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April 15, 2011 The Value of Print

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Presented by Toni S. DealXerox Corporation

April 15, 2011 The Value of Print2

Traditional Marketing Channels


Message and Media Overload

3

MediaEverywhere

Always on

Too much content


28%

3%

69%

E-mail

Telemarketing

Direct Mail

Preferred Method of Contact

E-mail Open Rates Decline an average of 1% per year – Open Rates Have Dropped in Half Past 2 Years - Major Cause is List Fatigue

Sources: Infotrends/CAP Ventures, The Future of Mail & Transaction Documents

MailerMailer, E-mail Marketing Metrics Report


Key Statistics for 2010 – Print on the Rise

� Total Advertising Expenditure in first 6 months of 2010 rose 5.7% from a year ago

– Free Standing Inserts up 7.6%

– Magazine Ad Spending up 1.5%

– Outdoor Ads up 2.8%

– Top industries advertising: Automotive, Telecom, Financial Services, Packaged Goods

� Trustworthiness of mail strengthened for consumer respondents in all age groups from 2008 – 2010

� 2010 Study of 2,569 households found that young adults prefer direct mail and newspaper advertising over online marketing in every instance except travel.

� 25% of US households said they get more postal mail versus a year ago. 72% said they get more e-mail versus a year ago.

Sources: 2010 Kantar Media Reports – US Advertising Expenditures

2010 ICOM Marketing Research


E-Mail Marketing vs. Direct Mail Marketing

E-mail Marketing Direct Mail

Strengths

Low-Cost

High ROI

Trackable

Weaknesses

Opt-in Only

Visual

Spam?

Opportunities

Promotes Loyalty

Preferred New Generation

Threats

SPAM Act

Information Overload

Strengths

Multi-Generational

Relevant

# Pieces/day

Weaknesses

Green?

Postage Cost

Time

Opportunities

High ROI

Reach Non-Users

Threats

Do Not Mail Act

Postal Increase

PRINT PLAYS WELL WITH OTHERS – Marketing Needs Both


PRINT IS THE PERFECT COMPLIMENT


WHY PRINT IS STILL A KEY COMMUNICATION CHANNEL

1. PRINT IS FOR KEEPS

– 24% of customers pass an article/book along to someone else. 23% save for future reference.

– Business leaders pass along their printed magazine issues to an additional 3.6 industry decision makers

– Prints durability stands the test of time and isn’t dependent upon the current technology (anyone remember the laser disk players? Imation disks?)

– History is based upon printed records.


2. PRINT IS PORTABLE– What can you do the first 15 minutes of an airplane flight?– Print doesn’t run out of batteries– Print communication can be consumed anytime/anywhere.

(Beach, park, space)– Print is flexible. Stuff it, fold it, clip it, and even

scratch-and-sniff it– Ready when you are – no booting required

3. PRINT DRIVES A HIGHER ROI• 38% of households find direct mail pieces interesting.• 85% of mail is either read or visually scanned by recipients.

• 72% of adults replied to direct mail containing “buy one, get one free” offers.

• A recent study found that 67% of respondents like getting direct mail about new products from companies they do business with.



4. PRINT IS BEAUTIFUL

– Only the originals are in print (Monet, Renoir)

– Special effects can draw the eye to the printed content (spot coating)

– Papers and speciality substrates make readers want to touch and feel the product

5. BUYERS (CONSUMERS) SEEK PRINT

– When comparing primary channels for generating orders, 60% comes from catalogs, 24% were inspired from retail settings.

– Paper catalogs account for 42% of sales.

– 78% of people report they use newspaper inserts to plan shopping and 76% say they save them money



6. PRINT PLAYS WELL WITH OTHERS

– The web is cool, what about a printed direct mail campaign that sends customers to personalized websites and then follow-up with a thank-you e-mail 3 seconds later?

– Print provides the friendly and warm invitation that can impact television, radio and internet advertising.

– Consumers begin online searches after viewing ads in magazines(47.2%), newspapers (42.3%) and reading articles (43.7%)

– B2B sales leverage print, websites and trade shows to provide trustworthy, timely, and awareness of opportunities for their business.

“You have to have a mix of marketing messages. The traditional methods are still pertinent to our customers today”Paul Jarvi- Best Buy Print Production Services



7. PRINT IS CREDIBLE– Printed research is validated and reviewed for accuracy

– Print is timeless

– On average 80% of people who read custom publications state they contain useful information

– Total expenditures on custom publications account for over $29 billion per year.

– 92% of adults read magazines.



8. PRINT IS PERSONAL– Photobooks are estimated to grow to 120 Billion pages by 2012.

– 66% of consumers prefer printed mail that is relevant.

– Transpromo marketing is helping drive higher sales for customers on purchased products than generic inserts in bills and statements.

– Print takes marketing personally



9. PRINT IS EVERYWHERE– 9 out of 10 designers have worked in print during their career.

– Events utilize a variety of printed applications: programs, posters, signage, publications.

– Look around your favorite store and try not to see print.



10. PRINT IS AGELESS– 18 to 24 year olds are more likely to be influenced by direct mail than any other media.

– 75% of 25 to 34 year olds have made a recent purchase resulting from direct mail.

– 74% of consumers have been directly influenced to purchase through direct mail.



11. PRINT IS SUSTAINABLE– Manufacturers rely on forest-certification programs.

– 57% of paper was recovered for recycling in in 2008

– “Distribute and Print” and “Print on Demand” reduces transportation, warehousing, and waste.

– 60% of power for pulp and paper industry is renewable.

– US forestland has grown by 15 million acres, must of that is due to the reforestation by paper mills.



WHAT’S

NEW

WITH

PRINT?


Defined

Printed piece or keepsake item personalized with Customer name and/or Logo

Great For

• Event marketing

• Holiday gifts

• Follow-up gifts

• Promo items

Samples include

• Personalized calendars

• Greeting cards

• Note cards/pads/cubes

““““Ego MarketingEgo MarketingEgo MarketingEgo Marketing””””

WHAT’S NEW WITH PRINT!!!


Defined

Keepsakes utilizing customers’ personal photos

Great For

• Event Marketing

• Holiday gifts

• Follow-up gifts

• Promo items

Samples include

• Books

• Calendars

• Playing/Trading Cards

Photo Books & CalendarsPhoto Books & CalendarsPhoto Books & CalendarsPhoto Books & Calendars



Defined

Finally, the prospect of affordable, full-color short run packaging, which can be personalized and even barcoded for security or tracking purposes

Great For

• Program Fulfillment Kits

• Events/Follow-up

• Versioning

• Barcoding or numbering

Samples include

• Labels

• Boxes

Short Run PackagingShort Run PackagingShort Run PackagingShort Run Packaging



Defined

Leave clumsy and time/labor/cost-intensive “Pick and Pack” behind for customized --and customer-friendly–fulfillment pieces

Great For

• New customer welcome

• Loyalty programs

• Club membership

Samples include

• Personalized travel itinerary, with items such as travel tags printed within booklet

• Personalized rewards statement booklet with membership card printed inline

Personalized Fulfillment KitsPersonalized Fulfillment KitsPersonalized Fulfillment KitsPersonalized Fulfillment Kits



Defined

Challenge: produce Direct Mail that resonates with a customer or prospect …target for better lead rate--and ROI

Great For

• Customer relationship management

• Member communications

• New customer acquisition

• Promotional marketing

Samples include

• Oversized post cards

• Letters

• Newsletter formats

RelevantRelevantRelevantRelevant Direct MailDirect MailDirect MailDirect Mail



Defined

All-in-one printable letter with attached peel-off magnet or card

Great For

• Coupons

• Business Card follow-up

• Promo Marketing

Samples include

• DocuCard

• DocuMagnet

• Magnet Sheets

DocuCards and DocuMagnetsDocuCards and DocuMagnetsDocuCards and DocuMagnetsDocuCards and DocuMagnets



Defined

Save Big & Target Better—Print to order to eliminate stockpiling long offset runs, inventory management, distribution and warehouse costs, and waste from obsolete content

Great For

• Versioning for multi-locations

• Sub-targeting by geography or language

Samples include

• Collaterals

• Marketing Materials

• Folders, presentations

• Catalogs

Print On DemandPrint On DemandPrint On DemandPrint On Demand



Defined

Book runs don’t have to be big to be cost-effective with digital

Great For

• Micro runs

• Versioning for locations

• Language versioning

• Event marketing

Samples include

• Pamphlets, books and short stories

Publish On DemandPublish On DemandPublish On DemandPublish On Demand



Defined

Challenge: produce Direct Mail that resonates with a customer, track responses, gather more customer information, and provide relevant immediate follow-up.

Great For

• Customer relationship management

• Lead Generation

• Event Registration

Samples include

• Customer Invitations

• Direct Mail Postcards

• Unique Substrates

CrossCrossCrossCross----Media MarketingMedia MarketingMedia MarketingMedia Marketing



Quotes From The Print Industry

“We embrace all the different channels and we can prove that print does make a difference. A lot of dot-com guys are doing a lot of print—Amazon, Zappos and the like—because it does make a difference.

People in the industry have to stop being defensive and start being proactive. We have to have confidence in the product we sell. Within the industry, we need each other to be confident in the product we are selling. “

Joel Quadracci, Chairman, President and CEO, Quad Graphics


KEY TAKE AWAYS –

• Leverage print as a way to get non-customers to visit your webpage, join your e-marketing efforts, or upsell a recently purchased product.

• In your monthly newsletters, tweets, and social media messages highlight recent newspaper, magazine articles or direct mail campaigns for added discounts. Promote passing along the printed discount to friends.

• To understand more about the value of print, the benefits of direct mail, and to find recent studies on print, visit http://www.theprintcouncil.org or http://www.printinthemix.com

In truth, print is portable, profitable, renewable, measureable,trustworthy, manageable, and should be considered a key

element in all marketing campaigns.


[email protected] 770.870.8746

Toni S. Deal

Business Development Consultant

NC/SC Operations

Virtual OfficeXerox Corporation184 Lakeview DriveMocksville, NC 27028

THANK YOU!

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