E-marketing, the production and distribution of marketing materials such as newsletters and brochures in an electronic format, is one of the fastest growing forms of business communication, and statistics suggest that this trend is set to grow at a rare pace over the next couple of years.

Add to this mix the rapid growth of other digital media platforms such as SMS and e-mail messaging, and the picture looks pretty bleak for the UK’s beleaguered commercial printers. That is, of course, unless they can step up to the table and start offering these other methods of communication themselves, as many are already doing. But what does the future hold for those companies who are unwilling or unable to pander to the whims of the new media market – and what’s print’s place likely to be in this multi-channel, data-driven landscape?

The future of print
When financial adviser Grant Thornton unveiled the results of a survey entitled “The future of the UK print industry” earlier this year, some of the findings made uncomfortable reading for printers. The survey found that a whopping 83% of the largest UK companies are currently producing online-only versions of their marketing materials, with one in three items no longer being printed but created and distributed electronically. Furthermore, the survey of senior marketing executives and print managers within UK businesses with turnovers exceeding £100m, discovered that over the next three years more than 70% of those polled plan to increase their reliance on e-marketing by boosting their overall online output by a further 35%.

On interpreting the findings, Grant Thornton’s print industry expert Daniel Smith offers a stark vision of the future for printers due to the rise of e-marketing by cost-cutting corporates.

“Each year the public is getting more and more used to reading online,” claims Smith. “As the popularity of online news sites increases, corporates are taking the view that some of their marketing materials can be delivered just as effectively online as in printed copy – in some instances even more effectively, given the real-time benefits of this medium. A further consideration is that electronic copies don’t only save on print costs but also on postage and paper costs.”

He also warns that the desire to print less was additionally being driven by environmental factors, as companies increasingly look to reduce the impact of their corporate activities, the knock-on effect of which could be disastrous for the print industry.

“While my expectation is that a further shake-out and consolidation within the industry is inevitable, many UK printers should ruthlessly review their strategies as the backlash of e-marketing, talked about for years but never fully materialising, may now, on the bandwagon of environmental justice, start biting where it hurts,” says Smith.

Dramatic words, but what do the creative agencies, who advise clients on which marketing method to employ, make of it all? While one source concedes that their company edict for the current financial year is to make sure that a certain amount of billing is digital media, they add that of the firm’s £3m-£4m billing per annum, print still accounts for around £1.7m and although the balance is slowly shifting they don‘t expect sweeping changes to occur overnight.

James Kirkby, head of creative services at London-based communications agency WDMP, subscribes to this viewpoint. “Despite the availability of different media types, the printed medium is still the number one communication tool,” says Kirkby, “primarily because it is tried and tested, and it allows you to execute personalised, effective mailings for a relatively small production cost. New media is unfamiliar to a lot of companies, and some of the people that we work with have to generate a certain level of response. Print delivers that – it’s a pretty safe bet.”

Integrated briefs
Another fan of print is Donna Brown, head of creative services at direct marketing specialist Harrison Troughton Wunderman (HTW). She says that she is increasingly dealing with integrated briefs from clients, but that print still has a large part to play.

“I am a firm believer that print will always have its place. It will just be that it increasingly finds itself sharing the stage with its other marketing partners,” says Brown.

While this may sound like music to the ears of some printers there is still a caveat. Steve Kessell, creative services director at DraftFCB London, speaks for many in believing that digitally printed personalised communications and print-on-demand will both grow, but overall volumes of printed communications will in all likelihood reduce.

“Print will still be part of the marketing mix but clients may use smaller, more targeted campaigns,” says Kessell.

So what might printers be doing to ensure their survival? Anecdotal evidence suggests that very few multi-channel campaigns have been attempted to date, but this hasn’t stopped a number of printers adding new services to the mix either by acquiring or partnering with specialists in the new media fields, or investing in sophisticated data handling software that gives them the ability to prepare and execute SMS, e-mail and online campaigns. This shift has seen firms such as Adare and TPF dropping their corporate image as print-driven companies, and offering a complete range of marketing services from creative through to production and delivery.

For some at least, this strategy appears to be paying off as they have started to win and manage multi-platform campaign contracts. (A major high-street brand reportedly even approached Adare recently about the possibility of producing its TV advertising.)

However, becoming a multi-channel provider is not as simple as just investing in new technology, as Real Digital managing director Andy Ruddle points out: “You can’t just buy a black box data processor, stick it in the corner and declare yourself a direct mail expert, just the same as you couldn’t buy a digital press and start calling yourself a digital print specialist.”

What customers and creative agencies are looking for, says Ruddle, is companies offering services that they have truly mastered, rather than ‘me too’ outfits who have half-heartedly diversified just because everyone else has.

“Our challenge is to ensure the highest quality of those services for our work, and so quality remains key,” says HTW’s Brown. “We need our print suppliers to be top-notch, however they choose to diversify. It is less important to us that our print suppliers diversify because there will always be a marketplace for us to buy from, but it is probably more important for those suppliers to diversify in order for them to survive within that marketplace.”

Although Brown says that she would have no qualms about placing other forms of media work with printers, some people are far from convinced.

“Both our clients and myself would be reticent to place digital communications contracts with printers,” says one agency source. “Print is a specialist production skill and anyone who tells you that they can produce both high-quality litho print and effective SMS messaging is probably lying.”

One-stop shops
There are others within the agency world who agree with this statement and they will take some persuading that printers can offer a true one-stop shop communications solution. Ruddle believes that the printers who will make a success out of this multi-channel future will do so thanks to their knowledge and experience of the tools that they are using. In turn, they will use these attributes to develop a more sophisticated offer.

Only those companies armed with this mindset will be able to offer a convergence of technologies and deliver messages in a cohesive way. That’s the belief of Kevan Coleman, chairman of Manchester-based K2 Group, who feels that to date there has been a distinct lack of convergence and that “joining things up from a customer point of view” is key to success – as is effective data management.

“The convergence of different platforms is data-driven and you need a profound understanding of data and analytics to do this. You can’t tell someone what the best channel is for them without first understanding the data,” says Coleman.

Creative data
“Data is where the creativity is now,” he continues. “Whereas historically things like different paper stocks or gimmicks like scratch-and-sniff have allowed people to be creative, in the future, as far as bulk communications and targeted mailings go, I think the creativity is in the data and the use of that data.”

But where does all this leave print? The short-term prospects look fine if agency feedback is anything to go by, with digital expected to enjoy further growth off the back of more sophisticated personalised campaigns. Another thing in print’s favour is the fear factor – the powerful fear of the unknown. Print works just as well as it always has, whereas the jury is still out about the effectiveness of some of the newer forms of communication.

“While the focus on data and creativity is more important than ever, print is still the most trusted medium of communication for many people,” confirms Adare chief executive Robert Whiteside.

Another person who firmly sits in this camp is Andy Ruddle’s wife, whom Ruddle describes as a typical consumer. “She would never in a million years open a bank statement sent as an e-mail and click on a button for more information, but if she was sent a printed statement that had a voucher on it that was relevant to her, then she would cut it out and use it.”

“It’s called multi-channel for a reason,” says Whiteside. “You need to communicate with prospective and existing customers in a way that they are comfortable with. It is difficult to replicate in electronic media the effect of something landing on your doorstep, and particularly for the less e-savvy age groups – having something permanent in their hand is a very important part of the consumer relationship.”

So the future of print is assured for the meantime. But it’s certain that the market will keep evolving. Adventurous companies like Adare, TPF and K2 will drive the communications market forward and ensure that the printing industry uses all of its skills and creativity to continue to offer clients and consumers a relevant, innovative and cost-effective solution.

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CASE STUDY: TPF GROUP
TPF decided to go down the multi-channel route after analysis suggested its customers were looking for this type of solution. The Northampton-based company invested to offer a highly diverse platform of services ranging from creative assistance through to document management, as well as a mixture of non-print media tools such as e-mail, web and SMS creation and distribution.

Despite this wide mix, the key point, according to TPF Group’s business development director Dean Smith, is that all the new services complement print. “Print, in its narrowest sense, has become far more of a commodity in the 21st century, and as a consequence, to maintain margin and provide appropriate customer service in an electronic age, a diversified and innovative offering is essential,” he explains.

“SMS messaging, personalised URLs, and the internet all help marketing departments communicate more effectively in alliance with conventional print tools.”

Smith argues that gaining an understanding of the new media channels has made TPF more integral to its client’s communication strategies, which has allowed the group to strengthen and the business to grow.
“New solutions cost money. However, the return on investment, if you market your solutions correctly, will provide great dividends, not only in increased revenue, but through repeat business and loyalty. In today’s competitive market you need to project innovation and ensure you invest a double-digit percentage of profit back into the business to keep in line with the market’s demand to continually be breaking new ground.”

He adds that the firm has gradually witnessed a push towards one-to-one marketing communications where a multi-channel approach provides the greatest means of getting a bespoke message across a joined-up platform of data-driven mediums, such as highly personalised print linked into personalised internet URLs, SMS messages and html-based emails. As a result Smith claims that over the next six months the firm will roll out “one of the most sophisticated 1:1 solutions in the world”.

But despite this growth into other media areas he remains a firm believer that print is here to stay. “People still like the tangible nature of printed materials, so electronic formats and devices are a long way off replacing paper completely.

I envisage an ever-more harmonised and integrated approach of print and non-print mediums, and it’s companies that are able to deliver a truly seamless proposition to clients who will be the big long-term winners.”