Advertising alliance: publishers call for a halt to the march

The three partners SRG, Swisscom and Ringier had announced in August 2015 that they intended to market their advertising in print, online, TV and radio in a joint company in the future (Werbewoche.ch reported). Thanks to Swisscom, the new alliance will be able to introduce TV advertising tailored to target groups. The publishers' association vehemently opposes this.

All cards belong on the table

To date, the advertising alliance has not disclosed key elements of the joint venture, namely access to user data, said publisher president Hanspeter Lebrument to the media in Zurich on Tuesday. In order to broadly support their concerns, the publishers commissioned the Olten-based research institute Polynomics to conduct a study. According to this study, there is an acute danger that the alliance will lead to a distortion of competition in the advertising market. Pietro Supino, Vice President of the Swiss Media Association, went one step further. "We must not accept this media and regulatory fall from grace." He said the advertising alliance is a new form of commercialization that is not supported by the Radio and Television Act.

SRG and Swisscom targeted

The Polynomics study, which is based on interviews with around 30 experts from Switzerland and abroad, states that the advertising alliance makes sense from a business perspective. The criticism is therefore not directed against the joint venture, but against the participation of SRG and Swisscom. The state-affiliated companies Swisscom and SRG are pushing into markets where competition is at play. Since they have advantages in financing, they put private companies at a disadvantage. The study concludes that the SRG in particular is facing an intensified conflict of objectives with regard to the public service.

Valuable data treasure

Advertising tailored to target groups is only possible with individual user data. Only those companies that deliver digital Internet and TV services to consumers' homes, smartphones, tablets and computers have such a treasure trove of data at their disposal. The question is who is allowed to use this data. The answer is different for public companies than for private companies. The opinion of the population is basically that public service companies should not use such data for advertising purposes. The study sees politicians as primarily responsible for clarifying the questions of media and regulatory policy.

Search for alternatives

The publishers' association proposes that alternative models be examined. For example, all user and usage data relevant to advertising should be made available to all media on a cost-covering and non-discriminatory basis. Organizationally, this could be done via a joint neutral body, an association or a cooperative that all interested media could join. "Talks about alternatives are imperative. Swiss publishers are ready to cooperate. What is needed now is a halt to the march before the planned advertising alliance creates facts and thus endangers media diversity," said Lebrument.

Federal Council has the last word

He did not believe that the Federal Council would simply wave the advertising alliance through. Media Minister Doris Leuthard had assured him that the joint venture was currently on hold. The Federal Office of Communications plans to present its report by the end of March. The Competition Commission had not previously expressed any concerns. Supino said he was determined to pursue all possible legal remedies should the advertising alliance receive the authorities' go-ahead. SRG and Ringier did not comment on the statements of the publishers' association or on the content of the Polynomics study when asked. (SDA)