Annual Meeting 2010 -- Gallagher, Kelly (Bowker)

Keeping Up With the ConsumerKeeping Up With the ConsumerKeeping Up With the ConsumerKeeping Up With the Consumer

lBISG Annual Meeting

September 2010

“For too long business leaders have relied on their intuition or their ‘golden gut’ to make g gdecisions.  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.

Is our industryIs our industryIs our industry Is our industry intelligence keepingintelligence keepingintelligence keeping intelligence keeping 

up with theup with theup with the up with the changingchangingchanging changing 

??consumer?consumer?© 2010, the Book Industry Study Group, Inc.

2 years ago (or so)2 years ago (or so)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.

= 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.

TodayTodayToday…Today…Fragmenting supply chain,

Mixing mediums,&&

Unstable economy

© 2010, the Book Industry Study Group, Inc.

The Multiple Lenses of Consumer DataThe Multiple Lenses of Consumer Data

Moving beyond basic book analytics…

© 2010, the Book Industry Study Group, Inc.

…and becoming intimate with the consumer

In all phases of the publishing processIn all phases of the publishing process. 

Acquisitions

Marketing

Sales

In Acquisitions…2009 Best Sellers By Generation

Gen Z (Born after 1990) Baby Boomers (Born 1948 ‐ 1966)Gen Z (Born after 1990) y ( )

Matures (Born before 1948)Gen Y (Born 1979 ‐ 1989)

Gen X (Born 1967 ‐ 1978)

© 2010, the Book Industry Study Group, Inc.

Wh t I fl B k P h D i i

In our marketing…What Influences eBook Purchase Decisions

© 2010, the Book Industry Study Group, Inc.

In our selling / buying…In our selling / buying…

Book Review (Not Online)

Banner Ad on a website

TV/Radio Ad

Online ‐ Author's Website

Book Review (Not Online)

Best Seller List

Online ‐ Book Review

In‐Store Sales Clerk

Banner Ad on a website

In Store Display/On

Friend/Relative Recommend

At School

Best Seller List

0% 5% 10% 15% 20% 25%

In‐Store Display/On …

Going Beyond the Base Analytics for h k kthe eBook Market…

© 2010, the Book Industry Study Group, Inc.

Key ebooks Trends PurchasedyApril 2009 to August 2010

14%20.0%

25.0%

7% 6%8% 9%

8% 8%10%

14%

10.0%

15.0%

1.9% 2.8% 2.8% 2.0% 2.4% 2.6% 2.0% 2.8% 2.0% 2.8%3.9% 3.5% 3.6% 3.2% 4.1%

5.4% 5.8%6% 5% 6% 7%

5% 6% 7% 6%5%

7% 6% 8%

0.0%

5.0%

t % b k h d % d b k (d il / kl )

© 2010, the Book Industry Study Group, Inc.

est. % ebooks purchased  % read ebooks (daily/weekly)

Acquisition Date of first eBookAcquisition Date of first eBook

© 2010, the Book Industry Study Group, Inc.

How eReader was AcquiredHow eReader was Acquired

© 2010, the Book Industry Study Group, Inc.

What Keeps Consumers from Buying a Device?What Keeps Consumers from Buying a Device?

© 2010, the Book Industry Study Group, Inc.

% likely to buy eReader% likely to buy eReader

16%14%

16%

18%

10% 10% 10%12%

11% 11%

13%11%

13%14%

13%15% 15%

16%

8%

10%

12%

14%

7% 7%8%

10% 10% 10%

2%

4%

6%

8%

0%

2%

© 2010, the Book Industry Study Group, Inc.

Device Downloads of ebooks PurchasedDevice Downloads of ebooks Purchased

5% 8% 8% 8%100%

ALL OTHER

January 2010 to August 2010

12%

4%

11% 4%9%

4%

8%

13%

10%

15%

24%20%

0%

0%0%

1%1%

6%

2%4%

13%8%

12%8%

13%8% 11%

80%

ALL OTHER

iPad

49%

47% 57%

12% 7%

7% 10%6%

60%

nook by Barnes and Noble

iPod or other mp3 device (incl ding iPod To ch)

8%

43%

47%44%

57%

40% 36% 42%40%

(including iPod Touch)

Kindle/KindleDX by Amazon

16%23%

18%12% 10%

16% 14% 11%

6%7%

12%10%

3% 6%7%

0%

20%Sony eBook Reader

Desktop/laptop computer only (including printing a 

0%JAN FEB MAR APR MAY JUN JUL AUG

paper copy)

© 2010, the Book Industry Study Group, Inc.

Kindle Device Ownership –h f lShifting to Female

100%

58% 57% 62% 61%70%80%90%

100%

Females58%66%

57% 62% 61% 66% 68%

40%50%60%70% Females

42%34%

43% 38% 39% 34% 32%10%20%30%40%

Males

0%10%

Qtr 1 2009

Qtr 2 2009

Qtr 3 2009

Qtr 4 2009

Year 2009

Qtr 1 2010

Qtr 2 20102009  2009  2009  2009  2009  2010  2010 

What exactly isWhat exactly isWhat exactly is What exactly is BISG’s ResearchBISG’s ResearchBISG s Research BISG s Research 

role?role?role?role?

© 2010, the Book Industry Study Group, Inc.

Research Committee MissionResearch Committee Mission

Provide timely, evidence‐based research  that is actionable, empirical in naturethat 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.

Access models andAccess models andAccess models and Access models and categories of researchcategories of research

PAPERSPAPERSCase studiesCase studies

ROIsROIs

FactFact‐‐based discussion based discussion 

REPORTS REPORTS Industry perspectives Industry perspectives 

and directionand direction

Best practices and Best practices and i l ii l i

BENCHMARK BENCHMARK STUDIESSTUDIES

DataData‐‐driven research and driven research and l il i

INDUSTRY INDUSTRY DATA SETSDATA SETS

KPIsKPIspaperspapers implementationimplementation analysisanalysis

Innovation Lab ???Innovation Lab ???◈Timely               ◈ Relevant               ◈Interactive

© 2010, the Book Industry Study Group, Inc.

Approach for Achieving Results:pp gCollaboration

© 2010, the Book Industry Study Group, Inc.

d fRoadmap for 2011

Discussion Papers (six per year) Reports (three per year)

Benchmark Studies (two per year)

I d t D t S t

Innovation Lab (????)

Industry Data Sets (one‐two per year)

25© 2010, the Book Industry Study Group, Inc.

© 2010, the Book Industry Study Group, Inc.

Thank YouThank You

Kelly GallagherVP Publishing Services, BowkerKelly Gallagher@Bowker comKelly.Gallagher@Bowker.com

Research Chair, BISGresearch@bisg.org