Variable Data Printing 2006: Growth and Changes in the Marketplace

EXECUTIVE SUMMARY

PRINTERS AND VARIABLE DATA

PRINTERS’ CHANGE IN PRODUCTION VOLUME OF VDP

INTERNAL SALES AND PRODUCTION MIX

WHOM ARE YOU SELLING TO?

CREATIVES’ USE OF VARIABLE DATA

PUBLISHERS’ USE OF VARIABLE DATA

CONCLUSIONS AND FORECAST

IS THERE A SLOWDOWN?

SECTION 1: INTRODUCTION

THREE-PRONGED APPROACH TO THE DATA

PLACING THE DATA INTO CONTEXT

HOW WE’RE DEFINING “VARIABLE DATA PRINTING”

SECTION 2: CHANGING PERCEPTION OF VARIABLE DATA

VDP AS A TOP SALES OPPORTUNITY

VDP AS A SALES OPPORTUNITY OVER TIME

VDP ON COPIERS AND LASER PRINTERS

OTHER DEVICES USED FOR OUTPUTTING VDP

SECTION 3: GROWTH IN VDP ADOPTION

WHO’S DOING VDP?

HOW WOULD YOU CLASSIFY THOSE JOBS?

WHAT OUTPUT DEVICES ARE YOU USING FOR THESE JOBS?

VDP AS A PERCENTAGE OF REVENUES

SECTION 4: CHANGE IN PRODUCTION VOLUME OF VARIABLE DATA PRINT

VERSIONING

SIMPLE ADDRESSING, “MAIL-MERGE” TYPE JOBS

PREPRINTED OFFSET SHELLS CUSTOMIZED WITH DIGITAL PRINTING

FULL-COLOR, VARIABLE-IMAGE, VARIABLE-TEXT JOBS W/1-12 VARIABLE FIELDS

FULL-COLOR, VARIABLE-IMAGE, VARIABLE-TEXT JOBS 13+ VARIABLE FIELDS

CUSTOMIZED WEB SITE FOR PERSONALIZED/ON-DEMAND PRINTING

B&W, VARIABLE-IMAGE, VARIABLE-TEXT JOBS WITH 1-12, 13+ VARIABLE FIELDS

SECTION 5: INTERNAL SALES AND PRODUCTION MIX

TRANSACTIONAL VS. COMMERCIAL MIX

TRANSACTIONAL VS. COMMERCIAL MIX — PERCENTAGE BREAKDOWNS

WHOM ARE YOU SELLING TO?

WHOM ARE YOU SELLING TO? PERCENTAGE BREAKDOWNS

SECTION 6: CREATIVES’ USE OF VARIABLE DATA

VARIABLE DATA AS A TOP SALES OPPORTUNITY

“DO YOU USE VARIABLE DATA?”

WHAT KINDS OF VDP JOBS ARE YOU DOING?

CHANGE IN PRODUCTION VOLUME OF VDP JOBS

SECTION 7: PUBLISHERS’ USE OF VARIABLE DATA

VDP AS A TOP SALES OPPORTUNITY

VDP AS A BUSINESS CHALLENGE

CHANGING PRODUCTION VOLUMES OF VDP JOBS

SECTION 8: CONCLUSIONS AND FORECAST

CONTINUING TO MAKE INROADS

IS THERE A SLOWDOWN?

GROWTH OF TRANSACTIONAL VDP

GET ON THE STICK!

FINALLY, ON A GROWTH TRACK

TABLE OF FIGURES

FIGURE 1: “DIGITAL COLOR VARIABLE DATA PRINTING JOBS,” BY GRAPHIC ARTS SEGMENT, HISTORICAL

FIGURE 2: DO YOU OFFER VARIABLE DATA PRINTING? ALL GRAPHIC ARTS FIRMS, DIGITAL PRINTERS

FIGURE 3: HOW WOULD YOU CLASSIFY THESE JOBS? ALL GRAPHIC ARTS FIRMS, PART 1

FIGURE 4: HOW WOULD YOU CLASSIFY THESE JOBS? ALL GRAPHIC ARTS FIRMS, PART 2

FIGURE 5: WHAT OUTPUT DEVICES ARE YOU USING TO PRODUCE VDP JOBS? ALL GRAPHIC ARTS FIRMS, PART 1

FIGURE 6: WHAT OUTPUT DEVICES ARE YOU USING TO PRODUCE VDP JOBS? ALL GRAPHIC ARTS FIRMS, PART 2

FIGURE 7: CHANGE IN PRODUCTION VOLUME OF VERSIONING JOBS, ALL GRAPHIC ARTS FIRMS

FIGURE 8: CHANGE IN PRODUCTION VOLUME OF SIMPLE ADDRESSING, “MAIL-MERGE” TYPE JOBS, ALL GRAPHIC ARTS FIRMS

FIGURE 9: CHANGE IN PRODUCTION VOLUME OF PREPRINTED OFFSET SHELLS CUSTOMIZED WITH DIGITAL PRINTING, ALL GA FIRMS

FIGURE 10: CHANGE IN PRODUCTION VOLUME OF FULL-COLOR, VARIABLE-IMAGE, VARIABLE-TEXT JOBS W/1-12 VARIABLE FIELDS, ALL GRAPHIC ARTS FIRMS

FIGURE 11: CHANGE IN PRODUCTION VOLUME OF FULL-COLOR, VARIABLE-IMAGE, VARIABLE-TEXT JOBS W/ 13+ VARIABLE FIELDS, ALL GRAPHIC ARTS FIRMS

FIGURE 12: CHANGE IN PRODUCTION VOLUME OF CUSTOMIZED WEB SITE FOR PERSONALIZED/ON-DEMAND PRINTING, ALL GA FIRMS

FIGURE 13: CHANGE IN PRODUCTION VOLUME OF B&W, VARIABLE-IMAGE, VARIABLE-TEXT JOBS WITH 1-12, 13+ VARIABLE FIELDS, ALL GRAPHIC ARTS FIRMS

FIGURE 14: IN DEVELOPING AND SELLING THESE JOBS, DO YOU WORK PRIMARILY WITH MARKETERS DIRECTLY? CREATIVE DIRECTLY? BOTH EQUALLY? ALL GRAPHIC ARTS FIRMS

FIGURE 15: “VARIABLE DATA PRINTING” AS A SALES OPPORTUNITY, BY CREATIVE SEGMENT, HISTORICAL

FIGURE 16: HAVE YOU DONE VDP JOBS IN THE LAST 12 MONTHS? ALL CREATIVES

FIGURE 17: HOW WOULD YOU CLASSIFY YOUR VDP JOBS? ALL CREATIVES

FIGURE 18: ARE YOUR PERSONALIZED, CUSTOMIZED, VARIABLE DATA, OR TARGETED PRINT JOBS INCREASING, DECREASING, OR STAYING THE SAME? ALL CREATIVES

FIGURE 19: VDP AS A TOP SALES OPPORTUNITY, PUBLISHERS, BY SEGMENT

FIGURE 20: VDP AS A TOP BUSINESS CHALLENGE, PUBLISHERS, BY SEGMENT

FIGURE 21: ARE YOUR PRODUCTION VOLUMES OF VDP INCREASING, DECREASING, OR STAYING THE SAME? ALL PUBLISHERS

FIGURE 22: “DIGITAL COLOR VARIABLE DATA PRINTING JOBS” AS A TOP SALES OPPORTUNITY, ALL GRAPHIC ARTS FIRMS

FIGURE 23: “DIGITAL COLOR VARIABLE DATA PRINTING JOBS,” COMM’L PRINTERS AND TRADE SHOPS, BY SIZE

FIGURE 24: “DIGITAL COLOR VARIABLE DATA PRINTING JOBS,” BY GRAPHIC ARTS SEGMENT, HISTORICAL

FIGURE 25: “DIGITAL COLOR VARIABLE DATA PRINTING JOBS,” AS A TOP SALES OPPORTUNITY ON COLOR LASER PRINTERS, COPIERS, AND DIGITAL PRESSES, ALL GRAPHIC ARTS FIRMS, QUICK PRINTERS, DIGITAL PRINTERS

FIGURE 26: “DIGITAL COLOR VARIABLE DATA PRINTING JOBS” USING COLOR COPIERS, DESKTOP COLOR PRINTERS, AND DIGITAL COLOR PRESSES AS A TOP SALES OPPORTUNITY, ALL GRAPHIC ARTS FIRMS, HISTORICAL

FIGURE 27: “DIGITAL COLOR VARIABLE DATA PRINTING JOBS” USING COLOR COPIERS, DESKTOP COLOR PRINTERS, AND DIGITAL COLOR PRESSES AS A TOP SALES OPPORTUNITY, COMM’L PRINTERS, BY SHOP SIZE

FIGURE 28: “DIGITAL COLOR VARIABLE DATA PRINTING JOBS” USING COLOR COPIERS, DESKTOP COLOR PRINTERS, AND DIGITAL COLOR PRESSES AS A TOP SALES OPPORTUNITY, TRADE SHOPS, BY SHOP SIZE

FIGURE 29: WHAT DEVICES ARE YOU USING TO OUTPUT YOUR VDP JOBS? ALL GRAPHIC ARTS FIRMS

FIGURE 30: DO YOU OFFER VARIABLE DATA PRINTING? ALL GRAPHIC ARTS FIRMS

FIGURE 31: DO YOU OFFER VARIABLE DATA PRINTING? DIGITAL PRINTERS

FIGURE 32: HOW WOULD YOU CLASSIFY THESE JOBS? ALL GRAPHIC ARTS FIRMS, PART 1

FIGURE 33: HOW WOULD YOU CLASSIFY THESE JOBS? ALL GRAPHIC ARTS FIRMS, PART 2

FIGURE 34: HOW WOULD YOU CLASSIFY THESE JOBS? DIGITAL PRINTERS, PART 1

FIGURE 35: HOW WOULD YOU CLASSIFY THESE JOBS? DIGITAL PRINTERS, PART 2

FIGURE 36: WHAT OUTPUT DEVICES ARE YOU USING TO PRODUCE VDP JOBS? ALL GRAPHIC ARTS FIRMS, PART 1

FIGURE 37: WHAT OUTPUT DEVICES ARE YOU USING TO PRODUCE THESE JOBS? ALL GRAPHIC ARTS FIRMS, PART 2

FIGURE 38: WHAT OUTPUT DEVICES ARE YOU USING TO PRODUCE THESE JOBS? DIGITAL PRINTERS, PART 1

FIGURE 39: WHAT OUTPUT DEVICES ARE YOU USING TO PRODUCE THESE JOBS? DIGITAL PRINTERS, PART 2

FIGURE 40: WHAT PERCENTAGE OF YOUR OVERALL REVENUES ARE VDP JOBS? ALL GRAPHIC ARTS FIRMS

FIGURE 41: WHAT PERCENTAGE OF YOUR OVERALL REVENUES ARE VDP JOBS? DIGITAL PRINTERS

FIGURE 42: CHANGE IN PRODUCTION VOLUME OF VERSIONING JOBS, ALL GRAPHIC ARTS FIRMS

FIGURE 43: CHANGE IN PRODUCTION VOLUME OF VERSIONING JOBS, DIGITAL PRINTERS

FIGURE 44: CHANGE IN PRODUCTION VOLUME OF SIMPLE ADDRESSING, “MAIL-MERGE” TYPE JOBS, ALL GRAPHIC ARTS FIRMS

FIGURE 45: CHANGE IN PRODUCTION VOLUME OF SIMPLE ADDRESSING, “MAIL-MERGE” TYPE JOBS, DIGITAL PRINTERS

FIGURE 46: CHANGE IN PRODUCTION VOLUME OF PREPRINTED OFFSET SHELLS CUSTOMIZED WITH DIGITAL

FIGURE 47: CHANGE IN PRODUCTION VOLUME OF PREPRINTED OFFSET SHELLS CUSTOMIZED WITH DIGITAL PRINTING, DIGITAL PRINTERS

FIGURE 48: CHANGE IN PRODUCTION VOLUME OF FULL-COLOR, VARIABLE-IMAGE, VARIABLE-TEXT JOBS W/1-12 VARIABLE FIELDS, ALL GRAPHIC ARTS FIRMS

FIGURE 49: CHANGE IN PRODUCTION VOLUME OF FULL-COLOR, VARIABLE-IMAGE, VARIABLE-TEXT JOBS W/1-12 VARIABLE FIELDS, DIGITAL PRINTERS

FIGURE 50: CHANGE IN PRODUCTION VOLUME OF FULL-COLOR, VARIABLE-IMAGE, VARIABLE-TEXT JOBS W/ 13+ VARIABLE FIELDS, ALL GRAPHIC ARTS FIRMS

FIGURE 51: CHANGE IN PRODUCTION VOLUME OF FULL-COLOR, VARIABLE-IMAGE, VARIABLE-TEXT JOBS W/ 13+ VARIABLE FIELDS, DIGITAL PRINTERS

FIGURE 52: CHANGE IN PRODUCTION VOLUME OF CUSTOMIZED WEB SITE FOR PERSONALIZED/ON-DEMAND PRINTING, ALL GA FIRMS

FIGURE 53: CHANGE IN PRODUCTION VOLUME OF CUSTOMIZED WEB SITE FOR PERSONALIZED/ON-DEMAND PRINTING, DIGITAL PRINTERS

FIGURE 54: CHANGE IN PRODUCTION VOLUME OF B&W, VARIABLE-IMAGE, VARIABLE-TEXT JOBS WITH 1-12, 13+ VARIABLE FIELDS, ALL GRAPHIC ARTS FIRMS

FIGURE 55: CHANGE IN PRODUCTION VOLUME OF B&W, VARIABLE-IMAGE, VARIABLE-TEXT JOBS WITH 1-12, 13+ VARIABLE FIELDS, DIGITAL PRINTERS

FIGURE 56: ARE YOUR VARIABLE DATA PRINTING JOBS PRIMARILY COMMERCIAL? TRANSACTIONAL? MIX OF BOTH? ALL RESPONSES, DIGITAL PRINTERS

FIGURE 57: ARE YOUR VARIABLE DATA PRINTING JOBS PRIMARILY COMMERCIAL? TRANSACTIONAL? MIX OF BOTH? ALL RESPONSES, DIGITAL PRINTERS

FIGURE 58: IN DEVELOPING AND SELLING THESE JOBS, DO YOU WORK PRIMARILY WITH MARKETERS DIRECTLY? CREATIVE DIRECTLY? BOTH EQUALLY? ALL RESPONSES

FIGURE 59: ON WHAT PERCENTAGE OF YOUR JOBS DO YOU WORK WITH MARKETERS DIRECTLY? CREATIVE DIRECTLY? BOTH EQUALLY? ALL RESPONSES, DIGITAL PRINTERS

FIGURE 60: “VARIABLE DATA PRINTING” AS A SALES OPPORTUNITY, BY CREATIVE SEGMENT, HISTORICAL

FIGURE 61: HAVE YOU DONE VDP JOBS IN THE LAST 12 MONTHS? ALL CREATIVES

FIGURE 62: HOW WOULD YOU CLASSIFY YOUR VDP JOBS? ALL CREATIVES

FIGURE 63: ARE YOUR PERSONALIZED, CUSTOMIZED, VARIABLE DATA, OR TARGETED PRINT JOBS INCREASING, DECREASING, OR STAYING THE SAME? ALL CREATIVES

FIGURE 64: ARE YOUR PERSONALIZED, CUSTOMIZED, VARIABLE DATA, OR TARGETED PRINT JOBS INCREASING, DECREASING, OR STAYING THE SAME? GRAPHIC DESIGNERS

FIGURE 65: ARE YOUR PERSONALIZED, CUSTOMIZED, VARIABLE DATA, OR TARGETED PRINT JOBS INCREASING, DECREASING, OR STAYING THE SAME? AD AGENCIES

FIGURE 66: ARE YOUR PERSONALIZED, CUSTOMIZED, VARIABLE DATA, OR TARGETED PRINT JOBS INCREASING, DECREASING, OR STAYING THE SAME? CORPORATE DESIGNERS

FIGURE 67: ARE YOUR PERSONALIZED, CUSTOMIZED, VARIABLE DATA, OR TARGETED PRINT JOBS INCREASING, DECREASING, OR STAYING THE SAME? COMMERCIAL PHOTOGRAPHERS

FIGURE 68: VDP AS A TOP SALES OPPORTUNITY, PUBLISHERS, BY SEGMENT

FIGURE 69: VDP AS A TOP BUSINESS CHALLENGE, PUBLISHERS, BY SEGMENT

FIGURE 70: “HELPING CLIENTS UNDERSTAND THE USES AND BENEFITS OF VARIABLE DATA PRINTING” AS A BUSINESS CHALLENGE, BY PUBLISHER SEGMENT

FIGURE 71: ARE YOUR PRODUCTION VOLUMES OF VDP INCREASING, DECREASING, OR STAYING THE SAME? ALL PUBLISHERS

FIGURE 72: ARE YOUR PRODUCTION VOLUMES OF VDP INCREASING, DECREASING, OR STAYING THE SAME? MAGAZINE PUBLISHERS

FIGURE 73: ARE YOUR PRODUCTION VOLUMES OF VDP INCREASING, DECREASING, OR STAYING THE SAME? CATALOG PUBLISHERS

FIGURE 74: ARE YOUR PRODUCTION VOLUMES OF VDP INCREASING, DECREASING, OR STAYING THE SAME? BOOK PUBLISHERS

TABLE OF TABLES

TABLE 1: “DIGITAL COLOR VARIABLE DATA PRINTING JOBS” AS A TOP SALES OPPORTUNITY, BY GRAPHIC ARTS SEGMENT

TABLE 2: “DIGITAL COLOR VARIABLE DATA PRINTING SERVICES” AS A TOP SALES OPPORTUNITY, BY DETAILED MARKET SEGMENT

TABLE 3: DO YOU OFFER VARIABLE DATA PRINTING? BY GRAPHIC ARTS SEGMENT

TABLE 4: ARE YOUR VDP JOBS PRIMARILY COMMERCIAL? TRANSACTIONAL? MIX OF BOTH? BY GRAPHIC ARTS SEGMENT

TABLE 5: WHAT PERCENT OF YOUR VDP JOBS ARE PRIMARILY COMMERCIAL? TRANSACTIONAL? MIX OF BOTH? BY GA SEGMENT

TABLE 6: IN DEVELOPING AND SELLING THESE JOBS, DO YOU WORK PRIMARILY WITH MARKETERS DIRECTLY? CREATIVE DIRECTLY? BOTH EQUALLY? BY GRAPHIC ARTS SEGMENT

TABLE 7: ON WHAT PERCENTAGE OF YOUR JOBS DO YOU WORK WITH MARKETERS DIRECTLY? CREATIVE DIRECTLY? BOTH EQUALLY? (IN %) BY GRAPHIC ARTS SEGMENT

TABLE 8: ARE YOUR VARIABLE DATA JOBS VERSIONED, SIMPLE ADDRESSING/MAIL MERGE, PREPRINTED OFFSET “SHELLS” CUSTOMIZED WITH DIGITAL PRINTING, OR FULL-COLOR, VARIABLE-IMAGE, VARIABLE-TEXT JOBS? BY CREATIVE