Euro Shock" survey: Ronny Schmid

The lifting of the Swiss franc's lower limit against the euro confronts many advertisers in Switzerland with new general conditions. In the short term, these are even leading to additional investments being made in some cases. This can be seen in all the campaigns that focus on the euro discount. In the medium to long term, however, advertising investment in Switzerland is expected to fall. After all, the euro discounts now granted have to be financed somehow. This is where savings in marketing costs come in, as infrastructure and personnel costs cannot be reduced so quickly.

In addition, many international advertisers keep their budgets in euros. They will hardly accept 20 percent higher costs in euros and therefore cut budgets in Swiss francs. Of course, it would make more sense to invest in communications activities now and thus secure the strongest possible position for the next upswing. Experience shows that such an approach pays off in the long term. However, since most companies need to show the highest possible profits in the short term, it is unlikely that many advertising clients will seize this opportunity.

Offline media are likely to suffer more from a decline in advertising investment than online media. In tougher times, topics such as performance marketing and programmatic buying are likely to become more important. Whether this is always the right way to go, however, remains to be seen.

In any case, it is recommended that advertisers use partners who understand - even with reduced budget resources - how to develop target-oriented strategies and concepts that ensure the highest possible efficiency and effectiveness.