Future Of Print

February 2009

The future of Print in the Media Mix

Paper use worldwide

Advertising & promotion 16%

Directories 6%Books 6%Catalogues 8%Misc. print products 9%

Newspapers 9%

Periodicals 11%

Packaging (non-corrugated) 12%

Stationery & labels 4%Forms 4%Techn. documentation 5%Direct marketing 6%

Financial & legal 4%

Source: EDSF 2007

Paper use worldwide

Advertising & promotion 16%

Directories 6%Books 6%Catalogues 8%Misc. print products 9%

Newspapers 9%

Periodicals 11%

Packaging (non-corrugated) 12%

Stationery & labels 4%Forms 4%Techn. documentation 5%Direct marketing 6%

Financial & legal 4%

Source: EDSF 2007

Advertising expenditures Western Europe

_ Newspaper and magazine advertising is expected to decline to 28% and 14% respectively in 2010 (in 2000 37% and 19%)

_ Television expenditures remain relatively stable 29% in 2010 (21% in 2000)

_ Internet will increase from a 1% in 2000 to 18% in 2010_ Print media shares differ a lot from country to country also in the

years to come; _ Belgium is dominated by television (more than a third of all

expenditures) _ The Netherlands are a print country (60% of all expenditures) _ UK expenditures for newspaper will be similar to those in

Internet at slightly more than a quarter of all expenditures.

Time-use and advertising share, Netherlands

2005

Advertising share

0

25

50

75

100

2005

Newspapers Magazines Door-to-doorTelevision Radio InternetTime-use

Source: Tijdsbestedingsonderzoek 2008, Zenith Optimedia 2008

New technologies change media landscape

“Each wave of new technology in our industry forced an improvement of the old.

Each new medium forced its predecessor to become more creative and relevant to the consumer”

(Rupert Murdoch, 2006)

Buzz words in new landscape

Long Tail

Tags

SEO

SMSWiki

Consumer Generated Content

Folksonomy

Digital natives

SNS

Brand owners

Relationships change in new landscape

Media

Agencies

Production

Google centre stage

Brand owner

Creative agency

Media agency

Relationship change in new landscape

Brand owners

Media

Agencies

Production

Google

0

25

50

75

2004 2005 2006 2007E

Google’s global advertising role

Share of global online advertising revenuesShare of search reveneues

%

Google’s global role

Google’ CEO Eric Schmidt (Fortune, January 2009):

“Newspaper don’t have a problem of demand for their product, the news.”

“To me the breakdown of the newspaper industry presents a real tragedy in the sense that journalism is a central part of democracy. And I don’t think bloggers make up the difference. The historic model of investigative journalist in any industry is something that is very fundamental.”

How to keep print media on the agenda?

_ Magazines are a “Me time medium” as defined by Time Inc_ One third of consumers set aside “special time” for reading

a magazine_ Magazines are personal and singular medium

Primarily reading magazines while...

How to keep print media on the agenda?

Sappi Life with Print

Sappi want to help brand owners and their agencies to make informed choices about budget allocationLife with Print deals with different printed media and brings the most recent insights and arguments

How to keep print media on the agenda?

Print Sells

Initiative from different players in print value chain to promote print across EuropeIn 2007 5 mio euro campaign consisting of advertising, direct mail, public relations and website

Developments that affect the role of print media in the media mix

Developments that affect the role of print

Always-on

Enriched paperRead anywhereDigital printingIncreased outdoor

Corporate Social Responsibility

Creative consumerLiquid contentDigital natives

Effect on role of print

Effect of other media

Effect on role of print

-+

Effect of print media

The content becomes liquid

_ Magazines can be read on paper, e-paper and online

_ Radio programmes and music can be listened on PC, radio, iPod, mobile phones

_ Content of channels is becoming a separate product, available via more and different channels

_ Youngsters do not differentiate between watching a movie on TV, PC, Playstation or iPod

Digital natives take center stage

0

5

10

15

20

25

1975 1980 1985 1990 1995 2000 2005

TelevisionTelevision Newspapers MagazinesBooks Listen to radio or music Internet

Time use total population and Digital Natives- Television

Mai

n ac

tivity

(ho

urs/

wee

k)

0

5

10

15

20

25

1975 1980 1985 1990 1995 2000 2005

Mai

n ac

tivity

(ho

urs/

wee

k)

0

5

10

15

20

25

Newspapers Magazines BooksTelevision Listen to radio or music Internet

Print Media

Time use total population and Digital Natives- Print Media

0

5

10

15

20

25

1975 1980 1985 1990 1995 2000 2005

Mai

n ac

tivity

(ho

urs/

wee

k)

Internet Newspapers MagazinesBooks Television Listen to radio or music

Internet

Comparison total population and Digital Natives - Internet

Digital natives and reading

10

30

50

70

18-24 25-34 35-44 45-54 55-64 65-74 75+

1992 2002

Adults (%) that read books (not required for work or school) (USA)

Source: NEA, 2008

0

7,5

15,0

22,5

30,0

< 25 25-34 35-44 45-54 55-64 65+

1991 2004

Percentage book purchasers (USA)

Choose when and where to read

_ Consumers take information in small bites_ Hence success of Metro, CNN, NRC Next and other media that

provide easy digestible information_ Consumers are zapping between different channels or sources_ Since remote control: homo zapper_ Between TV stations, magazines, newspapers and other media

Choose when and where to read

Primarily surfing the Internet while..

Primarily watching TV while..

The creative consumer

_ Consumers change roles, they create content and channels_ Entire newspapers are written by consumers_ Consumers use existing online content to produce new content

(mash-up, morph, fan-fiction, spoof) _ We consume what is created by fellow consumers on blogs,

Wikipedia, MySpace, Flickr or YouTube_ Social networking goes beyond www.schoolbank.nl and can

become a way of doing business: Wikinomics

The creative consumer

Increasing role of CSR

_ Consumers are questioning companies about their corporate behaviour

_ Companies are under fire: salaries, child labour, emissions, sustainability, energy, waste, financial operations,...

_ Companies need to generate trust and credibility by providing more transparency

_ Companies prepare social annual reports, sustainability reports and align with ISO norms and procurement guidelines

_ For paper FSC, PEFC, Cradle-to-Cradle certification and WWF guidelines are used

From analog to digital print: print runs

80% ≺ 5000

Digital

From analog to digital print

SOHO

Digital print

Offset

10.0005000100050010050

Office

Offset

Print quality

Av. runlength20.000

Transpromo

From analog to digital printing?

0

20

40

60

80

100

120

140

2004 2006 2008 2010 2012

B/W digital print Colour digitalSurpressed print Additional electronic

Source: EDSF 2008

Document transition (USA)

Before

From analog to digital printing: Transpromo

After: + 100% bookings

From analog to digital printing: direct mail

_ Digital printing offers huge possibilities for cost effective versioned brochures and hyper-personalised mailings

_ Hundred+ versions of brochures based upon consumer preferences

_ Seamless integration with website, blog and call center

Toerisme Vlaanderen

And competition around the corner

Leo Paper (Antwerp)26.000 + employeesHeshan (China) printing facility 6.5 ha area, plant 65.000 m282 printing pressesWorldwide turnover $ 500 mio Europe turnover $ 50 mio

From analog to digital print

Always-on and effectiveness

_ New media are intrusive, people get interrupted frequently by email, mobile telephone and Instant Messaging

_ More than half of people respond to email almost immediately

Knowledge workers can expect three minutes of uninterrupted work on any task before being interrupted

Employees spend some three hours a day processing email of which 30% is unnecessary (1 mio emails per day)

(Intel data 2007)

_ Intel has started “Quiet Time” every Tuesday morning, creating thinking time

Always-on and effectiveness

_ Multi-tasking decreases the effectiveness_ Research shows that managing email and voice messages

decreases the IQ with 10 points_ Knowledge workers need “time-off”

Always-on and effectiveness

_ Multi-tasking involves partial attention_ Partial attention leads to a different path of reading: superficial,

scanning, with short attention span_ Reading a book requires deep reading which is difficult for

always-on people_ This new pathway changes the way we think and “re-wires the

brain”

Enriched paper

_ OR codes_ RFID print_ Organic electronics_ 3D paper-web integration_ Plug in your earphones_ Print, online and mobile phone

integrationTAKING PRINT TO THENEXT SENSUAL LEVEL

STOP, LOOK AND LISTEN!

FOUR STEPS TO ENJOY PRINTED MEDIA:

TRY YOURSELF OR ASK FOR A DEMO

Step 1. View the image Step 2. Capture the UpCode Step 3. Download the music Step 4. Listen to the music

Poster 4:Layout 1 25/04/08 12:22 Page 1

Enriched paper - QR codes and RFID

Enriched paper - 3D-web integration

Enriched paper - electronic paper

Enriched paper - Plug in your earphones

Increased use of outdoor

_ CBS outdoor estimate shows people spend more time outdoor

Percentage of time spent doing activities out-of-home

0

5

10

15

20

1961 1975 1985 1995 2000

Shopping Eating out Socialising Sports

Source: The Future Foundation, 2007

Thank you for your attention

Ulbe Jellumaulbe.jelluma@fryskbiz.com

www.frysk.bewww.fryskbiz.blogspot.com