Trends in the advertising market Report 2015/12 Monthly report on developments in the Swiss advertising market Highlights in December 2 Short summary of the advertising year 2015 3 Advertising impact within the market as a whole 4 Advertising impact within individual industries 5 The month's top 10 6 Advertising impact in the media 7 Distribution of advertising impact in the media 8 Advertising presence Media presence ecommerce Expertise
Highlights in December As usual, the advertising month of December shows a decrease in gross advertising expenditure to 446 million Swiss francs in the last data month of the year. In comparison to the previous year, however, advertising expenditure is 2.5 per cent higher than in December 2014. Cumulatively the total gross advertising expenditure for the year 2015 was 4,949 million Swiss francs, which corresponds to a minimal increase of around one per cent compared with the previous year. Public transport companies hit the accelerator The largest increases in comparison to the same month of the previous year have been recorded in the industries of public transport (+26.3%), retail trade (+23.6%), cleaning (+19.0%) as well as pharmaceutical and healthcare (+17.6%). The tobacco goods industry exhibits a substantial decrease in advertising expenditure with a deficit of 36.3%. Other large changes are revealed in the industries of vehicles (31.7%), political campaigns (-22.4%) as well as services (-10.2%) and energy (-9.0%). The smallest changes, both in terms of decreases as well as increases, were in the industries of finance (+1.4%) as well as media (-1.9%) in comparison to the same month of the previous year. Retail trade on the up The retail trade industry produced a gross advertising impact in December of 53.4 million Swiss francs, which corresponds to an increase of 25.7 per cent in relation to the previous year. This value also corresponds to a good eighth of the entire advertising expenditure in the retail trade industry over the year 2015 (CHF 442.9 million), which points to the considerable relevance of Christmas trade. However no products from this sector have made it into the top 10 most advertised products. In the run-up to Christmas, two chocolate products from the food sector were among the top 10 most advertised products. The famous 'Celebrations' were in 6th place, closely followed by 'Frey Prestige Pralinen' in 7th place, despite the fact there was only a minimum increase in the food sector (+2.9%) in December. New digital & household industry The new digital and household industry, which comprises the former industries of household goods/appliances, IT and office as well as consumer electronics, appears straight away in the month of December with two products among the top 10 advertised products. In second place in the top 10 is the product 'Universal Music CDs', and third place goes to the product 'Ifolor.ch'. The telecommunications industry is likewise represented with two products in the top 10: in 8th place is the product 'Teleclub Pay TV', and 10th place goes to 'Salt Plus Swiss'. Trends in the advertising market 2015/12 2
Short summary of the advertising year All things come to those who wait All parties involved had to wait a long four years until the advertising expenditure threshold of 4.9 billion Swiss francs could be crossed. Since 2011, the advertising market has stagnated at 4.8 billion with several 'squashed' participants. This is now a thing of the past: through a gross increase of 132 million in total over the last two years, there is still no '5' in front for the Swiss advertising market, but it now 'only' needs an additional 50 million francs spent on advertising in the current year. 2015 therefore doesn't show a quantum leap in reference to earlier annual growth steps (approximately +300 million/year), but it does give a discernible positive signal all the same. There is also talk in the market that advertising budgets in the new year were maintained or even slightly increased. What good news in supposedly challenging and difficult times. The party's over: Reduction to the maximum Furthermore, a consolidation in the number of advertisers and in the advertising portfolio is noticeable: compared with 2011, out of 400 advertising companies in total, significantly fewer advertised at a loss in the past year. At the same time, the number of products advertised has since been reduced by 3,300 products. An impressive number, which in its development follows a trend that has been ongoing since 2008 and is also a clear indication of the focus on either successful products or already established brands. The time of advertising experiments seems to be more remote than ever. And the winners are The service, initiatives, pharmaceuticals and personal care sectors are the 'top scorers' in long-term industry development, where each has seen 100 per cent advertising growth over the last ten years. These four musketeers of growth share every fifth franc spent on advertising in the current advertising year. Surprisingly, looking back over just five years shows the same 'high performers' with a 15 to 35 per cent increase, in part, whereby the beverage market has come out brilliantly (+30.0% since 2011). All five sectors are likely a valuable El Dorado for every advertiser because highly competitive advertising environments need not only budgets, but also creativity. Trends in the advertising market 2015/12 3
550 Jan Feb Mrz Mar Apr Mai May Jun Jul Aug Sep Okt Oct Nov Dez Dec 500 450 400 350 300 2013 2014 2015 Month 250 2013 2014 2015 2015 vs. 2014 in CHF m in CHF m in CHF m % January 327.5 329.2 328.4-0.2 February 347.8 346.8 360.2 3.9 March 460.9 462.8 481.1 3.9 April 421.8 439.1 413.8-5.7 May 427.6 438.3 424.9-3.1 June 382.7 385.9 386.3 0.1 July 275.7 287.2 285.4-0.6 August 310.5 311.6 316.0 1.4 September 465.4 464.9 490.5 5.5 October 484.8 487.7 501.4 2.8 November 479.4 505.1 515.2 2.0 December 432.9 435.1 446.1 2.5 Year to Date 4'817.1 4'893.8 4'949.4 1.1 Advertising impact within the market as a whole Developments in advertising impact for December 2015 Trends in the advertising market 2015/12 4
Industry / product group YTD Dec 2015 in CHF m +/- YOY % in CHF m +/- YOY % Food 518.3 1.9 47.0 2.9 Retail trade 442.9 25.7 53.4 23.6 Vehicles 439.1-4.4 19.3-31.7 Cars (new) 359.5-1.2 16.5-24.6 Initiatives and campaigns 356.5 1.7 29.5 7.7 Political campaigns 76.1 12.7 1.7-22.4 Finance 328.9 8.5 16.6 1.4 Insurance 124.3 15.5 5.4-8.0 Leisure, Gastronomy, Tourism 291.8 10.7 26.2 12.2 Cosmetics and toiletries 290.5-12.2 34.1 2.1 Building, industry, furnishings 281.4-3.6 19.3-2.8 Fashion and sport 278.7-1.7 29.7 3.6 Watches and jewellery 90.1-13.3 14.2-7.6 Events 267.5-2.6 22.4-4.0 Services 246.2-12.1 18.3-10.2 Digital & Household 224.3-9.3 33.7-6.7 IT, hard- & software 82.7-12.8 8.7-31.7 TV & Home entertainment 44.2-22.4 7.7-14.7 Beverages 221.1 8.0 19.9 10.0 Pharmaceuticals and health 183.7 10.1 18.1 17.6 Telecommunications 179.7 4.2 18.9 15.9 Personal care 116.1-5.3 14.0-8.5 Public transport companies 86.3 7.1 8.9 26.3 Cleaning 83.1-0.6 5.1 19.0 Media 82.6 3.6 9.2-1.9 Energy 20.3-10.5 1.2-9.0 Tobacco products 10.7-31.1 1.4-36.3 All industries 4'949.4 1.1 446.1 2.5 Advertising impact within individual industries Advertising impact within individual industries in comparison with the previous year Trends in the advertising market 2015/12 5
Top 10 advertisers +/-YOY% 1 Migros -1.2 2 Swisscom 3.6 3 L'Oréal -41.3 4 Nestlé 5.2 5 Procter & Gamble 122.2 6 Coop 18.7 7 Beiersdorf AG 20.7 8 Dipl. Ing. Fust AG 6.6 9 Interdiscount -25.7 10 M Electronics Migros -15.5 Top 10 products 1 Chanel Nr. 5 Parfum 2 Universal Music CD's 3 Ifolor.ch 4 Mc Donald's Restaurants 5 Coca Cola 6 Celebrations 7 Frey Prestige Pralinen 8 Teleclub Pay TV 9 Otrivin Schnupfen 10 Salt Plus Swiss The month's top 10 The top 10 advertisers and the most advertised products/ services (not including product range or image advertising) in December Trends in the advertising market 2015/12 6
240 220 200 in CHF m 180 160 140 120 100 80 Press 2015 Press 2014 TV 2015 TV 2014 70 60 50 40 30 20 10 0 Out of Home 2015 Out of Home 2014 Radio 2015 Radio 2014 Internet 2015 Internet 2014 9 8 57 6 4 5 3 4 2 3 2 1 1 0 Jan Feb Fév Mar Mrz Apr Avr May Mai Jun Jul Jul Aug Aoû Aug Sep Oct Okt Nov Nov Dec Déc Dez Cinema 2015 Cinema 2014 Digital advertising spaces 2015 Digital advertising spaces 2014 Teletext 2015 Teletext 2014 Advertising impact in the media Developments in advertising impact in the media in comparison with the previous year Trends in the advertising market 2015/12 7
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Media group 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 YTD ytd Dez Dec 15 Daily, regional, weekly and Sunday press 34.1 35.0 34.1 34.7 32.7 31.6 30.9 28.9 27.1 27.3 26.2 25.4 General press, financial, business press 17.7 16.7 16.7 15.4 14.6 15.9 15.8 15.4 15.1 14.8 14.4 13.3 Specialist press 3.9 3.7 3.7 3.7 3.3 3.2 3.3 3.1 3.1 2.9 2.6 2.7 Trade press 2.5 2.2 2.0 2.1 2.1 1.9 1.8 1.8 1.7 1.6 1.5 1.4 TV 22.8 24.1 26.1 26.3 28.6 29.3 30.0 31.4 32.1 32.8 33.3 34.9 Out of Home 12.2 11.6 11.0 10.7 10.5 9.8 9.6 10.5 11.6 11.4 11.8 9.2 Internet 1.1 1.3 1.3 2.0 2.9 3.5 2.9 3.2 3.4 3.4 4.5 4.9 Radio 3.9 3.7 3.4 3.6 4.1 3.7 4.6 4.6 4.8 4.5 4.2 5.4 Cinema 1.5 1.4 1.2 1.1 0.7 0.7 0.6 0.6 0.7 0.7 0.9 1.6 Digital advertising spaces 0.2 0.2 0.1 0.2 0.3 0.4 0.4 0.4 0.5 1.1 Teletext 0.4 0.3 0.3 0.3 0.3 0.2 0.2 0.1 0.1 0.1 0.1 0.0 Distribution of advertising impact in the media Distribution of advertising impact in the media since 2005 Trends in the advertising market 2015/12 8
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