FOR IMMEDIATE RELEASE

Worldwide POP Advertising Expenditures Valued at $44 billion

Hanover, MA…June 2003… I.T. Strategies estimates that worldwide POP 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.

I.T. Strategies, Inc. is an established research and consultancy firm dedicated to serving companies in emerging digital printing markets. The company delivers intelligent data, analysis, strategy, and implementation practices to vendors in the digital printing industry around the world. From offices in Boston and Tokyo, I.T. Strategies conducts and delivers research data, offers interpretation and advice, identifies specific opportunities, and helps organizations implement these strategies to achieve effective solutions.

I.T. Strategies, Inc.
51 Mill St, Suite 2
Hanover, MA 02339
Phone: 781 826 0200
Fax: 781 826 0151
E-Mail: williams@it-strategies.com
Website URL: www.it-strategies.com