"Image and brand building trumps sales".

Admeira markets the programming of "Public and Regional" - and these have a very special role to play in the Corona crisis. CEO Frank Zelger in an interview with Werbewoche.ch about credibility, advertising investments and home office in the current situation.

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Advertisingweek.chWhat expectations do viewers have of SRG and regional broadcasters in the current crisis?

Frank ZelgerCredible information is the order of the day. Fact-based, timely and reliable information dissemination is just as much in focus as support for the children who are currently forced to stay at home - this applies to learning elements as well as entertainment. The de facto monopolized trust in these formats is reflected in incredible gains in market share and reach.

 

If broadcasters are perceived as a reliable source of information, what does that mean for advertisers?

The advertisers benefit from both the credibility of the stations and their reach. Because of the prevented supply function - by which I mean, for example, closed store locations - two principles apply: Image and brand building is about sales, and it is an investment in the future, as past crises have already shown. Customers with TV advertising were among the winners in the post-crisis era during the difficult times.

 

There is currently a considerable reluctance to spend money on advertising. But aren't advertising prices actually lower and the ROI therefore higher than normal?

It is not primarily the prices that are under pressure. Secondary aspects such as free space, production cost shares or booking flexibility, which are now part of a campaign, play a greater role. The price is only likely to come under pressure if customers practice demand abstinence over a longer period of time, which would be expected due to the lockdown mechanism.

 

Are Swiss companies not brave enough for countercyclical investments?

This restraint is probably not of a Helvetic character, but is due to the fact that it is more difficult to provide services - no events, closed borders, closed stores. Individual industries, on the other hand, are in a classic demand surplus situation and have reduced to no immediate need for advertising. This is also due to restrictions on the number of customers on the sales floor.

 

Would you like to see more promotional engagement?

The idea of investing in the future - in terms of image and branding - may well gain momentum.

 

Many experts say that the current situation is less suitable for quick sales or product advertising, but more for brand building. Why is TV a suitable medium for this?

As explained, this is true because of the circumstances. TV combines the advantage of high credibility, reach and audience in front of the screen with the moving image and thus a concise memory. There is no comparable medium that is able to trigger emotions to such a high degree. In addition, a long-term study by Les Binet/Peter Field has shown that a mix of 60 percent brand building/40 percent sales activation is the most successful option, which in turn clearly speaks in favor of TV as a medium.

 

As a medium-sized company, what does Admeira's infrastructure look like in times of crisis? 

The size and agility have favored the process of transferring to a home office and made it very efficient. Opportunities for the future are emerging. Teams interact via platforms such as Skype, Hangout and others. Daily short coordination rounds via audio or video are the rule up to the highest management level.

 

How does communication with customers work? 

Our customers are also digital and the exchange works smoothly. Conference calls with many participants simply have to be managed well in order to maintain an overview. The close relationships we have cultivated over the years with the advertising market are paying off in the current situation in the form of easy communication channels, including digital channels.

 

Has customer acquisition become difficult?

New acquisition suffers fundamentally from the circumstances of digitized entertainment as well as from the lockdown mechanics. A personal interaction is still the most congenial entry into a relationship - and it will take on a whole new, higher-quality significance after this crisis, which is not a negative development.

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