"The opportunity for industry exclusivity is currently greater than usual"
The advertising market is suffering from the coronavirus crisis. Alexander Duphorn, CEO of Goldbach Media, explains in an interview with M&K why TV advertising is paying off particularly well at the moment.
M&K: The Corona crisis is sending more and more people into the home office. How is Goldbach handling the situation?
Alexander Duphorn: We strictly adhere to the requirements of the Federal Council. To limit the spread of the virus, we have been protecting ourselves and others since the FOPH issued the first recommendations. Since last week, home office has been mandatory. Only in exceptional cases are employees still allowed in the office. At Goldbach, this was relatively easy to implement. We've had laptops for some time now so that we can work from any location.
Numerous companies are suffering from the crisis - but some, such as online stores and the postal service, are also "profiting" from it. Is the TV industry one of them due to a change in consumer behavior?
TV consumption has clearly increased in recent days. The stations are aware of their important role in society and offer information and orientation. But entertainment is also in greater demand than usual. Even commercial breaks are being watched more often in prime time.
A majority of stations are financed exclusively by advertising. Demand is falling sharply. But there are also opportunities now. Not only the increasing reach on TV, but also the long-term effects of audiovisual advertising can now be profited from.
Marketing is generally one of the first areas where companies cut budgets when the economy takes a downturn. If I'm a marketeer with few resources left, should I invest them in TV advertising at the moment? Or is there perhaps a media mix that you would particularly recommend at the moment?
In recent days, we generally notice a big shift and expansion of media consumption. Of course, the recommendation depends on the objective. In addition to seasonal campaigns - for example, for Easter or Mother's Day - you should now certainly communicate your online sales channel. In any case, it is now also worthwhile to focus on branding. The chance of industry exclusivity is currently greater than usual, because some competitors from the same industry will certainly withdraw. And the campaigns have an impact far beyond the campaign period: You can also create a brand presence from the Corona theme itself, like Ricola or Audi, for example, who ask for "More distance". This shows social responsibility that is remembered. And for those who want to do both, we even offer a separate product that combines branding and performance.
Can smaller companies afford TV advertising at all? SMEs in particular have a high inhibition threshold to even make an inquiry.
Goldbach tries to find an effective solution for all customers. With "brand performance" campaigns, for example, we show the customer the direct impact of their advertising on sales and share insights on awareness. There are small customers who started their first TV campaign with a manageable budget. Today, TV is one of their standard advertising tools. The production of advertising media has become much cheaper in recent years and those who know their target group well can also reach them very cost-effectively on TV thanks to the variety of channels and programs. We now know that TV advertising has a direct impact on online sales for brands. During broadcast, noticeably higher website visits are registered and search queries increase.
The programming changes made by the SRG stations - for schoolchildren, for example, or for culturally interested older people who now spend a lot of time in their homes - are also being discussed or adapted in part by the private stations. For all the problems and tragedies that Corona entails, are we witnessing the renaissance of television?
TV has always adapted programming to viewers' interests at very short notice. For example, the private stations also adapt their children's programming. But there is also a lot of Corona in documentaries and magazines. Right now, program makers will do everything they can to strike a chord with viewers. So there can be no talk of a moving image renaissance. Consumption of moving images has always increased in recent years. At the moment, however, it is once again becoming clear that broadcasters with a newsroom in the current situation have a clear advantage over data-driven multinational entertainment groups, because they can adapt more dynamically to demand.