Custom Publishing Spending Reaches All-Time High
Earlier this year, Publishing Executive magazine reported that the custom publishing “bubble” showed no signs of bursting. The results of a new study lend support to this claim. In fact, in 2006, custom publishing spending has reached its highest level ever, topping an average of $1.1 million per company, according to a new study released today by the Custom Publishing Council (CPC) and Publications Management. This also reflects the most significant year-over-year growth on record at +18.4 percent, or an increase of $175,901. The average amount that companies spend on custom publications grew for the fifth straight year in 2006.
Custom publishing spending now claims 24 percent of the total amount companies allocate for marketing, advertising and communications, the study showed. Of the companies surveyed, 39 percent reported they would increase their custom publishing outlay in 2007. Forty-eight percent will maintain the same level of spending, and 13 percent will cut spending. Those who are anticipating a higher custom publishing spend in 2007 are projecting an increase of 6 percent.
Forty-three percent of companies outsource part of their custom publishing initiatives. Among those, they spent more on outsourcing than ever: an average of $316,302 per company. Design firms are the most common outsourcing partner (43 percent), but like public relations firms (4 percent), are showing declining market share. Custom publishers held steady at 23 percent and advertising agencies gained market share (18 percent).
This research has been conducted annually for seven years via a mailed survey targeting a random sample of companies across all industries. Among the 200 companies represented were Charles Schwab, Girl Scouts, Sports Authority, State Farm Insurance, Sunkist, Tyson Foods, Inc. and United Healthcare.
The Custom Publishing Council (http://www.custompublishingcouncil.com) is a professional organization for custom publishers in North America. Publications Management (http://www.publicationsmanagement.com) provides news, information and research on the custom publishing industry.