A view on developments that influence the position of print media as an advertising channel.

1. The future of
Print in the
Media Mix
February 2009

2. Paper use worldwide
Financial & legal 4%
Stationery & labels 4%
Forms 4%
Techn. documentation 5%
Direct marketing 6%
Directories 6%
Books 6%
8%
Catalogues
9%
Misc. print products
9%
Newspapers
Periodicals 11%
Packaging (non-corrugated) 12%
Advertising & promotion 16%
Source: EDSF 2007

3. Paper use worldwide
Financial & legal 4%
Stationery & labels 4%
Forms 4%
Techn. documentation 5%
Direct marketing 6%
Directories 6%
Books 6%
8%
Catalogues
9%
Misc. print products
9%
Newspapers
Periodicals 11%
Packaging (non-corrugated) 12%
Advertising & promotion 16%
Source: EDSF 2007

4. Advertising expenditures Western Europe
_ Newspaper and magazine advertising is expected to decline to 28%
and 14% respectively in 2010 (in 2000 37% and 19%)
_ Television expenditures remain relatively stable 29% in 2010 (21%
in 2000)
_ Internet will increase from a 1% in 2000 to 18% in 2010
_ Print media shares differ a lot from country to country also in the
years to come;
_ Belgium is dominated by television (more than a third of all
expenditures)
_ The Netherlands are a print country (60% of all expenditures)
_ UK expenditures for newspaper will be similar to those in
Internet at slightly more than a quarter of all expenditures.

5. Time-use and advertising share, Netherlands
100
75
50
25
0
2005 2005
Newspapers Magazines Door-to-door
Time-use Advertising share
Television Radio Internet
Source: Tijdsbestedingsonderzoek 2008, Zenith Optimedia 2008

6. New technologies change media landscape
“Each wave of new technology in our industry
forced an improvement of the old.
Each new medium forced its predecessor to
become more creative and
relevant to the consumer”
(Rupert Murdoch, 2006)

7. Buzz words in new landscape
Folksonomy
Tags
Consumer Generated Content
SEO
Wiki
Digital natives
SMS
Long Tail
SNS

8. Relationships change in new landscape
Media
Brand
Agencies
owners
Production

10. Google centre stage
Brand
owner
Creative Media
agency agency

11. Relationship change in new landscape
Media
Google
Brand
Agencies
owners
Production

12. Google’s global advertising role
75
%
50
25
0
2004 2005 2006 2007E
Share of global online advertising revenues
Share of search reveneues

13. Google’s global role
Google’ CEO Eric Schmidt (Fortune, January 2009):
“Newspaper don’t have a problem of demand for their product,
the news.”
“To me the breakdown of the newspaper industry presents a real
tragedy in the sense that journalism is a central part of
democracy. And I don’t think bloggers make up the difference.
The historic model of investigative journalist in any industry is
something that is very fundamental.”

14. How to keep print media on the agenda?
_ Magazines are a “Me time medium” as defined by Time Inc
_ One third of consumers set aside “special time” for reading
a magazine
_ Magazines are personal and singular medium
Primarily reading magazines while...

15. How to keep print media on the agenda?
Sappi Life with Print
Sappi want to help brand owners and
their agencies to make informed
choices about budget allocation
Life with Print deals with different
printed media and brings the most
recent insights and arguments

16. How to keep print media on the agenda?
Print Sells
Initiative from different players in print
value chain to promote print across
Europe
In 2007 5 mio euro campaign consisting
of advertising, direct mail, public
relations and website

17. Developments that affect
the role of print media
in the media mix

18. Developments that affect the role of print
Creative consumer
Effect of Always-on Liquid content
other media Digital natives
Enriched paper
Effect of print
Corporate Social
Read anywhere
media
Responsibility
Digital printing
Increased outdoor
+ -
Effect on role of print

19. The content becomes liquid
_ Magazines can be read on paper, e-paper
and online
_ Radio programmes and music can be
listened on PC, radio, iPod, mobile phones
_ Content of channels is becoming a separate
product, available via more and different
channels
_ Youngsters do not differentiate between
watching a movie on TV, PC, Playstation or
iPod

20. Digital natives take center stage

21. Time use total population and Digital Natives-
Television
25
Main activity (hours/week)
20
15
10
5
0
1975 1980 1985 1990 1995 2000 2005
Television Newspapers Magazines
Television
Books Listen to radio or music Internet

22. Time use total population and Digital Natives-
Print Media
25
25
20
Main activity (hours/week)
20
15
15
10
10
5
5
0
0
1975 1980 1985 1990 1995 2000 2005
Newspapers Magazines Books
Print Media
Television Listen to radio or music Internet

23. Comparison total population and Digital Natives -
Internet
25
Main activity (hours/week)
20
15
10
5
0
1975 1980 1985 1990 1995 2000 2005
Internet Newspapers Magazines
Internet
Books Television Listen to radio or music

24. Digital natives and reading
Adults (%) that read books (not Percentage book purchasers
required for work or school) (USA)
(USA)
70 30,0
22,5
50
15,0
30
7,5
0
10
< 25 25-34 35-44 45-54 55-64 65+
18-24 25-34 35-44 45-54 55-64 65-74 75+
1992 2002 1991 2004
Source: NEA, 2008

25. Choose when and where to read
_ Consumers take information in small bites
_ Hence success of Metro, CNN, NRC Next and other media that
provide easy digestible information
_ Consumers are zapping between different channels or sources
_ Since remote control: homo zapper
_ Between TV stations, magazines, newspapers and other media

26. Choose when and where to read
Primarily surfing the Internet while..
Primarily watching TV while..

27. The creative consumer
_ Consumers change roles, they create content and channels
_ Entire newspapers are written by consumers
_ Consumers use existing online content to produce new content
(mash-up, morph, fan-fiction, spoof)
_ We consume what is created by fellow consumers on blogs,
Wikipedia, MySpace, Flickr or YouTube
_ Social networking goes beyond www.schoolbank.nl and can
become a way of doing business: Wikinomics

28. The creative consumer

29. Increasing role of CSR
_ Consumers are questioning companies about
their corporate behaviour
_ Companies are under fire: salaries, child
labour, emissions, sustainability, energy,
waste, financial operations,...
_ Companies need to generate trust and
credibility by providing more transparency
_ Companies prepare social annual reports,
sustainability reports and align with ISO
norms and procurement guidelines
_ For paper FSC, PEFC, Cradle-to-Cradle
certification and WWF guidelines are used

31. From analog to digital print: print runs
80% ≺ 5000

32. From analog to digital print
Print quality
Offset
Offset
Digital print
Digital
Transpromo
SOHO
Office
Av. runlength
50 100 500 1000 5000 10.000 20.000

33. From analog to digital printing?
Document transition (USA)
140
120
100
80
60
40
20
0
2004 2006 2008 2010 2012
B/W digital print Colour digital
Surpressed print Additional electronic
Source: EDSF 2008

34. From analog to digital printing: Transpromo
Before After: + 100% bookings

35. From analog to digital printing: direct mail
_ Digital printing offers huge possibilities for cost effective
versioned brochures and hyper-personalised mailings
_ Hundred+ versions of brochures based upon consumer
preferences
_ Seamless integration with website, blog and call center
Toerisme Vlaanderen

36. From analog to digital print
And competition around the corner
Leo Paper (Antwerp)
26.000 + employees
Heshan (China) printing facility
6.5 ha area, plant 65.000 m2
82 printing presses
Worldwide turnover $ 500 mio
Europe turnover $ 50 mio

37. Always-on and effectiveness
_ New media are intrusive, people get interrupted frequently by
email, mobile telephone and Instant Messaging
_ More than half of people respond to email almost immediately
Knowledge workers can expect three minutes of
uninterrupted work on any task before being interrupted
Employees spend some three hours a day processing email
of which 30% is unnecessary (1 mio emails per day)
(Intel data 2007)
_ Intel has started “Quiet Time” every Tuesday morning,
creating thinking time

38. Always-on and effectiveness
_ Multi-tasking decreases the effectiveness
_ Research shows that managing email and voice messages
decreases the IQ with 10 points
_ Knowledge workers need “time-off”

39. Always-on and effectiveness
_ Multi-tasking involves partial attention
_ Partial attention leads to a different path of reading: superficial,
scanning, with short attention span
_ Reading a book requires deep reading which is difficult for
always-on people
_ This new pathway changes the way we think and “re-wires the
brain”

40. Enriched paper
Poster 4:Layout 1 25/04/08 12:22 Page 1
_ OR codes
_ RFID print
_ Organic electronics
_ 3D paper-web integration
_ Plug in your earphones
_ Print, online and mobile phone TAKING PRINT TO THE
integration NEXT SENSUAL LEVEL
STOP, LOOK AND LISTEN!
FOUR STEPS TO ENJOY PRINTED MEDIA:
Step 1. View the image Step 2. Capture the UpCode Step 3. Download the music Step 4. Listen to the music
TRY YOURSELF OR ASK FOR A DEMO

41. Enriched paper - QR codes and RFID

42. Enriched paper - 3D-web integration

43. Enriched paper - electronic paper

44. Enriched paper - Plug in your earphones

45. Increased use of outdoor
_ CBS outdoor estimate shows people spend more time outdoor
Percentage of time spent doing activities out-of-home
20
15
10
5
0
1961 1975 1985 1995 2000
Shopping Eating out Socialising Sports
Source: The Future Foundation, 2007

48. Thank you for your attention
Ulbe Jelluma
ulbe.jelluma@fryskbiz.com
www.frysk.be
www.fryskbiz.blogspot.com