Developments in the advertising market
Like the media sector as a whole, the advertising market is also in the middle of a digital transformation. The coronavirus pandemic has further accelerated this development. This phenomenon was very evident in the 2022 financial year.
More than a third of advertising money goes to Google
In the reporting year, total gross advertising spending in Switzerland increased despite the crises (+21.8% compared to 2021), yet it is still not fully at the level it was before Corona. Around one-third of the advertising money (35.8%) went to the media channels of the global tech giant Google (SEA, YouTube).
In comparison with other media, the total gross advertising volume developed as follows: Internet advertising (Search, Display, YouTube) had the biggest growth with a plus of 67.1%. Out-of-home increased by 13.1%, radio by 6.3% and print remained practically unchanged at plus 1%. Only TV lagged behind the previous year’s figures with -2.3%.
Source: mediafocus, Advertising market trend 2022
The digital transformation in the advertising market coincides with the changes in consumers’ media use. Goldbach is tackling the decline in linear TV use with the industry solution of replay ads – a new form of advertising for time-shifted television. Goldbach has offered the option to book replay ads since September 2022.
So far, the big Internet companies like Google, Facebook, Apple and Amazon have been capitalising on the recent and longer-term developments. Goldbach is aware of the importance of the online area and is adopting a suitable strategy. This underpins the current service portfolio, allowing Goldbach to offer individual, performance-oriented marketing solutions, including 360-degree marketing. The basis for this is provided by the combined media and advertising platforms of the network of TX Group, Goldbach Group and Neo Advertising. This network comprises TV, digital video and audio via 20 Minuten Native Advertising, as well as out-of-home and influencer marketing, and reaches up to 90 per cent of Swiss consumers.
The strategic focus is on expanding the out-of-home advertising business, which was emphasised at the end of 2022 with the announcement of the acquisition of Clear Channel Schweiz. Out-of-home advertising is one of the few segments seen as a growth market within the marketing industry. The market is large due to the high purchasing power of Swiss consumers, but still digitally underdeveloped. There is therefore high growth potential, particularly in the area of digital screens. For this reason, Goldbach places a strategic focus on out-of-home advertising and has been marking important milestones since 2022 with the profit from the VBZ and Coop inventory via Neo Advertising and by developing its own spaces in collaboration with Digilight in Austria.