life with print 08.09.ppt10/27/2009 7 to what extent do you trust the following forms of...
TRANSCRIPT
10/27/2009
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Life With Print October 27th
11am PST / 2 pm EST
For the audio part pls call
800 843 9166
www.sappi.compp
Daniel Dejanj
North American ETC Print and Creative Manager Sappi Fine Paper/North America
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Q2 2004Q2 2004, finally, , finally, the economy was showing the economy was showing
signs of recovery… signs of recovery…
Total Media BudgetTotal Media Budget
Print’s sharePrint’s share
But, where was But, where was the Print Industry’s the Print Industry’s
share of that growth?share of that growth?
Total Media BudgetTotal Media Budget
Print’s sharePrint’s share
Total Media BudgetTotal Media BudgetBudget Cuts leads
to search for cheaper,Alternative Media
Personnel cuts leadsto hiring less expensive,
Media savvy young buyers
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More importantly, More importantly, where was the Print Industry’s where was the Print Industry’s
share migrating to?share migrating to?
Internet: wwwEmail
Total Media BudgetTotal Media BudgetSocial Networking
Cable TV
TeleMarketingSatellite Radio/PodCasting
Viral Marketing
Print’s sharePrint’s share
Total Media BudgetTotal Media Budget
“Sexier” Alternatives“Sexier” Alternatives“Sexier” Alternatives“Sexier” Alternatives
• Cable TV
• Internet-Brand Websites, Search Engines, Banners, Pop-Ups
• Social Networking –Facebook, YouTube, LinkedIn, Twitter, et. al.
• Blogs
• Digital Billboards• E-mail
• Guerilla/Viral Marketing
• Word-of-mouth marketing
• Digital Billboards
• Mobile Media
• TransPromo
• Product Placement
$9 M Campaign$9 M Campaign
Market Research
LwP Booklet
60 Ad Spots- Forbes- Fortune- Brand Week- Ad Age- Wall St. Journal- Print & Design Trade Pubs
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New Market ExpectationsNew Market ExpectationsNew Market ExpectationsNew Market Expectations
Media Agnostic,Media Agnostic,OnOn--Demand,Demand,
MassMass--CustomizationCustomizationwith Personalized Content,with Personalized Content,
in Real Timein Real Time
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To what extent do you trust To what extent do you trust the following forms of advertising?the following forms of advertising?
* Trust in Advertising - a global consumer report conducted by the Nielsen Company. Online survey of 26,486 Internet users in 47 markets from Europe, Asia Pacific, the Americas, and the Middle East performed April 16 - May 1, 2007.
TVTV
July 12, 2004
Network TVNetwork TVViewership down 22% Viewership down 22%
TivoTivo/Digital Video Recorders/Digital Video Recorders
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Mass Marketing > NarrowcastingMass Marketing > Narrowcasting
1970’s 80% of America with 4 channels1985 19 channels available2007 119 channels required
1972 CPM (cost per thousand) viewers = $ 1 961972 CPM (cost per thousand) viewers = $ 1.961978 CPM = $ 3.122008CPM = $26.22
Media Buyers are shifting away from Mass Media- cross media, integrated marketing & multi-channel distribution
* TV Bureau of Advertising & NAPL
Other Media Mix ElementsOther Media Mix Elements
“I don’t think advertising works anymore. “I don’t think advertising works anymore. TV advertising is so average, it’s a waste of money. TV advertising is so average, it’s a waste of money.
We need other ways of reaching consumers”We need other ways of reaching consumers”
Philip Philip KotlerKotler
More than 80% of television commercials More than 80% of television commercials are not being seen by viewersare not being seen by viewers
Research in UK and NetherlandsResearch in UK and Netherlands
RadioRadio
March, 2005March, 2005
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• Engaged with something else while listening
• Lack of attention - means repetition and more $
RadioRadio
• Difficult to take physical action
• Not visual - retain better what they can see than what they hear.
• Satellite Radio, iTunes, Pandora, YouTube Playlists
Pros and Cons of Advertising, Information USA (TV-Infomercial-Shopping.com)
Marketing Industry “Buzz”Marketing Industry “Buzz”
% of consumers who readily engage in other medium when they:
Read Magazines
Watch TV
Listen to Radio
Read Newspapers
Go Online
Total Other Media
Read Magazines n/a 25% 16% n/a 10% 51%
“When using this media do you simultaneously regularly use another media?”
Read Newspaper n/a 30 17 n/a 12 59%
Go Online 10 42 24 14 n/a 90%
Listen to Radio 12 13 n/a 16 22 63%
Watch TV 13 n/a 7 15 30 65%
Source: BIGresearch Simultaneous Media Usage Study, 2007
Make Media Buyers AwareMake Media Buyers AwareMake Media Buyers AwareMake Media Buyers Aware
• Print is less intrusive than broadcast
• Print motivates consumers to quicker responses and actions
• Print translates into more brand awareness and brand loyalty
- Yankelovich
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Reinforce to Media BuyersReinforce to Media Buyers
• Print is not the lowest-cost provider
• Print has the most favorable ROI/ROC
• Print continues to be the most efficacious media for
B di• Branding• Mnemonic retention• Sales, merchandising and marketing ROI• Highest trust quotient
For the first time in its 103 year history. Kellogg’s will launch a new For the first time in its 103 year history. Kellogg’s will launch a new cereal without any TV promotion cereal without any TV promotion –– primarily print, also onprimarily print, also on--lineline
“Right now, print is the best medium.”“Right now, print is the best medium.”
“Magazines lead TV and the internet as the medium of engagement “Magazines lead TV and the internet as the medium of engagement across all measured attributes including ad receptivity, trust, socialacross all measured attributes including ad receptivity, trust, socialacross all measured attributes including ad receptivity, trust, social across all measured attributes including ad receptivity, trust, social
interaction and life enhancing.” interaction and life enhancing.” Simons Multimedia Engagement StudySimons Multimedia Engagement Study
“Full“Full--page, 4 color magazine ads were determined to have page, 4 color magazine ads were determined to have 83% of the value of a 3083% of the value of a 30--second TV commercial, second TV commercial,
while a typical internet banner ad has 16% of the value.” while a typical internet banner ad has 16% of the value.” CBS, CBS, CondeConde Nast studyNast study
Integrated Integrated Marketing in Marketing in gg
ACTIONACTION
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Advertising Spending
$171 $175$189 $198
$209 $213 $218 $220$233
$244$263
$150
$200
$250
$300
B
“US Advertising Market stagnating in 2009, “US Advertising Market stagnating in 2009, expected to rebound in 2010 but … ”expected to rebound in 2010 but … ”
$0
$50
$100
$150
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
$
Newspapers Broadcast Television Cable & Satellite TelevisionBroadcast & Satellite Radio Yellow Pages Pure-Play InternetConsumer Magazines Business-to-Business Media Out-of-Home MediaEntertainment Media Pure-Play Mobile
Migration of Advertising DollarsMigration of Advertising Dollars
Advertising Spending
9% 9% 9% 10% 10% 11% 12% 13% 13% 14% 14%
25% 24% 25% 23% 23% 23% 23% 22% 22% 21% 21%
11% 11% 11% 10% 10% 9% 9% 9% 8% 8% 8%
3% 3% 3% 3% 4% 4% 4% 5% 5% 6% 6%
60%
80%
100%
50% 49% 48% 47% 46% 44% 40% 39% 37% 36% 35%
3% 3% 4% 6% 7% 9% 11% 13% 14% 16% 17%
0%
20%
40%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
$B
Print Internet & Mobile Network TV Cable TV Radio Other
“Marketing is entering a new phase that “Marketing is entering a new phase that transcends the mere coordination of messages transcends the mere coordination of messages
across digital and physical channels. across digital and physical channels.
In this era of integrated marketing, advertisers In this era of integrated marketing, advertisers will knit messages and media to involve will knit messages and media to involve
consumers in a continuous brand experience”.consumers in a continuous brand experience”.
Forrester Research and Forrester Research and FedmaFedma
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OBJECTIVE
Leverage equity of “curious strength” but differentiate it slightly to launch the new Altoids “Sours” product.
RESULTS
Within the first four weeks of the launch, advertising drove more than 500,000 visits to gonesour.com.
For online shoppers mail recipients are more likely to buy (15%), spend more (16%), make additional purchases (15%).
Print drives traffic to your website!
Print drives sales!
USPSUSPS
Mediamark Research Inc. (MRI) found magazine readers spend an average of 45 minutes examining each issue.
They also found that the top 25 magazines reach more adults than the top 25 television programs.
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Magazines Outperforms TV Magazines Outperforms TV in Reaching Adults and Teensin Reaching Adults and Teens
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Cahners Advertising Research found that the “remember seeing index” for inserts was 54%
greater than traditional ROP ads.
Ad inserts offer greater design options: no space or size constraints.
Wider choice of papers to differentiate from magazine stock.
• 40% of magazine readers remember a flat ad. (Time study)
• 91% remember a high-impact, interactive insert. (Time study)
• The average reader spends 1.5 seconds on a magazine ad.
• A dimensional ad can hold a reader for 10 seconds or more. (Independent study)
Effectiveness of HighEffectiveness of High--Impact Magazine InsertsImpact Magazine Inserts
http://printinthemix.com/summaries/show/24
• 31% of participants choose ad inserts/circulars as the media that most influences their purchasing choices; TV was chosen by only 18% and the Internet was chosen by only 6%. Inserts in general are the #1 media that influences buying decisions among both men and women.
http://www.structuralgraphics.com/_uls/resources/ResponseRateFactSheet.pdf
Contrary to popular belief, people don’t mind getting these prolific pieces in the mail.
Research proves it.
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More than 80 percent of households either read or scan advertising mail sent to their household. (United States Postal Service (2007). Household Diary Study.)
When asked about their intended response to advertising mail, 27 percent indicate they will respond or might respond to standard class mailings (e.g., catalogs) and
19 percent state they will or might respond to first-class mailings (e.g., credit card offers). The higher the income, the higher the average number of potential and definite responses.
(United States Postal Service (2007). Household Diary Study.)
Half of all respondents say they have requested promotional materials from companies over the past six months. Direct mail is the preferred way to receive offers.
(2008 DMNews/Pitney Bowes Direct Mail Survey)
Medium Preferred Method for Receiving Promotional Materials
Direct mail 78%
E-mail 63%
Newspaper inserts 52%
Websites 34%
Personalization:
Recipient’s name is integrated in the copy and/or image
Versioning:
Different groups receive different versions based on relevant criteria
Direct Mail: Personalize!Direct Mail: Personalize!
Different groups receive different versions based on relevant criteria. Content or Language changes for specific audiences. Typically black file/copy.
Customization:Altering each document to meet requirements of a certain group or audience based on a certain criteria. One-Four color image changes
Personalize!Personalize!Target Your AudienceTarget Your Audience
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Personalize!Personalize!Average VDP ResultsAverage VDP Results
The Personalization Precept, Roger Bauer, SMB Consulting 2008
DIRECT MAIL
Americans who shop from catalogs spend an average $151 per order.
In 2008, catalog sales in the U.S. were estimated at $154.7 billion.
Percentage of sales from…
Paper Catalog – 46%eCatalog/Website – 36%Retail – 14%Other – 4%
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• Catalog recipients purchased 28% more items and spent 28% more money than their non-catalog counterparts
• Catalogs were found to greatly discourage comparison shopping – by more than 7%
• Almost 60% of online shoppers enjoy receiving catalogs
• 57% of online shoppers said that even though they buy online, they still like to have a catalog on hand
• 61% of online retail shoppers reported that when they have a catalog while shopping online, they may see additional items they would like to buy
• 84% of catalog recipients feel it’s easier to shop online with a catalog in hand
“Mail: Convert browsers into online sales”, USPS research conducted by comScore Networks 2008
Catalog Circulation Declining as EndCatalog Circulation Declining as End--Use Paper Demand Use Paper Demand Continues to WeakenContinues to Weaken
4,500
5,000
5,500
ed (m
illio
ns)
Q4 CY08Down (7.4)% vs. LY
3,000
3,500
4,000
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Calendar Year
Cat
alog
s C
ircul
ate •19.6B catalogs mailed in
2006, up 2.2% vs. 2005
•19.3B catalogs mailed in 2007, down (1.5)% vs. 2006
•18.1B catalogs mailed in 2008, down (5.9)% vs. 2007
“Successful multi channel marketers understand that the catalogue and website (and retail stores!) must work in concert to achieve maximum effect”
Jeff Haggin
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ebay’s catalogue helps to keep
ebay at the forefront of
peoples minds as a shopping site
“As long as Amazon.com feels compelled to send
out printed catalogues for its website, the catalogue
business is not going to go away”
Stefan Sagmeister
The Print Council & the USPSThe Print Council & the USPSThe Print Council & the USPSThe Print Council & the USPS• Direct Mail is preferred 2:1 over email
and telemarketing combined
• Catalog recipients make 16% more website visits, view 24%more pages p gand spend 14% more time on cataloger’s website
• Businesses that use catalogs to drive online revenues double their sales success
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The The Print CouncilPrint Council
Why Print?Why Print?yy
www.theprintcouncil.orgwww.theprintcouncil.org
Print is for keeps.Print is for keeps.Print is portable.Print is portable.Print drives higher ROIPrint drives higher ROIPrint is beautiful.Print is beautiful.Print plays well with Print plays well with
Why Print?Why Print?
others.others.Buyers seek print.Buyers seek print.Print is credible.Print is credible.Print puts them in Print puts them in control.control.Print is personal.Print is personal.Print is everywhere.Print is everywhere.
The Print CouncilThe Print Councilwww.theprintcouncil.org www.theprintcouncil.org
Print In The MixPrint In The MixA Clearinghouse of Research
on Print Media Effectiveness
www.printinthemix.rit.eduwww.printinthemix.rit.edu
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Welcome to Print in the Mix: A
Clearinghouse of Research on Print Media Effectiveness designed to collect and summarize research on the effectiveness of print advertising and marketing -- a unique site demonstrating the role of print as a viable information medium in the marketing mix.
It will surprise many that businesses spend more on printed forms of advertising than on television. More than
Fast FactsAll Fast Facts ( 42 ) Newspapers ( 1 ) Direct Marketing ( 6 ) Inserts ( 6 ) B2B ( 5 ) Internet Advertising ( 1 ) Catalogs ( 8 ) Magazines ( 4 ) Custom Publishing ( 3 ) Industry Numbers ( 5 ) O ( )
printed forms of advertising than on television. More than just expenditure data, this web site identifies, summarizes, and makes understandable to the layperson the data that demonstrates the effectiveness of print media in attaining the business goals of advertisers.Print in the Mix is housed at Rochester Institute of Technology and is published by the Printing Industry Center at RIT. We pride ourselves in delivering reviews of relevant research from a variety of information sources and doing it in a way that makes it clear how the research was done. We distill the quantitative facts from the original reports for use by media specifiers, printers, and others as they make the case for print media in the marketing mix.We thank The Print Council for their generous funding of this effort.--Patricia Sorce
Outdoor ( 1 ) Multimedia Advertising ( 2 )
Research SummariesAll Summaries ( 27 ) Newspapers ( 3 ) Direct Marketing ( 6 ) Inserts ( 2 ) B2B ( 2 ) Envelopes ( 1 ) Internet Advertising ( 4 ) Magazines ( 2 ) Multimedia Advertising
www.printinthemix.rit.eduwww.printinthemix.rit.edu
Today's Media Mix Today's Media Mix ––U.S. Ad SpendingU.S. Ad Spending
Direct Mail
Newspaper
Yellow Pages
Magazines
Source: Robert J. Coen, Universal McCann, Insider’s Report, June 2007
Broadcast TV
Cable TV
Radio
Internet
Other TV
All Other
21.2% 7.0% 10.4% 6.9% 19.3% 15.8%5.0%3.7% 4.7%5.9%
National and local media
Spot, local,syndicated
4 networks
“Print engages all the senses of a reader and its tactile quality provides an added advantage which other media do not have”
Jaques Lange
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HOW CAN SOMETHING THAT HOW CAN SOMETHING THAT DOES NOT MOVE BE SO MOVING? DOES NOT MOVE BE SO MOVING?
HOW CAN SOMETHING THAT HOW CAN SOMETHING THAT MAKES NO SOUND SAY SO MUCH? MAKES NO SOUND SAY SO MUCH?
THAT’S THE POWER OF PRINT !THAT’S THE POWER OF PRINT !
www.sappi.com/LifeWithPrint
Thank You!Thank You!