final digital presentation

Kipenzi Chidinma

Marketing Director

Digital Color Printing Trends and Opportunities

2/25/2011 1

Digital Color is Exploding

8x Faster

Growth Than

Traditional

Print!

Digital Color

Traditional

Co

mp

ou

nd

An

nu

alG

row

th R

ate

Source: CAP Ventures

3/20/2008 3

Turnaround

Time

Source: NAPL

Of printers cite turnaround pressure

59%

Digital Color will lead growth

22%

Source: CAPV

Print on

Demand Run Lengths

Source: INTERQUEST

Of four-color jobs are already less than 5,000

Variable

Content

43%

Expecting their variable printing to

increase in the coming year

Source: Strategies for Management 2005

What’s Driving Digital Growth?

70%CAGR

2/25/20114

Let’s look at an example of using VDP

•First name personalization

•Number of steps calculated based on address info

•Turn by Turn Directions from house to store

•#1 Selling Shoe in its category while campaign ran, (Sears) You can hike there in only 21,120 steps.

But you might want to wait till you have the shoes.

2/25/2011 4

2/25/20115

What is Personalized One to One Marketing?

Personalized Marketing is a way to have pictures, graphics, messages, offers, and calls to action differ according to the needs of an

individual recipient.

It is much, much more than changing the address block.

2/25/2011

The Power of Color

Awareness and Comprehension - Up 80%

Communicate and Sell Ideas - Up 88%

Timely Payment of Invoices - Up 30%

Learning and Recall - Up 55% to 78%

Source: CAPV

6

3/20/2008

Color + Personalization =Increased Response!

Plus

44%

Plus

45%

Plus135%

Plus

500%

Source: Digital Print Council

7

2/25/2011 8

The Power of Personalized One to One Marketing

A 34% faster rate of response

Source: CAPV Study for IBM

A 48% increase in repeat orders

A 25% greater average value of each order

A 32% increase in overall revenue 0%

10%

20%

30%

40%

50%

Ov erall Rev enue Order Value Repeat Orders Response Rate

2/25/2011 9

Cost per Response – Not Cost per Piece

Example: Traditional Campaign

Budget: $100,000

Size of Mailing 285,714

Cost per Direct Mail Piece $.35

Response Rate* 1.5%

Responses 4,286

Cost per Response $23

Source: Direct Mail Marketing Association

2/25/2011 10

Cost per Response – Not Cost per Piece

Example: Variable Content

Campaign Budget: $100,000

Size of Mailing 166,667

Cost per Direct Mail Piece $.60

Response Rate* 5%

Responses 8,333

Cost per Response $12

Source: Romano & Broudy

2/25/2011 11

Impact on Response Generation

Example: Campaign Budget = $100,000Traditional Variable Content

Cost Per Piece $ 0.35 $ 0.60 Response Rate* 1.5% 5.0%Size of Mailing 285,714 166,667

Responses 4,286 8,333

Cost Per Response $ 23.33 $ 12.00

Net/Net: 1:1 Marketing costs less per response.

2/25/2011 12

Impact on RevenueExample: Campaign Budget = $100,000

Traditional Variable ContentCost Per Piece $ 0.35 $ 0.60 Response Rate* 1.5% 5.0%Size of Mailing 285,714 166,667 Responses 4,286 8,333 Conversion Rate 20% 20%Revenue Per Sale $ 200 $ 200

Total Revenue $ 171,440 $ 333,320

Which campaign would you run?

2/25/2011 13

Forms of Digital Data:

- Printed Marketing Pieces - Customized Postcards- Direct Mailing Pieces - Customized Magnets- Targeted Mailings - Customized Printed Materials