1. Keeping Up With the Consumer
Keeping Up With the Consumer
BISG Annual Meeting
l
September 2010

2. “For too long business leaders have relied on
their intuition or their ‘golden gut’ to make
g g
decisions. For too long, important calls have
been based not on data, but on the experience
and unaided judgment of the decision maker.
and unaided judgment of the decision maker”
~Tom Davenport
© 2010, the Book Industry Study Group, Inc.

3. Is our industry
Is our industry
intelligence keeping
intelligence keeping
up with the
up with the
changing
changing
consumer? ?
© 2010, the Book Industry Study Group, Inc.

4. 2 years ago (or so)
2 years ago (or so)…
Predictable supply chain model,
a stable product medium, &
a stable product medium, &
healthy economy
© 2010, the Book Industry Study Group, Inc.

5. = Single approach to analytics…
• Decision process = Quantify the book
behaviors through POS, make adjustments,
repeat process… hope to get lucky once in a
while.
© 2010, the Book Industry Study Group, Inc.

6. Today…
Today
Fragmenting supply chain,
Mixing mediums,
&
Unstable economy
© 2010, the Book Industry Study Group, Inc.

7. The Multiple Lenses of Consumer Data

8. Moving beyond basic book analytics…
© 2010, the Book Industry Study Group, Inc.

9. …and becoming intimate with the
consumer
In all phases of the publishing process.
In all phases of the publishing process
Acquisitions
Marketing
Sales

10. In Acquisitions…
2009 Best Sellers By Generation
Gen Z (Born after 1990)
Gen Z (Born after 1990) Baby Boomers (Born 1948 ‐ 1966)
y ( )
Gen Y (Born 1979 ‐ 1989) Matures (Born before 1948)
Gen X (Born 1967 ‐ 1978)
© 2010, the Book Industry Study Group, Inc.

11. In our marketing…
What Influences eBook Purchase Decisions
Wh t I fl B kP h D ii
© 2010, the Book Industry Study Group, Inc.

12. In our selling / buying…
In our selling / buying…
Book Review (Not Online)
Book Review (Not Online)
Online ‐ Author's Website
TV/Radio Ad
Banner Ad on a website
Banner Ad on a website
In‐Store Sales Clerk
Online ‐ Book Review
Best Seller List
Best Seller List
At School
Friend/Relative Recommend
In‐Store Display/On
In Store Display/On…
0% 5% 10% 15% 20% 25%

13. Going Beyond the Base Analytics for
the eBook Market…
h k k
© 2010, the Book Industry Study Group, Inc.

14. Key ebooks Trends Purchased
y
April 2009 to August 2010
25.0%
20.0%
14%
15.0%
10%
10.0% 8% 9% 8% 8%
7% 6%
5.0% 6% 5% 6% 7% 5% 6% 7% 6%
5% 5.4% 5.8%
3.9% 3.5% 3.6% 3.2% 4.1%
0.0% 1.9% 2.8% 2.8% 2.0% 2.4% 2.6% 2.0% 2.8% 2.0% 2.8%
est. % ebooks purchased
t % b k h d % read ebooks (daily/weekly)
% d b k (d il / kl )
© 2010, the Book Industry Study Group, Inc.

15. Acquisition Date of first eBook
Acquisition Date of first eBook
© 2010, the Book Industry Study Group, Inc.

16. How eReader was Acquired
How eReader was Acquired
© 2010, the Book Industry Study Group, Inc.

17. What Keeps Consumers from Buying a Device?
What Keeps Consumers from Buying a Device?
© 2010, the Book Industry Study Group, Inc.

18. % likely to buy eReader
% likely to buy eReader
18%
16%
14% 16%
14% 15% 15%
12% 13% 13%
12% 13%
10%
11% 11% 11%
8% 10% 10% 10%
6% 8%
7% 7%
4%
2%
0%
© 2010, the Book Industry Study Group, Inc.

19. Device Downloads of ebooks Purchased
Device Downloads of ebooks Purchased
January 2010 to August 2010
100% 5% 8% 8% 8% ALL OTHER
ALL OTHER
0% 12% 13% 11%
13% 4% 0% 1% 2%
0% 4% 8% 1% 4%
10%
6%
9% iPad
80% 11%
13%
4% 24%
20%
15%
12% 7%
nook by Barnes and Noble
7% 6%
60% 10%
49%
iPod or other mp3 device
47% 57% (including iPod Touch)
(incl ding iPod To ch)
43% 44%
40% 40% 36% 42% Kindle/KindleDX by Amazon
8%
7% Sony eBook Reader
20% 6%
12% 3% 6%
10% 7%
23%
16% 18% 16% Desktop/laptop computer
12% 14%
10% 11%
only (including printing a
0% paper copy)
JAN FEB MAR APR MAY JUN JUL AUG
© 2010, the Book Industry Study Group, Inc.

20. Kindle Device Ownership –
Shifting to Female
hf l
100%
90%
80%
70% 58% 57% 62% 61% Females
66% 66% 68%
60%
50%
40%
30% Males
20% 42% 43% 38% 39%
34% 34% 32%
10%
0%
Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year Qtr 1 Qtr 2
2009
2009 2009
2009 2009
2009 2009
2009 2009
2009 2010
2010 2010
2010

21. What exactly is
What exactly is
BISG’s Research
BISG s Research
role?
© 2010, the Book Industry Study Group, Inc.

22. Research Committee Mission
Research Committee Mission
Provide timely, evidence‐based research
that is actionable, empirical in nature
that is actionable, empirical in nature
and focused on real business issues the
solutions to which will drive the industry
toward a profitable future
© 2010, the Book Industry Study Group, Inc.

23. Access models and
Access models and
categories of research
PAPERS REPORTS BENCHMARK INDUSTRY
Case studies Industry perspectives
and direction
STUDIES DATA SETS
ROIs
Fact‐
Fact‐based discussion Best practices and Data‐
Data‐driven research and KPIs
papers implementation
i l i analysis
l i
Innovation Lab ???
◈Timely ◈ Relevant ◈Interactive
© 2010, the Book Industry Study Group, Inc.

24. Approach for Achieving Results:
pp g
Collaboration
© 2010, the Book Industry Study Group, Inc.

25. d f
Roadmap for 2011
Discussion Papers (six
per year) Reports (three per year)
Benchmark Studies
(two per year)
Innovation Lab
(????)
Industry Data Sets
I d t D t S t
(one‐two per year)
© 2010, the Book Industry Study Group, Inc.
25

26. © 2010, the Book Industry Study Group, Inc.

27. Thank You
Thank You
Kelly Gallagher
VP Publishing Services, Bowker
Kelly.Gallagher@Bowker.com
Kelly Gallagher@Bowker com
Research Chair, BISG
research@bisg.org