Link List for June 30th

By Adam Dewitz on June 30th, 2009

Too Big to Mail

The U.S. Postal Service, losing business and money, must take radical steps to survive in the 21st century.

The USPS system was designed for 300 billion pieces of mail per year. Mail volume in 2008 totaled 202.7 billion piece and volume is decreasing.

Quebecor World: Has the Stalked Become the Stalker?

A hint came in this statement by a spokesman for Angelson and the other new QW directors: “The highly fragmented printing industry must undergo further consolidation, and this company will be an important part of that process. We look forward to providing overall strategic guidance, best governance practices and oversight.”

That Donnelley-esque statement is a wake-up call for the Donnelley folks, who thought they were the ones to pursue the “strategic initiatives” to consolidate the North American printing industry. Those who crafted the proposal that Donnelley become QW’s stalking-horse bidder were reportedly caught off guard by QW’s responses, which amounted to “No,” “No,” and “Hell, no!”

What will happen at QW once they exit bankruptcy is anybody’s guess. Though I doubt there will be any “Holy crap Quebecor World is buying …” moments any time soon.

How Nationwide more than doubled its sales with a new CRM strategy

By using Unica as part of its in-house CRM system, Nationwide has implemented one to one marketing to make tailored and personalised customer offers through direct mail, internet banking, and in-branch and call centre customer interactions.

Data-driven print is a win in this customer communication case study.

Increase Mail Efficiency with Web-to-Print

Real estate firm proves the power of digital print program

The marketers are taking notice of streamlined print specification and ordering.

Posted in Recommend Reading - No Comments

GPO Updating Business Systems: Glitches May Affect Customers, Vendors

By Cary Sherburne on June 29th, 2009

WhatTheyThink had heard that some printers who produce work for the GPO were not being paid in a timely fashion, and were suffering some financial stress as a result. It should be noted that this information did not come from printers experiencing this problem, but rather, from a third-party source.

Our investigation reflected that the same source had also contacted the GPO, and both GPO and WhatTheyThink asked the source for contact information for affected printers, with no result. I personally spoke with GPO’s Gary Somerset, GPO’s Media and Public Relations Manager, to find out what was going on, and he informed me that the GPO was in the process of updating its legacy Business Information System, and that there had been some issues with that transition, as indicated in the press release the agency had already planned to release today.

When Bruce James was appointed as the Public Printer several years ago, he was challenged with modernizing the GPO. He made huge strides in that regard, and Bob Tapella continues the work as the current Public Printer. Much of the early emphasis, at least from my perspective, was placed on the GPO’s primary mission, which is ensuring the security and accessibility of government information in perpetuity. One result of that work is the recent launch of FDsys, the Federal Digital System. While there is still a significant amount of printing done by or through the GPO, almost everything is also available digitally, and the agency has done a significant amount of work to ensure that the infrastructure and file formats will stand up to the test of time–in perpetuity is likely to outlive most of today’s file formats and native application programs! There has also been significant focus on reducing the GPO’s environmental footprint. Our recent interview with GPO’s Trish Fritz provides a review of that work.

The mainframe business information system that is currently being updated dates back to the 1970s. One of GPO’s strategic organizational goals has been to develop an integrated enterprise approach to managing the agency’s business systems and ensure continued financial stability of GPO operations. That process has been underway since May. Transitional issues are not unexpected in these types of major IT projects. The agency’s release makes it clear that payment issues are not intentional, and according to Somerset, a primary purpose of the current press release was to provide both customers and vendors with individuals to contact to resolve any problems.

Our source also intimated that there were a number of Congressional investigations underway relative to these issues. According to Somerset, “GPO is not aware of any Congressional investigation regarding this issue.”

Part of the reason I chose this venue to write about the issue was to provide a platform for discussion among our readers. We invite your comments, especially if you have relevant personal experiences to share. Meanwhile, GPO provided the following contacts for problem resolution:

Accounts Payable: Calvin Adgerson at
Billing: Julie Owens at

We believe GPO is acting in good faith, But if that is not the case, I am sure our readers will let us know.

Posted in Printing Industry News - 10 Comments

B2B Marketing Budgets Expected to be Up in 2010

By David Dodd on June 29th, 2009

About half (53.0%) of B2B marketers expect their budgets to increase in 2010, according to a recent study by BtoB magazine.  The study was based on an online survey of 495 business-to-business marketers conducted between May 14 and June 2.  About 37 percent of survey respondents expect their 2010 budgets to be flat (compared to 2009), while only 10 percent expect to see marketing spend decline in 2010.

The BtoB  survey also asked marketers how they expected their spending on various marketing channels to change in 2010 compared to 2009.  The chart below shows that, for the most part, B2B marketers do not expect to make major changes in their media mix in 2010.  The one exception is online spending, where almost 69 percent of survey respondents expect spending to increase.

Even more encouraging, the BtoB survey indicates that about one-third (32.3%) of marketers say that their budgets will be up in the second half of 2009, compared to the first half of the year.  Forty-six percent of survey respondents expect their spending in the second half of 2009 to be flat, while 21 percent expect a decline in the second half spending.

In general, the BtoB survey results are good news for marketing services firms that work with B2B enterprises.  They suggest that many B2B companies believe that the worst of the recession is (or soon will be) over and that the recovery will begin sometime in the second half of this year.  But these results must also be viewed cautiously.  First, they reflect expectations, and expectations don’t always turn into realities.  Second, even if marketing budgets do increase in 2010, those increases may not take budgets back to pre-recession levels.  And finally, marketing budgets are likely to remain under close scrutiny even if they are increased.  In these circumstances, marketing services firms must remain prepared to demonstrate the value of the marketing programs they advocate.

Posted in B-to-B Media, Marketing - 6 Comments

U.S. Government Objects to Quebecor World Restructuring

By Adam Dewitz on June 27th, 2009

The U.S. Government has asked the U.S. Bankruptcy handling the Quebecor World’s restructuring to deny the plans of reorganization because of $10 million dollars of unpaid U.S. taxes and $150 million in Clean Air Act penalties.

The Canadian Press reports the U.S. government said in a motion filed Wednesday:

“Because these proposed third-party releases are not essential to the reorganization of the debtors, and because the proposed releases would discharge a wide array of potential liabilities, as to none of which this court has jurisdiction, and as to some of which there exist express statutory bars, the court should not grant the non-debtor releases requested,”

Quebecor World has not publicly responded to the U.S. government filling.

On June 22nd creditors approved the Quebecor World plan of reorganization. A confirmation hearing was scheduled to occur this Tuesday, June 30th for the U.S. and Canadian reorganization plans.

Posted in Printing Industry News - 5 Comments

Sorry, Paul Simon, no more KODACHROME

By Gail Nickel-Kailing on June 22nd, 2009

Kodak is retiring KODACHROME Color Film, the “first commercially successful color film” according to the company announcement. Launched in 1935, it had a good run for 74 years. In its press release, Kodak notes:

Among the well-known professional photographers who used KODACHROME Film is Steve McCurry, whose picture of a young Afghan girl captured the hearts of millions of people around the world as she peered hauntingly from the cover of National Geographic Magazine in 1985.

As part of a tribute to KODACHROME Film, Kodak will donate the last rolls of the film to George Eastman House International Museum of Photography and Film in Rochester, which houses the world’s largest collection of cameras and related artifacts. McCurry will shoot one of those last rolls and the images will be donated to Eastman House.

If you are still shooting KODACHROME, the final stock is expected to run out this fall. And there will be a few photo labs processing it through 2010.

Get out your old Paul Simon records (remember those?) and sing along; or you can listen to it here.

Posted in Printing Industry News - 12 Comments

KBA and Manroland Voice Concern over Heidelberg Bailout

By Adam Dewitz on June 21st, 2009

With Heidelberg set to receive 865 million Euros in government loan assistance, PrintWeek is reporting its rivals Manroland and KBA have voiced concern over the bailout. According to the article KBA CEO Helge Hansen stated KBA is “concerned about possible competitive imbalances.”

At the Print 09 Media Days, Vince Lapinski, CEO of Manroland USA also addressed Heidelberg’s bailout during the Q&A portion of Manroland’s presentation.

On June 9th Heidelberg released its financial year 2008/2009 report.

Posted in Printing Industry News - 29 Comments

It All Comes Down to What Works Best

By David Dodd on June 17th, 2009

Several recent posts and comments here at Print CEO have discussed various aspects of the “future of print.”  Because printed documents are used in many ways for many purposes, print does not have “a” future, but rather several “futures.”  One of those “futures” centers around the role that printed materials will play in the future practice of marketing.  While we cannot predict accurately what the future role of print in marketing will be, we already know how that role will be determined.

Customers, both people and companies, “hire” products and services to do specific “jobs.”  In this respect, marketing decision-makers are no different from other customers.  Marketers have several jobs to get done.  For example, they need to build the brand, generate leads, acquire new customers, and retain existing customers.  When a marketer is faced with one of these jobs, he or she will typically “hire” a marketing service, campaign, or program to get the job done.

Today, marketers have access to more marketing channels and more marketing tools than ever before, and the number continues to grow.  For any given marketing job, there are likely to be at least two or three viable channel/technique alternatives.  Savvy marketers are now making channel choices based on performance.  When, how much, and how often any marketing channel or technique gets used will depend on how well it performs relative to its cost, and relative to the benefits and costs of the available alternatives.  In other words, for marketers, channel choices come down to what will work best at the best cost for each specific marketing job.

What does this mean for print and printers?  First, it means that print-centric campaigns or programs will be the right choice for some marketing jobs and the wrong choice for others.  Print advocates will need to be prepared to demonstrate why a print-centric solution is the best choice for the job at hand.  This also points to the advantage of being a marketing services firm that can provide more that print-focused programs.  If you can provide a broader range of services, you can win a client’s business even when the right choice for a campaign or program is something other than print.

Posted in Marketing, Media - 3 Comments

Ad Ratings for Magazines

By Adam Dewitz on June 17th, 2009

Mediamark Research & Intelligence (MRI) a provider of magazine audience and multimedia research data has announced AdMeasure (PDF link) a new ratings service to help advertisers measure the effectiveness of print ads in consumer magazines:

“Historically, a magazine’s total readership was accepted as a proxy for ad exposure,” said Kathi Love, President and CEO of MRI. “But accountability-focused advertisers are demanding moredirect measurement of the reach of their ad campaigns. MRI’s AdMeasure sharpens the focus of magazine accountability by moving the needle from measuring the opportunity to see a print ad to measuring how many readers actually saw the ad, as well as how many took an action as a result of seeing it. This goes a long way to answering the industry’s desire for greater accountability for print advertising.”

BoSacks in his “Heard on the Web” Media Intelligence newsletter spoke out about the announcement:

MRI announced this week the first ad ratings for magazines, which they hope will give advertisers the accountability we have all been looking for. Mediamark Research & Intelligence (MRI) is known in the industry for measuring the audience of consumer magazines, and personally I will always applaud any attempt for truth, justice and accountability. I started to read this report with great anticipation of finding out something worthwhile and truly just in the nick of time.
I was greatly hopeful to read that they believe that the new “AdMeasure” is “designed to elevate magazine audience measurement granularity to the level of TV and the Internet.”

Well, it is about time someone figured out how in an analog world to compete with the real-time data of the Internet.
Apparently, AdMeasure’s ratings will come from three sources: MRI’s Survey of the American Consumer, the MRI Issue Specific Readership Study, and research from MRI Starch, which does research on the effectiveness of print ads.

Does it work? You be the judge.
For my reaction, my hopes were dashed when, if I got this right, the data for AdMeasure and the data that will compete with the Internet will be a collection of human intelligence gathered as a survey of collected data. Is this the magic bullet we have all been waiting for? Is this going to be the true accountability system that the magazine industry so dearly needs? My friends, I think not. I have been spending the last few weeks at trade shows like Digiday where agencies are explaining their needs, wants and desires. None of those needs wants and desires are of compiled ancient data collected last week, last month or last year. They want the data that was collected in the last minute. Who went where, what did they do, and how many purchased something?
Is that extraordinarily tough to compete with? Yes. Does the amazing AdMeasure come close to doing so? Not as I can see it.
I’m all for this new system, and heaven knows we need something, but their hubris to expect this to compete with the real-time data of the Internet is ludicrous. Please don’t make claims that are so obviously incorrect.

Posted in Magazines - 12 Comments

California’s Digital Textbooks Initiative

By Adam Dewitz on June 10th, 2009

On June 8th California Governor Arnold Schwarzenegger launched a digital textbooks initiative. In the speech announcing the initiative Schwarzenegger made his case that printed text books are expensive, outdated, antiquated and heavy:

So this is why I think it is so important that we move on from the textbooks. The textbooks are outdated, as far as I’m concerned and there’s no reason why our schools should have our students lug around these antiquated and heavy and expensive textbooks. California is the home of Silicon Valley. We are the world leader in technology and innovation, so we can do better than that.

That’s why I’m so excited about California’s Digital Textbook Initiative. Starting this fall with high school math and science, we will be the first state in the nation—the first state in the nation —to provide schools with a state-approved list of digital textbooks. Think about this. Traditional hardbound textbooks are adopted in six-year cycles, so as soon as they are printed, then the next six years you don’t get the latest information.

Schwarzenegger evidence of obsolescence is the states own red tape in approving new textbooks (a six year process) and cost of printed books over digital edition. And of course he played the green card:

And then, number two, I think it will help because you don’t have to cutdown as many trees. Think about that, how much paper is being used in those textbooks.

Using digital textbooks is greener if you don’t include the energy used by an electronic reading device and overlook the materials that go into make the reading device.

What I found most interesting in this announcement is no mention of what they mean by digital textbook. The only detail as to what the program will look like was Schwarzenegger’s comment:

Starting this fall with high school math and science, we will be the first state in the nation—the first state in the nation—to provide schools with a state-approved list of digital textbook.

There is no mention how these digital textbooks will be used or what type of electronic device will be required : a personal computer, an ebook device, iPod Touch, or something else? OR what kind of digital rights management will be in place. Can the books be printed on demand for students that prefer or need a printed edition?

Monday’s announcement was strictly a PR event, but with an initiative like this, the success is all in the details. I’m all for using technology in education and there is a lot of opportunity to use computing in the classroom. It will be interesting to watch how all the details are handled.

(Hat Tip to Michael Josefowicz)

Posted in Books - 36 Comments

R.R. Donnelley’s Bid for Quebecor World

By Adam Dewitz on June 9th, 2009

R.R. Donnelley reveled in an SEC filling on June 8th that the company had delivered a revised non-binding proposal to Quebecor World regarding R.R. Donnelley’s interest in the acquisition of all or substantially all of the assets and properties of Quebecor World. The revised proposal sweetens the deal for Quebecor World and its creditors by increasing its offer to “US$178,000,000 (US$100,000,000 plus an additional US$78,000,000 in cash on the balance sheet).” The letter also includes the handling of pensions, labor and tax issues. [Updated 6/9] Folio just published a story stating, “Quebecor World has effectively rejected R.R. Donnelley’s $1.825 billion offer to acquire the company” based on a document filed yesterday with the U.S. bankruptcy court (you can access the documents here). According to the report Quebecor World feels their successful reorganization provides a better deal for the company and its creditors.

[Updated 6/10] RR Donnelley has sent out a press release stating its proposal has expired:

“We are disappointed by the decision of Quebecor World to reject our June 8 proposal,” said Thomas J. Quinlan III, RR Donnelley’s President and Chief Executive Officer. “We believe that our proposal was undoubtedly in the best interests of creditors based on a comparison of the distributions under our proposal with the distributions under the proposed stand-alone plan of reorganization. We are particularly disappointed because of the efforts and concessions made by us to adapt our proposal in response to concerns that were communicated to us.”

“This would have been an excellent fit for RR Donnelley and the best opportunity for the Quebecor World creditors. However, given our view of the Quebecor World operations, a transaction ascribing a higher value to Quebecor World than we offered in our last proposal is simply not in the interests of RR Donnelley,” said Mr. Quinlan. “We look forward to continuing to pursue other strategic initiatives.”

Proposal to Acquire the Assets of Quebecor World Expires

On Friday Folio ran a story pointing out the problems R.R. Donnelley may face with the acquisition including antitrust and coming to agreement with Quebecor World’s creditors. The revised proposal addresses the issues Folio outlined in the article.

Earlier last week Dead Tree Edition (the anonymous blog authored by a magazine manager) ran a Q&A on the Donnelley-Quebecor World Deal that starts out pointing I’m wrong about the antitrust trust issue by overlooking the gravure printing operations. If I remember correctly the Federal Trade Commission stepped in to stop Donnelley’s acquisition of Meredith-Burda in 1990 over gravure printing operations.

PrintCAN reported over the weekend that based on Canadian trademark office filings Quebecor World may change its name to Novink. There has been speculation in the past that Quebecor Inc has pressured Quebecor World to change its name.

Posted in Printing Industry News - 5 Comments