I went through the results of these design awards, and found some beautifully designed ads. Like this one for Oryza rice, using an intriguing landscape to communicate rice recipes. The Suddeutsche Zeitung, uses the analogy of tree rings to refer to the year-in-review issue.
I sat in a presentation some weeks ago about the effectiveness of newspapers. InBev, BrandScience and Nielsen presented their findings on the ROI of newspaper advertising. All of them used econometric models to demonstrate the value of newspapers (otherwise they would not have been invited to do their presentation). The presentation pointed out some stimulating data. BrandScience used a database of 200 cases including newspaper campaigns, the average Revenue Return on Investment ranked as follows: inserts topped the list followed by newspapers, magazines, radio, online, direct mail, outdoor, television sponsorship and television.
A case study on the support for the Jupiler Blue brand showed also the superior ROI of the combination of newspaper and outdoor advertising. The result mentioned a poor 8,8 % - 9,8% contribution of advertising to total sales of the brand.
In driving back to the office I thought about two things: one, where does the creativity of the ads gets into the equation? What is the role of the Cannes Advertising Festival and all other creativity awards, when everything can be modelled without taking into account creativity. In a world of product parity, creativity and design can call for premium prices and consumer interest. And two, when advertising contributes less than 10% to total sales, is that because we do not spent enough time, money and energy on creativity and design? The jury of the Effie Awards will be able to judge whether we have used the right mix of econometric modelling and creativity. If not we probably should be more humble about our role as communication specialists.
EMS, the European-wide media study revealed last week the results of its latest survey. EMS researches the affluent and influential people in Europe and is a valuable balance to many single-media, single-country studies. The study confirms what so many individual surveys have indicated: print media are steady or slightly in decline. On average pan-regional titles were read by 25,3% of the EMS sample, which is a decline of 1.1% compared to last years figures. Individual titles had very little movements, with the free newspapers increasing their average issue readership (AIR).
The EMS survey makes a distinction between the Top 13% and Top 3% (EMS Select) in its sample. The more affluent the higher the readership for print and reach of television. AIR for pan-European (News and Business) print was at respectively 7.2% and 15,3%. Reach of pan-European TV (News and Business channels) was 42,7% for EMS and 53,8% for EMS Select. Next year digital usage will be added to the survey. This will offer an even more complete view of media consumption of this exclusive and influential group of people. Especially in B-to-B and corporate marketing this survey is relevant as C-suits (which are often the target audience in B-to-B) are among the target group of EMS.
Earlier this year I wrote about the correlation between the sales of e-books and hard copy books. The well-know New York Times technology columnist and "Missing Manuel Book" - writer David Pogue wrote in June an article on the this subject. His perspective has to do with copyright and pirated use of e-books and fits the discussion that creative work will sooner or later become freely available via the Internet. Paul Krugman wrote an interesting but much discussed article on this model already used by the Grateful Dead.
In considering free e-books Pogue refers to three possible relations that might exist: giving away e-books for free will boost sales of the print edition, selling e-books is the only legitimate way to buy electronic versions and e-books will kill income of printed books. Pogue refers to two interesting variables: the awareness of the author (less-known authors supposedly benefit more from the free exposure and attract new readers of the printed version), and the genre of the book (do you read science-fiction on a screen?). One of the people who reacted to the story was Kevin Kelly who suggested to have a test with one of Pogue's books. His prediction is that his e-books will not be duplicated as much as imaged and elevate, or at least not depress sales of the print version. Pogue's publishing company started the test this month and I'm curious to see whether the results will confirm what the National Academies Press concluded earlier this year.
Newspapers are probably the biggest losers of the growth of the Internet. Advertisers shift to the cheaper and more accountable Internet advertising possibilities and readers value the speed and the interactivity of Internet news. Zenith Optimedia expects that by 2010 newspapers will take 23,7% of all ad spend (in 2006 this was 28,4%). By contrast, the Internet will represent 13,6% in 2010 (6,8% in 2006). Research among 250 newspapers in the USA shows the paradox newspapers are facing. The Internet offers them a platform to compete with television and radio in bringing video news and generate the related (lower) advertising revenues. On the other hand providing news for the Internet places heavy burdens on the quality of the journalistic work. Andrew Keen has written an excellent book on what he calls the Cult of the amateur. The web does not allow for in-depth, high quality news analysis. Integrating editorial teams for the paper and the web version of the newspaper has been the first step newspapers have taken. But the future of these already downsized teams depends on the capacity to attract advertising money for the web-based newspaper.
The contradiction in this situation is that Google, the exponent of the Internet, demonstrated the value of newspaper advertising in conjunction with Internet advertising. Media are connected: newspaper ads drive consumers to the web. The Google research showed the effectiveness of newspaper advertising but also the effectiveness of the combination: of those who researched a product they saw in the newspaper, 67% did so online.
Advertising budgets will continue to be in transition between the different media untill there is a new equilibrium. However I'm not expecting to happen to newspapers, what MTV believed to happen to radio when they aired at their launch the clip "Video killed the radio star".
I've been visiting two major events this month as you can see. Of course the opening match of The Netherlands against Italy was a glorious match. And the city of Bern was orange all over, business men dressed in orange suits, cyclists on orange bikes, young women dressed as orange farm girls and in between Italians. Canon, one of the sponsors of Euro 2008 and also a prominent exhibitor at DRUPA, did research that perfectly bridges Euro 2008 and DRUPA. Canon surveyed 4.500 European football fans to find that printing lists, TV scheduled and tournament statistics helped to follow the tournament closer. Over half (52%) of the supporters spend between 30 minutes and 5 hours searching and printing relevant information.
However nothing will beat the real-life experience as you will agree. Thank you Erik N. and Gianni I.
Reading magazines is, for 22% of the respondents surveyed by Time Inc, regarded as "a gift to myself". A third of them take special time to read a magazine (45% of the C-suits do so). This research titled "Magazine Experiences" also shows that 96% of the respondents expect to read at least as many magazines in the next 12 months. The research presents evidence about media multi-tasking consumers: watching TV is hardly a unique activity, 38% of viewers are at the same time online. The effectiveness of TV is already questionable but these figures put also sole attention to television in a different perspective.
I have not yet read the full research, as soon as it is available I'll include the link.
Sappi Europe introduced in Beijing "Corporate Communications in the media mix" at the annual worldwide Conference of the Reputation Institute. The booklet highlights developments that are on companies' agendas these days. As companies are under increasing scrutiny of consumers, stakeholders and the like, corporate behaviour and managing reputation becomes of major importance. The booklet deals with the various tools companies have to convey their corporate image, with the technique of storytelling, the use of spindoctors and the importance of design. It also shows prize-winning cases and interviews with leading people like Wally Olins. The booklet can be obtained via Sappi. My agency Frysk has produced the entire serie of booklets, that are distributed worldwide and received with great interests from marketers and advertising specialists.
When visiting DRUPA I was struck by the importance of digital printing. Huge booths from HP, Canon, Xerox, Agfa and Kodak underlined the growing potential of digital printing. I recently read a report about printing documents. In four years time 81% of all documents will still be printed, of which 15% in colour. Nineteen percent of all printed documents will be replaced by electronic versions in 2012. And consumers will have an additional 31% of electronic documents.
Sappi showed an interesting new application of paper: via the use of a printed code visitors could download on their mobile phone a song from the Belgian 
singer Natalia. This UpCode has to be captured with the camera of a mobile phone to allow the download. My agency Frysk created this application that can help advertisers to increase their print medium return on investment. The London Guide, Yellow Pages, Visa and real estate companies are current users of this system. Print City showed many other applications of enriched paper that might grow the potential use of paper as a medium.
I read a stunning article about Philip Parker, a French marketing professor at INSEAD, who assembles complete books on the Internet. The 2007-2012 outlook for tufted hardbacked non-washable accent and area rugs that measure 6-feet by 9-feet or smaller in India, is one of the titles on his website. His has written a computer program that automatically generates books from rights-free copy on the Internet. After some cutting and pasting he is able to prepare a "book" on a great variety of subjects. The books, available on Amazon.com, are sold at prices ranging from $ 20 - $ 795. This technique reminds me of what I've read in Andrew Keen, The cult of the amateur. He writes about the idea suggested by Kevin Kelly to have all books digitalised and interconnected to obtain a liquid version of a book. Surfers can than annotate, cut and paste parts of this liquid book. Great news for students, but what is the value of an expert?
Advertising Age reports that in 2007 the advertising and media agencies in the US reported a 8,6 percent increase in revenues. Of all activities digital services showed the biggest increase: 26,8 percent compared to 2006. Digital services are changing the agency revenue streams quite dramatically: today its revenue represent almost as much as direct marketing and more than public relations, healthcare or promotional revenues. Advertising spending on digital media explains the growth of media agencies. Group M (WPP), the world largest media group, increased its worldwide digital revenues with 53%.
I was invited by Kris Decoodt last week to Microsoft's Digital Inspiration event in Louvain-la-Neuve. Microsoft wanted to brief brand owners, creative and media agencies and programmers on the latest developments at Microsoft. I sat in a session specifically designed for agencies, but was somewhat disappointed. There was some interesting research about the use of online media and its function. On the basis of worldwide research among 400 respondents Microsoft deducted that 19 percent of all time spent with media is spent online. And almost 40 percent of this is used for communication, 18 percent for information, 16 percent for entertainment, surfing, transaction and creation all score less than 10 percent. The flaw on online media is the shared attention: 71 percent of online activities are conducted while people are doing other things. Internet access is interwoven with working, eating, watching TV, listening to music or chatting to friends as the report mentions.
Some interesting examples on online advertising were shown by David Pugh-Jones. A couple of these examples uses the Q-code or UpCode. This code gives access to more detailed information when captured with a mobile phone. A year ago I wrote about this application in Life with Print, and at the DRUPA it will also be featured.
The number one sensation was of course Steve Ballmer, Microsoft's CEO. The Aula Magna of the University was packed with Microsoft believers, what became quickly clear when Steve B. made some jokes. He presented an interesting overview of which business Microsoft is in (its basically a software company, working for desktop and enterprises, is involved in non-PC devices and online advertising). With a goal of being on every desk and in every home. His most important quote was that content and communication media will come together and that we will consume content in a more social context. Video can be watched on different screens, be it a TV, a computer, and iPod or a game console. Barriers between the media will disappear and content will be exchangeable between these media. In this context Steve B., as he refers to himself, also announced that in 25 years time people will not make a distinction between print and TV. I would be interested in Rupert Murdoch's perspective on this.
(Picture:Bert Claeys)
Fiat starts the Dutch - German football match already in the German press with this ad. It will be a hot summer!
Kobalt presented research that indicates that brand owners can do with 40 percent less media budget while still obtaining the same result. With the analysis of data of thousand + campaigns the media agency concludes that cutting away the waste and advertise in a more selective way will result in a decrease of the TV budget of 5-20 percent. The online and radio budget can decrease with 10-20 percent and outdoor even up till 40 percent. Print is already very selective, cost can only be reduced by 5-10 percent. Managing Director Beijer of Kobalt adds that for FMCG's 76 percent of the total effect is derived from only 23 percent of the media target group. Time to make bold changes, but the marketing and advertising world is slow. And of course this piece of research calls for other research to confirm such dramatic changes.
Maybe another figure will make marketers and advertisers change their mind. Also in The Netherlands the number of "No Brochures" mailbox stickers has increased dramatically. Last year 14.6 percent of all Dutchmen did have such a sticker, an increase of almost 10 percent. On average every family receives 34 brochures and folders per week. Consumers are probably reacting on the overload of brochures, folders, flyers and door-to-door newspapers.
Both pieces of research call for a more personalised approach. This will probably be more expensive per contact, but also more effective because more relevant. Today's media options offer plenty of possibilities to become more personal in advertising.
This month much has been written about books. Most recently Amsterdam was announced the World Book Capital by UNESCO. The city thrives on a long history of freedom of expression since the start of the first book printer in 1506. Because of this freedom of expression and the fact that guilds were in that time open to foreigners Amsterdam became the center of books. Today for every 4.000 residents of the city there is one bookshop. The Amsterdam World Book Capital theme is therefore Open Book, using icons as Spinoza, Anne Frank and Annie M.G. Schmidt.
The city also hosts a beautiful exposition of 3.500 posters on how books have been promoted during the years. Worthwhile a visit.
A unique partnership between publishing houses, libraries and booksellers stimulates readership in The Netherlands. One of the activities is the Book Week. Since 1932 this event is organised, resulting in handing out a total of 25 mio free books. Last month during the Book Week 960.000 free books were handed out.
Despite the surge of the internet, books are selling well. In Flanders sales in 2007 increased with 8 percent, resulting in a total sales of 11 mio books. On average every family bought 4 books in 2007. (In the Netherlands this figure is 6,4 books). In the UK sales of books increased with 9 percent. The biggest increase was among the new titles published in 2007, 36 percent more titles came to market, more than ever before. And as Nielsen states Print-on-Demand is driving this growth, proving the Long Tail.
A beautifully designed campaign with a quality message for this leading UK newspaper by Wieden & Kennedy.
Papyrus organised this week in Brussels an evening program on the future of print. Creative minds, printers and brand owners gathered to listen to presentations from a Hendrik Kaa Andersen (Arjowiggins), Erik Kessels (KesselsKramer), Richard Owers (Pureprint Group), Pierre Bernard (Atelier de Creation Graphique) and Oliver Salge (Greenpeace). The overriding theme of the evening was the growing importance of sustainable business. An increasing number of brand owners include paper specifications for their print work. Printers start to produce in compliance with the ISO 14001 norm. And paper manufacturers produce paper that is FSC and PEFC certified. The need for sustainable forestry was clearly demonstrated by Oliver Salge. Although he prefers of course no use at all of paper. Inviting him to a paper conference was daring, but during the drink after the presentations it became clear that the participants much appreciated his presentation. It remains of course difficult for brand owners and printers to define proper action to limit the carbon footprint. Papyrus made a carbon offset for the paper presented in the handout. But that is no structural solution either.
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.
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.
"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.
