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Google: 20 years of media and advertising disruption

Google: 20 years of media and advertising disruption

The good old billboard whether paper or digital, Google has
not been able to harm them thus far Advertising expenditures for outdoor advertising have even increased in
Switzerland in recent years. Advertising revenues for outdoor
advertising in Switzerland were CHF418 million in 2008
and CHF452 million in 2017 A slight increase. Otherwise, Google has been feeding on the global advertising business in the last few years
and left traces everywhere. The media and advertising industry is
upside down and has to watch powerlessly as Google grabs more ad
spending every year. Ten years ago, in 2008, the Swiss press earned advertising
of CHF2.4 billion. In 2017 it only earned CHF1.1 billion. Frank Bodin has been working in the
advertising industry for 26 years. Until recently, he was head of one of the
largest advertising agencies in Switzerland. How traditional advertising
budgets have eroded he experienced first-hand. The advertising market has
already suffered some damage. I can remember: When I left the then largest
advertising agency in 2000, we had twice the fee
volume of today’s largest agency. These changes are noticeable. Marc Walder is CEO of Ringier. Today, the Swiss media company
only scores a small part of its consolidated
profits from advertising, placed in one of
its journalistic products. For a long time, Ringier, as well as competitor
Tamedia, own various Internet portals, selling e.g.
concert tickets, publishing job, housing
and car advertisements and with this, earned money. You have to imagine: Ringier used to generate 100%
of sales and 100% of profit with
journalistic products: Newspapers, magazines
and printers. Today, 70% of our profits have nothing
to do with journalism anymore. That is, we have diversified
into very strong fields, that have nothing to
do with journalism, but where digital
transactions take place. An example in
Switzerland is Ticketcorner, where tickets are bought, or Immoscout and Autoscout, where
you can find houses or cars. We have almost 2 billion
invested in these areas, and that was vital. If you only
depend on journalism today, it will become increasingly
difficult in the future. In 2017, the Google parent
company, Alphabet, earned CHF109 billion
in sales worldwide and was in terms of
stock market value alongside Apple and Amazon the most
valuable companies in the world. Google is also earning
billions in Switzerland. In 2017, the advertising industry in
Switzerland earned CHF6.4 billion. This included the press: CHF1.1 billion Search engine advertising: CHF1.4 billion Most of this went to Google. When you see that a company, that was hardly a player in the
media market 15 years ago, today, generates most of the advertising
revenue for itself… One has to imagine that from the
entire digital advertising market globally about 80%
go to Google and Facebook, and most of it as
I said to Google. That’s because they simply know a
lot about the users. The advertising money goes there, where one knows more
about the users. That’s the money,
that’s billions, that used to be in
the media industry. Media scientist
Matthias Zehnder says Google is there thanks to its
innovative technology that literally tore up the previous
advertising market – with consequences. That is money that is
no longer available to produce media content
in Switzerland. That’s the trouble and the
tragedy of what’s happened. In one area, all respondents agree: Google’s rise is unstoppable. What do you think about
the power of Google?

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