The traditional broker model has become vulnerable to procurement software sales directly to small businesses, and larger enterprises are gravitating toward more comprehensive solutions.
Traditional print-on-paper has become commoditized, and growth has shifted to more dynamic applications like promotional collateral, signage, and point-of-sale displays.
Technological innovations as well as product and sourcing sustainability are important factors that are driving market expansion.
Sometimes known as "marketing execution services," "brand deployment," and "marketing print management," the print management market is a slice of the broader customer communications ecosystem that sees enterprise clients outsourcing print and related spending to a third-party provider (also known as a distributor or broker) who leverages a network of manufacturers to procure the company's printed marketing materials and promotional products. Through consolidated purchasing, print management providers offer cost savings and upgraded efficiencies that in-plants struggle to match, as well as a wider array of products, applications, and expertise than a single print manufacturer can manage.
Figure 1. Print Management Market Growth in the U.S.
"POS has grown into more refined work," the VP of Strategy & Digital Solutions for a European company's print management division in the U.S. declared."Everyone is either looking for differentiation through digital engagement and interaction or they are looking to bring costs down while remaining competitive. There is therefore a wide range of quality in the space, from pure digital interactive displays to simple commodities." On the cutting edge, interactive features like compliance monitoring and electronic footfall tracking are gaining ground in POS, helping marketers get a more complete picture of a campaign's ROI without endangering data privacy.The integration of augmented reality into POS can generate positive buzz for a brand through good word of mouth.
It should be noted that these bullish claims exceed the expectations projected by InfoTrends and other data analysts, which estimate that the print management market will only be valued at around $5 billion by 2020. While some may see this incongruity as a troubling disconnect, we believe it may be sign that there is, as one CEO suggested, hidden opportunity not fully aggregated in current projection models. Regardless, one thing is clear: the print management market is growing and, in a landscape of rapidly developing technology and evolving marketing strategy, operators in the space may be poised for real advancement.
Will Morgan is a Senior Research Analyst at Keypoint Intelligence – InfoTrends. In this role, he supports market research and analysis in the Customer Communications market, interacts with service clients, and assists with consulting engagements as well as company deliverables. Prior to joining Keypoint Intelligence, Mr. Morgan spent ten years conducting research and analysis at the Mississippi Department of Archives and History.
As the Chair of the Printing Brokerage Buyers Association, and as an economist, I found the Print Management article interesting but not informative. First, the volume of print reselling at end-use-value exceeds US$ 14 Billion, about 2.3-times that forecast in the story. Also, there are 75, not 10 companies that constitute the bulk of the business while the remaining market is shared by some 13,000 or more brokers, distributors, group buying services and manufacturers' reps. The increasing demand comes from the lack of marketing prowess on the part of production printing companies and the plain fact that a good salesperson can make more money NOT working for a plant. Most end-use customers, too, don't like dealing with unpleasant printing companies. The only factor that could reverse the trend toward 3P arrangements is dishonesty. The print management provider can't burn both ends of the candle by accepting fees, gain-shares, rebates, etc. from both users and subcontractors, misrepresent themselves as owners or partners in plants and equipment, and use accounting methods that pretend revenues at 100% though being pass-throughs or capitalize at present value the future returns of long-term contract that may never materialize. Buying business at the C-level through front-ending and similar gimmicks is a ploy that the accounting standards board and the antitrust administrators should examine.