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A view on developments that influence the position of print media as an advertising channel.
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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
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
