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An overview of major print markets in 2012 that includes a guide for aiming your sales efforts.
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04/13/23Marketing Outlook
Print Market Outlook
Where the Business Is – and Isn’t
The Trend Isn’t Pretty • Commercial Printing Volume US & Canada
– 2003 $ 92.5 Billion– 2004 $ 93.5+ 1.0%– 2005 $ 96.9+ 3.6%– 2006 $ 99.8+ 2.9%– 2007 $103.0 + 3.2%– 2008 $ 98.6 - 4.5%– 2009 $ 83.9- 15.0%– 2010 $ 84.0+ .2%– 2011 $ 83.7- .4%– 2012 $ 82.2- 1.8%Source: 2012 WhatTheyThink Economics & Research
04/13/23Marketing Outlook
Causes
04/13/23Marketing Outlook
• Great Recession– Accelerated
Adoption of Digital Media
• Mobile Tech Advancements– Ereaders– Smartphones– Tablets
Effects on the Industry
• 21.5% volume loss since 2008
• More industry consolidation
• Severe hits on some markets
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US ADVERTISING SPEND
Directories|Internet|Magazines|Mobile|Newspapers|Outdoor|Radio|Television
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2012 Ad Spend Projections
• Overall– $169.48 B (+6.7%)
• TV– $64.8 B (+6.8%)
• Print (excludes direct mail)– 33.8 B (-6.0%)
• Online– $39.5 B (+23%)
04/13/23Marketing Outlook
2012 Projections (Cont.)• Radio
– $16.7 B (+3.6%)
• Directories– $7.5 B (-8.5%)
• Outdoor– $6.8 B (+6.3%)
Source: eMarketer Digital Intelligence
04/13/23Marketing Outlook
Tablets—The Elephant in the Room• Optimized for
content consumption– Hi res displays– Connect anywhere– Long battery life
• 54% of users read books, magazines & newspapers on tablets vs. 27% of PC users.
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04/13/23Marketing Outlook
DIGITAL PENETRATIONMajor Markets
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Books • 3%—eBooks’ share of worldwide book sales in
2011– Adult hardcover & mass market paperbacks
taking hardest hit• 12.7%—Projected share of worldwide sales in
2015• $8.6 billion—Projected value of North
America’s eBook sales in 2015– 21.4 percent all book sales
Source: Business Wire
04/13/23Marketing Outlook
Magazines • 64%—Publishers who think they are failing to
reach enough digital readers despite offering digital editions
• 15%—Accepted principle for penetration rate that interests advertisers
• 12%—Publishers who say they have a firm grip on digital revenue generation
• Trying to determine what mobile, tablets and eReaders do best
Source: Ntxbook Media, 2011 State of the Digital Edition survey
04/13/23Marketing Outlook
Catalogs
• No hard statistics available • Observation says they are growing
significantly • Except for a few online pure plays, almost
no one is willing to completely trade paper for pixels– Digital can contribute to fewer events, fewer
pages and slower growth
04/13/23Marketing Outlook
PRINT MARKETSMagazines
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Magazines Struggle to Find a Profitable Model• $15.34 B print ad
revenue (+0.5%)• $3.3 B digital
revenue (+19.3%)• Q311 title growth
– 200 consumer launches– 128 closures– 56 b-to-b launches– 34 closures Source: Mediafinder
04/13/23Marketing Outlook
Magazines (Cont.)
• Q112 launches – 192 (Mr. Magazine)
• Other print growth sectors– Indie magazines– Custom magazines
04/13/23Marketing Outlook
PRINT MARKETSBooks
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Print Books Grow, Too
• Non-traditional titles take the lead with 169% gain– Public domain reprints– Self-publishers– Micro-niche titles
• Continues to support “long-tail” theory
04/13/23Marketing Outlook
PRINT MARKETSCatalogs & Direct Mail
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Catalogs Move in Right Direction • Computers &
electronic components hot
• Consumer catalogers took hardest hit – Apparel & gifts
• Multiple titles a trend– 25 of MCM top 100 own
160 catalogs in total
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Direct Mail Continues to Grow• 2%—Growth in 2011
to $45.8 B• 2.5%—Projected
growth in 2012 $46.9 B
• 12%—Total ad spend devoted to direct mail has remained consistent over past 20 years
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Why Direct Mail? • Fits better than
ever into growing target marketing and multichannel concepts
• Traditional print media losing share
• Emerging social media unproven as sales vehicle
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04/13/23Marketing Outlook
Improve Your Customer Aim
04/13/23Marketing Outlook
Aim First at Existing Customers Incremental Growth• They already know and trust you• PLUS, new customer acquisition can be 6-
10 times more expensive than retaining customers– What’s your plan for existing clients?
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But You Need to Do Your Customer Homework
• Aiming at the wrong customers is an expensive waste of time
• You need to make fact-based decisions
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Start By Dividing Your Customers Into Three Tiers• Bottom feeders
– Those who primarily buy on price– Tend to shop services with little or no loyalty
• Partnership tendencies– Tend to favor you– Interested in multiple services
• Full partnership– Complex needs– Interested in solutions – Understand total costs as opposed to price per m– Want to work with fewer, but better vendors
04/13/23Marketing Outlook
How Well Do You Know Your Best Customers’:
• Competitors? • Market share?• Industry growth trends?• Hot & struggling products?• Distribution channels?• Factors affecting markets?• Stock performance?
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Aim High
• More high-level people are involved in major print-related decisions
• Don’t get stuck at the production procurement level
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Aim Beyond Print
• Print may be the least of your customer's marketing issues
• May be grappling with:– Obsolescence costs– Speed-to-market issues– Content management– Marketing ROI
measurement
04/13/23Marketing Outlook
Offer New Services• Database intelligence
– Segmentation, product propensity, etc.• Digital storefront• Multichannel delivery
– Print– Digital editions– Apps – Email– pURLs– Mobile barcodes
.
04/13/23Marketing Outlook
Thank You
May you experience nothing but growth.
Larry BauerBauer Associates
bauerassociates.net