And it went boom
Local TV: The regional stations' advertising consortium aims to double its revenue again this year.
Local TV The regional broadcasters' advertising combo aims to double sales again this year.As far as TV advertising is concerned, the first half of 2004 was a busy one. It wasn't just the SRG stations and advertising windows that took off like never before. With more than double the growth rate, the local and regional stations benefited even more than average (see table on page 16).The steep upward trend becomes even more obvious in view of the figures for TeleNewsCombi (TNC), the advertising combination of the seven major German-speaking stations in Switzerland. "In the first half of 2004, we have already generated practically the same amount of sales as in the whole of 2003," reports TNC managing director Marcel Geissbühler. He expects that by the end of the year, sales will have doubled compared to the previous year. And this after TNC revenues had already risen by a good hundred percent in 2003.
The reasons for the boom are not only to be found in the massively expanded advertising combos, which have seen four new offerings this year alone (see box on page 16). "The real breakthrough came with the leap into the Publisuisse planning tools at the beginning of 2003, because it was only with this step that the TNC offering became truly plannable," says Geissbühler.
Tight budgets help local TV
Geissbühler also attributes the fact that the network of local stations is increasingly well received by customers primarily to its "stable and further increasing performance." "In the first half of 2004 alone, the TNC advertising block rating has already grown again by 10 percent," says Geissbühler.
In the regional advertising markets, where local stations have been well established for years, growth rates are no longer making quite such leaps. One exception is TeleBasel, which increased its revenues in the local market two-and-a-half times in the first half of 2004. And TeleZüri, too, is doing better than average, with strong growth of 30 percent. However, in terms of advertising mix, the Zurich station operates in quite different dimensions from its combined partners: Its share of national advertising is 80 percent, while the ratio of local to national clients is pretty much the reverse for the other stations.
By contrast, the stations TeleBärn, Tele M1 and TeleTop all reported growth rates in local advertising of around ten percent for the first six months of the current year. "We are benefiting from the tight advertising budgets of the clients. Because they have now noticed that advertising on local TV is cheaper than in print or radio," explains Michele Macaluso, Marketing and Sales Manager at Tele M1 and TeleTell.
However, clients in the catchment area of TeleOstschweiz (TVO), which has only been broadcasting for five years, have apparently not yet come to this realization, with positive sales development only beginning in the middle of the current year. TVO managing director Peter Schwager attributes the stuttering development in the local market to lingering fears of contact with TV advertising. "SMEs still make the false assumption that local TV is complicated, complex and expensive," Schwager said. This can only be corrected through constant communication with the market, he adds.
However, one of TNC's most important recipes for success is its intensive presence in the market. This is not ensured solely by Radiotele, which has the marketing mandate. In addition, the marketing departments of the individual stations also work for TNC in their respective areas. And Publisuisse, which handles the technical side of the local TV combo, also plays a supporting role in the sale of advertising time. "It is the performance in the network that brings us success," Geissbühler states. And he adds: "At the end, you often can't see who brought in a new customer."
After the stormy expansion of advertising services in the current year, a breather is in order for the moment. The latest expansion step, the takeover of the show "Tierisch" by the seven TNC members, was perhaps already one too many, as the stagnating audience figures show. At the moment, he said, there are no plans for new joint broadcasts or advertising offers. "Now the keyword is consolidation," explains the TNC managing director.
He has high hopes for TrendPool, a combination of "SwissDate" and "Lifestyle" with the youth shows on SF 2, which has been on offer since the beginning of this year. "This will enable us to address a new customer group that stands for young and trendy products." Such diversifications, which entail an expansion of the customer base, are imperative in order to continue to grow, he said.
However, it is also necessary to be even more clearly present in the market with the advertising offers. "And we must continue to work hard to make the TNC a strong brand," says Geissbühler. His goal: The TNC should be part of every good TV campaign. That's not just wishful thinking, he said. "We are well on the way to achieving it," the TNC managing director is convinced.
TV advertising brings up the rearThe first half of 2004 finally brought the long-awaited gains in market share for Swiss TV advertising. Television took off with an increase of almost 15 percent, or a good 50 million Swiss francs, while all other media categories stagnated or even suffered further losses.
With this landslide shift, television in Switzerland, which had previously brought up the rear in Europe with a share of around 18 percent of total advertising spending, is starting to catch up: Between January and June 2004 alone, this figure climbed to 21.1 percent, according to Media Focus.
In absolute terms, it was the SRG stations and advertising windows that benefited most, as the table showing the development of gross advertising expenditures from January to August 2004 shows. In terms of percentage growth, however, local TVs performed well twice as strongly, at 22.5 percent. (dse)
Boom in new advertising combinationsFor three years, the news block was the only advertising offer of the TeleNewsCombi (TNC); today, there are already six combinations to choose from. The decisive step followed at the beginning of 2003 with the launch of the InfoPool, a combination of the SF-DRS advertising block before the "Tagesschau" with the TNC advertising block at 6.15 p.m..
After that, a number of other weekly offerings were added in rapid succession: first "SwissDate," this year the "Lifestyle" block and now the "Animal" block. Another chapter was also opened in 2004 in the cooperation with SF DRS: The new TrendPool combines the "SwissDate" and "Lifestyle" formats with the youth programs on SF 2. (dse)
Excellent on the road: At local TV stations, revenues flow abundantly thanks to the advertising combo.
Daniel Schifferle
The reasons for the boom are not only to be found in the massively expanded advertising combos, which have seen four new offerings this year alone (see box on page 16). "The real breakthrough came with the leap into the Publisuisse planning tools at the beginning of 2003, because it was only with this step that the TNC offering became truly plannable," says Geissbühler.
Tight budgets help local TV
Geissbühler also attributes the fact that the network of local stations is increasingly well received by customers primarily to its "stable and further increasing performance." "In the first half of 2004 alone, the TNC advertising block rating has already grown again by 10 percent," says Geissbühler.
In the regional advertising markets, where local stations have been well established for years, growth rates are no longer making quite such leaps. One exception is TeleBasel, which increased its revenues in the local market two-and-a-half times in the first half of 2004. And TeleZüri, too, is doing better than average, with strong growth of 30 percent. However, in terms of advertising mix, the Zurich station operates in quite different dimensions from its combined partners: Its share of national advertising is 80 percent, while the ratio of local to national clients is pretty much the reverse for the other stations.
By contrast, the stations TeleBärn, Tele M1 and TeleTop all reported growth rates in local advertising of around ten percent for the first six months of the current year. "We are benefiting from the tight advertising budgets of the clients. Because they have now noticed that advertising on local TV is cheaper than in print or radio," explains Michele Macaluso, Marketing and Sales Manager at Tele M1 and TeleTell.
However, clients in the catchment area of TeleOstschweiz (TVO), which has only been broadcasting for five years, have apparently not yet come to this realization, with positive sales development only beginning in the middle of the current year. TVO managing director Peter Schwager attributes the stuttering development in the local market to lingering fears of contact with TV advertising. "SMEs still make the false assumption that local TV is complicated, complex and expensive," Schwager said. This can only be corrected through constant communication with the market, he adds.
However, one of TNC's most important recipes for success is its intensive presence in the market. This is not ensured solely by Radiotele, which has the marketing mandate. In addition, the marketing departments of the individual stations also work for TNC in their respective areas. And Publisuisse, which handles the technical side of the local TV combo, also plays a supporting role in the sale of advertising time. "It is the performance in the network that brings us success," Geissbühler states. And he adds: "At the end, you often can't see who brought in a new customer."
After the stormy expansion of advertising services in the current year, a breather is in order for the moment. The latest expansion step, the takeover of the show "Tierisch" by the seven TNC members, was perhaps already one too many, as the stagnating audience figures show. At the moment, he said, there are no plans for new joint broadcasts or advertising offers. "Now the keyword is consolidation," explains the TNC managing director.
He has high hopes for TrendPool, a combination of "SwissDate" and "Lifestyle" with the youth shows on SF 2, which has been on offer since the beginning of this year. "This will enable us to address a new customer group that stands for young and trendy products." Such diversifications, which entail an expansion of the customer base, are imperative in order to continue to grow, he said.
However, it is also necessary to be even more clearly present in the market with the advertising offers. "And we must continue to work hard to make the TNC a strong brand," says Geissbühler. His goal: The TNC should be part of every good TV campaign. That's not just wishful thinking, he said. "We are well on the way to achieving it," the TNC managing director is convinced.
TV advertising brings up the rearThe first half of 2004 finally brought the long-awaited gains in market share for Swiss TV advertising. Television took off with an increase of almost 15 percent, or a good 50 million Swiss francs, while all other media categories stagnated or even suffered further losses.
With this landslide shift, television in Switzerland, which had previously brought up the rear in Europe with a share of around 18 percent of total advertising spending, is starting to catch up: Between January and June 2004 alone, this figure climbed to 21.1 percent, according to Media Focus.
In absolute terms, it was the SRG stations and advertising windows that benefited most, as the table showing the development of gross advertising expenditures from January to August 2004 shows. In terms of percentage growth, however, local TVs performed well twice as strongly, at 22.5 percent. (dse)
Boom in new advertising combinationsFor three years, the news block was the only advertising offer of the TeleNewsCombi (TNC); today, there are already six combinations to choose from. The decisive step followed at the beginning of 2003 with the launch of the InfoPool, a combination of the SF-DRS advertising block before the "Tagesschau" with the TNC advertising block at 6.15 p.m..
After that, a number of other weekly offerings were added in rapid succession: first "SwissDate," this year the "Lifestyle" block and now the "Animal" block. Another chapter was also opened in 2004 in the cooperation with SF DRS: The new TrendPool combines the "SwissDate" and "Lifestyle" formats with the youth programs on SF 2. (dse)
Excellent on the road: At local TV stations, revenues flow abundantly thanks to the advertising combo.
Daniel Schifferle
