Quad Launches Innovative Direct Marketing Platform to Disrupt Industry

Platform Helps Marketers Produce 100% Personalized Direct Marketing Campaigns at a Fraction of the Cost and at Greater Speed to Market

SUSSEX, Wis.–(BUSINESS WIRE)–Quad/Graphics, Inc. (NYSE: QUAD) (“Quad” or the “Company) today announced the launch of its Quad Direct Marketing Exchange^™ (QDMX) – a platform that delivers entirely personalized direct marketing campaigns at a fraction of the cost and at greater speed to market. An industry first, QDMX helps marketers mitigate the impact of rising postage costs and navigate ongoing economic uncertainty through a suite of solutions that integrates sophisticated data application, innovative direct mail production and streamlined mailing.

“For years there has been a feeling among marketers that there has to be a more efficient and effective way to reach the consumer through the mailbox,” said Scott Harvey, Quad Senior Vice President for Marketing Solutions. “Through our QDMX platform, we provide marketers with an opportunity to re-imagine their direct marketing strategy – leveraging the scale, technology investments and expansive client base of Quad – to deliver even stronger ROI from the direct mail channel.”

QDMX allows direct marketers to maximize personalization while significantly driving down postage costs – and do it with less complexity for faster turnaround times. Currently, Quad has released the first two offerings within the QDMX platform:

• Merged Mail^™, a solution that brings post-production mail optimization forward into the production process by combining campaigns from multiple clients into one mail stream. As a result, marketers can realize postage savings of 20%-25%. Marketers still have the opportunity to deliver entirely dynamic, branded content for each individual piece of mail.

• Multi-Pack^™, a solution in which Quad matches direct marketers who want to send a piece of mail to the same household at the same time, supplying the vehicle to get them there together for a lot less than going solo. Clients have the ability to choose from five distinct, completely customizable direct mail formats, each uniquely personalized and designed with their brand and consumer target in mind. Through this innovative, aggregated approach, marketers can realize postage savings of 40%-50%. To increase the effectiveness of this solution, Quad offers clients use of its Accelerated Insights^™ virtual testing platform, which allows marketers to test creative and formats prior to mailing to ensure the mail piece design resonates with consumers.

Quad expects to release additional QDMX offerings in 2021.

“Expectations for marketers to deliver measurable results have never been higher and, through out breakthrough QDMX platform, Quad has found a way to make the direct mail channel work even better for our clients,” Harvey added. “Tangible, personalized content delivered directly to the consumer really does drive response, and we have created a way to do it faster and more cost-effectively than ever before. It’s yet another example of how Quad is uncomplicating marketing and delivering more.”

For more information on how Quad is advancing direct marketing, visit QUAD.com/QDMX.

Forward-Looking Statements

This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding, among other things, our current expectations about the Company’s future results, financial condition, sales, earnings, free cash flow, margins, objectives, goals, strategies, beliefs, intentions, plans, estimates, prospects, projections and outlook of the Company and can generally be identified by the use of words or phrases such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “plan,” “foresee,” “project,” “believe,” “continue” or the negatives of these terms, variations on them and other similar expressions. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results to be materially different from those expressed in or implied by such forward-looking statements. Forward-looking statements are based largely on the Company’s expectations and judgments and are subject to a number of risks and uncertainties, many of which are unforeseeable and beyond our control.

The factors that could cause actual results to materially differ include, among others: the negative impacts the coronavirus (COVID-19) has had and will continue to have on the Company’s business, financial condition, cash flows, results of operations and supply chain, as well as the global economy in general (including future uncertain impacts); the impact of decreasing demand for printed materials and significant overcapacity in the highly competitive environment creates downward pricing pressures and potential underutilization of assets; the impact of digital media and similar technological changes, including digital substitution by consumers; the impact of fluctuations in costs (including labor and labor-related costs, energy costs, freight rates and raw materials) and the impact of fluctuations in the availability of raw materials; the inability of the Company to reduce costs and improve operating efficiency rapidly enough to meet market conditions; the impact of the various restrictive covenants in the Company’s debt facilities on the Company’s ability to operate its business, as well as the uncertain negative impacts COVID-19 may have on the Company’s ability to continue to be in compliance with these restrictive covenants; the impact of increased business complexity as a result of the Company’s transformation to a marketing solutions partner; the impact negative publicity could have on our business; the failure to successfully identify, manage, complete and integrate acquisitions, investment opportunities or other significant transactions, as well as the successful identification and execution of strategic divestitures; the failure of clients to perform under contracts or to renew contracts with clients on favorable terms or at all; the impact of changing future economic conditions; the fragility and decline in overall distribution channels, including newspaper distribution channels; the impact of changes in postal rates, service levels or regulations; the failure to attract and retain qualified talent across the enterprise; the impact of regulatory matters and legislative developments or changes in laws, including changes in cyber-security, privacy and environmental laws; significant capital expenditures may be needed to maintain the Company’s platforms and processes and to remain technologically and economically competitive; the impact of risks associated with the operations outside of the United States, including costs incurred or reputational damage suffered due to improper conduct of its employees, contractors or agents; the impact of an other than temporary decline in operating results and enterprise value that could lead to non-cash impairment charges due to the impairment of property, plant and equipment and intangible assets; the impact on the holders of Quad’s class A common stock of a limited active market for such shares and the inability to independently elect directors or control decisions due to the voting power of the class B common stock; and the other risk factors identified in the Company’s most recent Annual Report on Form 10-K, as such were previously supplemented and amended in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020, and which may be further amended or supplemented by subsequent Quarterly Reports on Form 10-Q or other reports filed with the Securities and Exchange Commission.

Except to the extent required by the federal securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Quad

Quad (NYSE: QUAD) is a worldwide marketing solutions partner dedicated to creating a better way for its clients through a data-driven, integrated marketing platform that helps reduce complexity, increase efficiency and enhance marketing spend effectiveness. Quad provides its clients with unmatched scale for client on-site services and expanded subject expertise in marketing strategy, creative solutions, media deployment (which includes a strong foundation in print) and marketing management services. With a client-centric approach that drives its expanded offering, combined with leading-edge technology and single-source simplicity, Quad has the resources and knowledge to help a wide variety of clients in multiple vertical industries, including retail, financial/insurance, healthcare, consumer packaged goods, publishing and direct-to-consumer. Quad has multiple locations throughout North America, South America and Europe, and strategic partnerships in Asia and other parts of the world. For additional information visit QUAD.com.

Contacts

Media Contact
Claire Ho

Director of Corporate Communications, Quad

414-566-2955

cho@quad.com