Speaking as the PLC announced its interim results, chief executive Patrick Martell said brands and retailers are becoming much more discerning about how they placed their spend.
"That plays to our strengths and is a good thing for us," he said. "We can demonstrate ROI, for example at Tactical Solutions for every £1 spent we can demonstrate £1-plus of added-value."
In its results for the six months to 27 January, sales at grew by 11.7% to £166.4m, boosted by St Ives' slew of recent acquisitions in marketing services. Underlying pre-tax profit rose by 8.7% to £11.1m.
The bottom line profit was £1m after restructuring and acquisition costs of some £8.5m.
St Ives' marketing services division now accounts for 20% of operating profits, and Martell said this had increased since the period end. The group remains confident of hitting its 40% target in two years. "We are pleased with progress and building a real head of steam in marketing services."
Restructuring at its print division, including the closure of Westerham Press and the Blackburn facility, cost the group more than £5.5m, although Martell said these actions were now complete and the remaining Direct business in Leeds and Bradford is in profit going forward.
"Our printing business has now been completely restructured, and of the four print businesses we have left, three are leaders in their markets," he added.
An investment in a state-of-the-art enclosing system is under consideration for Leeds.
In point-of-sale clients are increasing the frequency of campaigns to drive sales, and St Ives is benefiting from cross-selling its marketing services to retailers.
Market conditions for exhibitions and events wing Service Graphics were described as "challenging", and the group is yet to see any real pick-up in demand related to London 2012.
Books wing Clays continued to perform strongly and retains its market leadership, despite an overall decline in book volumes of between 6-7%.
It won new work from Random House during the period, and installation of its new Timsons digital book printing line for mass digital production will begin later this month.
Martell said: "Books are not CDs or DVDs. We are seeing a polarisation of run lengths, and the benefits of being able to produce smaller and smaller quantities. Our print-on-demand offering is hugely successful."
"The number of orders is still increasing – last Friday we took our highest number of book orders yet in one day."
The group has also changed its senior management structure. Managing director of commercial products Lloyd Wigglesworth will oversee the print businesses, while marketing services will report in to finance director Matt Armitage. Brad Gray will become deputy group finance director.
Martell said St Ives had now acquired companies in all its target areas, but "still continued to look" at other potential acquisition opportunities.
St Ives shares were down 0.5p to 84.5p in early trading this morning.
