18 March 2008

Agfa introduces "paper" at DRUPA

Today Agfa held its pre-DRUPA press conference. It announced a new high-end wide-format digital printer, Anapurna XLS, besides many other hardware and software introductions. Probably the most surprising news is the announcement of a synthetic paper: Synaps. This is a polyester-based, synthetic paper for use in offset printing presses. It has a superior printability and an exceptionally fast drying time. The hyped book " Cradle to Cradle" (C2C) is also printed on this type of paper. It will be interesting to see whether this development will impact the market. The stock market in the meantime reacted positively to the product news which is good for the troubled company.

10 March 2008

Need for accountability in marketing


At the recent ON DEMAND conference the US Direct Marketing Association (DMA), mentioned five key themes that will emerge in the next years. Some of these themes have been around, other will certainly gain interest.
1. It's a multi-channel world, no real news though, we all know that the age of commercials -broadcast on one TV station and reach 80% of the audience- are over.
2. It's a data-driven world, also no real news, but possibilities keep on increasing.
3. It's a personalised world that requires relevance and timing, these are interesting concepts that gain interest. For example personalised URL's (pURL) allow advertisers to become personal with their offer online as a response to a hard copy mailing.
4. It's a world of accountability, this is becoming center-stage as marketing ROI needs to be delivered. Plenty of companies are delivering solutions that integrate the creative, delivery, production, procurement, asset management and evaluation part of online and off-line media mailings and brochures. And these will help to boost the integration of online and off-line media.
5. It's good to be green, with the combination of digital print and multi-channel communication. I'm not yet convinced that the digital printing process is greener compared to traditional printing. However waste management for example is becoming an issue for high volume printing and digital printing might therefore be a solution.

Kodak defines "business of marketing"

"Marketing is the neural system of the company, and the critical business function", says Kevin Joyce, the new Chief Marketing Officer (CMO) of Kodak Graphic Communication Group. He puts marketing at the center of the company and underlines its role of creating value. He sees a clear task for Kodak and the entire industry to move upstream and to help customers to understand the role of print and to advice on how best to leverage print. The focus on the business of marketing will help Kodak to change the perception of producing a commodity. An interview with Joyce reads like an interview with a marketer from a FMCG company.
Next to the output devices as the Speedmasters, Kodak will put more emphasis on workflow tools that provide productivity and revenues. Key in this strategy is the capability of Kodak to get respect and gain credibility for its position as a service provider.
This is not an easy tasks as plenty of other players fulfill this role today. Initiatives as Print Sells and Sappi's Life with Print also promote the use of print media by the advertising industry and are changing the way the industry talks with its main clients.

Indicators of "Green" Drupa

Océ announced the launch of the "Green Reprographer of the Year" Award. Winners will be announced just two weeks prior to the start of DRUPA. The US branch of Océ Wide Format Printing Systems invites print-for-pay reprographers to enter this competition that rewards the use of products and services that reduce the impact on the environment and employee programs supporting environmental conservation.

Postal news

Postal services are well covered in the news. However not always in a positive way. The Washington Post wrote about a threat in the USA: do-not mail lists that are pending approval in 18 states. As the figures demonstrate, standard mail (advertising flyers, catalogues, fundraising letters, etc) is soaring: from 101 billion items in 2005 to 104 billion in 2007. (The impact of email and electronic billing is clear from the decline in first class mail: in 2004 98 billion items to 96 in 2007). The increase in standard mail has caused the consumer reaction to create do-not mail lists. The US Post fears the impact of this decision and forecast already an operational deficit of $ 1 billion.
Recently Royal Mail announced that between 1997 and 2007 the total number of mail items did increase from 25 billion to 30,66 billion. Growth is explained by the volume of invoices and statements, for example of mobile companies.
The Dutch Postal Services (TNT) were also in the news as they announced closing down the remaining 250 post offices. Postal services are provided via a total of 2500 retail points, and dedicated post offices do not longer fit into the retail strategy of TNT. Traditional post offices will probably get alternative destinations, like churches have over the last years also become libraries, ad agencies and apartments.

Google to take lead in media integration

Google announced it will introduce a broad new strategy that will help advertising agencies to plan, buy and manage all types of media. At the AAAA Media Conference, Google's advertising and commerce president Tim Armstrong announced that Google will enable media planners to manage mixes of off-line ad online media. This so-called "Dashboard" will automate a difficult task for today's planners and buyers.
It is striking to notice that a company that started to influence the entire media scene only a few years ago, is now taking the high ground in this most-discussed subject. The discussion is not only about comparable measurement of online advertising but also about the dominant role of media agencies vs. creative agencies. And Google obviously want to play a role in this latter discussion as well.

13 February 2008

Creativity the new driver of the economy?

Countries start to understand the importance of the creative industry. Richard Florida's book on the Creative Class did motivate the Flemish government to launch Flanders DC. This initiative inspires companies to integrate creativity in their business.
The Dutch Association of Designers (BNO) is supported by the Ministry of Economic Affairs in its activities to promote Dutch design abroad. Visits and presentations are done in various countries to present the specifics of Dutch design.
The British government launched a program to support the creative industry, that accounts for 7,3% of the GDP and employs over 2 million. As the sector has grown twice as fast as the rate of the economy the government is eager to capitalise on the sector. The creative industry should become mainstream of economic and policy thinking and should start with providing children creative education. Many other activities should lead to the position of Britain becoming the creative hub for the world.

31 January 2008

Wanted: online identity thieves

It becomes increasingly important to protect your corporate brand online. McAfee (a security software company) calculated that there are 1,9 million registered variations on 2771 most popular domain names. These variations are based upon small typing errors (typo's). Google for example had a number of variations of its brand name online: googkle.com, ghoogle.com and gooigle.com This technique called typosquatting makes fraudulent use of the well known company and can create a false and wrong image of the company. Typosquatting sites piggyback on the popularity of the heavily trafficked website and refer to porn sites, include gambling links or worse infect computers with viruses. What can happen to your brand is illustrated when you type www.microsoft.cm You will enter an election site of Barack Obama! A questionable technique of a Presidents candidate. The Republic of Cameroon -with 10.000 people online- and with the suffix cm understands that it can earn money from people mistyping. It now sells it cm suffix to companies and organisations outside of Cameroon that want to benefit from typo's.
Protecting the online brand and controlling the content of the online brand continues to be a challenge to brand owners.

Information stress reduction tools

I was reading about life hacking (programmers productivity tricks) the other day and that made me think of the way we select, process and memorise information. It seems to me that the abundance of information on the Internet suggests the illusion that we can know and learn everything. However because of the enormous amount of information that is scattered over the Internet we will never be able to maximalise our know-how. What is lacking are these life hacks that help us to select and collect the most relevant information. Search engines help us to identify the articles, images or video on the net, but we still have to rank them in terms of importance, credibility and accuracy. Most of us do not have the time for that.
Therefore consumers and businesses rely on editors to select the information. The continuous increase of the number of magazine titles demonstrates that consumers value editors that can put together information relevant for specific segments. And it is the credibility of the magazine or newspaper brand that is the reason to believe the information.
Online consumers and businesses develop other tools: lists, social networks and referrals are the new tools to select and optimise their information need. I believe that the need for editors will continue to exist and that they can help reducing the information stress related to the information overload.

18 January 2008

Second life for books

Quite some librarians have been dreaming of a World Library System. Organising all books in all libraries so that they would become accessible for everybody. This dream may come it bit closer to reality with the Google Books project. Google has agreements with several libraries in the USA, Japan and Europe to scan entire collections. Google will make all of these books searchable by word and will make it possible to link words or events with Google Maps.

The Bodleian Library of Oxford University for example contains 11 million books and each year the collection grows with 3 to 4 kilometer of book racks. Opening-up these huge collections via electronic versions, will learn us a lot more about the our history. Come the questions of copyright, and the commercial ownership of what is today in the public domain. Most of the libraries objective is to reach a broad as possible readership, but will that objective prevail on these questions?
One point divides then though; scanning is a time-consuming and therefore expensive task. Of older books every page need to be turned by hand before a picture can be taken. (The Dutch use an even more laborious system: they have Philippine ladies retype entire books as that is more reliable than current OCR technology). Sheetfeeding a scanner will be a lot cheaper (€10) than scanning by hand (€ 150) but would need books to be cut apart and thus destroyed. Book lovers will hate the idea as they appreciate much more than the content of the book. The paper used, the type of binding, the spine, the feel and the smell of the book is part of the reading experience. Will libraries allow this to happen, even when they to have to sacrifice a second copy of a book? Will learning the world win out cultural heritage? To be continued online and in your book store.

Selling books and PDF's with a profit

The US-based National Academies Press won the prestigious ISMS Prize at Wharton University. The publisher developed a model that took advantage of the growing number of orders for electronic books. Research showed that 65%-70% of visitors of the website came to view only one page. Visitors were split into online shoppers and buyers of a printed book opposed to who were browsing books that had a PDF version available. They determined that selling the electronic version of a book at 75% of the print price would generate the highest profit. With the book price at the same level and a bundle of print + electronic at an 18% mark-up, total sales rose by 10% (and web sales by 14,4%). In the meantime the electronic books sell at 85% of the print price demonstrating the success of the model.

31 December 2007

Green direct mail in USA

A study among 1000 Americans shows that consumers greatly overestimate the environmental impact of direct mail. DMNews and Pitney Bowes found that respondents ranked the delivery of 10-11 pieces of transactional mail per year as the third most polluting activity (in terms of carbon dioxide emission). Only driving a car 1000 miles a month and the electricity usage for a top-freezer was more polluting.
Whereas in reality advertising mail accounts for 2% of all municipal waste, respondents vastly overestimated this: 48% thought that half of the municipal was advertising mail.
There is obviously a lot of work to do to change this perception. When no action taken the perception of the medium might be in jeopardy.
Consumers seem to be unaware of the sustainability programs of organisations as Forest Stewardship Council (FSC) that promotes sustainable forest management. Over 60% of respondents said they would think more highly of the industry if it planted trees to offset paper production. Such a green label would even make unsolicited mail more positive.

Shifting channels

I few weeks ago I listened to a presentation at the annual congres of the Stichting Marketing of Patrick Tillieux COO of the TV holding ProSiebenSat1 and was rather shocked by his revelations. His presentation was on the globalisation of the TV industry and was referring to a program format bought from a US channel. The program, "Are you smarter than a 5th grader?", was put on air in various European countries. The audience metrics indicated that the program was no success in most countries. The channels' audience was reduced to one third when the program started! Just imagine that from one moment to the other readership plummets with 70%.
Also simple phrases can make viewers shift channels. Dutch research demonstrates clearly the impact of for example a journalist covering daily politics. When he says in a life program " Well, nothing really exciting happened today" viewers zap "en masse". A very floating and expensive audience indeed.

24 November 2007

Quote 2

"The question is whether we need to push our products or push the marketer as he has problems understanding the online market."
Peter de Mönnink, Chief Strategy and Internet Officer Reed Business Global (In Adformatie).

The Poster Magazine

Imagine a magazine the size of 1.5m by 2m, with no advertising, on display at café's, bars and bookstores, with no strict editorial goal but with a very strong design appeal. This one sheet magazine is called "Is not Magazine" and available in major cities in Australia. It is pasted on outdoor posters sites in Melbourne and Sydney and also available at indoor poster sites in bookstores and bars. The poster magazine can be read like the "wall papers" in China and can be ordered for €17 and will also do great as decoration.

Great creative and venue

This week Amnesty International Belgium launched its end-of-the-year campaign "I save lives "with a major media initiative. Part of the campaign -developed by Air- is this huge poster that has been attached to the scaffolding of the Brussels Palais de Justice. Where to get more attention for human rights than here? The illustration is made of hundreds of signatures and therefore uses the essence of what Amnesty does as part of the creative. A great idea on a unique location. Air developed two other themes on the same idea.

13 November 2007

The Power of Print/Posters

On the website of De Standaard -a leading Flemish newspaper- you can choose for a winning cultural poster and win a culture cheque. Of a total of 140 posters 10 were selected by a jury and are now open for voting by everybody.
I'm still experiencing that reducing the message to the essence and reproducing it on a poster is a lot more difficult than doing that on an A4 size advertisement.
This contest therefore demonstrates the Power of Print via the medium posters. It is organised by Prospecta and sponsored by Agfa Graphics.

New strong evidence for magazine effectiveness in media mix variants

When magazines are added to a mix of online and television advertising purchase intention increases with 7% (vs TV and online 5.6%), brand favourability increases with 7.3% compared to 4.5% with TV and online. On other brand metrics as aided brand awareness and advertising awareness the effect of adding magazines is important but less impressive.
Recent research of 32 cross-media campaigns across ten categories by Dynamic Logic (a Millward Brown research company) provides strong evidence for the use of a mix of different media. And the important role magazines play in the effectiveness of advertising investments. Magazine effectiveness represent for example 62 % of the combined effect on brand favourability. The research also shows the limited value of online advertising on the five metrics. The incremental effect of the online investment tops at 22% of the combined effect.
This is the second analysis made by Dynamic Logic, I have reported on earlier research (17 cross-media campaigns) in the Sappi publication Life with Print. Comparing both pieces of research the striking decline of effectiveness of online media becomes apparent. Online advertising' share topped at 38% on the brand favourability metric.
It seems that this new research -based upon more cases- includes the effects of diminished newness and therefore attention of online media.

Company documents remain printed

A survey from EDSF indicates that the budget for printed documents (invoices, bills, statements, explanation of benefits) companies use to communicate with clients modestly increases. Almost 43% of respondents of the survey say that the budget for paper-based communications increases by approx. 10%. This despite the fact that more than half of the companies already make more than fifty percent of their documents available over the Internet. Transactional documents will make increased use of digital colour. Half of the companies will increase the use of colour by 5% or more in the future. A new trend in the use of transactional documents is Transpromo, this is the use of colour on documents as bills and statements and integrating selected promotional offers.
EDSF concludes that electronic delivery will only have a limited impact over the next years as firms will have to address legal and compliance requirements and security/privacy issues.

Mind mapping with Tony Buzan

I was invited by Gino Togni of IMS to attend an interactive session with one of the worlds promoters of mind mapping: Tony Buzan. This 65 years old energetic and gifted Englishman is one of the best presenters on a hugely interesting subject of brain functioning and learning. His full-day workshop covered insights in how our brain functions and also on how we can best describe what we hear or read by presenting it in a mind map. A visual description of the information makes it stay longer in your brain. He did not refer to how that relates to obtaining information via audio-visual, electronic or print media. Probably an interesting subject for a research project.
In the meantime media are already using the technique of mind mapping and showing it in ads to illustrate for example the profile of its radio listeners.