Print and the Future of Graphic Communications

© 2010 InfoTrends www.infotrends.com

Print and the Future of Integrated Graphic Communications

Jeff HayesPresident

2© 2010 InfoTrends www.infotrends.com


50%

US Households with Internet Access

Sources: US Department of Commerce/NTIA, InfoTrends

Internet Access

Broadband Access

Households

68.7%

63.5%

0%

20%

40%

60%

80%

100%

'91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09


US Broadband Usage – 2009

Source: US Department of Commerce/NTIA

By Family Income ($000)

29%35%

45%

59%

70%

79%

85%89%

>$15 $15 to$24.9

$25 to$34.9

$35 to$49.9

$50 to74.9

$75 to$99.9

$100 to$149

$150+

By Age

59%

81%

68% 69%66%

46%

5 to 17 18 to 24 25 to 34 35 to 44 45 to 54 55+


US Mobile Phone Penetration

Percentage of US population

Sources: ComScore, Chetan Sharma, InfoTrends, FCC, CTIA

Mobile subscribers

3G Subscribers

3G14 Mbps

2Gdigital1G

analog

4G100 Mbps

89.0%

40.0%

0%

20%

40%

60%

80%

100%

'80 '82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10

50%


Old vs. New – Perspectives of a 10‐year old


• 400 million active users

• 3 million active Pages on Facebook

• 3 billion photos uploaded each month

• 5 billion pieces of content shared each week

Source: Facebook


90 friends 550 friends

“Old” “New”

vs.

65 photos 2043 photos

Andover Townie

1 group 36 groups

I Was Doing Homework, Then I Ended Up on Facebook


US 4x6 Photo Prints, 1990‐2009

0

8

16

24

32

'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09

Total Prints

Film Prints

Digital Prints

Sources: InfoTrends, Photo Marketing Association

Billions Photo prints2000 Peak = 30.9 B

Digital prints2008 Peak = 19.5 B


0

25

50

75

'45 '48 '51 '54 '57 '60 '63 '66 '69 '72 '75 '78 '81 '84 '87 '90 '93 '96 '99 '02 '05 '08

US Newspaper Circulation, 1945‐2008

Sunday1990 = 62.6 M

Millions

Source: American Newspaper Association

Daily ‐ Evening1973 = 36.3 M

Daily ‐Morning2004 = 46.9 M


USPS Domestic Mail Pieces, 1983‐2009

First Class 2001 = 103.7 B

20% decline since peak(‐40.7 B pieces)

Billions

Sources: US Postal Service

US Economic recessions

Standard2007 = 103.5 B

0

30

60

90

120

'83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09


US Printing Industry Value of Shipments, 1992‐2008

Source: US Department of Commerce, InfoTrends (2009)


Total Printing (NAICS 323)

Commercial Offset

2000 = $100.2 B

2000 = $53.1 B

Current $ in billions

21% decline since peak(‐$20.3 B)

$0

$25

$50

$75

$100

'92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09


Source: US Department of Commerce


Manifold Forms 1997 = $8.3B

Book Printing 2000 = $6.2B

Prepress Services 1993 = $5.4B

Gravure 1998 = $4.1B

Trade binding2005 = $2.5B


$0

$3

$6

$9

'92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08




Source: US Department of Commerce

Screen printing2006 = $7.8B

Quick printing1999 = $4.6B



$0

$3

$6

$9

'92 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08

Digital = $7.5BFlexo = $7.4B


Label Printing by Run Length

0%

10%

20%

30%

40%

<250 250 to499

500 to999*

1,000 to4,999

5,000 to9,999

10K to24.9K

25K to49.9K

50K to99.9K

100K to499K**

500K to999K

1M +

Digital Conventional

*for conventional presses figure includes all responses under 1,000**for digital presses includes all responses 100K and higher

Percentage of jobs

Digital trend

Conventional trend

Run Length


Uncoated Freesheet Paper Per US Household, 1983‐2009

1999 Peak = 29,717 sheets

Sources: American Forest & Paper Association, US Department of Commerce, InfoTrends

Sheets of paper per household

16,510 sheets

Households

Internet Broadband

44% decline40% increase

21,185 sheets

3G


0

10,000

20,000

30,000

'83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09

0%

20%

40%

60%

80%

100%


Are you suffering from Marketing Myopia?

Source: CartoonStock.com


Ted Levitt(1925 – 2006)

Economist & ProfessorHarvard University


Attributes of Marketing Myopia

• Focused on products, not customers needs and desires

• Believe growth is assured from growing/more affluent population

• Preoccupied with enhancements & cost reduction

• Place too much faith in mass production

• Cannot see any competitive substitutes


What business are we really in?

Transportation & Logistics

OR

Railroad


What business are you really in?

PrintingIntegrated

Graphic Communications

OR Print

On‐lineSocial

Mobile


Integrated graphic communications providers

Your Logo Here


Quality Service Price SalesInnovation

Core competencies – Old vs. New

Programming

Web & mobile

Data & content

Analytics

Sourcing

Prepress

Color management

Printing

Binding

Workflow


Innovation discovery skills

Harvard Business Review – December 2009

1. Associating

2. Questioning

3. Observing

4. Experimenting

5. Networking


“Creativity is just connecting things.”

Steve Jobs, Wired Magazine, February 1996


Apple vs. Sony 10‐year share price performance

Source: Wall Street Journal

iPod iTunes 4.1

Nano

iPhone

iPhone 3G

Steve Jobsillness rumorsiPod Photo

02 03 04 05 06 07 08 09 10

+3000%

+2500%

+2000%

+1500%

+1000%

+500%

+0%

‐500%

iPad



Recommendations

• Deeply engage your customers & observe competitors

• Experiment with technology and services

• Develop and grow partnerships

• Re‐invent your sales & marketing

Think like an innovator and be part of the digital interactive world!


You can do anything you set your mind to!

EminemLose Yourself

Print and the Future of Graphic Communications

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