Apr 1, 2005 12:00 PM, Lorin Cipolla

Specialty printers' presses ran strong in 2004 as promotional marketers kept the ink flowing. Though more campaigns migrated to the Web, brands continued to print game cards, on-pack enhancements, coupons, magazine inserts, and labels, all of which have helped to revive print.

According to preliminary research by the Printing Industries of America (PIA), Alexandria, VA, spending on specialty printing rose 2.8% in 2004, to $161.1 billion. Of that, the promotional marketing portion grew 4% to $6.1 billion, up from $5.9 billion in 2003.

“I would say that last year we had very good growth, and we had a really good rebound from [2003],” says Ron Davis, chief economist at the PIA. He says many contributed to the growth — number one being the recovering economy. Second, the presidential election year accounted for increasing amounts of direct mail materials both in terms of advertising and solicitation for fundraising. Third, postal rates were stable for the second year in a row, which helped to revive direct mail.

“I predict 2005 to be another good year,” Davis says. “Though the economy might not grow as much, it should grow at a healthy rate and postal rates will remain stable until 2006.”

Specialty printing helped brands both on-shelf and through direct mail. The medium also helped jump-start new product introductions via on-pack, game cards and other trial mechanisms.

Structural Graphics, Essex, CT, created a series of magazine inserts touting new programming on HBO, which helped the specialty printer grow over 10% in 2004. The HBO inserts included Venetian blind slats and sound modules to capture consumer attention immediately after opening a magazine.

“HBO is integrating the unique and breakthrough nature of the specialty printing format to leverage their brand personality,” says Mike Maguire, SG's president. “These inserts can create a lasting ripple effect and pass-along quality.”

Inserts for HBO's new series The Wire garnered reader attention with its changing picture device — the first time such a device was shipped within a magazine.

“Clearly some dollars that went into broadcast media are moving towards print media because there is a general understanding and desire for advertising to have staying power and tactile benefit,” points out Maguire.

Who could forget McDonald's free Sony Connect music download codes, printed last year on Big Mac cartons? Or Burger King plastering images of Spider-Man on tray-liners, containers, window decals, and in-store P-O-P advertising their Spidey Sense game?

Internet games and new product Web sites are often promoted via print, including game pieces on product packaging or magazine inserts that lead consumers to a product Web site for decoding and prize information.

“We continue to see trends towards increasingly complex games and promotions driving higher levels of consumer involvement,” says Eric Schaffer, general manager of Rosemont, IL-based CCL Label, Inc. He reports print spending up from 3% to 10%. CCL creates game pieces, coupons and P-O-P.

“The instant gratification that these promotions can deliver, as well as the potential to drive consumers to loyalty programs and the Internet, has led to an increase in multi-tiered games and coupons. Overall, we see modest growth.”

For 2005, specialty printers will continue to push the envelope for innovation. And brand marketers, with their increasingly integrated campaigns and brand messages, will continue to use printed media to keep their brand message in hand.

SNAPSHOT 2004

Promotional spend on specialty print up $200 million over 2003

Focus on direct mail and on-shelf

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