Commentary & Analysis
Print 2, Internet 19: The effect of the stimulus on the printing industry
By Cary Sherburne
Published: March 10, 2009
I had a chance to peruse the American Recovery and Reinvestment Act of 2009 (PDF link) (the so-called economic stimulus package), all 407 pages of it, online in PDF format. Not that I was thinking there was anything in it for me, mind you. But a client asked me what the impact of the stimulus would be on the printing industry, so I decided to look.
A quick search shows that the word "print" or a derivative shows up only twice in the entire document: it provides for notification by print or broadcast media for certain individuals whose contact infomation is not sufficient (Page 147); on Page 179, it says, "The website shall include printable reports on covered funds obligated by month to each State and congressional district." Internet, on the other hand, is mentioned 19 times, largely driven by the $7.2 billion which is included for the development of broadband networks in rural and underserved areas, as well as funding for broadband equipment serving educational government and medical institutions.
So what does this all mean for us? A recent B2B article provided some interesting information. The industries most affected are commercial construction, alternative energy, telecommunications, computer hardware & software, and of course, those darn financial institutions. In most of these industries, companies are looking at various associated marketing initiatives. For example, Contec Construction Products reports a shift from brand awareness activities to more focused marketing targeted at the public sector. A company representative said, "We are shifting from print media to more electronic tools and taking more of a rifle-shot apporach to target places where dollars are being spent." This will include the creation of web microsites for sectors such as military and engineering, and targeted email to promote such products as precast bridges. Relative to alternative energy, a manufacturer of solar rooftop panels said, "Through low-cost marketing and Web 2.0 tools, we can target in on specific market segments that are excited by the bill." And it continues ...
This reinforces even more the prediction of Dr. Joe Webb and others that the current economic situation we are experiencing, augmented by the severe structural change our industry is undergoing, will result in an industry that looks very different when this is all over. It also reinforces the advice that printing firms must move their services beyond ink or toner on paper to survive and thrive in the new world of integrated marketing.
Cary Sherburne is a well-known author, journalist and marketing consultant whose practice is focused on marketing communications strategies for the printing and publishing industries.
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After over a decade of promoting 1:1 PRINT marketing; it is amazing to me to see such quotes as these: “We are shifting from print media to more electronic tools and taking more of a rifle-shot approach to target places where dollars are being spent.” These people are obviously STILL thinking of the traditional mass mailing/direct mail 1-3% return rates! Welcome to the late 90’s people!
It is proven that not only do 1:1 printed marketing materials effectively target customers, but a mix of 1:1 print, PURLS, email and web deliver far better results than merely "electronic" marketing methods. Maybe we should remind people that it is similar to their father’s advertising firm using a using a mixture of TV, radio, newspaper and magazine ads for consumer goods??
In my opinion, the real value of digital print is not 1 to 1. It is one to 30. Versioning for micro groups is the best way to insert information into a community.
People change their behavior because "people like us" do x, or "people like us" think y. The operational definition of "people like us" is either 30 or 150 people. Both are sweet spots for digital publishing.
It's not plausible, to me, for the federal government to making marketing of stuff more effective. Consider that credit cards,financial services and big pharma are among the largest users of 1 to 1 marketing.
It would be very appropriate, to me, for the federal government to support innovative communication print + web channels that help with education, health and intelligent citizenship.
The irony is that digital print, intelligently deployed could lead to fast improvements in education and measurable differences in health outcomes. And the GPO could lead the way for the intelligent, informed citizen piece.
I agree with Michael J! Digital printing is not at all about 1to1, rather its all about micro-versioning! Thanks for confirming I'm not crazy. Marketers need to drill down the smallest group of people who share needs. Then, provide marketing to those. Very rarely to you have the data or understanding of an individual to really pull off educated 1to1! however, microsegementation based upon digital body language, that's where it's at! Until we as printers can get across the power of this action, electonic marketing will continue to win.
Michael J: Another spot-on accurate and senseible response. Now, how do we make it happen?!
Lisa,
Network with newspaper ad salespeople and get involved with an evangelist high school teacher.
If it takes too long to get budget approved, offer to do a proof of concept. As in the first one's free. Once the admin see it, they'll find the budget.
Every classroom is a micro community of 30. In a High School every teacher has an audience of about 120. Perfect size.
The particular product? it depends on what the evangelist teacher wants. Maybe summaries from wikipedia, maybe hard copy versions of student blogs. Maybe customized homework accountablity print outs. If you have the patience, every teacher wants to do a paper book of the kids writing. But if you don't do paperback in house, wire o is good enough.
If the use blogs or wikis this should take a reasonable designer about 4 or 5 hours to set up. But watch out for the correx cycle.
Re newspapers.
They need help selling ads to local business. Most local and micro business have about 200 to 250 prospects (probably less). So offer to do a newsletter for them. Find 3 or 4 person shops that do a blog. Offer to do a newsletter from their blog.
Get a little money just to make sure they have the skin in the game. If they are designers, let them design it and you will print the first one for some low price. The cool thing is that usually 25 copies will make the designer very happy. Then they'll call you within a week saying "How much would it cost to do 250?"
If you have a newspaper ad person with you, the next offer is an add in the paper and/or an ad on the newspapers web site and/or their blog printed and mailed once every two weeks to their customers.
Once they see 25 copies, price resistance will probably disappear, as long as it is appropriate.
Carey's overview of the stimulous bill belies the pentup demand for information. Word of mouth won't get it. E-mail blasts are silly. Fully coordinated and even traceable communications will be unleashed by various levels of vendors as they ramp up operations in response to this demand. Vendors who have maintained frequent contact with key clients will be well positioned to respond quickly when the trickle becomes a stream.
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