Survey "Euro Shock": Frank Bodin
Werbewoche-Umfrage zur wirtschaftlichen Entwicklung nach dem «Euro Schock» und dessen Auswirkungen auf die Kommunikations- und Werbebranche: Frank Bodin, Chairman & CEO, Office Havas Worldwide
The weakness of the euro means additional challenges for many Swiss creative and media agencies:
1. if the current euro-franc exchange rate remains unchanged, I expect the economic slump in the second half of the year to be higher than currently forecast: - 2 to - 3.5 percent.
2. as experience teaches, there will be budget cuts at agencies - when companies are forced to lay off employees due to cost pressures and quickly invest in more efficient production processes, anti-cyclical advertising is unfortunately wishful thinking.
3. in global mandates, Swiss agencies are already coming under pressure with high wages compared to key European markets.
4. economic pressure favors alternatives: online and especially data-based performance marketing will benefit from this (and is therefore the area in which we are currently investing the most).
5. I am very happy if I am wrong with my forecast.
