An overview of major print markets in 2012 that includes a guide for aiming your sales efforts.

1. Print Market Outlook
Where the Business Is – and Isn’t
Marketing Outlook 06/15/12

2. 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
Marketing Outlook 06/15/12

3. Causes
• Great Recession
– Accelerated
Adoption of Digital
Media
• Mobile Tech
Advancements
– Ereaders
– Smartphones
– Tablets
Marketing Outlook 06/15/12

4. Effects on the Industry
• 21.5% volume
loss since 2008
• More industry
consolidation
• Severe hits on
some markets
Marketing Outlook 06/15/12

5. Directories|Internet|Magazines|Mobile|Newspapers|
Outdoor|Radio|Television
US ADVERTISING SPEND
Marketing Outlook 06/15/12

6. 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%)
Marketing Outlook 06/15/12

7. 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
Marketing Outlook 06/15/12

8. 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.
Marketing Outlook 06/15/12

9. Marketing Outlook 06/15/12

10. Major Markets
DIGITAL PENETRATION
Marketing Outlook 06/15/12

11. 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
Marketing Outlook 06/15/12

12. 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
Marketing Outlook 06/15/12

13. 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
Marketing Outlook 06/15/12

14. Magazines
PRINT MARKETS
Marketing Outlook 06/15/12

15. 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
Marketing Outlook 06/15/12

16. Magazines (Cont.)
• Q112 launches
– 192 (Mr. Magazine)
• Other print
growth sectors
– Indie magazines
– Custom magazines
Marketing Outlook 06/15/12

17. Books
PRINT MARKETS
Marketing Outlook 06/15/12

18. 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
Marketing Outlook 06/15/12

19. Catalogs & Direct Mail
PRINT MARKETS
Marketing Outlook 06/15/12

20. 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
Marketing Outlook 06/15/12

21. 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
Marketing Outlook 06/15/12

22. 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
Marketing Outlook 06/15/12

23. Improve Your Customer Aim
Marketing Outlook 06/15/12

24. 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?
Marketing Outlook 06/15/12

25. 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
Marketing Outlook 06/15/12

26. 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
Marketing Outlook 06/15/12

27. How Well Do You Know Your
Best Customers’:
• Competitors?
• Market share?
• Industry growth trends?
• Hot & struggling products?
• Distribution channels?
• Factors affecting markets?
• Stock performance?
Marketing Outlook 06/15/12

28. Aim High
• More high-level
people are
involved in
major print-related
decisions
• Don’t get stuck at the
production
procurement
level
Marketing Outlook 06/15/12

29. 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
Marketing Outlook 06/15/12

30. Offer New Services
• Database intelligence
– Segmentation, product
propensity, etc.
• Digital storefront
• Multichannel delivery
– Print
– Digital editions
– Apps
– Email
– pURLs
– Mobile barcodes
Marketing Outlook 06/15/12

31. Thank You
May you experience nothing but
growth.
Larry Bauer
Bauer Associates
630-406-8595
lbauer@bauerassociates.net
bauerassociates.net
Marketing Outlook 06/15/12