SWA and LSA publish update on media price/performance index

The statistics thus once again provide a view of the gross price and performance development for print media, television, radio and cinema. The second data publication shows that, with the exception of cinema, gross contact prices rose slightly year on year.

Print media have become 9 percent more expensive in the last five years. This is not because of price markups by the publishers, but primarily because many newspapers and magazines have lost readers.

Planned contact costs on TV rose 6 percent in the plan target groups of both major marketers from 2016 to 2017. For 2018, the trend in the target group of 15 to 59 year olds points to slightly falling contact prices and in the 15 to 49 year olds to slightly rising contact prices.

Developments in radio are very stable. The thousand contact price increased by 1.8 percent for 2018. With the new rate structure in cinema, the national contact price fell by 4 percent in 2018 among 15- to 74-year-olds. In French-speaking Switzerland, however, this has led to a massive 14 percent increase compared to the previous year.

A methodology for the survey of poster contact costs has now been drawn up and will be introduced this year. A concept has been developed for online, which will be established in 2019 at the earliest.

The index is regularly updated with the latest data for prices and services and can be obtained in digital form from the two associations.

Comments on the Media Price/Performance Index Survey 2018-1

In general, contact prices increased from 2016 to 2017. For 2018, there are signs of a significantly weakened inflation. However, the current values for 2018 are trend values, which will only be confirmed by the next publications of the performance values. At least there are positive signs for TV, which forecasts plan TKP's below last year's level. Also the cinema contacts will be more favorable for this year, thanks to a new offer for national advertisers.

Comment Print

The present index calculation of print media for 2018 is based on the current rates and performance of MACH BASIC 2017-2. Thus, the published value for 2018 is to be interpreted as a trend. The next update with the results of MACH 2018-1 will be published in April 2018.

The contact price of all print media has risen by over 9 percent in the last five years. This inflation is due almost exclusively to falling contact performance. Compared with 2014, the contact performance of the print media analyzed has fallen by 9.4 percent. If we look at the narrower target group of 15 - 74 year olds, contact prices for print media have even risen by 12 percent within five years.

The strongest increase in contact prices is in German-speaking Switzerland, while the price/performance ratio in western Switzerland is improving for the first time. After the daily press shows a stable trend, the contact prices of the Sunday press continue to rise. The trend reversal for the Sunday press has not occurred, and advertising prices have risen despite a decline in contact performance. Contact prices for magazines, especially women's magazines, have risen by an above-average 13 percent and 20 percent respectively in the last five years due to reader losses. Here, the rates were not adjusted to the real performance. The most stable and favorable contact prices are found in the consumer press. The index in this category has risen by only 3.4 percent in the last five years.

Provided that the performance of the print media remains stable, a very moderate inflation rate of 0.2 percent can be expected for 2018. The next publication of MACH BASIC 2018-I will show the extent to which this is the case.

Comment TV

For TV, the index calculation is based on the planned values of the stations and does not correspond to the results actually achieved. In the second half of 2018, the planned values will be recalculated for the entire inventory of stations and adjusted accordingly. The next publication is scheduled for September 2018.

Planned contact costs increased by 6 percent from 2016 to 2017. The increase in German-speaking Switzerland was particularly significant at 8 percent. For 2018, the trend in the 15-59 target group points to slightly falling contact prices. For the younger target group 15-49, a further increase of almost 2 percent is expected. In German-speaking Switzerland, contact prices in the 15-59 target group have risen significantly more than in the other two regions. In general, stations are expecting reduced contact performance, but are not lowering the price base to the same extent. Thus, CPM plan values are correspondingly higher. Since this calculation involves "plan values," the actual price development can only be calculated individually with precise performance reviews.

Comment radio

The currently available index values for 2017 are based on the performance values of Radiopanel 2016-II and 2017-I. For 2018, the new prices were calculated using the results of Radiopanel 2017-I. Thus, the 2017 and 2018 values are to be considered provisional. The next publication will be at the end of April 2018 with the latest results of Radiopanel 2017-II.

Switzerland's local radio stations continue to present very stable price/performance ratios. The inflation of contact costs over the last five years is just under 6 percent. The trend value for 2018 shows a CPM increase of 1.8 percent. Only in Ticino did prices rise disproportionately from 2017 to 2018. The price/performance ratio for radio is kept constant by most stations through price adjustments. In other words, prices are adjusted individually to actual services.

Comment Cinema

The 2018 price/performance index is based on the new price offers and the results of MACH CINEMA 2017. The 2018 prices take into account the new "Geo Focus Eco" rate for national advertisers, which applies to national campaigns and to German-speaking Switzerland. Half of the reduced prices were included with the previous "Geo Focus" rate base.

With the new offer, the national rate is back at the 2014 level. Only in French-speaking Switzerland and Ticino have contact prices increased by 10 percent to 15 percent during this period. As a result of the price reductions in the national offer and in German-speaking Switzerland, the current contact costs are significantly lower. For the younger target group 15-49, national prices are down 4 percent in 2018 compared to the previous year. Cinema is therefore the only medium examined that offers lower contact prices to national advertisers in the "advertising-relevant" target group of 15-49 year olds.