Print versus Digital

Page 1

Prepared By Qube, Singapore

Print vs. Digital


CONTENT

1.0 PRINT VS. DIGITAL 1.1

Pros and Cons

1.2

How Print Supports Digital and Vice Versa

1.3

Statistics

2.0 CONSUMERS OF NOW 2.1

Informed Consumers

2.2

Affluent Consumers

2.3

Senior Business Executives

3.0 LUXURY BRANDS AND DIGITAL MEDIA

How Luxury Brands Should Use Digital Media

3.1

Relationship Building

3.2

Tools

3.21 3.22 3.23 3.24 3.25 3.26

Email/eDM Interactive or Virtual Catalogues Rich Media Website Monitoring Other Social Media/Web 2.0 Tools

4.0 LUXURY BRANDS AND PRINT MEDIA 4.1

What Digital Media Are Best Used For

4.2

What Print Is Best Used For

5.0 BIBLIOGRAPHY

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1.0 PRINT VS. DIGITAL 1.1 Pros and Cons 1.2 How Print Supports Digital and Vice Versa 1.3 Statistics

CopyrightŠ 2009 Qube Studio Private Limited, Singapore


PRINT VS. DIGITAL

– A printed piece appeals to the most basic level of a person’s senses – Survey respondents state that the ability to hold, smell and feel an object is what they remember most about a piece and the product or brand it represents – People read word-for-word when reading print, but only scan online text1 – The online environment deters the consumer from focusing because of its multiple distractions (other open windows/tabs, instant messaging, etc.) – Reading online may not be as rewarding – or effective – as reading the printed word2 Thus, online and offline content cannot be written or presented the same way3 – C-level business executives have a preference for print in the leisure sector (i.e. magazines on their hobbies, or reading during their leisure time) – Magazine print ads are more effective than online banner ads4

1

Statistics in Appendix More details in Appendix 3 More details in Appendix 4 More details in Appendix 2

Copyright© 2009 Qube Studio Private Limited, Singapore

1.01


PRINT VS. DIGITAL

PROS

CONS

– Tactile and prehensile

– Cost

– Portable, convenient and easy to read

– Does not address all of the ways consumers want to get information

– Discrete units of text facilitate concentration – Higher credibility

PRINT DIGITAL

1.1

– Takes up physical space

– Remains a comfortable form for older generations

– Can be in only one place at a time

PROSa

CONS

– “Up-to-the-minute” information

– No limit to the amount of search results

– Interactive user feedback

– Question of validity and credibility 5

– Easily searchable

– Results must be evaluated carefully

– Depth and richness of content

– Readability is worse

– Quick and easy to produce

– Divided attention of internet-browsing consumer (multiple distractions)

5

While consumers clearly see the benefits of the Internet on their lives, they continue to have concerns about Internet safety and the trustworthiness of some online information – just 28% trust the information that companies provide on the Internet. Copyright© 2009 Qube Studio Private Limited, Singapore


PRINT VS. DIGITAL

HOW PRINT SUPPORTS DIGITAL AND VICE VERSA

– Consumers with favourable opinions towards online advertising expressed more positive attitudes towards all other traditional forms of advertising media tested – The reverse is also true – Marketers can either use print to support digital, or use digital to support print: • Print supported by digital: Consumers receive print collateral directing them to an online source that provides them with more information about the offering • Digital supported by print: Consumers can request a print brochure to be sent to them if they want more details – Online advertising can be the lead generator, but print is the persuasive factor

Copyright© 2009 Qube Studio Private Limited, Singapore

1.2


PRINT VS. DIGITAL Statistics

26

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23 20 million18 m il

25 m illio

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2 million 8 lion 2 4 m illio n

on milli

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illi

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l i on 9 4 53 million mil 42 m lio million m 33

27 m i l lio n CopyrightŠ 2009 Qube Studio Private Limited, Singapore

220 m i

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3

INTERNET USERS AND POPULATION STATISTICS FOR WORLDWIDE

1.31


n intern

et

users

popula

tio

PRINT VS. DIGITAL Statistics

WORLD INTERNET USAGE AND POPULATION STATISTICS

ill i o n b 8 . 3

393

65 7

llion m i 2 51

m

illio

54

97

5

million

n

llion

North America

millio

mi

33 8

Europe

lio mil n

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8 04 m i

n

58 1

19 7 m n

Africa

Asia

Middle East

llion

i 3i4lliom n

21 m

4 mill

l li o

17

n

llion

Latin America/Caribbean

6 mi

mi ion

o illi

4

Oceania/Australia

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1.32


PRINT VS. DIGITAL Statistics

INTERNET USERS AND POPULATION STATISTICS FOR ASIA

Internet Users

931million

Rest of the World 2.9 billion

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Asia 657million 3.8 billion Internet Users

1.33


PRINT VS. DIGITAL Statistics

INTERNET USAGE IN EUROPE

39

p ro

w o e rld

eu .9 billi

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n o i l b il

n illio

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80 4 n llio

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rest of

CopyrightŠ 2009 Qube Studio Private Limited, Singapore

1.34

population internet users


PRINT VS. DIGITAL Statistics

INTERNET USERS AND POPULATION STATISTICS FOR THE AMERICAS

151 million

40 million

9 million

The Caribbean

29 million

Central America

390 million

129 million

South America

338 million

247 million

North America

Population Internet Users World Population

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1.35


2.0 CONSUMERS OF NOW 2.1 Informed Consumers 2.2 Affluent Consumers 2.3 Senior Business Executives

CopyrightŠ 2009 Qube Studio Private Limited, Singapore


CONSUMERS OF NOW

2.1

INFORMED CONSUMERS – Consumers are more informed now than ever – Consumers are increasingly seeking out relationships with the companies they choose to do business with – Buying decisions are built on information they have researched and influential online communities – Informed customers assert more control over the brand

Copyright© 2009 Qube Studio Private Limited, Singapore

– They expect companies to participate in dialogues with them and listen to their ideas and requests as well as react to feedback

– Consumers who feel they are not being heard will turn to other channels to share their opinions and frustration –

Many consumers choose the Internet to do so – specifically, social media sites which can include discussion boards, blog and online groups

– These word-of-mouth propagating tools can make or break a company’s reputation


CONSUMERS OF NOW

2.2

AFFLUENT CONSUMERS – The affluent consumer is segment ready for online marketing – They are highly considered and informed purchasers – 91% of them look at reviews before buying luxury goods – However, that does not mean luxury retailers can forgo plush packages and pampering – The wealthy still like the brands they purchase to make them feel special – They expect a luxury brand’s marketing to reflect the brand image – They are also value-driven consumers in this downturn – 87% of consumers state that they would rather buy a more costly item that keeps its value, than a less expensive one whose value will diminish – The recession has brought about feelings of “luxury shame” for certain affluent consumers, which affect the extravagance and openness of their purchasing decisions

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CONSUMERS OF NOW

SENIOR BUSINESS EXECUTIVES

2009 Decision Dynamics study (by Financial Times and Doremus): – 66% of younger executives (under 45 years of age) obtained their information from electronic media, followed by traditional media – Only 50% of those aged 55+ made the same claim – However, 75% of all respondents disagreed with the statement that the Internet meets all their information needs – A majority of this segment still look to print for in-depth analysis

Copyright© 2009 Qube Studio Private Limited, Singapore

2.3


3.0 LUXURY BRANDS AND DIGITAL MEDIA – Consumers feel that luxury brands have been How Luxury Brands Should Use Digital Media 3.1 Relationship Building slow on the uptake of Web 2.0 – They expect luxury brands to set the benchmark for digital advertising, much as they do in print advertising – 68% of hoteliers reported that they would be shifting their budgets from offline to online marketing activities in 2008

Copyright© 2009 Qube Studio Private Limited, Singapore

3.2

Tools 3.21 3.22 3.23 3.24 3.25 3.26

Email/eDM Interactive or Virtual Catalogues Rich Media Website Monitoring Other Social Media/Web 2.0 Tools

– Web 2.0 is great for conversations and winning but it is only part, and not all, of the brand experience


LUXURY BRANDS AND DIGITAL MEDIA How Luxury Brands Should Use Digital Media

3.1

RELATIONSHIP BUILDING – Understand how, when and why customers (as well as potential customers) use the Web and social networking – Listen in to the social media conversation that is already going on about the brand, product or company – Use the online or digital space as a channel for customers to have a two-way conversation with the brand – Learn how to communicate with consumers in a way that encourages trust and engagement

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– Be transparent and open – Do not try to control the online conversation or any consumer-generated media (CGM)– Instead, participate – Build authentic communities around the brand – These communities will provide important and timely opinions, reviews and information


LUXURY BRANDS AND DIGITAL MEDIA How Luxury Brands Should Use Digital Media Tools

3.21

EMAIL/eDM – Tread carefully in this area to preserve the long-term value of this marketing channel 6

– However the main message of the email should not be obstructed.

– Realise which sort of email content and email type consumers are looking to receive, even if it is permission mail

– Thus, marketing messages in eDMs must be condensed

– Based on interest and volume information, promotional emails are seen as the most intrusive email type – The quality of a company’s email program influences brand perceptions, whether negatively or positively –

6 Copyright© 2009 Qube Studio Private Limited, Singapore

Integration of promotional marketing messages into transactional emails is a marketer’s best tactic to cut through promotional clutter

More details and statistics in Appendix

– Alternatively, marketers can provide a mix of print and electronic direct mail –

This reduces the amount of promotional emails and also takes into consideration C-level executives’ preference for print in the leisure sector

It could possibly replace or lessen a brand’s online ad clutter by providing another advertising option to channel messages through


LUXURY BRANDS AND DIGITAL MEDIA How Luxury Brands Should Use Digital Media Tools

3.22

INTERACTIVE OR VIRTUAL CATALOGUES – Interactive catalogues mirror offline print books – Although catalogues are cumbersome, a significant segment of the customer base has shown it prefers them to site-navigating – They may not be the most popular option, but when people do engage, they convert – Some luxury merchants send these interactive catalogues via email to their top customers before their print books arrive in the mailbox. This gives the best customers a first look at new merchandise – The superior image reproduction of rich media catalogues appeals to luxury brands and high end companies – For brands that produce a print catalogue, the virtual catalogue maximises their investment in the book’s creative material Copyright© 2009 Qube Studio Private Limited, Singapore


LUXURY BRANDS AND DIGITAL MEDIA How Luxury Brands Should Use Digital Media Tools

RICH MEDIA

Rich media are visually engaging content that highlights a brand’s products in the context of the environment, as well as the lifestyle they are meant to complement

– An example is Tod’s video and online campaign

Copyright© 2009 Qube Studio Private Limited, Singapore

3.23


LUXURY BRANDS AND DIGITAL MEDIA How Luxury Brands Should Use Digital Media Tools

3.24

WEBSITE – Do not focus the website too narrowly around customer service and complaints – Do not view the website solely as a place to market your product – Use the website to build your brand image – Consider the usefulness of the website for consumer research – Introduce features on your website that will elicit consumer ideas, opinions and inputs – Websites that are cluttered with ads not only annoy their audience, but diminish ad effectiveness as well7 – Note that most consumers have grown oblivious to the industry-standard spaces for certain online advertising media – for example, online ad banners – – This results in a poor recall for web advertising

7

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More detail in Appendix


LUXURY BRANDS AND DIGITAL MEDIA How Luxury Brands Should Use Digital Media Tools

MONITORING

– Monitoring is a part of the Brand Defensive Strategy –

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3.25

Companies should react to customer reviews on social media sites that matter. For hoteliers, two important sites are TripAdvisor.com and HotelGuide.com


LUXURY BRANDS AND DIGITAL MEDIA How Luxury Brands Should Use Digital Media Tools

OTHER SOCIAL MEDIA/ WEB 2.0 TOOLS – Twitter – Videos – Forums – Social bookmarking – Blogs – RSS – Podcasts – Vodcasts Copyright© 2009 Qube Studio Private Limited, Singapore

3.26


4.0 LUXURY BRANDS AND PRINT MEDIA 4.1 What Digital Media Are Best Used For 4.2 What Print Is Best Used For

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LUXURY BRANDS AND PRINT MEDIA

– – – – – –

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While digital is still the forerunner in contemporary marketing channels, print proves to be a strong complementary or supplement when wielded expertly

– Consumers read printed material 25% faster than onscreen material – A Vertis Communications study stated that for complicated selling information, many consumers simply print out the material from the Internet in order to absorb it A Deloitte survey stated that we are living in – a “media democracy”, where no single form of media dominates A recent survey conducted by Pitney Bowes found that 56% of consumers had a high preference for personalised direct mail – with – messages and offers uniquely designed to reflect their needs and interests Echelon Marketing Group president Don Neal states that email is the least able vehicle for presenting a luxury brand image. More effective methods include direct mail, catalogues, telephone calls and special events

4.01

Personalising messages can also generate up to 5 times the response rate over generic communications, while adding a specific offer to a customised message can increase the response rate by nearly 10 times A print ad should no longer stand alone. Neither should any brand-building print collateral, such as brochures, flyers, fact sheet, pocket folders, sales booklets, press kits. There has to be an accompanying Web presence The decision-maker that marketers need to influence has less time to find and evaluate information, which means marketers have to blanket that prospect with multiple ways to access a brand The fact is, all media tools do some jobs well and some not so well, which is why finding the best marketing mix to leverage each tool’s best capabilities would result in optimising overall marketing effectiveness and cost


LUXURY BRANDS AND PRINT MEDIA

WHAT DIGITAL MEDIA ARE BEST USED FOR – Use digital/online to build and maintain customer relationships and customer loyalty • The greatest of the Web’s benefits is the opportunity to interact with and listen to customers • It can be utilised as as a quick testing ground to garner feedback: – to broadcast time-sensitive, quick information bites to consumers – to serve as an effective channel when consumers are looking for immediate information

Copyright© 2009 Qube Studio Private Limited, Singapore

4.1


LUXURY BRANDS AND PRINT MEDIA

WHAT PRINT IS BEST USED FOR – To build and maintain brand awareness (even if there is a shift to online) – For more in-depth or longer pieces of writing – When marketers want consumers to focus only on one item (as opposed to the multitasking of consumers when they read online)

Note: If done well, print produces more effective results; but if not, results are much worse Copyright© 2009 Qube Studio Private Limited, Singapore

4.2


Ballantyne, C. (2008, Dec 23). Online v print reading: which one makes us smarter? The 60-Second Science News Blog (from Scientific American Inc). Retrieved from: http://www.sciam.com/ Bates, R. (2009, Mar 1) The frugal consumer: When shoppers lose the urge to splurge. Jewelers Circular Keystone. Retrieved from: http://www.jckonline.com Comac (-). Collateral rationalization – Making your collateral pay its own way. Comac, Inc. Retrieved from: http://www.comac.com

Faulhaber, P. (2009, Feb 11). Online advertising: Advertising trends show shift from print. Suite 101. Retrieved from: http://web-advertising.suite101.com

Ogilvy & Mather (2009). Digital in a downturn – Smart strategies for tough times. Ogilvy & Mather Worldwide. Retrieved from: http://www.ogilvyonrecession.com/

Fleishman-Hillard/Harris Interactive (2008, June 12). Digital influence index sheds new light on role of digital channels in consumer decision-making. Harris Interactive. Retrieved from: http://www.harrisinteractive.com

Pitney Bowes (2008). Unraveling the collateral management conundrum. Pitney Bowes Inc. Retrieved from: http://www.pb.com

Hotel eBusiness Strategies (2008, Dec 26). Hotel internet marketing best practices and 2009 action Plan. 4 hoteliers. Retrieved from: http://www.4hoteliers.com

Connolly, L. (2009). View from the inbox 2009: Actionable information for marketers from the annual consumer email attitudes and usage study. Merkle Inc. Retrieved from: http://www.merkleinc.com/

Magill, K. (2006, Jun 1) From Print to screen. Penton Media, Inc. Retrieved from: http://www.multichannelmerchant.com

Coyler, E. (2007, Aug 27). Luxury brands confront Web 2.0. BrandChannel. Retrieved from: http://brandchannel.com/

Mitre (2007). Do you need printed collateral in a digital world? Mitre Agency. Retrieved from: http://mitreagencyclients.com

Davies, M. (2008, Oct). Listening to consumers 101: How marketers can leverage consumer-generated media. Nielsen Online. Retrieved from: http://www.nielsen-online.com

Mortimer, P. (2008, July 8). Where is the money? Sales and marketing collateral. Printing News. Retrieved from: http://www.printingnews.com

Doremus (2009, Mar 12). Worldwide senior execs “Can’t get enough” media says new Financial Times/Doremus survey. Retrieved from: http://www.doremus.com

Nussey, B. (2009, Mar 24). The rules of engagement marketing. iMedia Connection. Retrieved from: http://www.imediaconnection.com

Powers, W. (2006) Hamlet’s Blackberry: Why paper is eternal. Joan Shorenstein Center on the Press, Politics and Public Policy Discussion Paper Series, Harvard University. Salter, G. & Bracewell, V. (2008, May 28). E-commerce: Web remains a world away for big brands. The Financial Times. Retrieved from: http://www.ft.com Starkov, M. & Price, J. (2009, Mar 17). The hotelier’s internet marketing action plan for a difficult economy. Hotel Marketing. Retrieved from http://www.hotelmarketing.com Tsao, J. & Sibley, S. (2004, May 12). Displacement and reinforcement effects on the internet and other media as sources of advertising information. Cambridge Journal of Advertising Research, Vol. 44, Issue 01. Retrieved from: http://journals.cambridge.org Wegert, T. (2008, Oct 9). Using video to elevate luxury marketing online. ClickZ. Retrieved from: http://www.clickz.com

5.0 BIBLIOGRAPHY Copyright© 2009 Qube Studio Private Limited, Singapore


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