Where two quarrel, the market is divided

Advertising expenditure statistics Switzerland has had two advertising statistics for a year now. The result is clear in most cases: two are too many, one has to go. But which one? The market is divided.

Advertising expenditure statistics Switzerland has had two advertising statistics for a year now. The result is clear in most cases: two are too many, one has to go. But which one? For Urs Schneider, owner of the media agency Mediaschneider, the matter is clear: "I can only afford one advertising statistic." He has therefore checked which is more useful to him, those from Media Focus (MF) or the Advertising Index Switzerland (AIS) from Wemf. He took a "very simple" approach to the evaluation: He took the plans he had made for three clients in 2003 and compared the actual gross volume with the results from MF and AIS. He found "that the AIS figures are generally closer to reality." This was particularly true for print-heavy media mixes, while the figures for cinema and TV were almost identical for both providers. However, Schneider was most perplexed by the fact that the deviations between the surveys were sometimes very high and in extreme cases accounted for more than 20 percent of effective spending.
When Schneider investigated the reasons, he discovered that MF does not include the costs for inserts and calculates the volumes far too high for newspapers with a front page system (see box). However, the AIS also had shortcomings: its list of titles and media covered is shorter and the segmentation by sector is inadequate. Nevertheless, Schneider judged the AIS to be "more efficient" and opted for it.
AIS closer to realityA similar conclusion was reached at Coop. Karin Heliopoulos, Head of Marketing at Coop, says that it happens time and again that the AIS itself shows regularly placed customer volumes in a print title in one month and not in another. Or that a title is forgotten in the allocation of a combination. "That casts doubt on the reliability of the data." Nevertheless, she subscribes to the AIS. "Overall, it is closer to reality and it shows the insert volumes that are important to us," says Heliopoulos.
Conversely, MF was named "preferred supplier" by the Swiss Advertising Association (SWA) at the beginning of the year. This came after several negotiations with both suppliers and with the aim of providing SWA members with guidance in the new currency jungle.
Almost a year on, the disorientation does not seem to have been alleviated. A non-representative survey by Werbewoche
In any case, it can be concluded that several advertising clients either use the advertising statistics only selectively - and then both - or that they delegate the basic evaluation to the media agencies.
MF is under pressure to actA certain helplessness can also be felt on the part of the SWA. It has drawn up a list of demands for the two providers. However, several points have not yet been met (see interview). For example, the SWA's demand for an independent authority for data controlling is far from being implemented. It should carry out random checks on data suppliers as well as AIS and MF to ensure that the data and its handling meet the agreed standards. And an advisory board to incorporate the needs of data users is also not in sight. MF, which made promises in this regard at the beginning of the year, is under pressure to act.
The required contracts between providers and data suppliers are also lacking. They should commit both sides to uniform standards, continuity of supply and controlling. Ironically, the AIS is now ahead of the "preferred supplier" in this respect. It can boast a whole series of contracts, for example with publishers and APG, while MF is apparently empty-handed, according to research by Werbewoche. MF Managing Director Lukas Zihlmann denies this and claims to have contracts "with most marketers".
The reason why AIS is more likely to enter into contracts is that it offers a financial fee for the data supply, which also aroused covetousness towards the former monopolist MF, which previously received the data for free. According to Zihlmann, however, MF offers suppliers "access to certain advertising data". However, this has not yet reached them. In any case, despite a broad survey of data suppliers, Werbewoche learned nothing about a concrete MF offer. Everywhere it was simply stated: "So far we have not received any response from MF to our request for compensation." Incidentally, the TV marketers are being particularly clever in this matter: They are demanding a generic solution from both providers and have also integrated the medium of cinema via Cinecom. Contracts with the statistics providers are still pending.
As tedious as the situation is for most of those involved, there are also those who see something good in the year-long competition between the statistics providers. A long overdue discussion about the quality of the data has finally been initiated, they say. "So far, everyone has delivered what they wanted, sometimes with sponsorship or freespace, sometimes without. Nobody has checked this," even data suppliers complain behind closed doors. Some are therefore pinning their hopes on the SWA's efforts, even supporting them by wanting to oblige them to carry out data controlling in the envisaged contracts with MF and AIS.
The loudest request from all sides is one that was already expressed in November 2003: "The best thing would be for the two providers to merge their statistics." However, this will probably take a while yet, as the rifts are deep. "We have held talks with Wemf several times, but Wemf said no for the time being last summer," says Lukas Zihlmann regretfully. And adds: "But our doors remain open." Wemf Director René Schmutz, on the other hand, seems to think that merger discussions are premature; the AIS mission has not yet been fulfilled. "We set up the AIS because MF had been delivering poor data for decades. Now we have proven that we can do better." The prerequisite for merger talks is therefore "consistent MF data and reasonable prices". "But the market should actually decide," he says.
Two statistics, two methodsThe large print volume is measured differently by MF and AIS: MF measures it itself and has so far dispensed with inserts (an annual volume in the hundreds of millions). MF is currently endeavoring to obtain this data from the publishers and is examining a self-collection system in parallel, as Managing Director Lukas Zihlmann explains. The AIS is different: the publishers provide it with both the page and insert volumes.
A second difference: MF wants to report gross-to-gross values, i.e. advertising pressure including freespace and free placements. AIS, on the other hand, has focused on the "invoiced gross" (excluding freespace and free placements) - with one shortcoming: under pressure from major customers, TV and cinema only provide gross-to-gross values for both providers, which is why no media mix comparison is possible with AIS.
Conversely, out-of-home advertisers have always only delivered their invoiced gross figures, which strictly speaking also makes it impossible for MF to make a complete intermedia comparison. Since gross-to-gross
data is also used abroad and MF is part of the Nielsen network, MF data is internationally comparable, while AIS data is not. However, Wemf Director René Schmutz has plans to establish the AIS approach abroad and make it internationally comparable one day. He says that there have already been corresponding inquiries without being more specific.
Further differences between the providers: according to Schmutz, AIS receives the data of "all relevant marketers and self-marketers", but the list of media and titles collected by MF is more comprehensive. In addition, the AIS database contains the names of the 1500 largest advertising clients and their products and services, while MF's database contains 110000 products and 50000 companies. And of course the AIS has only been in existence for two years, whereas MF has a long history. (mk)
Markus Knöpfli

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