Changing Marketplace Focus of PRIMIR Spring Meeting
A growing concern for all firms in the print value chain is the Internet and various digital services and devices that are having a negative impact on print applications. In 2005, PRIMIR conducted a study aptly titled “Electronic Displacement of Print,” which provided an understanding of the new technologies and media that would take share from the ink and toner on paper print segments, how technology developments would impact print, and when as well as to what extent. (See Figure 1)
At the recent PRIMIR Spring Meeting held during the NPES 2010 Industry Summit, Dr. John Zarwan provided a brief update of his original research conducted five years ago for PRIMIR. John noted that while some of the change has come faster than originally predicted—particularly the decline of newspapers—print is still very viable and relevant. He noted that there is uneven impact from electronic media with some applications more affected than others.Many advertising print media applications were the first to shift, driven by changes in consumer behavior, economic trends, increased broadband access and other market factors.
Dr. Zarwan noted that the biggest change since the study was completed is the torrent of Social Media usage—which wasn’t really on the radar screen in the study and the growing use of Mobile (smartphone) advertising. Advertisers continue to chase their audience—many of whom have migrated to online instead of traditional media like newspapers or magazines. Many advertisers have created ‘fan’ pages to capture the social media market. The next big thing is mobile advertising, where spending is expected to top $1.5 billion by 2013. He concluded that print will remain viable and vibrant; however, firms in the print value chain must understand their costs, learn about their customers’ business and communications requirements and most of all understand why people print. Done right, print can enhance or complement new media.
The PRIMIR Spring meeting included several other key presentations, but one of the most important features of this particular meeting was focused on developing future research for PRIMIR. After a thorough survey process that included both NPES and PRIMIR members, five ‘hot’ topics emerged for PRIMIR to focus its attention on over the coming year. Task forces were formed to begin the process of crafting a document that will outline the scope and key objectives of this critical research. Two of the five studies will be available to NPES active members as part of their benefits package.
The new research topics include:
• Electronic Displacement of Print & Impact—Originally completed in 2005, this study will examine how print is impacted by existing and emerging technologies. It covered the Internet in general, SMS, Search, RSS Feeds, E-paper, E-Book Readers, E-mail and other electronic media. The study detailed how much electronic technologies are displacing, as well as driving, new print by end product (books, catalogs, direct mail, inserts, journals, etc.), demographic and cultural changes impacting print vs. new media, and in direct marketing—how effectively print compares to other technologies. The update will also quantify the impact, evaluate drivers for change, include a displacement forecast through 2015, as well as discuss how firms in the print value chain can embrace the changes.
• Evolution of Print Business Communications: Implications for the Future—With a focus on North America and Western Europe, this study will focus on general commercial printing. It will look back at business communications in general, business processes, and technological and structural changes that occurred and where print gained or lost share as a result. It will evaluate the future based on lessons learned and key emerging trends, and provide an outlook for printers and other firms in the print value chain.
• Evaluating and Understanding Non-Print Revenues of N.A.—Printing Companies Since the 2006 PRIMIR study was completed, printers continue to add non-print ancillary services to augment their “core” print on paper business. Many are adding services beyond mailing and fulfillment. This study will benchmark the revenue volume and types of non-print related services offered and forecast trends through 2013. Findings will be broken out by employee size, process and end use/ segment specialization. The research will outline the impact of ancillary services on the printer’s business including revenues, profitability, estimating, costing, staffing, workflow, equipment purchases, and more. The report will make recommendations to printers about tracking their revenue sources through various systems, and it will also discuss opportunities and impacts for graphic arts equipment and consumables suppliers.
• Packaging: Evaluation of Vertical Markets & Key Applications (All NPES members receive)—As part of a continuing series of studies focused on packaging, this study will delve into the primary vertical markets such as food, pharmaceutical, etc., and investigate key trends impacting the various packaging segments (flexible, folding carton, corrugated, etc.). Among other things, it will quantify shipments and growth rates by vertical markets and segments, investigate the role of the packaging in marketing and retailing efforts, delve into sustainability and recycling requirements, and evaluate trends in where the package printing/ converting is sourced.
• Printing Industry Consumables Usage & Trends (All NPES members receive)—This study will provide an understanding of the usage trends for the numerous consumables utilized by the various print processes (flexo, gravure, offset and digital) and by major application segments (packaging, newspapers, general commercial, publication, and government/ in-plant/education). A short list of consumables included would be: paper, inks (UV, EB, toner, inkjet, conventional), coatings, plates, blankets, sleeves and other pressroom chemistry. The study should identify consumables shifts as printers transition from conventional to digital by application. The study should provide secondary research quantitative estimates for consumption patterns and shifts.
If you or someone on your staff is interested in actively participating on the task force for either of the two NPES studies, for further details please contact Jackie Bland at PRIMIR at e-mail: jbland@primir.org or phone: 703/264- 7200. PRIMIR also invites NPES active members to participate on task forces for these studies that are currently underway: Megatrends in Digital Printing Applications and Economic Indicators for Print.