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Austria 
Last edited on: 17 December 2005 |
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Translated
material from the online mainstream and trade press, designed to give topical insight into
Austrian advertising and marketing, life and lifestyles.............
Austria's advertising industry enjoyed a 'not exactly brilliant' year in 2005, according to Hans-Jörgen Manstein, head of the local chapter of the International Advertising Association (IAA). And, according to forecasts by local monitoring company Focus Media, 2006 doesn't look much better, with spending due to rise by just 0.8% in the coming year. The figures, given out at a press conference held on Wednesday and reported by the newspaper Der Standard, suggest that growth in advertising expenditure during 2004 amounted to 2.9%. Not bad, perhaps, but "expectations were higher", says Josef Leitner, managing director of Focus. Strongest performing medium was print, accounting for 45% of overall spend. 19% of investment was channelled into TV, 6.5% into radio, 5.3% into outdoor advertising and just 0.8% into online promotion. Among other factors, Hans-Jörgen Manstein points to the tax imposed on advertising in Austria as a brake on activity and suggests that the industry should make all efforts to have it removed. To read this story for yourself, in German, click on the link below (left) to see it on the Der Standard website. Alternatively, to visit the website maintained by the Austrian chapter of the IAA, click on the link below (right).
12.12.05
There is a saying, in English, that charity begins at home. That's something Austrians can well relate to if the findings of a survey conducted by the marketing faculty at Vienna University are to be believed. Interviewers commissioned by faculty head Claus Ebster questioned 1,200 inhabitants of the Austrian capital, says the newspaper Salzburger Nachrichten, about their Christmas gify buying intentions. What they found was that the greatest single portion of expenditure - amounting to, on average, € 345 - will be spent on the interviewee him/herself. This is not to say that they won't be giving to others, though. Girlfriends and wives can probably look forward to clothing, jewellery or perfume, the researchers found, older children to money or vouchers and younger children to toys. For fathers, books were the most frequently cited products, followed by wine and other alcoholic drinks. Unlike in some other countries, where Father Christmas is seen as the bringer of gifts, Austrian's are more likely to say they are brought by the infant Jesus. 56% of those spoken to in the research said this was the case, versus just 13% for Santa Claus. To read a longer version of this story, in German, click on the link below (left) to go to the Salzburger Nachrichten website. Alternatively, click on the link below (right) to go to Claus Ebster's space on the Vienna University website - 'Market Mentor' - where you can read more about recent research he has conducted.
01.12.05
Austrian company Almdudler, maker of the herb-based lemonade drink of the same name, has been told by a Luxembourg court that its bottle design is not unique enough to benefit from EU trademark protection, says the newspaper Die Presse. Almdudler first applied for a '3-dimensional trademark' in 2001, claiming that its brand consisted of the particular shape of the bottle, plus its composition, which varies from clear in the middle to grained in the lower and upper parts. That request was turned down, a decision which the company decided to appeal to before the European Court of Justice. The Court, however, has confirmed the earlier decision, saying that the bottle was of a clear type generally used by bottlers of lemonade and therefore did not constitute a strong enough signal which might cause consumers to attribute its form to one manufacturer or another. Almdudler has thus failed to replicate Coca Cola, which has secured widespread trademark protection for its characteristic shaped bottle, including in the EU. To read a longer version of this story, in German, click on the link below (left) to go to the Die Presse website. Alternatively, click on the link below (right) to visit Almdudler.
21.11.05
Austrian newspaper Der Standard took advantage of a recent visit to the country by Tony Wright, CEO of Lowe & Partners Worldwide, to question him on a range of topics. In his post for around one year, the newspaper asked him if it was fair to say that his network was still 'work in progress'. Wright denies this, saying that much has changed in that time, although quality issues still need to be resolved. Bringing together the very creative staff of the London-based Lowe network with those of US-based Lintas, five years ago, he admits, however, did not work. Asked about the continuing speculation that its troubled parent, IPG, might be looking to sell off Lowe, Wright says that there are currently no such plans and points out that the agency is strongly positioned in growing markets, such as Russia, India, China and Brazil. Within the network, emphasis over the coming year will be placed on achieving healthy profitability. One trade magazine, Der Standard points out, recently said that Lowe continued to be having trouble in Europe. "Everybody agency network is currently unhappy with continental Europe", Wright responds, "there's hardly any growth. I am particularly unhappy. Lowe is just not strong enough in these countries. The culture shock after the Lowe/Lintas merger was felt at its strongest here. For example, Lintas used to be a really strong agency in France, now we're struggling. In Germany, Lintas was once number one". Click on the link below (left) to read a longer version of this interview for yourself, in German, on the Der Standard website. Alternatively, click on the link below (right) to visit the website maintained by the network's agency in Austria, Lowe GGK, which enjoys a particularly high profile.
16.05.05
Austrian young people's scale of values shows friends and family receive the highest score, followed by work and education, according to the findings of a survey commissioned from market research company OGM by the newspaper Oberösterreichischer Nachrichten (OÖN). Questioning people aged between 14 and 24, the researchers found that responses differed greatly from those obtained from older interviewees, the newspaper says. While 80% of youngsters place great value on their friends and family, a similar study conducted in 1999 among all Austrians showed friends only being considered as important by 44% of respondents. Politics and religion, the survey shows, rate much lower down the scale, with only 16% and 14% terming them 'very important' respectively. Click on the link below (left) to read a longer version of this story for yourself, in German, on the OÖN website. Alternatively, click on the link below (right) to visit OGM.
09.05.05
Austrian young people's scale of values shows friends and family receive the highest score, followed by work and education, according to the findings of a survey commissioned from market research company OGM by the newspaper Oberösterreichischer Nachrichten (OÖN). Questioning people aged between 14 and 24, the researchers found that responses differed greatly from those obtained from older interviewees, the newspaper says. While 80% of youngsters place great value on their friends and family, a similar study conducted in 1999 among all Austrians showed friends only being considered as important by 44% of respondents. Politics and religion, the survey shows, rate much lower down the scale, with only 16% and 14% terming them 'very important' respectively. Click on the link below (left) to read a longer version of this story for yourself, in German, on the OÖN website. Alternatively, click on the link below (right) to visit OGM.
03.05.05
Ronald McDonald, 'spokesman' for the fast food chain, is currently on a tour of Austrian kindergardens imparting advice on healthy eating to the nation's youngest consumers. But despite the fact that he/the company has ministerial approval to do so, says the newspaper Der Standard, not everyone concerned finds the idea tasteful. As a result, Austria's health ministry has decided to review its decision. The promotion has been underway since April, with 500 nurseries having placed bookings for a visit from the clown between now and the end of the year, McDonald's spokeswoman Carola Ullrich-Purtscher tells the paper. "We are aware of our responsibilities", she adds, "to tell children that they should try to behave healthily. It's a shame some people are criticising our show without having seen it". One thing critics don't like is that Ronald is handing out gifts bearing the McDonalds logo, something the ministry apparently was not aware of. One Braunau father, Der Standard says, was astounded when his 4 year-old daughter came home from nursery with a Ronald McDonald puzzle bearing a healthy eating message alongside the company's famous golden arches symbol. "Of course she recognises the logo next to the advice and now she always wants to go to McDonald's", he says. "We were told the tour was going to be advertising-free", says health minister spokesman Christoph Hörhan. "We are going to have to think very carefully about what to do now. This was not a government promotion". Click on the link below (left) to read a longer version of this story for yourself, in German, on the Der Standard website. Alternatively, click on the link below (right) to visit McDonald's in Austria.
25.04.05
Austria's brand owners association, Markenverband, has unveiled the ninth wave of its campaign to convince the country's consumers to pick leading brands over cheaper but - it claims - poorer performing discount alternatives, writes the newspaper Der Standard. Probably the highest profile campaign undertaken by such companies in any European country (although Italy's brand owners launched a similar initiative earlier this month - click here to see that story), the Markenverband's collection of print, TV and poster work can count on the cooperation of such leading companies as Masterfoods and Procter & Gamble. Funded by these, the message - visible for the next month - is that you get what you pay for and ads deliberately juxtapose leading brands such as Ariel and Nivea with 'no name' alternatives, reminding shoppers that although the consumer electronics chain Saturn may have famously claimed that 'Geiz ist geil' ('Stingy is smart'), in reality, it isn't. The Markenverband's 2005 campaign has been produced, as before, by the country's leading advertising agency, Demner, Merlicek & Bergmann. It has been conceived, Masterfoods Austria head Gottfried Gröbl says, to counter the 'Lidlisation' of the retail trade (Lidl and its arch rival, Hofer, owned by the German discount giant Aldi, maintain a prominent presence in Austria, as they do in their home country), where discounters have a market share of as much as 38%, 90% of which is made of up own label brands. The campaign uses the slogan 'Achten Sie auf die Marke' ('Make sure it's a brand'). In addition to Italy, Hungary, Norway, Poland and Germany have also run similar campaigns, with Italy, the Czech Republic and France also showing interest, says the regional newspaper Salzburger Nachrichten. To see what else Salzburger Nachrichten says about this story, in German, click on the link below (left). Alternatively, to see the ten ads forming part of the latest Austrian campaign in the form of a slideshow at the site of rival paper Der Standard, click on the link below (right).
18.04.05
Gewista, the outdoor media company that operates Vienna's Citybike system - a fleet of bicycles available for short-term rental to the city's inhabitants and visitors - said that week that it was pleased with sales and performance and that it was on track to complete its roll-out of the network within the planned € 3 million budget. Gewista, which took over the license to operate the system after it had experienced a troubled start, makes its money from two sources: advertising placed at pick-up sites and on te bikes themselves, and rental charges. While the first hour is free, a figure of € 1 per hour is payble thereafter, up to a maximum of four hours. The main problem in the beginning, says the newspaper Der Standard, was that people kept 'nicking' the bikes. That has now been overcome, with around 1,000 bikes available for rental from 50 stations. 98% of journeys, Gewista head Karl Javurek tells Der Standard, last less than one hour. Riders can pay either via Mastercard or by using their 'one' mobile phone. To read this story for yourself, in German, on the Der Standard website, click on the link below (left). Alternatively, to go to the official Vienna Citybikes site, click on the link below (right).
11.04.05
Dietrich Mateschitz, owner of the Red Bull energy drink which for years has bolstered its image through association with extreme and offbeat sports and recently entered Formula 1 motor racing, has extended his sporting interests further with the acquisition of Austria Salzburg, one of Austria's leading football clubs. Despite still being regarded in that category, however, Salzburg has struggled in recent times and must be hoping that its association with Red Bull really will 'give it wings' as it attempts to haul itself away from the bottom of the national premier league, where it currently lies ninth, just one place off relegation to the lower ranks. Mateschitz's interest, newspaper Die Presse says, is as much to do with the fact that next year's soccer World Cup will be held in neighbouring Germany while Salzburg itself is due to host matches during the 2008 European Championships as it is to provide an immediate burst of energy to the Red Bull brand. National team head Hansi Krankl, himself an ex-Salzburg player, has welcomed the move. "The takeover is a real plus", he tells Die Presse. "When a man like Dietrich Mateschitz steps in, you can imagine that he plans to form a top team". Click on the link below (left) to read this story for yourself, in German, on the Die Presse website. Alternatively, click on the link below (right) to visit the official Austria Salzburg website where a beaming DIettrich Mateschitz ushers in a 'new era' at the club.
04.04.05
According to a report in the Austrian newspaper Die Presse, mobile phone company T-Mobile is about to terminate its sponsorship deal with the Austrian 'Bundesliga', or premier football league. Football, Die Presse says, is normally something people are ready to voice their opinion on. This time, however, everybody concerned is remaining strangely silent. Should T-Mobile withdraw, it would present a significant financial crisis for the league. Nevertheless, that is what is expected to happen this (April 4th) Monday, depriving the association of an annual €3.5 million "unless something miraculous happens". That, Die Presse says, is what is going to be needed, after 6 months of fruitless talks. The problem goes back to the middle of last year when the Bundesliga sold 3-year's worth of broadcasting rights to the pay-TV channels Premiere and ATVPlus - to the detriment of the state broadcaster ORF, but for a much higher price. Shortly afterwards, Die Presse says, it became clear that ORF was not the only frustrated participant, as the sponsors of individual clubs voiced their displeasure given that the reach of Premiere comes nowhere near that of ORF. Talk was quick to appear of a reduction in sponsorship fees. For T-Mobile, Die Presse says, the equation is equally simple. Less media presence = less money. "We're still talking", company spokeswoman Manuela Bruck tells the newspaper. In truth, it counters, there is nothing to talk about, as talks were broken off last Friday. T-Mobile suggests a progressive reduction in sponsorship fees, something the Bundesliga spokespeople say is 'still under negotiation'. Should T-Mobile cut the contract, Die Presse says, a legal battle would be quick to appear. The contract was extended for four years at the end of 2003 and does not take into account the possibility of losses caused through loss of audience. Click on the link below (left) to read this story for yourself, in German, on the Die Presse website. Alternatively, click on the link below (right) to visit the Austrian soccer association - naturally, they're talking about other things, in German.
27.03.05
A campaign running for some time now, backed by Austria's association of branded goods marketers, is achieving top awareness levels, according to the latest poster analysis by the reseach firm Gama. According to figures published in the newspaper Der Standard, current recall of the campaign among the Austrian public is running at 45%, significantly above the long-term average of 25%. Using the phrase "Achten Sie auf die Marke" ("Look for the brand"), the campaign shows well-known consumer brands alongside blandly-packaged, 'no-name' lookalikes and was commissioned by the ÖVM (Österreichische Verbandes der Markenartikelindustrie). That figure, Der Standard says, puts the campaign above any other poster work currently running, with Vienna's urban transport system Wiener Linien and cable company UPC Telekabel taking second and third place respectively. The campaign was produced by local star ad agency Demner, Merlicek, Bergmann. Click on the link below (left) to read this story for yourself, in German, on the Der Standard website and see examples from each of these advertisers. Alternatively, click on the link below (right) to see five examples from the "Look for the brand" campaign, displayed on Austria's Pressetext website.
20.03.05
The American trade journal Advertising Age has provided extensive coverage of the problems currently being experienced at the Interpublic group (IPG), says the Austrian newspaper Der Standard. These, it notes, have included the false reporting of financial performance between 1996 and 2001. Hans Schmid, who founded GGK in Vienna before selling it to IPG, says that such developments were eventually behind the failure of a planned management buyout at Lowe GGK, Austria's second-largest agency, this month. As has been reported, a preliminary agreement had already been reached, allowing 80% of Lowe GGK and its eastern-European network partner agencies to be bought out by a team headed by GGK manager and shareholder Alexander Lonyay and managing director Thomas Plötzeneder. "The price was already agreed", Lonyay tells Der Standard. However, the question of whether IPG should consolidate the results of the GGK agencies within its balance sheet - and thus reduce the operating freedom enjoyed by Lonyay and Plötzeneder - proved a stumbling block. Is the deal definitively over? "I think so", Lonyay tells Der Standard. You can spoil ad agencies, he continues, their success deriving from the quality of their employees and their motivation. Departures resulting from the failed MBO will affect the agency. Asked whether IPG suggested the buyout as an alternative to paying its final instalment on the original purchase price, Hans Schmid gives a clear 'no' as his answer, adding that only a small amount remained to be paid. Schmid himself tells Der Standard that he has had just about enough of advertising and regrets the fact that it has developed into a "stock-market" kind of business, not the quality of the people, is what really counts. Globalisation is what forced him to sell out to IPG, he says, and that is what is forcing the passion out of advertising. Nevertheless, in five or ten years, Schmid, who describes himself as an optimist, can see local and regional agencies beginning to grow in strength and appeal again. To read this story for yourself, in German, on the Der Standard website, click on the link below (left). Not possible to visit Lowe GGK - which, in addition to being Austria's 2nd-largest, is also one of its most awarded agencies - as its website is currently offline, but to see what the agency looks like in one of the network's eastern European network countries (Hungary), click on the link below (right).
14.03.05
Austria's creative club, CCA (Creative Club Austria), has selected its best ads of the year 2004, says the newspaper Der Standard. And while they may not be familiar to international audiences, each of the 106 images showcased secured local visibility and was deemed worthy of recognition from local professionals. View a slideshow of all the ads by following the link below (left) - click on the arrows below the pictures to move from slide to slide. Alternatively, explore the world of Austrian creativity by visiting the CCA website - just click on the link below (right).
27.10.04
It may not have many fans among the country's marketing community, but Austria's controversial 'Werbesteuer' - a levy of 5% on most forms of advertising and promotion - looks set to stay, following the end of discussions between the government and regional and local authorities. What's more, it will not be subject to any changes, something which will dismay the professional advertising and marketing community which has been calling for its revision and even abolition. "We are disappointed, but not discouraged", Christopher Leitl, president of the country's chamber of commerce tells the Austrian advertising magazine Horizont. The topic, he adds, will remain on the daily agenda. Walter Ruttinger, who heads up the advertising division within the Chamber, is a little more combative. "Despite all the government's promises to remove the tax as soon as possible, it's continues to exist. We will seek to legally challenge this tax, unique worldwide". Click on the link below (left) to read this story for yourself, in German, on the Horizont website. Difficult to really provide an interesting, alternative link on a story like this, but click on the link below (right) to go to the page on the website of the Austrian newspaper Der Standard which showcases the country's most recent major advertising campaigns.
26.10.04
Liberalisation in many national markets has led to sales of non-prescription drugs and remedies being possible through outlets other than pharmacies. Not so in Austria - until now, that is, with an announcement by the head of the drugstore chain 'dm', Günter Bauer, that it plans to include items such as aspirins and anti-cold medication within its range. dm is based in Germany, where the market is already more advanced. Bauer's announcement, however, has been greeted very defensively by the pharmacists' association, Apothekerkammer. "Should the German drugstore chain, dm, actually follow up on its announcement, we will take measures immediately", its vice-president Leopold Schmudermaier told the press on Friday. For pharmacists, he said, what is important is that public health should be the central concern. Pharmacy customers receive quality advice from professional, qualified advisors. dm's Bauer, on the other hand, believes that awareness and knowledge among consumers has grown to the point where sales through other channels make sense. dm's recent experience in its home country includes the supply of prescription drugs sourced from a Dutch company, says the newspaper Der Standard. That, though, was stopped by the German authorities as it conflicted with the law. dm has appealed that decision. The reaction of the Austrian authorities in the face of the company's latest initiative is to point to the law, which largely forbids the sale of OTC medication through non-pharmacy outlets but does allow it for a limited range of products through outlets with special pharmacy concessions. These products, however, are largely limited to herbal teas. Click on the link below (left) to read this story for yourself, in German, on the Der Standard website. Alternatively, click on the link below (right) to visit dm's Austrian website.
20.10.04
Despite all the criticism about celebrating during the period around All Saints Day and All Souls day - the names given by the church to October 31st and November 1st and on which Catholics remember the dead - the Halloween business is booming in Austria, writes the local newspaper Der Standard. According to a study published by the research agency KMU Forschung, in cooperation with the management consultancy Markant, Austrians will be spending even more on Halloween festivitities this year than they did in 2003. Total spending relating to "Gruselfest", as Halloween is known in Austria, are expected to total around 18 million euros this year, a rise of 2%, KMU and Markant say. It's an even more impressive figure, though, Der Standard observes, when you consider that the percentage of the population actually likely to make a Halloween-related purchase will fall by 2% to 10%. A little arithmetic, therefore, puts the average spend of a Halloween consumer at 27 euros. The habit is more widespread in the East of the country, the researchers found, and especially in VIenna. In Salzburg, Tirol and Vorarlberg, on the other hand, participation rates of as low as 4% were reported. Sweets are the favourite purchase by far, with around three-quarters of all Halloween spenders including them on their shopping list. Decorations are next, followed by pumpkins, costumes, joke items, food and craft materials. Click on the link below (left) to read this story for yourself, in German, on the Der Standard website. Alternatively, click on the link below (right) to visit the research agency KMU's website or here to go to the site maintained by the consultancy, Markant.
06.10.04
A bitter battle is currently raging between the snack manufacturers Kelly and Bahlsen, writes the Austrian newspaper Der Standard., over the brand name 'Soletti'. Since German-based Bahlsen launched an advertising campaign in Austria in June, the paper says, its Austrian rival Kelly has been contesting the claim made in a TV ad that "until now, there has only been Soletti ("Bisher gab es nur Soletti"), before going on to introduce the company's new snack product, Saltletts Bits. Kelly - which also markets a snack called Soletti - applied for an injunction to stop Bahlsen airing the ad, which it duly did, subsequently claiming however that the word 'Soletti' was not a brand name, merely a generic descriptor. As such, Bahlsen says, it can not be registered as a trade name. The case will now go to court and, should the judge agree with Bahlsen, all Austrian snack makers will soon be able to stamp the word 'Soletti' across their packs. "This is an attack by a German company on an Austrian brand", says one lawyer spoken to. Should Bahlsen win, "a brand value in the region of 10 million euros would be wiped out". Soletti is one of the 20 most well-known brands in Austria, according to a poll conducted by the research agency Market-Institut. Bahlsen is now seeking to play down the situation, Der Standard says, and the company has already altered its advertising. "We will never write Soletti on our packaging", country head Christian Blatnig is quoted as saying. Nevertheless, the question remains as to whether Soletti is or is not a brand. Kelly's lawyer Ronald Rast says this will have to be decided by the judge. "We are forced to go to court", he tells the paper. "If we don't defend ourselves, we run an ever increasing danger that Soletti will just be used as a generic". Maybe, says Der Standard, but the word does not appear in Austrian dictionaries, only in a few cookbooks. Kelly fears that Bahlsen's incursion may encourage others to follow its example, in particular retailers who might use the word to refer to their cheaper, own-label snacks. Soletti is exported to 68 countries, Der Standard says, and enjoys an awareness lvel of 98% in its home country. "We will take every measure to defend our position", says the company's managing director, Wolfgang Hötschl. Click on the link below (left) to read a fuller version of this story for yourself, in German, on the Der Standard website. Alternatively, click on the link below (right) to be taken to Kelly's Austrian website or here to go to the site devoted exclusively to Soletti and which, considerately, is available in English.
01.10.04
Red Bull, Austria's most prominent FMCG brand, has struck a partnership deal with the Austrian air force, writes the newspaper Der Standard. The deal was celebrated this Friday with a ceremony and flypast at the Langelebarn air base, the newspaper says. Aim of the partnership is to contribute to strengthening public perception and trust in the armed forces' protective capabilities, Austria's defence ministry says. In fact, Red Bull has been working together with the air force for some time now, with the highpoint being the 'Airpower 2003' air show and the opening of 'Hangar 7', in Salzburg, an exhibition space devoted to those who have a fascination with flying. The armed forces currently have around 150 similar partnerships, the first having been struck between an army battalion and Siemens in 1969. "The armed forces are here to serve our society", Austria's defence minister Günther Platter tells the paper. "Close contact with business is therefore an important concern". Click on the link below (left) to read a fuller version of this story for yourself, in German, on the website of Extradienst. Alternatively, click on the link below (right) to be taken to the Prognos site, in German, or here to go to an English-language version of some of the content.
29.09.04
Ex-racing driver Niki Lauda is expanding his Lauda Motion car rental service to Munich, in addition to Linz and Vienna, the two Austrian cities in which it currently operates, says the newspaper Der Standard. Lauda Motion currently makes available Smart cars at the rate of €1 per day, booked over the internet. The cars, which are leased, are financed by advertising, a concept that appears to work, Lauda told a press conference on Wednesday in Munich. In a reltaively short time, the fleet of 50 Smarts initially operating in Vienna was increased to 140, he said. In Munich, the company will be starting with 60. 30 of these, Der Standard says, have already been booked by Air Berlin to carry advertising. Lauda expects the fleet to grow to a similar size as that operated in Vienna within a year. Advertising on the cars costs between €1,000 and €1,300 per month, plus the cost of producing the promotional material. They can only be booked over the internet and for a maximum of 3 days. Drivers have to commit to driving at least 30 but at most 100 kilmetres per day within the city and surroundings and wash the car before they give it back. For every kilometre too much or too little, customers are charged an additional euro. Click on the link below (left) to read a fuller version of this story for yourself, in German, on the website of Der Standard. Alternatively, click on the link below (right) to the Lauda Motion website where the offer is quite clear: '1 Smart. 1 Tag (day). 1 Euro'.
01.10.04
Austria's advertising market is currently experiencing a solid upturn, writes the local trade magazine Extradienst, although it is not expected to be so solid as to cause it to overheat. That, in any case, is the evaluation made by the Prognos research institute, from neighbouring Switzerland. "The recession appears to be over", Prognos director Josef Trappel tells the magazine, going on to predict a 4.4% rise in gross spending this year - the best performance for the past four years. Growth, he predicts, will continue for the foreseeable future (which, for Trappel, extends to 2008), with increases of between 4% and 5% to be expected on an annual basis. Should that turn out to be the case, Austria's advertising market will be worth €2.68 billion in four years time. Instead of 'euphoria', one should speak, Trappel says, of 'healthy growth'.. euphoria, after all, can be a symptom of manic depression and a return to the peaks and troughs of recent years will hopefully be avoided. Prognos expects newspapers to grow more slowly than other media, with TV predicted to be the star performer, likely to grow faster than the overall market between 2004 and 2008. TV advertising currently accounts for 22% of all spending in Austria. Online promotion currently accounts for no more than 1.1%, Prognos estimates, although this is higher than cinema advertising (0.5%). Click on the link below (left) to read a fuller version of this story for yourself, in German, on the website of Extradienst. Alternatively, click on the link below (right) to be taken to the Prognos site, in German, or here to go to an English-language version of some of the content.
17.09.04
The 'Werbesteuer', or tax placed on all forms of advertising by the Austrian authorities, has long been unpopular among the country's agencies and media companies, but now some very unlikely people are getting involved in calls for it to be abolished. In an open letter, says the advertising magazine Horizont, Austria's bishops have called for the tax to be withdrawn. Ludwig Schwarz, spokesman for the church, says in the letter that the 'Werbesteuer' means that even not-for-profit organisations (NPOs) are obliged to channel tax deriving from their communications campaign to the finance ministry. This, he says, creates a barrier in dealings between companies and NPOs. In addition, he says, it is hard to understand how the regulations on sports sponsorship could be lifted but not those on art, cultural and social sponsorships. If not complete abolition, however, Schwarz is prepared to settle for a lifting of the application of the tax to NPOs, Horizont says. Click on the link below (left) to read a fuller version of this story for yourself, in German, on the website of Horizont or here to be taken to a longer article, featuring the views of the advertising industry on the tax, also in German and as reported by the Austrian magazine Medianet. Alternatively, click on the link below (right) to be taken to the site of the organisation representing Austrian bishops, the Oesterreichische Bischofskonferenz (OB).
13.09.04
Zewa, the toilet tissue brand, is taking its show on the road to try to discover new acting talent, writes the Austrian newspaper Der Standard. Inhabitants of the Austrian capital, Vienna, are being asked to head towards the city's Museumsquartier district to test out their acting skills in what is called the "Zewa World", essentially a mobile bathroom equipped with a full film crew (click here to see a picture, from the Der Standard website). The best auditioners will be given the opportunity to receive professional training in the Krauss theatre school which may act as a springboard to an acting career. In addition to Vienna, the tour is also visiting other cities in German-speaking countries, where Zewa is a popular brand, such as Berlin, Leipzig, Hamburg and Munich. In addition to offering the chance of stardom to urban wannabe actors, the tour reproduces the set of advertising for Zewa products in a live event setting, thus serving as a promotional support for the company's above-the-line activities. Click on the link below (left) to read a fuller version of this story for yourself, in German, on the website of Der Standard. Alternatively, click on the link below (right) to visit Zewa's official Austrian website.
13.09.04
Until now, Austrian advertisers and agencies have been free to place whatever advertising they wished, only worrying afterwards if any individual or group had been offended. Now that is set to change, says the local news agency Pressetext, with the installation of a new body which will vet ads submitted to it before they appear. The österreichische Werberat (ÖWR), as the new authority is called, is portraying itself as a self-regulatory body rather than one that sets out to censor advertising, its president, Heinrich Schuster, tells Pressetext, and is promoting its services to agencies and media alike. The goal is to decide in advance if an ad is likely to offend against good taste. "By and large", the ÖWR's vice-president Gerd Schütz says, "the Austrian advertising industry is decent", and most complaints cite only a few, recurrent offenders such as Humanic and Media-Markt. So far this year there have been 120 complaints, of which 32% were about ads that appeared to mislead and 21% were about discrimination against women. Click on the link below (left) to read a fuller version of this story for yourself, in German, on the website of Pressetext. Alternatively, click on the link below (right) to visit the website of the ÖWR itself.
02.09.04
According to Austria's industry trade association, the Fachverband für Werbung, the country's advertising market has been shrinking for the past 3 years. This year, however, it appears that there will be a return to growth. Local statistics show that 16,859 new businesses were started during the first 6 months of 2004, 849 of them active in the area of marketing communications and advertising, says the press agency Pressetext. "This increase of 10% in the number of businesses actively offering such services", says the country's chamber of commerce, "should ensure between 3% and 5% market growth". Indeed, with 14,502 companies active in the sector by the end of June, the advertising and marketing industry has superseded the food industry for the first time to become the country's fourth largest sector. Since 1995, figures show, the number of companies involved in the sector has grown by 143%, compared to just 18% in the food business. According to Chamber of Commerce data, below-the-line activity accounts for around 34% of expenditure, with 10% directed towards the internet and a further 8% channeled into direct mail. Traditional, 'above-the-line' advertising currently claims 66% of all spending. "We expect above-the-line to grow by 2% this year, but with growth of 6.4% in the area of internet spending", says Josef Leitner, head of Focus Media Research, which produced the figures. Total expenditure on advertising in Austria in 2004 is expected to reach €3.79 billion. Over the first 6 months of 2004, the Austrian advertising market is estimated to have grown by 5% compared to the previous year, with a forecast of 2.4% growth for the second six months. However, to really boost the market and secure growth in employment and opportunities, Focus Media Research says, the Government would have to remove the growth-limiting 5% tax on advertising". Click on the link below (left) to read a fuller version of this story for yourself, in German, on the website of Pressetext. Click on the link below (right) to visit the website of Focus Media Research or click here to go to the website of Extradienst which, although it didn't carry this story, does report lots of other things happening in the world of Austrian media, marketing and advertising, should you be curious to know more.
02.09.04
It may not be a claim to fame that many other nations would covet, but the summer seems to last longer in Austria than in some other countries and, in the absence of other newsworthy stories to report, From Europe With Love notes the satisfaction expressed in a number of the country's newspapers that Austrians, a new survey shows, spend longer and travel more miles on public transport than inhabitants of any other European country. "With 3,010 kilometres per year, per head, Austria takes first place", trumpets the Austrian Motoring Club, VCÖ, in a story carried in the regional newspaper, Oberösterreichische Nachrichten. Confirming neighbour Germany's love of the car, the figures show that Austrians travel twice as much on public transport as do Germans. In total, 24.4 billion passenger miles are travelled each year on the nation's bus, rail and metro systems. The lion's share of these (16.1 billion) take place on the bus, trams and metro routes, the remainder on the national rail system, ÖBB, and 14 private rail networks. For 2.9 million adults and 1.5 million children, the newspaper notes, there simply is no alternative, as they do not have access to a car. "More than 4.4 million people are dependent on public transport for their mobility", says VCÖ spokesman Wolfgang Rauh of a story which should have media planners revising their advice to Austrian clients forthwith. Click on the link below (left) to read a fuller version of this story for yourself, in German, on the website of Oberösterreichische Nachrichten. Click on the link below (right) to visit the website of the Austrian motoring club, VCÖ, to read more about this story, again in German.
162 outlets in Austria are enough, says the local McDonald's head Christian Wimmer. "We are", he says, "when you consider the number of inhabitants, the country with the strongest penetration of restaurants in Europe. Only Sweden has more McDonald's restaurants. Each outlet attracts around 50,000 Austrians. In Germany, the figure is around 70,000". Wimmer concedes, however, that opportunities still exist in Germany's smaller neighbour. New railway stations and highways, for example, offer new opportunities. "When they build them, we'll be there", he tells the local business newspaper Wirtschaftsblatt. McDonald's strength in Austria, Wimmer believes, lies in the weakness of others, not that it concerns him overly, given that the company enjoys a 50% share of the local fast food market. While turnover fell by 4.4% during the last year, Christian Wimmer tells Wirtschaftsblatt that he believes the lean period is over. This year, he says, sales are up 3.5% over the first 6 months and if that performance carries through for the full year, the company will be happy. The global strategy of 'I'm lovin' it', which originally derived from Germany, has not only rendered McDonald's more youthful, but more desirable, he believes. September will see the introduction in Austria of the compay's new health eating range, 'Salads Plus', a development the company expects to boost business, given that McDonald's already sells aroound 5 million portions of salad in Austria each year. Click on the link below (left) to read a fuller version of this story for yourself, in German, on the website of Wirtschaftsblatt. Click on the link below (right) to visit the website of McDonald's in Austria (although, whether you can gain entry or not, will depend on whether the site agrees with you on which version of Macromedia Flash your computer is running).
Lever Fabergé is to extend distribution of its skincare product for men, Axe Snake Peel, to Austria, writes the local advertising newsletter Extradienst. Currently available in a limited number of countries, including Belgium, Switzerland and Croatia, the product is designed to satisfy a growing interest among young men in looking and feeling good and extend the range of products that allow them top do this without secretly raiding their partner's make-up bag. Axe Snake Peel is in fact a shower gel, introduced by Lever Fabergé as a response to the trend towards 'metrosexual man', that is men who take pride in their appearance and in aspects such as fashion (click here to see a story on this phenomenon from another country, Belgium).
In addition to traditional advertising, a promotional tour will kick off on August 13th, in Vienna. Click on the link below (left) to visit the website of Extradienst to read this story for yourself, in German. Click on the link below (right) to be taken to Axe's Austrian website where, among other things, you can view advertising for the brand (in theory), review the product range and take part in local competitions. Click here to see Axe Snake Peel on sale in one of the other countries in which it is currently available, Croatia, again on the local Axe website.
Name a famous Austrian brand. Go on. No? Well, it wouldn't be surprising. Although the country does boast prominent local brands, such as Palmers underwear, not many go on to replicate that prominence on an international stage. For the past few years, however, one - the energy drink Red Bull - has increasingly been making a name for itself around the world. It's still not enough to push it into the recently-published Interbrand ranking of the world's most valuable brands (click here to visit the company's website), but could that be set to change, asks the Austrian newspaper Der Standard? Local studies, in fact, suggest that Red Bull has a brand value of €6.5bn which, if confirmed by Interbrand, would have been enough to secure it 35th spot in the global ranking. Interbrand, however, uses different valuation methods to those used by the Austrian researchers who reached that figure. Those spoken to by Der Standard say that there are few facts available which would allow the brand value of Red Bull to be reliably calculated. Interbrand says that when you apply the necessary economic and financial criteria to the product, the resultant brand value would certainly be less than the figure of €6.5bn quoted. "Often, when brands are valued this is done in isolation, not in the context of the whole company", Stefan Rüssli tells the paper. That leads to exaggerated values." On the other hand, he admits, Interbrand seeks to include a broad range of products and services in its ranking and drinks brands are already well represented. Could Red Bull, nevertheless, be on its way to global brand stardom sometime in the near future. Stefan Rüssli admits that if it maintains its current dynamism, it will soon reach the limit for inclusion in his company's ranking. Click on the link below (left) to read this story for yourself, in German, on the website of Der Standard. Click on the link below (right) to visit Red Bull's Austrian website. Click here to see (in German) another recent Der Standard article on the value of Austrian brands, including the €6.5bn attributed to Red Bull (and a ranking of the top 10).
Now summer has eventually arrived, perhaps the dark clouds that hang over the Austrian beer industry will start to clear, says the newspaper Kurier. Up until June 2004, it says, sales of beer were running at 2.5% below levels registered in 2003, hampered by long spells of wet weather. "Biergarten" weather didn't appear until a few weeks after it normally would, but it may now be that things are looking up. "The month of June has helped us start to get things going", Markus Leibl, head of market leader Brau Union Österreich, tells Kurier, adding that he is hoping for a hotter August and fine autumn weather thereafter. Over the past two years, Kurier says, beer consumption has risen in Austria after several years of decline, reaching a per capita average of 110 litres in 2003. "But we won't reach that level this year", says Leibl. Brewers don't like it too cold or wet, he says, but neither do they like it too hot. Once it gets to 28 in the shade, they find, their sales start to drop off. Click on the link below (left) to read a fuller version of this story for yourself, in German, on the Kurier website. Click on the link below (right) to visit the Brau Union website (as long, as the home page points out, as you're over 18 years of age).
22..07.04
It's not just kids anymore.. more and more Austrian adults are getting into SMS messaging, says the Austrian advertising magazine Extradienst. Each year, the magazine says, around 4 billion messages are sent in Austria, a growing number of them by grown-ups. According to the local SMS portal, sms.at, this rate of messaging puts Austrians among the most frequent users of such services in Europe. According to a study conducted by the University of Salzburg, 33% of users are between the ages of 20 and 29 years old, a further 23% are aged between 30 and 39. Over-50s, the university says, account for 9% of users. "Three year ago, the proportion of 14 to 19 year-olds was much higher and the 30 to 39 year age group was in the minority", says sms.at managing director Jürgen Pansy. "The usage habits of older groups vary little from those of younger people", he adds. "We believe this trend is set to continue". Summar, above all, is when short messaging comes into favour, Extradienst says. "Most people use the services to quickly set up meetings at swimming pools, or to say in what bar they can meet up in case of bad weather", says Pansy. The Salzburg study, based on responses to 170 questionnaires, showed that 22% of young people even prefer texting to direct conversation, citing reasons such as social phobia or just plain laziness. Click on the link below (left) to read this story for yourself, in German, on the Extradienst website. Click on the link below (right) to visit the section of the sms.at website which shows you what the current top 30 mobile phone ringtones are in Austria.
16.07.04
Income from the tax imposed on advertising in Austria amounted to €9.24 million, a rise of 13.7% says the local advertising magazine Extradienst. The increase came principally from application of the tax to postal promotions. Take this first-time charge out of the calculations, Extradienst says, and there was still a 6% rise during June. Over the first 6 months of the year, the country's finance ministry has derived income of over €48 million, which the advertising industry is taking as an indicator that advertising expenditure in Austria will rise by between 3% and 5% this year. Communications trade association spokesman Walter Ruttinger, who long campaigned against the introduction of the tax, qualified it as a "cash cow for cities and communities. The tax rate is set at a maximum", he added, pointing out that it seemed likely that the industry would be "damaged to the extent of 100 million euros this year." Click on the link below (left) to read a fuller version of this story, in German, on the website of Extradienst. Click on the link below (right) to see a further article, from the Austrian newspaper Kurier, in which further protests against the "werbesteuer" are voiced, accompanied by a rather striking poster from Palmer's, the underwear firm.
16.07.04
Consumers International (CI), the worldwide umbrella organisation for individual consumer protection agencies, criticised manufacturers at a conference this week in Vienna on account of the increasing number of claims appearing on packaging that suggest the contents have been produced organically or in an environmentally-friendly way, reports the online marketing magazine Persoenlich. In Austria alone, delegates at the CI conference were told, a total of 69 claims were found on a sample of 55 products which promised a "better world." Typically, these consist of imagery showing traditional farming methods or idyllic scenes taken from nature. Such imagery, the CI says, leads to consumers building up a completely false impression of how today's mass-market products actually come into being. Product names, too, contribute to the false impression, CI says, singling out the German dairy brand Landliebe as being merely a marketing trick used to suggest closeness to nature. An international project is currently underway, Persoenlich says, to uncover and check the veracity of such claims. "Green food claims", Birgit Beck, of the Austrian consumer association VKI, told delegates, "which use pictures or logos to convey a natural image help convince people to buy. They suggest to consumers that products have been manufactured in a particularly environmentally-friendly or sustainable way, even if they cannot truly be differentiated in this respect from existing products. Click on the link below (left) to read a fuller version of this story, in German, on the website of Persoenlich. Click on the link below (right) if you'd like to read up more about Consumers International, by visiting their English-language website (if you'd like to go directly to the press release on this topic, in English, just click here).
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