GAMIS Publishes Book Market Overview
A new study published by the Graphic Arts Marketing Information Service (GAMIS), a special interest group of the PIA/GATF, provides an in-depth look at direct mail. Kubas Consultants, Toronto, Canada provided the research for the study. The Future of Direct Mail provides market size estimates, industry trends and demand forecasts through 2010, as well as insights about advertisers’ attitudes and usage of direct mail.
According to Kubas, direct mail will represent approximately $36 billion, or 10 percent of all U.S. media and marketing expenditures in 2004. Direct mail expenditures will continue to experience above average growth, projected at 5.6 percent per year in real terms over 2004 to 2007. In Canada, 2004 direct mail expenditures are projected to be $1.4 billion (USD). Canadian real annual expenditure growth rates are forecast to be 3.3 percent through 2007.
Research from the Direct Marketing Association (DMA) indicates that sales effectiveness of direct mail per-dollar-of-expenditure continues to grow, and also continues to outperform the average ratio for direct marketing overall. The GAMIS study supports DMA’s finding and revealed that over the last five years, direct mail volumes and expenditures have continued to grow despite the Internet and even despite some weakening in consumer response rates. This is likely because direct mail’s sales effectiveness and return on investment (ROI) have continued to strengthen.
The study noted that advertisers will increase their focus on improving returns of their marketing investments. Direct mail can deliver an attractive ROI and offers a mechanism to document results. The research study revealed a strong interest among leading-edge direct mail advertisers to actively exploit two areas:
• Improving targeting through database management and related analytics to reach specific individuals, groups or types of customers.
• Employing variable content to deliver more personalized and customized direct mail. As a result, demand for digital printing and variable imaging will intensify.
The Future of Direct Mail is available to GAMIS members. For more information, contact Jackie Bland, GAMIS executive director, (703) 519-8179; e-mail: firstname.lastname@example.org.; web: www.gamis.org.
Worldwide Revenue from Color Toner Expected to Reach $4.5 Billion in 2007
Worldwide revenue from color toner will grow from $1.7 billion in 2003 to $4.5 billion in 2007, a compound annual growth rate of 27 percent, according to a new report published by Lyra Research. The report, The Changing Dynamics of the Worldwide Toner Market: Five-Year Forecast and Trend Analysis, also finds that monochrome toner revenue will decline from $17.8 to $17.0 billion over the forecast period.
Bob Hochella, a senior analyst at Lyra Research and author of the report, elaborated on the dynamics of the color toner market. “There are four reasons why Lyra projects growth in color toner shipments,” said Mr. Hochella. “First, the installed base of color workgroup laser printers and color laser-based multi-function printers (MFPs) is fueling color toner shipments and revenue. By 2007, we expect that more than 15 percent of all laser printers, copiers and MFPs installed worldwide will have color capability. Second, the transition from monochrome to color printing and copying will accelerate as more commercial printers and corporate offices begin using high-speed color printers, MFPs and copiers for color publishing applications. Third, the performance of color printers, MFPs and copiers continues to improve and higher-speed printers and copiers consume more color toner. Finally, falling hardware prices will fuel the transition to more color printers.”
The new report analyzes trends in the electrophotographic installed base and examines changing hardware platforms and advances in toner technology. Detailed installed-based data by printer and copier market segments are projected, along with regional shipment and revenue data for bulk toner segmented by technology.
Additional information on this new report can be found at www.lyra.com.