*NEWS*ANALOG PRINTING:BIG PART OF IND.

[Anonymous]

Worldwide Advertising Expenditures Valued at $44 Billion

estimates SHOW that Worldwide advertising expenditures were $44 billion. Analog printing technologies (screen, offset, flexo, gravure and photo) make up more than three-fourths of the market; digital printing technologies (ink jet and electrophotography) about 25%. The dominant print technology is screen with 46% of the market, followed by ink jet with 18%.

POP advertising consists of displays, signage and other media that communicate a brand’s availability and key attributes to consumers at retail, the point where 70% of all brand purchase decisions are made. POP advertising is considered the “Last three feet of the marketing plan; the final gauntlet for the consumer and the last line of influence by the brand manufacturer or retailer.” The purpose of POP advertising is to close the sale buy bringing together the message, the product, the consumer and the dollars to buy the product at the same time and place.

According to Patti Williams, Consulting Partner at I.T. Strategies, “Ink jet technology has been somewhat restricted in the POP market because of its inability to print high volumes with consistent quality compared to analog print technology and even with those restrictions it has captured 18% of printing expenditures. As ink jet technology advances in speed and quality, it has the opportunity to take more share away from screen, offset and flexo. We are already seeing this happen as digital printers, screen printers focusing on POP and packaging companies also focusing on POP install ink jet flat bed printers.

Who does the Printing?
Suppliers of printing to the POP industry are not a homogenous group. They vary from large manufacturing companies that produce in-store displays as well as packaging; to smaller companies that offer design services in addition to printing; and others that offer fabrication and installation services as well as printing. What they all have in common is that they all offer products and services to brand manufacturers and retailers that are looking to influence the customer at retail. POP printers may offer only analog printing, analog and digital printing or only digital printing. These companies may focus 100% on the POP market or POP may be one of the market areas they sell into.

	Digital Technologies		Analog Technologies
	Wide Format Ink Jet	Electrophotography	Screen	Offset	Flexo	Gravure	Photo
Printing Capabilities	–Roll –Flatbed –Used for displays and signage –New digital flatbed printers primarily being used for POP applications	–Desktop Color Lasers –Digital Presses –Used for signage and base wraps	–Most widely used printing technology for POP –Used primarily for printing on rigid substrates such as corrugated and Sintra	–Also referred to as litho laminate; used for liner board laminated to corrugated for high-impact, near photo quality graphics for both short and long runs	–Most commonly used printing technology for corrugated; used for both packaging and POP applications	–Used for high volume, high quality packaging and display applications. –Highest quality web printing available	–Used by a number of photo labs and digital printers for photo quality signage and backlit displays

[Author]

February 2, 2004 at 9:55 AM