Media Scene Switzerland

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Press TV Radio Cinema Internet Mobile Adscreen

Content

Editorial Switzerland Switzerland in an international comparison Media Scene in Europe Media Scene in Switzerland Print Media TV Internet Radio Cinema Outdoor Mobile Media Research Selection Allmedia

3 45 67 89 10 11 12 13 14 15 16 17 18 19 20 21 22

Editorial

There is a great deal of activity on the media scene today: Consumption habits of end users are subject to the changing times: Media content is consumed today just as the end users want to, independent of location, time, end device or price model. Former preferences for particular media types have disappeared as a result. A significant change which is far from over and which has left a mark on the advertising industry as well. New media continue to find their way in, resulting in media fragmentation and rate reforms as well as simplified handling with standard formats. Free newspapers continue their procession on the Swiss print scene. Digitalization has found its way into movie theatres and electronic media have introduced new innovative advertising forms onto the market. The rapidly advancing crosslinking of media continues to increase, generating new advertising possibilities. Publicitas, the traditional Swiss print advertising sales house has introduced a change as well. Since 2008 we have been on the way towards emerging as the leading allmedia sales company. As the market leader and in keeping up with the times, we support the wide Swiss media variety, which is beyond compare in Europe. On the following pages, we present to you Switzerland as a country of media with its various media types. To this end, the still fairly young advertising media Adscreen and Mobile have been smoothly integrated into the well-established media. This fifth, completely revised edition of this brochure includes current market research data and clearly outlines the Swiss media scene. As a new feature, we have also posted the content of the brochure, further valuable information and continually updated data on www.swissmediascene.ch. As a user of this brochure, you have the opportunity to go online at any time to receive updated information about the Swiss media scene so as to maintain a clear view in the media jungle. To assist you, there is a separate link to each section. I am delighted if your interest has been raised. Our specialists at Publicitas Swiss Press are ready to assist you on your discovery trip.

Paul Baumgartner
Managing Director of Publicitas Swiss Press

Switzerland

Switzerland an island in the heart of Europe This federally governed country has four official national languages: German (63.7%), French (20.4%), Italian (6.5%) and Rhaeto-Romanic (0.5%). The remaining 9% of the Swiss population speak other languages and represent a diversity of languages and cultures. The percentage of foreigners in Switzerland is high at 21%. With an obligation to traditional ethical values, Switzerland has a liberal attitude towards victims of political persecution. The Secodos, children born in Switzerland of foreign parents, form a solid social group in Switzerland. Although it is embedded in the geographical heart of Europe, Switzerland is not a member of the European Union. Despite the fact that Bern is the political capital, by far the largest area of concentration is

the Greater Zurich area, followed by Geneva in the Frenchspeaking part of Switzerland and Basel at the tri-country border to Germany and France. Zurich is considered the financial capital of Switzerland, while Geneva is the headquarters of various international organizations and the home of world-famous luxury goods manufacturers. Basel, on the other hand, has been a leader in the pharmaceutical industry for years.

www.swissmediascene.ch/switzerland

Population Structure
Resident population 7.6 million Sex male 49% Age 0 19 years old 21.5% Housing 20 39 years old 26.8% city/urban agglomeration 73.4% Nationality Swiss 78.9% Households single person household 1,224,800 Education Men obligatory education 15.0% Education Women obligatory education 21.5% apprenticeship/vocational education 44.0% apprenticeship/vocational education 46.7% *dipl. 4.3% 40 64 years old 35.3% rural 26.6% foreigner 21.1% family households with children 1,087,700 **H.V. 9.4% *dipl. 5.4% **H.V. 5.5% college/university 24.0% college/university 14.6% female 51% + 65 years old 16.4%

* diploma ** higher vocational education Sources: Federal Office of Statistics 2008, MACH Basic 2008-2

Top Ten Economic Areas

Personal disposable income 2006 Economic area (EA) EA 11 EA 24 EA 43 EA 31 EA 34 EA 41 EA 27 EA 12 EA 51 EA 29 Source: DM-Plus 2007 Geneva Zug Zurich Basel Bernese Mittelland Aargau Glarus Waadt Ticino Bndner Oberland Income in euro 41,988 33,082 29,497 26,130 23,686 23,621 23,050 23,002 22,522 22,331

Top Ten Areas of Concentration

As of 2007 Area of concentration Zurich Geneva Basel Bern Lausanne Luzern St. Gallen Winterthur Lugano Baden-Brugg Source: Federal Office of Statistics 2008 Permanent population 1,132,200 503,600 489,900 346,300 317,000 202,500 146,700 132,500 130,600 111,900

Breakdown according to Economic Areas

GERMANY

Schaffhausen
42 43 44

Basel

31

Zurich
14 41 32 24 33 13 26

St. Gallen Principality of Liechtenstein

AUSTRIA
61 27 25

FRANCE

Lucerne Bern
34 21

28

Chur Davos

Fribourg
15

12

29 22

Lausanne
11

51

Brig Sion Geneva

16 23

Locarno

Bellinzona

Lugano

ITALY

Chiasso

63.7% German 20.4% French 6.5% 0.5% 9.0% Italian Rhaeto-Romanic Other

Source: Swiss Federal Census 2000, WEMF AG fr Werbemedienforschung

Switzerland in an international comparison

Small but powerful Perhaps Switzerlands strength lies precisely in the fact that it is one of the smallest countries in Europe. On a surface area which could fit almost six times in Great Britain and eight times in Germany, and with a population equal to only an eighth of that of Britain and a tenth of that of Germany, Switzerland still has a distinctly higher level of per capita disposable income. The unemployment rate is also at a low level compared to other European countries. Good opportunities for earning money and a moderate tax system lead not only to high gross salaries in Switzerland but also the highest amount of disposable net wages. Zurich, clearly hold position ahead of Dublin, Oslo and Geneva. When the domestic purchasing power is compared on the basis of net

hourly wage, Zurich is in first position here as well, followed by Geneva and Luxemburg ahead of Berlin. Nevertheless, Switzerland has far from the highest price level: If, for example, the purchase of one kilogram of rice is compared, then one must work five minutes for it in Zurich, six minutes in Oslo, eight minutes in New York and nine minutes in Dublin.

Switzerland in an international comparison

CH Surface area in 1000 km2 Population in millions Residents per km2 Unemployment rate in% Gross domestic product in bn Gross domestic product * Swiss imports in bn from Swiss exports in bn to 41.3 7.5 182 2.8 288.0 ----DEU 357 82.3 231 8.4 2,255.5 35.2 23.3 FRA 547 63.4 116 8.3 1,533.5 10.1 9.5 ITA 301.2 59.1 196 6.2 1,428.9 11.7 9.9 AUT 83.9 8.3 99 4.4 253.7 4.6 3.5 GBR 244.8 60.8 248 5.3 1,883.9 4.0 5.3 BEL 30.5 10.4 340 8.1 250.1 3.7 2.5 SWE 450 9.0 20 6.1 254.8 1.1 1.2 NLD 41.5 16.5 397 6.8 420.1 5.5 3.9 IND 3,287.6 1,129.9 344 7.2 748.6 0.5 1.3 USA 9,826.6 301.6 31 4.6 9,366.7 5.4 10.4 CHN 9,597 1,321.9 138 4.0 2,230.1 2.7 2.7 JPN 377.8 127.8 338 3.9 2,977.0 1.5 3.5

38,346.5 27,402.8 18,631.2 24,165.1 30,571.1 30,975.7 24,099.1 28,252.0 25,471.9

662.2 31,056.6

1,686.8 23,294.1

* per resident in Source: UBS Switzerland in Figures 2008, Swiss Customs Administration 2008 ( Belgium, Netherlands and Sweden ), World in Figures

Credit Rating
Global Ranking 1 4 5 8 10 11 12 13 16 17 23 Switzerland Germany Netherlands Sweden Austria France Great Britain USA Belgium Japan Total EU (27 countries) Italy Index value 96.0 95.0 94.7 94.1 93.7 93.7 93.3 93.0 91.3 90.6 88.5 83.6

Source: Institutional Investor November 2008, as of September 2008

Trade Partner Switzerland The Swiss national economy is strongly linked to foreign countries: Import and export values per capita as well as import and export quotas (value percentages of gross domestic product) are among the highest in the world. For a small country like Switzerland, export, in particular, pro-vides an important foothold for economic activities. The EU has a particularly important position though: 82% of imports and 63% of exports are allotted there. The most important trade partner for Switzerland is Germany, followed by Italy, France and Great Britain. Switzerland is just behind the USA in its position as the most important export market for the EU. Moneyed classes of Swiss ready and willing to consume are still a good sales market for

products from the EU. Switzerland is only in fifth place as import market for the EU, after the emerging economic power, China, as well as the USA, Russia and Japan.

www.swissmediascene.ch/international

Swiss Import Markets 2007

33.9% Germany 11.2% Italy 9.7% France 3.9% Great Britain 5.1% USA 1.5% Japan 2.6% China 8.9% Rest of World

Swiss Export Markets 2007

20.8% Germany 8.9% Italy 8.4% France 4.8% Great Britain 9.3% USA 3.1% Japan 2.4% China

23.2% Rest of EU (27)

20.1% Rest of EU (27)

22.2% Rest of World 63.0% Total EU (27) Source: UBS Switzerland in Figures 2008

81.9% Total EU (27) Source: UBS Switzerland in Figures 2008

Major EU Import Markets 2007

China* USA Russia Japan Switzerland Norway Turkey South Korea Brazil Libya 2.8% 2.3% 1.9% 5.5% 5.4% 5.4% 3.3% 12.7% 10.1% 16.2%

Major EU Export Markets 2007

USA Switzerland Russia China* Turkey Japan Noway India United Arab Emirat Canada *without Hong Kong Source: Eurostat 2008 4.2% 3.5% 3.5% 2.4% 2.2% 2.1% 7.5% 7.2% 5.8% 21.1%

*without Hong Kong Source: Eurostat 2008

Media Scene in Europe

European Diversity Despite globalization, Europe has sustained a great diversity of cultural differences. This is seen in media consumption as well: When the media on offer within the individual countries is analyzed, media preferences and consumption go hand in hand with the number of media available in the respective country. A comparison of the coverage of individual media types within the countries indicates great differences from country to country. It is no surprise therefore that there is a difference in the distribution of ad spending per media type. In the latest survey, Great Britain holds first position with an advertising market volume of about 15 billion euro,

closely followed by Germany with approx. 14.5 billion euro. In both countries, 3040% of this volume flows into newspapers. Southern countries invest about 50% in TV advertising, while Sweden places about the same percentage in newspaper advertising. Sweden also has the highest share of online advertising. As far as diversity of media on offer is concerned, little Switzerland can hold its own; when the media on offer is calculated per capita, Switzerland is practically unbeatable. Switzerland has traditionally presented itself as a strong print country. This is also demonstrated in the advertising market. In addition, a noticeably high percentage of advertising monies flow into poster advertising. When

Daily Coverage of Media in%

TV Austria Belgium Denmark France Germany Italy Netherlands Spain Sweden Switzerland Great Britain 70 *95 75 82 75 83 82 88 68 72 78 Radio 84 *74 81 83 79 71 71 56 77 **91 90 Newspapers 74 57 79 45 74 42 73 42 80 78 63 Magazines 79 92 94 97 93 68 97 49 94 96 50 Internet 57 49 69 54 61 53 73 44 76 68 62

*only Flemish region / ** only German-speaking Switzerland, Sources: Werbefibel 2009, European Marketing Pocket Book 2007, Nielsen Media Research, Internet World Stats (June 2007)

Ad Spending per Media Type in%

Austria Belgium France Germany Italy Netherlands Spain Sweden Great Britain Switzerland 33 36 Newspaper 25 43 13 22 Magazines TV 19 40 10 12 28 24 Radio Cinema 16 40 14 22 44 22 4 3 1 5 7 4 1 Poster 30 21 39 10 34 24 54 22 9 7 1 7 15 14 12 19 24 37 8 24 1 24 11 11 4 1 7 5 8 1 1 8 10 5 1 4 8

Total 2006 in m 2 3 1,925 2,465 8,594 3 14,525 2 4 4 7,483 3,115 6,121 1,894 14,972 1 1,999

Internet

Note: The data is only conditionally comparable due to varying survey methods. Source: Western Europe Market and MediaFact 2007

the price development of various media types and countries is considered, Switzerland generally shows a moderate increase though at a high price level compared to other European countries. The most massive markdown in price is shown in Great Britain and Italy. In an international comparison of advertising expense per capita, Switzerland is in front, and in an EU comparison, Switzerland is ahead of Germany, France and Italy.

www.swissmediascene.ch/media-eu

Media On Offer
CH Newspapers Magazines Outdoor TV stations Cinema screens Radio stations 483 1,089 97,900 40 556 56 AUT 264 2,828 78,372 15 528 76 BEL 35 795 27,500 70 515 330 FRA 95 3,391 502,679 6 5,405 1,200 DEU 2,012 7,292 319,804 28 4,832 341 ITA 94 281 153,428 9 2,958 234 NLD 35 5,128 41,000 27 566 350 SPA 166 576 150,000 6 4,133 1,613 SWE 225 421 35,145 8 687 89 GBR 1,308 8,558 325,649 35 3,572 353

Sources: CH: Catalog of Swiss Press 2008 (Print), Radiocontrol (Radio), Werbefibel 2009 (Outdoor), Procinema (Cinema screens) / rest of countries: gwa Mediaplaner 2008 (Magazines, Outdoor, Cinema screens, Radio stations), World Press Trends 2008 (Newspapers), EGTA Questionnaire (TV stations) without weekly newspapers / Consumer and trade magazines / Stations, which can be received by 70% of the population.

Values 2006 (*2005 / **2003) in comparison to index year 2000, and 2001 129 122 126

117

112

119

120 120

163 111

Price Development of Advertising Costs

110

108

105

105

104

104

103

102

100

103

103

100

104

91

87

90

83

84

82

50

59

91 38

100

CH

AUT

BEL* Index 2000

NLD**

GB

FRA

DE*

IT Index 2001 Newspapers

95

SPA

Source: European Marketing Pocket Book 2007

Magazines

TV

Internet

97

SWE

Media Scene in Switzerland

Traditionally regional, but also open-minded and innovative In Switzerland, federalism and language diversity have led to an above-average amount of what can be found on offer in all media types. The high number of special-interest publications is explained primarily by the existence of four national languages which results in the multiplication of specialized titles. The high number of newspapers is also connected with the multilingualism, but also due to the strong anchoring of the local and regional press in the population. News coverage of ones close surroundings has a long tradition in Switzerland and symbolizes basic democracy, so that even the large Swiss daily newspapers set value on their anchoring in local areas. For years, Swiss media agencies have not only been involved in print and on-line markets, but also in

local radio stations and regional television channels. With the high number of print products, it is no wonder that in the whole of Switzerland, print is far ahead in media consumption. When we consider the higher social class, print and Internet consumption remain stable at about 98%. General Internet consumption of the total population amounts to about 70%, and this tendency is on the rise.

Swiss Media On Offer

Daily press Regional weekly press Sunday press Consumer press Financial and business press Special-interest press Trade press Total print titles Public TV stations (SRG) Local TV stations / regional stations (updated daily) Language regional TV stations Public radio stations Local / regional radio stations Cinemas Poster Websites, relevant to advertising Sources: Catalog of Swiss Press 2008, Werbefibel 2009, Procinema, Bakom, Publicitas web2com AG, Radiocontrol 126 341 16 50 28 1,350 1,039 2,950 7 16 7 15 41 313 97,900 183

Media Consumption Top Social Stratum

Print Internet Radio TV Cinema 30.6% 83.7% 83.0% 98.4% 91.9%

Target group: People with high level of education and gross household income over CHF 8,000, (1,044,000) Source: MA Strategy 2008

General Media Consumption

Print TV Radio Internet Cinema 21.5% 67.9% 80.2% 97.6% 87.7%

Target group: No restrictions Universe: Total population 14+: (5,901,000) Source: MA Strategy 2008

10

Ad spending according to sector Despite slight changes over the past years, most advertising monies still flow into press. However with the increased use of Internet platforms and the creation of advertising space on Swiss and foreign private television, sales volumes of former years are also no longer reached in Switzerland. As is the case practically every year, there have been shifts within the sector ranking: Compared to the previous year, Initiatives and Campaigns remains unchanged holding its lead position of the branches with the most intensive advertising. This category includes the twenty biggest clients from the retail, cosmetics, food, as well as telecommunications sectors. An increase in ad spending in 2008 is especially seen in the cosmetics and bodycare, food, while

the financial branch, whose advertising is typically intensive, recorded less ad spending and therefore fell back to fourth place in the ranking.

www.swissmediascene.ch/media-ch

Branch Advertising Investment 2008

Media Mix in% January 2008December 2008 Branches Initiatives / Campaigns Vehicles Food Finance Cosmetics / Bodycare Leisure-Sport / Tourism Telecommunications Services Events House / Garden / Furnishings Beverages Personal Necessities Consumer Electronics / Photo Industry / Trade Pharmaceutical / Health Clothing / Linen Cleaning Transport Companies Media Household Articles and Appliances IT / Office Energy Tobacco Products 399,217.23 247,157.73 229,416.38 226,751.78 180,156.79 141,021.05 139,759.48 124,156.61 123,532.78 110,117.19 92,066.08 79,035.20 76,467.32 72,270.62 70,821.24 68,873.30 48,893.92 45,748.21 40,711.05 38,691.88 33,804.17 16,080.06 9,149.76 46.1 45.4 15.9 37.2 3.9 32.5 38.3 45.9 55.9 37.7 18.9 27.6 35.6 36.7 15.1 28.8 1.5 49.3 35.2 34.9 43.7 56.0 35.8 5.5 9.0 6.1 20.9 16.5 6.0 4.6 6.4 4.4 8.3 9.7 24.7 7.9 9.0 11.3 13.3 3.5 8.3 4.1 7.4 10.5 8.2 11.7 12.2 6.5 15.8 2.6 8.9 14.4 2.4 8.8 4.0 17.9 11.7 17.2 5.1 10.0 17.4 6.0 8.0 2.0 2.8 17.1 7.7 6.8 4.2 1.0 0.3 0.5 1.3 0.2 2.3 0.7 3.9 3.0 4.9 1.3 0.5 0.4 6.0 18.7 0.6 0.0 3.0 3.4 1.0 16.5 1.5 0.3 15.6 19.0 51.1 18.7 65.3 18.4 29.8 15.8 5.9 15.2 40.6 18.0 37.0 18.0 30.4 16.4 84.5 5.7 42.3 32.4 9.8 8.5 0.0 3.9 7.0 0.7 1.9 0.1 6.0 2.9 5.5 11.0 9.5 0.8 0.9 2.7 4.5 0.8 2.7 0.0 6.6 3.5 1.1 1.8 2.7 0.0 0.9 1.1 0.9 0.7 0.8 2.4 3.1 0.7 1.4 0.1 2.3 0.5 0.5 3.5 0.0 1.1 0.0 0.4 0.3 0.0 0.0 2.2 0.0 0.2 0.1 0.0 0.5 0.0 1.8 0.8 1.2 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.2 0.0 0.0 0.5 0.0 0.0 13.7 9.9 8.6 12.4 3.9 13.3 13.2 7.7 14.3 6.0 13.4 9.9 8.4 7.2 6.0 30.8 2.3 17.9 6.9 5.7 4.5 13.3 47.8 0.9 1.7 0.5 3.9 0.5 2.8 4.2 4.1 0.2 0.4 1.3 0.5 2.3 5.1 0.4 0.2 0.2 6.5 1.4 0.2 5.1 0.8 0.2 Total in 1,000 NP CP SP TP TV RA CI TXT PO IN

NP = daily, regional weekly and Sunday newspapers, CP = consumer, finance and business press, SP = special-interest press, TP = trade press, TV = television, RA = radio, CI = cinema, TXT = Teletext, PO = Poster, IN = Internet Source: Media Focus

11

Print Media

Print: The undisputed number one No other country in a European comparison has a greater newspaper density per capita than does Switzerland. The Swiss spend an average 38 minutes per day reading their newspapers. This puts them in fourth place in a European comparison. The most reader-friendly are the Finns and Norwegians with 48 and 46 minutes, respectively. Switzerland also leads in the area of magazines, outdone only by Austria. The reason why print media is so popular has somewhat to do with the fact that a lot of Swiss people regularly commute by public transport to work and school. This explains why Switzerland has seen a sharp increase in commuter news-papers, which have succeeded in winning over young newspaper readers with their new

layout. A result of the high newspaper density and multilingualism of Switzerland is that few titles have a circulation of more than 50,000 issues. From this multitude of print products, titles have united to form various combinations in Switzerland in order to remain competitive on the advertsing market. These combinations simplify advertising planning.

Newspaper Density
Paid newspapers per million inhabitants Switzerland Sweden German Austria Great Britain Italy France 2.4 2.1 1.7 1.7 5.1 11.0 14.0

Circulation Breakdown of Swiss Newspapers

Number of titles per circulation category from 50,000 20,000 - 49,999 to 19,999 Total 90 119 274 483 18.7% 24.6% 56.7% 100%

Source: Catalog of Swiss Press 2008

Source: World Press Trends 2008

Magazine Density
Magazines per million inhabitants Austria Switzerland Great Britain France Germany Italy 78.5 *** 75.4 60.9 * 165.6 140.8 340.7 **

Time Spent Reading

Average newspaper reading time per day in minutes Finland * Norway ** Austria *** Switzerland France ** Netherlands Great Britain Sweden Germany Denmark *** * 2004 / ** 2005 / *** 2006 France: only national newspapers Source: World Press Trends 2008 48 46 41 38 32 31 31 28 28 23

* Figures 2007 / **Figures 2005 / *** Figures 2004 Source: FIPP 2007 / 2008 and UBS Switzerland in Figures 2008

12

Advertising is a matter of trust One of Switzerlands particularities is the high number of so-called stop-stickers or no advertising stickers on mailboxes which make it impossible for unaddressed direct-distribution advertising to penetrate households. The more urban a region, the higher the density of these stop-stickers; the more rural the area, the less disturbing advertising in mailboxes is felt. On the other hand, local and regional newspapers are considered an essential part of Swiss daily life: more than 70% would not give up their newspaper as their information source. 56% of those surveyed consider advertising on TV disturbing, while advertising in newspapers benefits from the trust which the newspaper enjoys.

www.swissmediascene.ch/print

Information through Advertising

Print TV Internet Radio Cinema 19.7% 50.0% 67.8% 99.2% 92.9%

Indispensable Media
Newspaper local/regional Internet Commuter newspaper Radio local National newspaper National radio TV Magazines Specialized books 11% 29% 38% 34% 61% 58% 55% 74% 68%

Target group: Through advertising I am made aware of interesting products: Agree strongly / agree (2,938,000) Source: MA Strategy Consumer 2008

Target groups: Media which you can not do without for daily information and guidance (multiple answers 18 to 65 years old) Source: D&S from Media Trend Journal 2008

Refusal of Non-Qualified Direct Distribution Advertising

Top 5 economic areas with the highest density of stop stickers EA with number of mailboxes and post office boxes 24 Zug 43 Zurich 31 Basel 61 Principality of Liechtenstein 26 St. Gallen / AI / AR Source: Stop sticker analysis 2008 Total 57,035 857,837 309,895 17,857 199,387 % 59.0 57.8 54.2 50.2 46.1

Disturbance through Advertising

TV Internet, WAP Radio Newspapers Magazines Outdoor Cinema 6.1% 4.6% 1.7% 1.1% 1.0% 22.7% 55.6%

Universe: Leader and Top Leader (225,000) Source: MA Leader 2007

13

TV

Television in Switzerland Over 90% of Swiss households have a television, and most of them (77%) receive their programs via cable network. Alongside the leading public channels of SRG and the regional and local private television stations, many stations are transmitted to Switzerland from abroad. As a result of the very high level of cabling, Swiss households have been watching foreign channels since as early as the eighties. Since the nineties, several foreign stations offer the possibility for advertising in so-called Swiss windows. The introduction of these advertising windows marked the beginning of a boom period for television as an advertising medium in Switzerland; it has become a lead-medium as a result. In a media mix, TV advertising ensures high coverage an

increase in speed of advertising awareness is achieved though fast exposure accumulation. Since several senses are called upon at the same time for TV viewing, TV advertising enjoys a high advertising effect.

www.swissmediascene.ch/tv

TV Structure
Sex male 49.0% Age 14 34 years old 31.9% Education obligatory 19.5% Employment full-time 44.4% * apprenticeship/vocational training Target group: I watch television practically every day or several times a day (5,020,000) Source: WEMF AG fr Werbemedienforschung, MACH Consumer 2008 - 2 35 49 years old 28.0% secondary 49.2% part-time 12.3% a/v* 11.2% female 51.0% 50 59 years old 15.9% higher 31.3% not employed 32.0% 6099 years old 24.2%

TV Total Consumption 2008 in the three Language Regions

35 30 25 20 15 10 Rating in%
40 35 30 25 20 15 10 5 0

5 0

06.00

08.00

10.00

14.00

18.00

19.00

23.00

00.00

07.00

09.00

12.00

13.00

15.00

17.00

20.00

22.00

11.00

16.00

21.00

German-speaking Switzerland

French-speaking Switzerland

Italian-speaking Switzerland

Basis: Target group 15 49 years old, Rating in% per hour ( 6:00 am 1:00 am ), total 2008 Source: Telecontrol

14

01.00

Internet

Internet and Web 2.0 Some 60% of Swiss use the Internet, three quarters of them at broadband speed a very high value compared internationally. However, the Internet has a mere 1.5% share of the Swiss advertising market a very low value compared internationally. It is predicted that Web 2.0 will have a decisive impact on media consumption: Web 2.0 will be characterized by user generated content (weblogs, community pages, etc.). Classic media agencies will thus have additional competition in the distribution and publication of information. The advertising sector also benefits from these developments. The target groups on Web 2.0 - platforms such as myspace.com

and facebook.com are known on the basis of the user profile provided and can therefore be specifically addressed. Advertising opportunities which guarantee a small amount of coverage waste, such as Behavioral Targeting, will also make an important contribution to the transformation of the media world. Yet another trend is emerging: Video content is becoming more important even in the advertising market. With the gradual fusion of TV and Internet, new attractive advertising forms such as Streaming Video Ads are being developed.

www.swissmediascene.ch/internet

Changes in Media Functions

Structure Figures
CH Total

Year 2005
CH D CH F CH Total

Year 2007
CH D CH F

1. Newspapers Where do Leaders get information on current events? 2. Internet 3. TV 4. Radio 5. Teletext 1. Internet Where do Leaders get information on current events? 2. Newspapers 3. Trade magazines 4. TV 5. Books 1. Internet Where do they look for more in-depth information about current events? 2. Newspapers 3. Trade magazines 4. Catalogs / Brochures Source: MA Leader 2005/2007

46% 28% 13% 7% 3% 33% 44% 11% 4% 1% 75% 15% 4% 1%

47% 29% 12% 6% 3% 31% 45% 11% 4% 1% 77% 13% 4% 1%

42% 24% 16% 11% 3% 40% 39% 11% 2% 1% 66% 21% 5% 1%

40% 34% 13% 8% 2% 40% 39% 9% 4% 1% 80% 10% 3% 1%

41% 34% 13% 7% 2% 37% 42% 10% 3% 1% 81% 9% 3% 1%

38% 34% 14% 9% 4% 52% 30% 7% 3% 1% 78% 12% 2% 0%

High-speed Connections per 100 inhabitants

Denmark Netherlands Norway Switzerland Island Sweden Korea Finland Luxemburg Canada 0 xDSL subscribers 5 10 15 20 25 30 35 40

Motives for Use

Internet users in thousands, use daily or almost daily Search machine Daily news Address and telephone registries Streaming (online radio / TV) Blogs, forums, communities Event notes Online games Stock market information Job openings Real estate for sale 701 589 538 354 346 898 1,361 1,101 2,769 3,456

Fiber optics/LAN

Source: NET - Metrix - Profile 2008 - 2, total Switzerland

Cable modem subscribers Subscribers of other high-speed connections Source: OECD 2008 15

Radio

Radio scene in Switzerland Switzerland has a diverse radio scene: As many as 15 SRG public radio stations on the UKW band must contend with private commercial Swiss broadcasting stations and foreign stations. In addition, there is more of a selection via Digital Audio Broadcasting (DAB) and more and more stream radios on the Internet. The 15 SRG radio stations are predominantly financed by licensing fees. Apart from sponsoring, radio advertising in public programs is strictly forbidden. Public radio stations together with private radio stations, which have been in existence in Switzerland since 1983, cover the entire geographical area of Switzerland. Unlike

with public stations, all private stations can book advertising and sponsoring.

www.swissmediascene.ch/radio

Radio Consumption, German-speaking Switzerland MoFr 2008

20

Radio stations in Switzerland

Number of relevant stations Language G 6 5 F 5 4 I 3 3 2 1 R 1 public foreign local public

Net coverage in%

15

10

26 12

Market share% 52 49 75 42 38 13 7 13 12 local foreign 14.00 16.00 18.00 20.00 13.00 00.00 04.00 08.00 06.00 03.00 05.00 22.00 15.00 17.00 19.00 02.00 10.00 12.00 01.00 21.00 07.00 11.00 23.00 09.00

Private German Switzerland Target group: 1549 years old Source: Radiocontrol 2008 MoFr

Private foreign

DRS 1

DRS 2

DRS 3

G = German F = French I = Italian R = Rhaeto-Romanic Target group: 1549 years old Source: Radiocontrol 2008 MoFr

Radio Consumption, French-speaking Switzerland MoFr 2008

15 12 9 6 3 0 00.00 02.00 04.00 19.00 03.00 05.00 06.00 08.00 22.00 23.00 07.00 09.00 10.00 11.00 13.00 14.00 15.00 17.00 18.00 01.00 12.00 16.00 20.00 21.00

Net coverage in%

Private French Switzerland Target group: 1549 years old Source: Radiocontrol 2008 MoFr

Private foreign

La 1re

Espace 2

Couleur 3

16

Cinema

The cinema market in Switzerland The cinema medium stands for communal leisure enjoyment, for the unparalleled fascination of the big screen and a unique space and sound experience. The Swiss cinema market consists of a total of over 556 screens, which can be reserved for advertising purposes. In addition to these, there are about 100 open air events in the summer. Movie theatre attendance in Switzerland has been very high, ranging from 14 to 18 million ticket admissions annually. Movie-goers are typically rather young, urban, well-educated and enjoy going out; the advertising film is also a part of the cinema experience for them, which is why it is met with great acceptance and support. Advertising customers can choose from diverse geographic pools (language regions, metropolitan

areas, town centers, individual cities) as well as the possibility of booking various film genres. Since the introduction of digital projection in 2005, cinema campaigns can be realized much faster and with more flexibility; subject change as well as individual cinema bookings are now possible the expensive copying of exposure film material is no longer necessary. Switzerland, along with Norway, Austria and parts of Great Britain, plays a pioneering role with the introduction of this new technology in Europe.

www.swissmediascene.ch/cinema

Cinema Attendance
in the last 12 months (Basis: amount in%) 5 times or more 26.5 27.7 34.7 2 to 4 times 33.9 34.9 35.6 1 time 11.8 11.3 9.9 Head of household 2544 yrs old 1449 yr olds 1434 yr olds

Recall Value Advertising Film

Cumulated unaided / aided (Basis: amount in%) 1 spot 2 spots 3 spots 4 spots 5 spots 6 spots 72 86 93 100 100 98

Example question: Which spots do you remember, or can you remember having seen a spot for product XY? Result 72% of movie-goers surveyed remember 6 cinema spots and give the correct information about brand and / or product. Source: Media-Audit, survey: movie-goers, January March 2003, 200 respondents in the 76 largest cinemas, nationwide

Source: MACH Consumer 2008-2 total Switzerland

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Outdoor

Out of home People are becoming ever more mobile. About 90% of all people residing in Switzerland leave their homes at least once a day. On a daily average, each person travels 37 kilometers and is in transit for approx. 88 minutes. On their way to work, to school, to shop, to leisure activities, they consume innumerable out-of-home media. Thanks to highly developed public infrastructures, advertising locations can be found even in the innermost areas of the city and shopping centers. Posters make it possible to reach particular target groups at their precise geographic location. Nearly three fourths of buying decisions are made at point of sale (POS). Therefore, POS posters are exceptionally suitable for all shopping centers.

Megaposters hang in central locations. Due to their surface area of up to 1000 m2, they are primarily used for branding. Special formats include three-dimensional advertising installations, public transportation advertising or advertising forms in tourism (ski lift advertising). E-advertising has also won in popularity: Up to 60 m2 large, digital advertising surfaces in the most important Swiss train stations offer an effective advertising opportunity.

www.swissmediascene.ch/outdoor

Daily Method of Movement according to Means of Transport

Answers in% of respondents (Basis = 33,390 people)

Individual Daily Mobility

Daily distance Transport means 1
Total Automobile driver

Movement in min.
88.4 25.3

in km
37.3 17.9

in%
100 48

in%
100 29

68.8% motorized individual transport 20.4% public transport 7.6% slow transport (on foot / by bike) 3.2% other

Automobile passenger Train On foot Bus/tram Bicycle Other2

1

7.0 6.0 2.1 1.7 0.8 1.9

19 16 6 4 2 5

9.3 5.2 35.1 4.6 4.2 4.7

11 6 40 5 5 5

Source: Federal Office of Statistics, microcensus 2005 of transport behavior

On average every week day and all people surveyed (Basis: 33,390 people from 6 yrs old) Motorized bicycle / mini motorbike, motorcycle, coach, airplane, taxi, lorry, boat, mountain railways

Source: Federal Office of Statistics, microcensus 2005 of transport behavior Published May 2007

Ad Screen
Ad noting aided, total all networks AdScreen Poster Magazine stands Advertising signs Illuminated advertising Campaign stands / shelves Basket or shopping cart ( displays ) Eye-catchers 8% 8% 14% 18% 18% 15% 24% 37%

Poster Noting
Questioned a total of 639 poster campaigns Re-call Brand classification Preferences Source: APG 2009, PPI Poster Performance Index 50% 56% 62%

Target group: Have you noticed the following advertising media at this location? Basis: varies according to medium Source: Goldbach Guide, Facts and Figures 2008

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Mobile

Mobile Marketing Mobile Internet Mobile Advertising The mobile telephone is THE mode of communication of our times. Versatile functions such as telephoning, sending SMS and MMS, taking pictures, listening to music, receiving e-mails or surfing on the Internet make mobile phones the most personal of all means of communication and an indispensible companion. While classic advertising media sees to coverage, the SMS or Mobile Advertising Banner can be used for first interaction and the Mobile Internet for interactive communication with target groups. Mobile Advertising Campaigns do not normally require large budgets; through various banner subjects, language versions and the targeted choice of advertising space and target groups, precisely defined market segments can be

specifically addressed. A successful advertisement campaign can be achieved on a small budget with Mobile Internet (landing page). The success of a mobile campaign is also dependent on the conceptual design of the conveyed content: End users enjoy a balanced mix between information and entertainment, which is especially created for the end device with its relatively small screen.

www.swissmediascene.ch/mobile

Use of Mobile Functions

Telephoning 58.0% 80.5% 87.8% 87.4% SMS messages 40.9% 72.5% 34.9 35.6 Photographing 9.1% 28.7% 42.5% 66.6% Diary 4.1% 16.3% 25.0% 42.4% MMS messages 6.4% 20.9% 28.0% 40.9% Music listening 1.3% 5.2% 9.2% 39.3% Video making 0.9% 4.9% 8.6% 33.3% 65+ yrs old Source: KommTech Study 2008 4564 yrs old 2544 yrs old 1524 yrs old 85.1% 91.0%

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Media Research Selection

Swiss Media Research Media research in Switzerland is well-developed in terms of both quantity and quality. It fulfills the requirements of the advertising and media industries to a great extent and need not shy away from international comparisons. Intramedia coverage and rating surveys of individual media types are carried out through independent third party organizations. In addition, for several years now there have been wellestablished approaches for intermedia studies which offer valuable support, in particular, to media agencies for their crossmedia and strategic planning. You will find the most important Swiss studies outlined below. MACH Basic
Swiss media coverage study for print and cinema

MA Leader
Media analysis of executives

MA Leader analyzes the media behaviour (print media and selected websites), the professional decision-making and leadership authority as well as the private ownership of high quality products of executives in German and French-speaking Switzerland. The analysis distinguishes between two groups: Leader, personal annual income of more than CHF 100,000 with professional decision-making authority, and Top Leader, income of more than CHF 140,000 with decisionmaking and leadership authority. MA Leader is suitable for assessing market potential, producing publication analyses and reader profiles, as well as optimizing media use based on performance-calculation data and assessments.
Author: WEMF AG fr Werbemedienforschung, www.wemf.ch

MACH Basic is the standard planning tool used in the print sector, providing extensive information about print media consumption. The study contains data concerning the coverage of newspapers and magazines as well as cinemas. MACH Basic divides the population up according to socio-demographic features and enables market potential assessments in markets/submarkets, target group and publication analyses as well as reader profiles and optimization of media use.
Author: WEMF AG fr Werbemedienforschung, www.wemf.ch

MA Strategy
Swiss intermedia comparison study

MA Strategy provides information on the media types: print, cinema, TV, radio and the Internet. It is of valuable help in considering strategies with regard to what media mix is best suited for the particular target group being aimed at.
Author: WEMF AG fr Werbemedienforschung, www.wemf.ch

MACH Consumer
Swiss consumer and media analysis

MACH Radar
Media and marketing control system

MACH Consumer complements MACH Basic with consumer data and gives information on ownership, consumer behavior, buying behavior and buying habits in Switzerland. Not only can one learn about what the target groups aimed at are buying, consuming and thinking, but also through which media they can be reached most efficiently.
Author: WEMF AG fr Werbemedienforschung, www.wemf.ch

The combination of psychographic and consumer and media data enables extensive analyses of the positioning of media, products, services and buying channels as well as the comparison between ones own markets and brands and those of the competition. Combined with readership data, media planning can be continuously carried out according to the same criteria.
Author: WEMF AG fr Werbemedienforschung, www.wemf.ch

NET-Metrix-Profile
Coverage and user structures for websites

The study offers reliable performance values for the planning of online advertising campaigns as well as detailed user data for participating websites. (benchmark analysis, competition analysis, strategic positioning, etc.).
Author: NET-Metrix AG, www.net-metrix.ch

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Ad Control
Success ratings for advertising campaigns

Radiocontrol
Swiss radio research

Ad Control compares the planning data of advertising campaigns with measured recall values. Planning quantities such as coverage, GRP and media buying costs of selected campaigns are compared with the measured values of subject recall, subject judgment and product interest after the campaign has come to an end.
Author: DemoSCOPE AG, www.demoscope.ch

Radiocontrol is a planning and monitoring instrument for radio advertising. The data record can be used for price setting, program design and the monitoring of advertising effectiveness, as well as for the assessment of potential, time series analyses and the creation of radio audience profiles. Optimization of radio campaigns through the assessment of performance data.
Author: GfK Switzerland AG, www.gfk.ch

CAM Cinema Admission Monitor

Prognosis and post check tool for cinema campaigns

PPI Poster Performance Index

Success ratings for poster campaigns

CAM makes it possible to carry out prognoses and corresponding post checks for cinema campaigns in various target groups. Seasonal fluctuations in numbers of movie-goers in the Swiss market are taken into consideration. CAM provides accurate information about the current situation concerning movie-goers in Swiss cinemas.
Author: Publicitas Cinecom AG, www.publicitas.ch/cinecom

Poster Performance Index PPI is a classic post test. PPI provides extensive quantitative and qualitative performance reports for poster campaigns: coverage, exposure opportunity, OTS, recall value, brand rating and preferences.
Author: Allgemeine Plakatgesellschaft AG, www.apg.ch

MACH Cinema
Currency study for cinema

Swiss Poster Research Plus (SPR +)

Planning and monitoring instrument for poster advertising

MACH Cinema will be published for the first time in fall 2009. This completely new currency study will enable cinema to be planned according to, for example, season and genre.
Author: WEMF AG fr Werbemedienforschung, www.wemf.ch

SPR+ is the poster research in Switzerland independent of provider and serves as a planning and monitoring instrument for the poster advertising. This instrument provides performance data which supports the planning process, from strategic to detailed campaign planning.
Author: Swiss Poster Research Plus AG, www.spr-plus.ch

Telecontrol
Swiss television research panel

Media Focus
Gross ad spending

Telecontrol is both a planning and monitoring instrument for TV advertising. Data record of program choice determination, program design and advertising effectiveness monitor. Market potential assessment and analyses of media in use based on performance data assessments.
Author: GfK Switzerland AG, www.gfk.ch

Media Focus analyzes the advertising behavior (amount of spending, media mix, time expenditure) of markets and media in Switzerland since 1990. The collected ad spending data is then inserted into a detailed cleverly-devised market classification system. In this way, product markets of every size can be precisely analyzed.
Author: Media Focus, www.mediafocus.ch

www.swissmediascene.ch/research

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Allmedia

Media consumption, allmedia and crossmedia The media consumption behavior of end users has changed more since 2000 than it had in the 50 years prior: Media content is omnipresent in todays world. With the continually increasing choice of media and means of distribution, end consumers behave in a more allmedia manner: They consume content which is relevant to them, without any preference for a particular media type; the end user himself determines the location, time, distribution channel, end device and price model of his media consumption. Just like end users, advertisers also behave in a more allmedia manner, as they follow the habits of end users. The trend towards performance measurement of advertising and the changing media consumption behavior is undisputable and

bring crossmedia campaigns to the fore. Consumers are addressed via basic media with far-reaching coverage (e.g. TV or print) and from there they are led to specific interactive target media (Internet or mobile). The interactivity of the target medium not only enables the advertiser to transmit an integrative message, but also to measure the interaction with the end user.

www.swissmediascene.ch/allmedia

Definitions
Allmedia Allmedia paraphrases a media consumption behavior by which end users consume content relevant to them, without preferences for particular media types. Crossmedia Crossmedia is a communications tactic. It leads end users from a basic medium with far-reaching coverage to an interactive target medium. Crossmedia communications is also always supported by a crossmedia creative idea, which not only allows for the switch from a basic to a target medium but designs it to be active and measurable.

22

Since 2008, the worldwide media marketing activities of PubliGroupe have been centralized within the business segment Media Sales. Under the trade name Publicitas, there are approximately 1700 professionals from every media sector working at over 160 locations in 23 countries. Together they form a high-performance, allmedia interface between advertisers and media agencies. Publicitas Swiss Press is the service and sales-oriented bridge between Swiss media and agencies and the international network of Publicitas. Its task is to market Switzerland and Swiss print media abroad. The new Publicitas in Switzerland is made up of the former Publicitas, Publimedia, Publimag, Mosse, Publiconnect, Radiotele, Cinecom as well as web2com, while abroad it comprises the Publicitas Promotion Network companies. In 2007, the units of this new Publicitas generated a turnover of 2.025 billion Swiss francs. Conversion rate: 1 EUR = 1.4708 USD 1 EUR = 1.5874 CHF (Source: Deutsche Bundesbank)

Publicitas in your area

Sales Office Switzerland & Operational Head Office Publicitas AG Mrtschenstrasse 39 Postfach CH-8010 Zurich Tel. + 41 44 250 31 11 welcome@publicitas.com www.publicitas.com

Sales Office Europe Publicitas Europe Ltd. 3rd Floor 353 Strand London WC2R 0HS UK Tel. + 44 20 7520 54 10 europe@publicitas.com www.publicitas.com/europe

Sales Office The Americas Publicitas North America, Inc. 330 Seventh Ave., 5th Floor New York, NY 10001 USA Tel. + 1 212 599 5057 americas@publicitas.com www.publicitas.com/americas

Sales Office Asia / Pacific Publicitas Asia Holdings Ltd. 26/F Two Chinachem Exchange Square 338 King,s Road, North Point Hong Kong Tel. + 852 2516 1001 asia@publicitas.com www.publicitas.com/asia

Service Point in Switzerland Publicitas AG Publicitas Swiss Press Mrtschenstrasse 39 Postfach CH-8010 Zurich Tel. + 41 44 250 37 00 swisspress@publicitas.com www.publicitas.com/swisspress

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Copyright, Publicitas AG, Publicitas Swiss Press, Zurich, March 2009, Copyright fee CHF 30.