"Swiss cheese is more attractive than French cheese in the commercial break".
IPM boss Michi Frank continues to fight cable operators on M6 advertising window
IPM boss Michi Frank continues to fight cable network operators on the M6 advertising windowIn the matter of the M6 advertising window, the front of the naysayers among the cable network operators in western Switzerland is still large. There is still a lot of convincing to be done. Nevertheless, IPM boss Michi Frank is convinced that the image of the advertising window has not been damaged in the months of tug-of-war.Without the Geneva and Lausanne conurbations, the advertising window on M6 makes little sense. Why did you start anyway?
Michi Frank: It was about our credibility. The most important thing that customers wanted to know from us was: Are you launching or not? Originally, we wanted to launch in October, but we couldn't wait any longer. We did the right thing, because customers are coming and showing interest, despite our distribution problems in Geneva and Lausanne.
Why are Geneva and Lausanne so hard to crack ?
Frank: There are several reasons for that. One very important one is that both cities have local TV stations, Léman Bleu in Geneva and TVRL in Lausanne. They fear they will lose advertising revenue. Which is not true, of course. But the fear is there. Add to that the fact that the president of the Geneva cable network is also the vice president of Léman Bleu. So the owners of the Geneva network are also pursuing other interests.
How much coverage does the M6 advertising window achieve at the moment?
Frank: Our calculation is based on 40 percent. Today we are at 33 percent. The goal is to reach 50 percent coverage by the end of February. We are very confident that we will achieve this together with Swisscable. No advertising window achieves 100 percent coverage; we have the maximum in German-speaking Switzerland with RTL, which has 84 percent. In French-speaking Switzerland, subtracting the 23 percent share of satellite reception, 77 percent coverage is the absolute maximum. If we subtract Geneva and Lausanne, which together make up 25 percent of the population of French-speaking Switzerland, we reach 53 percent.
However, the cities of Lausanne and Geneva in western Switzerland are extremely important areas for advertisers.
Frank: We will offer an alternative for this. In Lausanne and Geneva, there are the aforementioned local TV broadcasters that could be used to bridge the gap. Customers who are not satisfied with our coverage could use the stations as a way to cover the two centers in a targeted way anyway. We are in negotiations with Léman Bleu and TVRL in this regard. I know it's a paradox. On the one hand, we are blocked by these broadcasters, and on the other hand, we bring them advertising revenue with such an offer.
But Léman Bleu and TVRL are not the definitive solution for covering Geneva and Lausanne?
Frank: No, but we have to dispel the fear that we are ripping off. In concrete terms, that means we have to prove to the cable network operators in Geneva and Lausanne that we are not taking money away from the Swiss TV stations in French-speaking Switzerland, but enriching the market. It's easy to show that. For example, TSR's advertising revenues have just doubled since the launch of the RTL advertising window in 1993. The reason: When the target group offering becomes broader and more specialized, creatives make TV commercials more often.
But is there sufficient interest from clients for M6 advertising window spaces at all?
Frank: There is a lot of interest. The reason is clear: TSR is fully booked and has also just opened at
8 percent on top. We wouldn't have a chance with M6 if advertisers didn't find the station attractive. It fills a gap in the younger target groups, as a supplement to TSR. We see ourselves only as a supplement, as is the case with our Swiss-German advertising windows. There is also no reason to worry about the much feared dumping prices. At M6, we're only about twenty percent below TSR.
How much have the associations helped to allay the cable operators' concerns? After all, you called on them to help. Has it helped?
Frank: SWA and IGEM have written letters to the network operators to promote our cause. This has probably had some success with one or two small cable networks, but nothing yet with the big ones in Lausanne and Geneva. However, the associations have certainly succeeded in scaring away some of the fear that is being stirred up against the advertising window.
How many customers have already booked with M6?
Frank: In the first phase, we had three or four customers. Now the offers are out and the detailed negotiations are underway. I reckon that we should currently have between 12 and 15 customers.
But you mustn't lose sight of the window's image either. Aren't you worried that the advertising window might also be rejected by viewers, since half of French-speaking Switzerland seems to be against it?
Frank: The image doesn't give me sleepless nights. In German-speaking Switzerland, a similar situation prevailed nine years ago when the first advertising windows were launched. There was an uproar. That is not the opinion of the population. People tried to produce a fear syndrome. It's the other way around: the viewers benefit from the advertising window, because the commercial breaks are enhanced if Swiss products can be seen there. It's clear: if Swiss cheese is in the commercial break, it's more attractive to the French-speaking Swiss audience than if French cheese is in it.
What about the next advertising window project in French-speaking Switzerland? Is that conceivable after the turbulence you've experienced?
Frank: It would be infamous to think about something like that now. One of the central arguments of the opponents of the advertising window was: If M6 comes, then all the other French stations will also come with an advertising window. That's not our goal. We don't have another project, no business case, we don't even have a thought.
How much time do you give yourself to get cable coverage where you want it?
Frank: We have to prove that more advertising money is flowing into TV in French-speaking Switzerland overall. Only when this hurdle has been overcome will we see in French-speaking Switzerland that additional TV platforms dynamize the TV advertising market as a whole and that there are no losers. Interview: Daniel Schifferle
Michi Frank: It was about our credibility. The most important thing that customers wanted to know from us was: Are you launching or not? Originally, we wanted to launch in October, but we couldn't wait any longer. We did the right thing, because customers are coming and showing interest, despite our distribution problems in Geneva and Lausanne.
Why are Geneva and Lausanne so hard to crack ?
Frank: There are several reasons for that. One very important one is that both cities have local TV stations, Léman Bleu in Geneva and TVRL in Lausanne. They fear they will lose advertising revenue. Which is not true, of course. But the fear is there. Add to that the fact that the president of the Geneva cable network is also the vice president of Léman Bleu. So the owners of the Geneva network are also pursuing other interests.
How much coverage does the M6 advertising window achieve at the moment?
Frank: Our calculation is based on 40 percent. Today we are at 33 percent. The goal is to reach 50 percent coverage by the end of February. We are very confident that we will achieve this together with Swisscable. No advertising window achieves 100 percent coverage; we have the maximum in German-speaking Switzerland with RTL, which has 84 percent. In French-speaking Switzerland, subtracting the 23 percent share of satellite reception, 77 percent coverage is the absolute maximum. If we subtract Geneva and Lausanne, which together make up 25 percent of the population of French-speaking Switzerland, we reach 53 percent.
However, the cities of Lausanne and Geneva in western Switzerland are extremely important areas for advertisers.
Frank: We will offer an alternative for this. In Lausanne and Geneva, there are the aforementioned local TV broadcasters that could be used to bridge the gap. Customers who are not satisfied with our coverage could use the stations as a way to cover the two centers in a targeted way anyway. We are in negotiations with Léman Bleu and TVRL in this regard. I know it's a paradox. On the one hand, we are blocked by these broadcasters, and on the other hand, we bring them advertising revenue with such an offer.
But Léman Bleu and TVRL are not the definitive solution for covering Geneva and Lausanne?
Frank: No, but we have to dispel the fear that we are ripping off. In concrete terms, that means we have to prove to the cable network operators in Geneva and Lausanne that we are not taking money away from the Swiss TV stations in French-speaking Switzerland, but enriching the market. It's easy to show that. For example, TSR's advertising revenues have just doubled since the launch of the RTL advertising window in 1993. The reason: When the target group offering becomes broader and more specialized, creatives make TV commercials more often.
But is there sufficient interest from clients for M6 advertising window spaces at all?
Frank: There is a lot of interest. The reason is clear: TSR is fully booked and has also just opened at
8 percent on top. We wouldn't have a chance with M6 if advertisers didn't find the station attractive. It fills a gap in the younger target groups, as a supplement to TSR. We see ourselves only as a supplement, as is the case with our Swiss-German advertising windows. There is also no reason to worry about the much feared dumping prices. At M6, we're only about twenty percent below TSR.
How much have the associations helped to allay the cable operators' concerns? After all, you called on them to help. Has it helped?
Frank: SWA and IGEM have written letters to the network operators to promote our cause. This has probably had some success with one or two small cable networks, but nothing yet with the big ones in Lausanne and Geneva. However, the associations have certainly succeeded in scaring away some of the fear that is being stirred up against the advertising window.
How many customers have already booked with M6?
Frank: In the first phase, we had three or four customers. Now the offers are out and the detailed negotiations are underway. I reckon that we should currently have between 12 and 15 customers.
But you mustn't lose sight of the window's image either. Aren't you worried that the advertising window might also be rejected by viewers, since half of French-speaking Switzerland seems to be against it?
Frank: The image doesn't give me sleepless nights. In German-speaking Switzerland, a similar situation prevailed nine years ago when the first advertising windows were launched. There was an uproar. That is not the opinion of the population. People tried to produce a fear syndrome. It's the other way around: the viewers benefit from the advertising window, because the commercial breaks are enhanced if Swiss products can be seen there. It's clear: if Swiss cheese is in the commercial break, it's more attractive to the French-speaking Swiss audience than if French cheese is in it.
What about the next advertising window project in French-speaking Switzerland? Is that conceivable after the turbulence you've experienced?
Frank: It would be infamous to think about something like that now. One of the central arguments of the opponents of the advertising window was: If M6 comes, then all the other French stations will also come with an advertising window. That's not our goal. We don't have another project, no business case, we don't even have a thought.
How much time do you give yourself to get cable coverage where you want it?
Frank: We have to prove that more advertising money is flowing into TV in French-speaking Switzerland overall. Only when this hurdle has been overcome will we see in French-speaking Switzerland that additional TV platforms dynamize the TV advertising market as a whole and that there are no losers. Interview: Daniel Schifferle
