further conflicts for customers - for example, the choice between large and small agencies." Various voices also point out that Tamedia's initiative should not be viewed in isolation. A certain amount of waiting is therefore advisable. On the one hand, PubliGroupe may counter with countermeasures (see also pages 34/35). "On the other hand, other independent publishers could follow Werdsträssler's example," says Robert C. Baier. In general, the former managing director of IG Media-agenturen (IGMA) advocates a pragmatic solution to the conflict. "Instead of SWA and agencies arguing and blocking each other, they should split the direct booking discount: one part for the agency, one for the client."
The offer from TamediaMedia agencies that book directly with Tamedia titles instead of via Publimedia and generate a total annual turnover of at least CHF 1 million there will now receive a direct booking discount from Tamedia.
discount of 1.5 percent. If sales also exceed those of the previous year, Tamedia even grants a four percent discount, up to a maximum of CHF 40,000. This offer, which is available to the agencies in the form of an agreement to be signed, has been in effect since January 1, 2005.
Jürg Brauchli, Head of Newspapers at Tamedia, wants to "strengthen free competition", which he believes has been jeopardized in the greater Zurich area since the merger of PubliGroupe and NZZ. Agencies can now determine their own booking channels, whereas previously they usually had to go through Publimedia for cost optimization reasons. From
He does not want to know anything about hidden discounts, but rather that the agencies are compensated for the higher costs of direct bookings, he says. An expense that Publimedia is also compensated for. However, because it also takes on the delcredere, the percentage is somewhat higher. (mk)
Media agencies that book directly with Tamedia titles now receive a through-booking discount from Tamedia.
Markus Knöpfli
