Wise Blog

Marketing Budgets Spiral Toward Social

JP — Tue, 02 Mar 2010 14:36:49 +0000

Social marketing budgets are constantly going up, according to “The CMO Survey” from Duke University’s Fuqua School of Business and the American Marketing Association (AMA).

Marketers were already planning on upping spend in August 2009. They have continued to increase outlays since then, with respondents in February 2010 claiming they will devote nearly one-fifth of their marketing budgets to social media in the next five years.

November 2009 U.S. Commercial Printing Shipments at $7.38 Billion; Decline at Lesser Rate than Previous Months

JP — Thu, 28 Jan 2010 19:24:45 +0000

November 2009 commercial printing shipments were $7.38 billion, down -8% compared to 2008. This was a lesser decline than the average for 2009, which has been -10% difference on a year-to-year basis. It was the first November to be below $8 billion since 2003. Dr. Joe Webb, director of WhatTheyThink’s Economics and Research Center, said “2009 was a tough year for printers, and the trend of displacing print with new media by retailers and others continues.” Dr. Webb believes that there is a compelling case for print media as a part of a total communications strategy, but the size, scope, and frequency of print use has been changing. “The value of print has changed considerably because of competition with other media that have greater immediacy, can have lower costs, and benefit from viral distribution. Nonetheless, there is a place for a well-planned use of print that intensifies the effectiveness of electronic media, driving down the total costs of communications, and increasing total response. Printers must demonstrate skills in new media use in their own businesses to have credibility in this new marketplace.”

Source: whattheythink.com

Full-Year 2009 magazine advertising show the effects of the recession

JP — Wed, 13 Jan 2010 14:34:55 +0000

Magazine rate-card-reported advertising revenue for full-year 2009 closed at $19,450,949,762, posting a 18.1% decline against the previous year, according to Publishers Information Bureau (PIB). A total of 169,217.76 advertising pages were generated throughout the year, a drop of 25.6% compared to 2008. In the fourth quarter of 2009, PIB revenue generated $5,778,429,251, which was a 12.4% decrease compared to 2008’s fourth quarter. There were 48,958.92 advertising pages counted for the quarter, a decline of 21.6% compared to the same period in 2008.

Source: www.whattheythink.com

US Online Ad Spend Turns the Corner

JP — Tue, 15 Dec 2009 03:25:05 +0000

Online bright spot as total media continues to fall off

US online advertising spending is set to drop this year for the first time since 2002. eMarketer estimates online ad spending will be down 4.6% this year. However, the slowly recovering economy, combined with basic structural changes in how marketers and the public use media, will lead to Internet ad spending growth in early 2010. Read More

Burdened Printers Make List of 10 Most Bankruptcy-Prone Industries

JP — Thu, 09 Jul 2009 14:03:10 +0000

The good news, if it is good news, is that the printing industry is at the bottom of the list, but it’s dodgy company to be in: the 10 types of private businesses that are most likely to file for bankruptcy in the coming months.

The list was compiled by Sageworks, a research firm that specializes in the financial analysis of privately-held companies. It’s based on the average debt-to-equity ratio in each industry over the last 12 months. According to Sageworks, a high debt-to-equity ratio generally means that a company has been aggressive in using debt to finance growth. The table below indicates that for every $1 of company value in the printing industry, there is $3.02 in debt.

Short-Term Strategies Challenge Marketers

JP — Mon, 06 Jul 2009 19:53:40 +0000

Spending during a downturn has always been a struggle between marketers’ angels and demons. On one shoulder the angel of brand equity, market share, and long-term strategy whispers “spend.” On the other shoulder the demon of immediate sales, short-term gain, and budget stretching whispers “cut back.” These days the short-term demon is winning, but the long-term angel’s voice is starting to get some attention. A new report from the Association of National Advertisers (ANA) details the conundrum. The report, based on a survey of 129 client-side marketing executives, reveals that short-term strategies and budget cuts are dominating the ad business. In fact, two thirds of marketers have shifted their emphasis to more short-term strategies in the past six months, responding to economic conditions. Traditional media channels have been the hardest hit, with television and magazines absorbing 20 percent of the spending reductions.

Top 10 Reasons Print Should Remain a Vital Part of Your Marketer’s Mix

JP — Tue, 09 Jun 2009 14:17:01 +0000

10. Print provides differentiation. How many of the millions of Web sites out there have a print magazine to drive traffic to it? The vast minority, I assure you. Print vehicles provide a unique strategy to drive traffic to your online marketing.

9. Print offers incredible branding. Nothing makes a brand more recognized than a beautiful ad in a glossy magazine. A well-designed ad is an engaging experience for readers. And by the way, according to a recent MRI/Next Step poll, 55 percent of teens say they pay a lot of attention to print ads.

8. Print makes introductions. Print is a great party host because of the talent it has introducing readers to your brand. An effective print ad stands in the crossroads between readers and advertisers. And your keyword purchases become more effective if customers have already been introduced to your brand.

7. Print readers are focused. It’s hard to engage in other media when you’re reading a magazine. In the world of multitasking—where people are texting, e-mailing and listening to their iPod while watching TV—it’s hard to get noticed. But it’s hard to do anything else when you’re reading a magazine! In fact, according a survey done by Ball State University, magazines are the exclusive or primary medium 85 percent of the time they are used by consumers.

6. Print travels. A magazine is your companion wherever you go: your favorite chair, your bed, an airplane—even your bathroom. A laptop on the porcelain throne just does not offer the same experience.

Report Says Direct Mail Spending Will Plummet

JP — Fri, 22 May 2009 16:59:16 +0000

Direct mail spending will decline 39 percent during the next five years from $49.7 billion in 2008 to $29.8 billion in 2013, according to a study released earlier this week by Borrell Associates, a media research and consulting firm. Research reports usually contain fairly measured language, but this one has several dramatic statements. For example, the report describes direct mail as “the largest and least-read of all print media” and goes on to say, “Direct mail has begun spiraling into what we believe is a precipitous decline from which it will never fully recover.”

Borrell Associates contends that marketers (especially smaller, local businesses) are increasingly using e-mail instead of direct mail for many purposes. The study states that advertisers spent $12.1 billion on e-mail marketing in 2008, and it predicts that e-mail spending will grow to $15.7 billion over the next five years. Borrell also contends that most of the growth in e-mail marketing will be local. The study states, “We’re expecting local e-mail advertising to grow from $848 million in 2008, to $2 billion in 2013, as more small businesses abandon direct mail couponing and promotional offers and turn to a more measurable and less costly medium, e-mail.” Read More

Pre-Qualification for Printers

JP — Sun, 17 May 2009 23:53:24 +0000

The requirement of print buyers to use pre-qualified printers before they are able to work with them has increased from 31% to 54% based on a survey done by PrintBuyeronline.com and published in a recent article by Printing Impressions magazine. The process of prequalification entails several steps beyond Price Competitiveness including:

verification of service level
managing quality throughout the entire manufacturing process
exceptional customer service
commitment to technology
efficiency of equipment & production
delivery capabilities
financial and legal stability
diversity status
environmental certifications

By using a pre-qualified list, print buyers are able to find best-case solutions and drive out costs, instead of spending all of their time soliciting and analyzing bids from the hundreds of printers.

USPS Announces “Summer Sale” on Mail

JP — Fri, 08 May 2009 14:06:02 +0000

The US Postal Service is taking steps to build volume in its recently announced “Summer Sale.” This plan will offer a 30% rebate on mail put in the system from July 1 through September 2009 that is over a specific threshold mailed in the same period during the prior year.

Approximately 3200 mailers are eligible for the rebates, accounting for 75% of Standard Mail volume. These mailers will receive letters of eligibility as well as their individual thresholds as determined by USPS data systems.

If mailers did not receive eligibility letters but think they qualify, they may appeal to the USPS. If they do not agree with the assigned threshold, they also may appeal.

Enrollment in this program will be handled over the Web via a site to be announced to eligible mailers. Deadline is on or before July 1, 2009.

Undoubtedly, you may have questions to be answered or need additional information. On Monday May 11 at 12:30 EDT, the DMA will host a virtual seminar featuring Tom Foti, USPS Manager for Marketing Mail, who will discuss the Summer Sale in detail and answer your questions. The Print Council is a sponsor of this seminar, along with eight other associations and related organizations.

To register for the DMA seminar, please go to this DMA site link.