Principles for joint advertising marketing

After the Uvek decided on Monday that SRG can participate in the joint advertising platform, the new marketing company is ready to start operations, according to a statement on Thursday. Ringier, SRG and Swisscom have defined principles for the joint advertising marketing.

The three partners emphasize that the planned marketing company is not a closed platform, but is also open to other providers and owners of advertising inventory. They say the joint venture is prepared to market all journalistic offerings from TV, radio, online and print that are aimed at a Swiss audience. The new company aims to strengthen the Swiss advertising and media market as a whole.

The CEOs of the three companies, Marc Walder, Ringier, Roger de Weck, SRG, and Urs Schaeppi, Swisscom, have made the following principles of the joint venture binding for joint advertising marketing:

1. open to all media offerings.

The JV is open to market all journalistic offerings in the TV, radio, online and print vectors aimed at a Swiss audience. All inventories are treated equally in prioritization and marketing, regardless of whether the inventory is provided by a commercial partner or a co-shareholder.

2. open access to targeting insights.

The JV will use the Targeting Insights (anonymized personal data grouped together, e.g. age, gender) on an equal basis when marketing the inventory of commercial partners and co-shareholders. For this purpose, co-shareholders and commercial partners must provide the JV with the Targeting Insights of the inventories to be marketed with targeted advertising on equivalent terms.

3. high priority for data protection.

In dealing with Targeting Insights, the JV applies high standards of data protection. In case of doubt, the JV or a co-shareholder obtains the assessment of the Swiss Federal Data Protection Commissioner. The JV presents its handling of data protection in a transparent manner. In the Customer Center, Swisscom offers the possibility of self-determination regarding the use of one's own data for marketing purposes. No co-shareholder and no commercial partner has access to the JV's targeting insights: targeting insights remain solely with the JV.

4. commission rates and pricing in line with the market.

The JV's commission rates are generally based on business criteria, such as the prevailing market conditions depending on the vector (TV, radio, online, print), the volume of inventory and the cost of marketing. The pricing policy and the general price level for advertisers are jointly determined between the inventory provider and the JV. The pricing of all inventories is based on the respective market situation and the respective agreed pricing policy.

5. protection of business secrets.

Confidential information received by the JV from inventory providers is not disclosed by the JV to other inventory providers - including co-shareholders and third parties.

6. no regional advertising campaigns on SRG SSR TV programming.

If the broadcasting of targeted TV advertising in SRG programming is possible in the future, SRG will not broadcast targeted advertising where a client wishes to place advertising spots only in a regional distribution area. Only language-regional and national advertising spots may be geotargeted in SRG programs.

7. strengthening the independent advertising market currency.

The JV is committed to strengthening independent advertising market currencies; therefore, it supports efforts for an independent Total Audience currency.

8. reporting at the request of the Bakom.

If SRG's revenues from targeted TV advertising exceed CHF 30 million per year before 2021, SRG shall report this to the Federal Office of Communications (Bakom) without delay. If, in this case, Bakom suspects a restriction of other media companies, the SRG will, at Bakom's request, set out in a report the measures taken or to be taken by the SRG to exclude a significant restriction of other media providers through targeted TV advertising in SRG programs.

9. annual reporting on targeted TV advertising in SRG programming.

The JV prepares an annual report on the use of targeted advertising for the attention of Bakom. The report sets out, among other things, the commission rate paid by the JV's commercial partners for the marketing of targeted TV advertising. As the report contains business secrets, it will not be made available to any third party. OFCOM is of course free to publish its own findings on the report.

10th Annual Industry Conference on Targeted TV Advertising.

The JV helps to ensure that know-how on targeted TV advertising is shared in the Swiss media industry. This takes the form of an annual industry conference on targeted TV advertising, held in cooperation with EGTA. The aim of the event is to transfer knowledge from the JV to the industry and within the industry.

These binding principles will apply for at least five years from the JV's market launch.

Swiss Media Association rejects joint venture

The Swiss media companies that are members of the association oppose the joint venture for the following reasons, according to a statement Thursday:

1. the Uvek's decision to establish the new advertising marketing joint venture is not yet legally binding: several media companies, the Swiss Media Association and other associations will file an appeal against it with the Federal Administrative Court, they announce in the statement. In their view, the decision is unlawful.

2) There was no legal basis for the joint venture's core product, targeted advertising in SRG's programs. According to the decision of the Bakom, SRG is not allowed to broadcast targeted advertising and is also not allowed to collect data for this purpose. The published principles would show that Swisscom, SRG and Ringier do not take this prohibition seriously in any way and create facts without a legal basis.

3. whether the SRG should be allowed new forms of commercialization despite the current online advertising ban must, in the view of the association, be assessed by parliament before the Federal Council can decide on a license amendment application. 

4. contrary to the statement of the members of the joint venture, there would be no non-discriminatory access for independent media providers. The advertising marketing joint venture was a profit-oriented company. The principles published today would make it clear: participation in the joint venture would be excluded, only customer relationships against an agency commission would be possible. 

If the independent Swiss media companies transfer the marketing of their advertising space and product development to the market-dominating joint venture, they would become strategically dependent on Swisscom, SRG and Ringier.

6. the marketing of a substantial part of the Swiss advertising inventory by state-controlled companies would lead to massive media concentration and a loss of media diversity in Switzerland.