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Presented by Bowker and AAP October 22, 2009

The Big Picture on U.S. Consumer Book Buying

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Who is today’s book consumer, where are they shopping and how successful are we at reaching them? This webinar is a first-of-its-kind sneak peek into book buying trends for the first half of 2009. Moving beyond basic book sales data, the webinar provides insight into who today’s book buyer is, what they buy, where they buy books and what motivates their purchase. Presented by Kelly Gallagher, Vice President, Bowker Publisher Services Moderated by Tina Jordan, Vice President, AAP

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  • 1. Presented by Bowker and AAP October 22, 2009

2.

  • Survey
  • Type:Online
  • Length:Between 60-75 questions
  • Frequency:Monthly
  • Annual Consumer Sample
    • 36,000 book buyers
    • Selected according to Age, Gender, Income, Household size, and location balanced to US Census
    • Representing an annual view of 120,000 book purchases and 80,000 shopping occasions

3.

  • MarketTools, Inc:
    • Panel management & data collection
    • Clients include: P&G, Microsoft, Bank of America
  • Management Science Associates, Inc (MSA):
    • Data Processing & Software provider (INsight TM )
    • Statistical Validation, Analysis, and Weighting
    • Clients include: ESPN, Kraft, Time-Warner
  • Bowker Bibliographic & Database Expertise
    • Bibliographic and Classification Data Match
    • Business Analysts

4. 5. 6. The Big PictureKnow Thy Customer 7.

  • Bob Dylan

8. 9. 10. 11. 12. The Consumer has become King! Consumers define the marketplace 13. 14. 15.

  • 1) Economy
  • 2) Time on other Activities
  • 3) Product Selection

16. Economy 17. Book Buyers as % of US Population 18.

  • 2007
  • The apex of retail spending
  • Culmination of expanded stores and Amazon.comcoming into its own
  • Harry Potter effect

19.

  • 2008
  • Economic decline sets in esp. in Q4
  • Spending cut backs in all sectors
  • Online activities take-off
  • Decline in readership

20.

  • Economic uncertainty deepens
  • Conflicting signs of economic turnaround?
  • More titles available longer Long Tail especially with growth of POD
  • The ebook: breakout year, or flash in the pan?

21. 22. andtheyare more likely than men to swap or buy used, rather than cut back on overall buying. 23. Time 24.

  • Before 1975, consumer had 8 choices for entertainment and information

Today, consumers have 21 choices for entertainment and information 1975 2009 25. Shows relative number of hours that book buyers spend on these activities per week 26. 27. 28. Where can Publishers and Authors reach their buyers???Online is the key! 29. Social Networking55% of heavy / moderate buyers are socializing online 30. Product Selection 31. AAP$ Change 1H09 vs 1H08 (net sales) A.S.P. 1H2008 A.S.P. 1H09 % Change Units/ Buyer % Change Units/ Occasion AdultHardcover -15.5% $13.07 $14.55 -39% -10% Adult Paperback -11.2% $11.17 $10.28 -38% -17% Adult Mass Mkt, -5.3% $5.90 $5.39 -27% -10% All Ebook +173.9% $17.74 $8.30 +52% +28% 32. $6.25 price differential avg. selling price 1H 09 Hardcovervs. E-Book 33. E-Book Unit/Sales 0.6% / 1.9%20081.5% / 1.2% 1 stHalf 2009 Source PubTrack Consumer 34. 35. E-Book Sales Growth by Age 183%Growth rate of E-Book sales to buyers over 50 Source PubTrack Consumer 36. Source PubTrack Consumer 37. Average Income by Device (000) 2009 YTD Source PubTrack Consumer 38. 2009 YTD Source PubTrack Consumer 39. Source PubTrack Consumer Likelihood to Buy E-Reader: Total Very likely Somewhatlikely Notlikely - no interest Already ownAll Book Buyers 100% 4% 7% 23% 1.50% % Male 43% 58% 51% 47% 52% Mean Age 42.0 33.1 35.0 43.3 44.3 40. 41.

  • Fiction/Non-Fict show declines in share..
  • While Juvenile and Religion pick up the slack

42. 43. 44. 45. 46.

  • So while female teenagers buy more books..
  • Males average spending on books works out the same.

47. 48. Thank You! Kelly Gallagher Vice President Publishing Services Bowker [email_address] 908.425.7689 Twitter bookbuyrinsight For more information on Consumer information visit www.bookconsumer.com Tina Jordan Vice President AAP [email_address] 212-255-0200