Digital Book World

My personal list of what should be top-of-mind for publishers around digital change today


What are the most important digital change issues publishers face?

To prepare for DBW 2016, we need to decide what publishers need to be thinking about and learning about next March, when the seventh annual DBW will take place. It would be extremely limiting for that selection to be based on my thoughts and opinions alone, and we have a process in place to make sure that it isn’t. (More on that to come in the next post here.) But if we were relying on me alone, here’s what we’d be focused on.

1. Ebook pricing. Publishers get anywhere from 50-to-70 percent of the retail price from most ebook retailers. Unlike the print world, where price-setting must take place before the book comes out and is, because the price is printed on the book, very hard to adjust, ebook prices can be changed quickly and frequently.

Pricing variation has historically been the province of the retailer. In the physical world, markdowns were almost never shared: the retailer voluntarily gave away part of their margin to gain market share or to build customer loyalty.

In the agency world that four of the Big Five have now created (with Penguin Random House almost certain to follow on), pricing is not only mostly controlled by publishers, they are the direct beneficiaries of higher prices and lose margin if prices are lowered.

It is true — and the indie authors who like it better when Amazon is in control rather than the publishers often point this out — that publishers have almost no experience with pricing and the impact of changes. But it is also true that the retailers, who do have more experience with it, have different objectives than publishers. Retailers want a competitive advantage against other retailers and, as part of that, they want to build customer loyalty. Publishers want to maximize revenue for each SKU, build awareness of authors, and use one book by an author or in a series to sell other titles under the same brand.

Publishers are starting very near zero on knowledge. How does discounting one title in a series affect the audience’s likelihood of getting started with it and then buying other titles at higher prices? If a book is in the news, is the right strategy to raise the price (to maximize revenue) or to lower the price (to get better market penetration on the back of the news). And is the strategy the same if the story is about the book, rather than the book being about the story? Do pricing strategies need seasonality rules, and how is that different across genres or topics?

All of these are things publishers will have to learn by a combination of experimentation, archiving of information, and analysis. A complicating aspect of this is that the market itself is still changing: a person’s ebook purchasing habits today, when they’re new to it, may change over the next couple of years, as they become more sophisticated consumers. This is a moving target but a very important one. And there is one person who stands out as having looked at this more closely than anyone: Dan Lubart, who owns Iobyte Solutions, and who previously worked for HarperCollins and now is at Hachette.

2. Building direct customer knowledge. What is knowable about audiences through listening and analytical tools today is stunning. It is critical to do audience research on a constant and ongoing basis. Publishers need to keep formulating theses about who their audiences are, then doing research to find where they hang out online and what words they use when they talk about the things the publisher wants to engage them about.

The customer knowledge is essential to do first-class search engine optimization, but it is even more important for a publisher that wants to do any kind of “campaign”. Buying keyword exposure is an exercise in constant experimentation, measurement, and management no matter what you do, but starting a campaign without doing the core audience research is simply wasteful. And what is true of ad campaigns is also true of earned media and traditional marketing campaigns. This is the marketing equivalent of “measure twice, cut once”. Don’t waste time, money, and effort doing something that research could have told you in advance wouldn’t work.

3. Building direct customer contact. Near as we can tell, the big publishers have been building email lists for years. There’s a Shatzkin Files post from the Fall of 2011 citing Tor.com’s having mailed to hundreds of thousands of people the month before, with a very high open rate and getting an extraordinary percentage of those to “take an action”.

But building lists and managing them for maximum effectiveness are two quite different things. And even more complicated is a next-generation challenge: getting publisher lists and author lists working in tandem. It would seem like a win all around for publishers to organize authors whose audiences are similar to email across their lists to everybody’s benefit. But it is easy to see why authors (or their agents or business advisors) would be reluctant to dive into something like that, or to want some control over their use in ways that effectively forestalls collective action.

Even for lists publishers entirely own and control, there is enormous work to do segment them properly and test, test, test to find the most effective ways to use them. And engagement with customers also includes branding and interaction with them in social media and targeted web sites or landing pages that can engage potential customers (and, of course, capture their email addresses as well).

4. New protocols for author collaboration around marketing. We’ve made the point in this space before that the author’s digital presence is an important component of any book’s SEO. A publisher extending its own efforts to make its books discoverable that is not including the author web sites in their analysis is missing a component essential to the success of their efforts.

This is a complicated question that will ultimately back right up to the author’s contract, but where each publisher needs to start is with an understanding of what they want from an author’s digital presence and web site. There needs to be a best practice “ask” and there needs to be analysis of what exists to pinpoint the ways it should be improved. One very alert Big Five house we know has at least an executive or two at a high level who sees the virtue in our suggestion that a graded analysis of an author’s online presence, together with specific recommendations for improvement, should be both a standard and promoted feature for authors of being published by that house. It is hard to imagine that this won’t be normal operating procedure in a couple of years but the time to start working on it, for everybody, is now.

5. Maximizing global sales: distribution and discovery. Publishers, coaxed by global ebook distributors like Ingram, Vearsa, and others, are increasingly aware that English-language ebooks have a global market. But maximizing those sales requires both having distribution to the retailers serving each market and optimizing the title description metadata so that search “works” at many places around the world.

Part of what is required there is — say it again — more research. The search terms that work best for any book may well be different in India or Australia than they are in the US. But the challenges in getting differentiated copy posted correctly in the right places are not trivial, and things don’t work the same in Amazon and Google, let alone in local retailers in each market. We figure that the sophistication of the global ebook distributors will be increasingly useful here, but it will also be necessary for each global publisher to understand their most important markets and retailers for their books to sell most effectively.

6. Building a company-wide understanding of SEO (editorial, marketing, and sales). The understanding of SEO at most publishing houses, from our experience, is both insufficient among the most knowledgeable in the house and grasped at all by far too few people. For the most part, SEO is the province of the “marketers”, but, in fact, it might even be as important that editors and salespeople understand it. The S in SEO stands for “search” but it might as well stand for “sales” or “shelved”.

Editors who don’t understand SEO lack an important tool to direct authors, particularly of non-fiction books, to address what the audience wants. Without SEO understanding, they can’t instantly tell a “bad” title (one that won’t work for SEO) from a useful one.

Salespeople, whether they are covering brick stores or online ones, need that understanding too.

The key to optimizing for search is knowing how the audience searches. This can only be accomplished by research, and it changes with time so the research for a similar book on last season’s list can’t reliably be re-used. That will become clear as we consider the next point.

7. Allocating effort across a large backlist. The biggest opportunity and the biggest challenge for publishers, as they have historically operated and as they are currently structured, is maximizing their opportunities across their backlists. The big houses are dealing with many tens of thousands of titles. We advocate techniques that require some human application so scale techniques have to be used to pinpoint the titles worth an effort.

Although we are developing tools to help digest the external cues that might affect where the focus should be — cues from the news and social graph — each publisher has to start with a combination of knowledge of the list, intuition, and a sense that sales can be improved to pick those titles worth reviewing for better audience understanding and descriptive copy improvement. Almost certainly, titles that are more than a couple of years old will need work for several reasons: the house knew so little about SEO when copy was written; time will have changed the search terms that matter; and reviews and awards and other things from the book’s experience in the marketplace might need to be incorporated.

8. Make sure you ignore what is not important. My Logical Marketing partner Pete McCarthy has worked inside big companies and he urged me to add this eighth point. No company has the people or bandwidth or resources to spend time on things that are not very important. Whether you use this list of mine or make your own, be very wary of expending any energy or capital or bandwidth on anything else.

Of course, DBW itself won’t be relying just on me to make the choices of what to cover and what to ignore. I have already created a much longer list of topics than this for our Conference Council to review. We have them express themselves on how useful each potential topic is in a Survey Monkey poll. We will give our readers the opportunity to take that same poll when we describe the larger list of topics in our next post.

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Pete McCarthy shows how audience research can be done quickly and efficiently


I keep learning about “marketing today” from Peter McCarthy. There are two first principles about descriptive copy (a part of what is referred to as “metadata”, but a tricky part because, unlike trim size or price, it isn’t always obviously “right” or “wrong”) that all publishers need to take on board and adjust their workflows to accommodate. As far as I can tell, none of any substantial size have.

1. Descriptive copy has always been written by somebody who really knows the book, which often meant an editor (sometimes a marketer) involved with it well before publication. Now the copy needs to be written with knowledge gained through research into the audience. That takes both time and capability that hasn’t previously been required.

2. Descriptive copy has overwhelmingly been intended for a B2B purpose — catalogs and title-information-sheets for accounts — and now all copy, whatever its original intent, is likely to end up being seen by the consumer and, more importantly, it will be influencing the search engines that respond to consumer queries.

This is a change that is difficult for a big company to cope with because of their size. But it is hard for everybody because of the uniqueness of each book compared to others. The research methodologies have to scale on one hand but also be right-sized and tweaked for each book, author, and brand. Books aren’t soap. Knowledge of the book itself is generally limited to the editor(s) involved until they push it out to the rest of the company. So it is natural for editors or their assistants to draft descriptive copy. But these people may not have either the time or the skills for audience research.

But if the audience research is seen as a separate activity that should “feed” the copy-drafting, then the challenges are to figure out who on the team should do it, how they acquire the skills and knowledge of the tools to execute, and — trickiest of all — how to budget for the additional time and effort required (which across a large list is substantial).

And then there’s the problem of making sure the copy is consumer- and search-engine-friendly, which is another set of skills that haven’t been resident at publishers but that must be employed today.

This morning, Pete has a post at the DBW blog which really tackles the first part of the challenge, spelling out a set of starter tools and techniques are necessary to do a quick-and-dirty assessment of a book’s audience(s). He describes a step-by-step exercise in audience research that can be done in an hour, once the array of tools he describes are mastered.

We used to say 10 and 20 years ago “the Internet changes everything”. I think that is now thoroughly grasped. Today publishers need to accept that “search and the multitude of other means of digital discovery, both observable and dark, change everything about how we create copy”.

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Better book marketing in the future depends a bit on unlearning the best practices of the past


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A few years ago, publishers invented the position of Chief Digital Officer and many of the big houses hired one. The creation of a position with that title, reporting to the CEO, explicitly acknowledged the need to address digital change at the highest levels of the company.

Now we’re seeing new hires being put in charge of “audiences” or “audience development”. I don’t know exactly what that means (a good topic for Digital Book World 2016), but some conversations in the past couple of weeks are making clearer to me what marketing and content development in book publishing is going to have to look like. And audiences are, indeed, at the heart of it.

I’ve written before about Pete McCarthy’s conviction that unique research is needed into the audiences for every book and every author and that the flow of data about a book that’s in the marketplace provides continuing opportunities to sharpen the understandings of how to sell to those audiences. Applying this philosophy bumps up against two realities so long-standing in the trade book business that they’re very hard to change:

How the book descriptions which are the basis for all marketing copy get written
A generic lack of by-title attention to the backlist

The new skill set that is needed to address both of these is, indeed, the capability to do research, act on it, and, as Pete says, rinse and repeat. Research, analysis, action, observation. Rinse and repeat.

I had a conversation over lunch last week with an imprint-level executive at a Big House. S/he got my attention by expressing doubt about the value of “landing pages”, which are (I’ve learned through my work with Logical Marketing; I wouldn’t have known this a year ago) one of the most useful tools to improve discovery for books and authors. I have related one particularly persuasive anecdote about that here. This was a demonstration to me of how much basic knowledge about discovery and SEO is lacking in publishing. (The case for how widespread the ignorance of SEO in publishing has been made persuasively in an ebook by British marketer Chris McVeigh of Fourfiftyone, a marketing consultancy in the UK that seems to share a lot of the philosophy we employ at Logical Marketing.)

But then, my lunch companion made an important operational point. I was advocating research as a tool to decide what to acquire, or what projects might work. “But I could never get money to do research on a book we hadn’t signed,” s/he said, “except perhaps to use going after a big author who is with another house.” (Indeed, we’ve done extensive audits at Logical Marketing for big publishers who had exactly that purpose in mind.) “But, routinely? impossible!”

The team Pete leads can do what would constitute useful research which would really inform an acquisition decision, for $1000 a title. If the capability to do what we do — which probably requires the command of about two dozen analytical tools — were inhouse, it would cost much less than that.

Park that thought.

I also had an exchange last week with Hugh Howey, my friend the incredibly successful indie author with whom I generally agree on very little concerning big publishers and their value to authors. But Hugh made a point that is absolutely fundamental, one which I learned and absorbed so long ago that I haven’t dusted it off for the modern era. And it is profoundly important.

Hugh says there are new authors he’s encountering every day who are achieving success after publishers failed with them. It is when he described the sales curve of the successful indie — “steadily growing sales” — that a penny dropped for me. An old penny.

We recognize in our business that “word of mouth” is the most effective means of growing the market for a book. If that were the way things really worked, books would tend to have a sales curve that was a relatively gentle upward slope to a peak and then a relatively gentle downward slope.

Of course, very few books have ever had that sales curve. Nothing about the way big publishers routinely market and sell would enable it to happen. Everything publishers do tries to impose a different sales curve on their books.

A gentle upward slope followed by a gentle downward slope would, in the physical world, require a broad and very shallow distribution with rapid replenishment where the first copy or two put at an outlet had sold. But widespread coordination of rapid replenishment of this kind for books selling at low volumes at any particular outlet (let alone most outlets) is, for the most part, a practical impossibility in the world of distributed retail.

In fact, distributed retail demands a completely out-of-synch sales curve. It wants a big sale the first week a book is out to give it the best chance of making the bestseller list and, even failing that, the best chance of being worthy of continuing attention by a publisher’s sales staff, and therefore, the marketing team. Books in retail distribution are seen as failures if they don’t catch on pretty quickly, if not in days or weeks, certainly within a couple of months. And if a store sells two copies, say, of a new book in the first three months, it probably doesn’t make the cut as a book to be retained. If they bought two, they’re glad they’re gone and not likely to re-order without some push by the publisher or attention-grabbing other circumstance. If they bought ten, they’ll want to get their dollars back by making returns so they can invest in the next potentially big thing.

But that’s not the case online, where there is no need for distributed inventory (especially of ebooks!) If the first copies sold lead to word of mouth recommendations, the book will still be available to the online shopper. And there will be nothing in the way it is presented — it won’t have a torn cover hidden and be hidden in the back of the store, say — to indicate it isn’t successful. People can buy it and the chain can continue, building over time. Three months later, six months later, it really doesn’t matter; the book can keep selling. And, by the way, this will be true at any online retailer with an open account at Ingram (including for print-on-demand books), not just at Amazon.

But, in the brick and mortar world, the book will effectively be dead if it doesn’t catch on in the first three months. And the reality of staffing, focus, and the sales philosophy of most publishers means it won’t be getting any attention from the house’s digital marketers either.

If you live in the world of indie success like Hugh Howey does, you are repeatedly seeing authors breaking through months after a book’s publication, at a time when an experienced author knows a house would have given up on them.

Now park that.

I also had a chat last week with a former colleague of mine now at a periodical. He was explaining that one major conceptual challenge for his publication in the digital age was to see their readership as many pretty small and discrete audiences, not one big one at the level of the “subscriber”. No story in his publication is intended for “everybody”; what is important is for a newspaper or magazine to know whether particular stories are satisfying the needs of the particular niche of their audience that wants that topic, that kind of story. Talking to this former colleague about digital marketing and publishing was a variation on the themes that are topics with Pete.

One thing I learned in this conversation made another penny drop. Let’s say you have a story on any particular topic, from theater to rugby, my friend posited. Your total “theoretical market” within the publication’s readership is every person who ever read a single story on that subject. But your “core market” is every person who has read two stories on it. If a high percentage of those read it, the story succeeded. If not, the story failed.

And a further implication of this analysis is that seeing your audiences that way, and growing them that way, will also ultimately allow monetizing them more effectively. This wouldn’t be advertising-led, so much as harvesting the benefits of audience-informed content creation, but it is totally outside the way editorial creation at newspapers and magazines has always occurred.

And now park that.

We had a meeting two weeks ago with a fledgling publisher whose owner has a great deal of direct marketing expertise. As he heard Pete explaining what he did, looking for search terms that suggested opportunity (lots of use of the term and relatively few particularly good answers), he wondered if we could tell him through research what book to write. We’ve gotten some publishers in some circumstances to do marketing research early enough to influence titling and sub-titling. McVeigh in his ebook makes the same point under the rubric that SEO should be employed before titling any book.

Of course, we don’t sell that kind of help very often or we haven’t so far. It would require getting marketing money invoked early to pay for research like that. But we know it is useful.

And all of this together brings into sharper focus for me where trade publishing has to go, and how the marketing function, indeed, the whole publishing enterprise, needs to be about a constant process of audience segmentation, research, tweaks, analysis, and repeat. A persistently enhanced understanding of multiple audiences can productively inform title selection and creation. And systems and workflows need to be built to systematically apply what is being learned every day to every title which might benefit. Audience segmentation and constant research are really at the heart of the successful trade publishing enterprise of the future, even if we are only lurching toward them now with a primitive understanding of SEO, the occasional A-B test for a Facebook ad, and the gathering of some odd web traffic and email lists that don’t relate to any overall plan.

A publisher operating at scale ought to have the ability to provide those authors that want to build their audiences one reader at a time better analysis and tools than they would have to do it on their own.  Publishers have always depended on the energy of authors to sell their books; the techniques just have to change. Instead of footing the bill for expensive and wasteful author tours, publishers should be providing tools, data, and helpful coaching to be force multipliers for the efforts authors are happy to extend on their own behalf. The publisher’s goal should be have their authors saying “I don’t know how I could possibly be so effective without the help I get from my publisher.”

Publishers should also be doing the necessary research to examine the market for each book they might do before they bid on it. They should have audience groups with whom they’re in constant contact, and they also need the ability to quickly segment and analyze audiences “in the wild”. The dedicated research capabilities need to be applied to the opportunities surfaced by constant monitoring of both the sales of and the chatter about the backlist.

Size, scale, and a large number of titles about which a lot is known should give any publisher advantages over both indie authors and dominant retailers in building the biggest possible audience for the books it publishes. But getting there will require both learning the techniques of the future and unlearning the concepts and freeing themselves of the discipline of “pub date” timing that have always driven effective trade publishing.

The publishers creating new management positions with the word “audience” in the title would seem to be very much on the right track. It is worth recalling that my father, Leonard Shatzkin, carried the title of Director of Research at Doubleday in the 1950s. Research would be another function to glorify with a title and a budget assigned and monitored from the top of each company. Note to the CEOs: a budget for “research” for marketing and to inform acquisition should be explicit and it should be the job of somebody extremely capable to make sure it is productively invested.

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No, the Big Five are not a cartel and it really ignores reality to label them as one


One of the best-attended breakout sessions of Digital Book World 2015 was the discussion called “Should Amazon Be Constrained, and Can they Be?” which shared the very last slot on the two day program. That conversation was moderated by veteran New Yorker journalist Ken Auletta, and included Annie Lowrey of New York Magazine, thriller author Barry Eisler, and Barry Lynn of the New America Foundation.

It turns out that the two Barrys, who have pretty much diametrically opposed positions on Amazon (Lynn wants them investigated by the DoJ as a competition-stifling monopoly; Eisler casts them, for the most part, as the heroes of the book business’s digital transition) have a common position on the Big Five publishers. They refer to them as a “cartel”. Eisler is sneeringly dismissive of “New York”, which he refers to the way Republicans of the 1980s referred to “Moscow”, as an obvious pejorative. He appears befuddled by how anybody interested in the well-being of authors and the reading public could take the side of these publishers who maintain high prices for books, contract with authors to pay them smaller percentages of sales than Amazon does (either through Amazon’s own publishing operations or through their self-publishing options), and notoriously reject a very high percentage of the authors who come to them for deals.

Perhaps because the focus was Amazon, perhaps because Eisler was both emphatic and entertaining in his roasting of the publishing establishment, and perhaps because the facts to defend them are not well known, neither moderator Auletta nor panelist Lowrey challenged the big publisher baiting from Eisler with which Lynn mostly agreed.

It was just as well that I wasn’t on the panel. I am not certain that Amazon can or should be constrained, but I am damn sure that the Big Five publishers are not villains, and they are certainly not a cartel. They do seem to be extremely poor defenders of their own virtue but they are doing yeoman work maintaining the value in the old publishing model — for themselves and for authors — while adjusting to changes in their ecosystem that require that they develop strong B2C capabilities while maintaining their traditional B2B model, the death of which has been greatly exaggerated. If I’d been on that stage, the discussion of Amazon would have been diverted when the trashing of the big publishers began.

I took the step of confirming in an email exchange my recollection of the counts in Eisler’s very entertaining, persuasive, and unchallenged indictment of the big publishers.

1. Their basic contract terms are all the same, which it felt at the time he was suggesting demonstrated collusion, but which in our subsequent exchange he clarified he interprets as evidence of “asymmetrical market power and a lack of meaningful competition”;

2. They pay too low royalties on ebooks, which he also attributes to their “asymmetrical power” and “an implicit recognition that publishers come out ahead if they don’t compete on digital royalties”;

3. They only pay royalties twice a year, rather than more frequently or more promptly, which Eisler also attributes to a lack of competition;

4. The term of big publisher contracts is normally “life of copyright”, which Eisler calls “forever terms”, and;

5. They reject a lot of authors. Here Eisler clarifies that this is not an “indictment, just an axiom”. I agree when he applauds self-publishing for creating a better world where “readers have more to choose from”. But we quickly part company again because he characterizes self-publishing as freeing us from a world where “an incestuous cartel” makes “virtually all the decisions about what tiny fraction of books readers will every have a meaningful opportunity to learn of and read”.

In our exchange, Eisler expressed the belief that “the only reason people have been okay with this is that the Big Five are ‘my people'”. So they get a pass which he likens to what conservatives gave George Bush or liberals give Barack Obama. (In another point of disagreement between us, Eisler seems to find very little difference between the Democratic and Republican parties. I guess that is some people’s way of saying “nonpartisan”. What it says to me is “not discerning”.) And Eisler finds it “interesting” that the publishing revolution has “people decry” Amazon for “doing, or often only for potentially one day doing, the very things that are the definition of the Big Five.” (I have problems with this too, because none of the big publishers have a dominant market share selling books online and ebooks. In other words, Amazon and the publishers really aren’t comparable. Check back with me if any of the big publishers builds — or buys — a market-leading retailer.)

I’m going to plead “no contest” to the charge that the Big Five are “my people”, which I hope won’t discredit my arguments any more than the fact that Eisler is an Amazon-published author discredits his. But the cartoon picture of publishing in Eisler’s reviled “New York”, where some small group of extremely like-minded people apply their narrow views to effectively restrict what people read is a massive distortion of reality. Let me try to set the record straight about this world so many of my friends inhabit and with which I’ve been interacting for the better part of five decades.

First of all, the Big Five have plenty of competition: from each other, as well as from smaller niche publishers who may but be “big” but certainly aren’t “small”. (That is why the big ones so often buy the smaller ones — they add scale and simultaneously bring heterogeneous talent in-house). They are all quite aware of the authors housed elsewhere among them who might be wooable. In fact, since we have started doing our Logical Marketing work, we have done several jobs which were big author audits commissioned by publishers who wanted to steal the author, not by the one which presently has them signed. Eisler explicitly resisted accusing the publishers of “collusion”, but he does accuse them of “not competing” with each other. That is an accusation that is simply not supported by the facts. Nobody who has spent any time talking to people who work in big houses could possibly get the impression that they don’t compete.

(In fact, a friend of mine just moved from one big house to another. He is explicitly persona non grata at his prior employer. Now, in this case, I think the house that lost him is behaving childishly, but it certainly underscores the fact that they believe they are in intense competition and now this one-time colleague has gone over to “the other side”.)

But the big flaw in Eisler’s logic is the same one that dooms Hugh Howey’s “Author Earnings” project to irrelevance: the assumption that the per-copy royalty terms and rights splits are the most important element of publishing contracts. In fact, they’re not. Actually, those terms matter in 20 percent or fewer of the agented author contracts with the Big Five. Why? Because the agents get the publishers to pay advances that don’t earn out!

In fact, I have been told by three different big houses what they calculated the percentage of their revenues paid to authors amounted to. We could call that the true royalty rate. The three numbers were 36, 40, and 42 percent. That includes what they paid for sales of paperbacks, all of which carry “stipulated” royalties of well less than 10 percent of the cover price (and therefore below 20 percent of revenue).

Take that on board. Big publishers are paying 40 percent of their revenue to authors! That leaves them 60 percent to pay everything else: overheads, manufacturing, and profits! Compare that to the margin Amazon has even if they pay a 35 percent digital royalty, or compare it to what anybody else has in any other business after paying to acquire the raw material for what they sell. If there were really an “asymmetrical” power equation favoring publishers, you’d think they could acquire the author contracts for a bit less, wouldn’t you?

Not only were the authors’ collective royalty rates much higher than contracts stipulated, the authors got most of that money in advance, eliminating the authors’ risk. The only contracts on which the royalty terms matter are those that do earn out (and, arguably, those that are close). For all the others, most of Eisler’s list of complaints is irrelevant. And, for the record, I have never heard an author complain about that show of confidence, the work that follows in helping him or her reach an audience (which benefits all involved), nor the cash upfront.

More frequent accounting doesn’t matter if you aren’t owed any money. And if the solution to “forever” contracts were that you could buy your way out by paying back what you got in advances that your book didn’t “earn”, how many authors would do that?

But, in fact, agented authors don’t have forever contracts; agents have been negotiating performance clauses for publishers to keep rights for years. And, on top of that, no author in the US can possibly have a “forever” contract because the copyright law of 1978 requires the publisher to revert rights to the copyright holder after 35 years on request. Agents tell me this is has been resulting in additional “advances” for re-upped books for the past couple of years. Note: this is the law. No publisher disputes it. But the “forever contract” argument ignores it.

But, even beyond that, the negative characterization of Big Five New York publishing is terribly unfair.

First of all, the standard terms in big house contracts are almost always more generous than the terms in smaller publisher contracts. Few — if any — of the smaller ones pay a hardcover royalty as high as 15 percent of list. Although higher digital royalties can sometimes be found, usually those are from publishers who have little capacity to deliver print sales, so digital royalties is all you’re going to get. (That might be okay for a romance novel where a big majority of sales could be digital. It would be disaster for the author of just about anything except genre fiction.) And some smaller publishers actually pay less than 25 percent for digital royalties.

So the Big Five terms are generally better and they routinely pay agented authors advances that no other publisher would attempt to match.

But, beyond that, the idea that they are a “cartel” (a characterization enthusiastically seconded by Amazon critic Barry Lynn after it was introduced by Amazon supporter Eisler), is really preposterous. In fact, the Big Five are, to varying degrees, federations of imprints that even compete internally for books, sometimes to the extent that they will bid against each other when an agent conducts an auction. And it would appear from Eisler’s pre-Amazon publishing history that he himself has, in fact, been the beneficiary of bidding competition among major houses.

The internal-to-the-house competition occurs because of the way big publishers are organized. It has been understood for decades that some aspects of a publisher’s operation benefit from scale and size and other functions must remain small. In general, publishers deliver accounting, manufacturing, and sales as centralized functions and editorial acquisition and development, packaging and design, and marketing as localized capabilities housed within the imprints. The power of imprints, which are individual editorial units, varies, but it is generally the case that they have autonomy over their acquisitions and must “compete” internally for the centralized services.

The digital transition is definitely straining that organizational structure. Having the by-title P&L responsibilities distributed makes it more difficult for houses to organize cross-imprint initiatives for everything from direct sales to audience-centric (vertical- or subject-oriented) marketing. Having multiple imprints that all contain “general” lists is probably an anachronism in an age when we want brands (which imprints are) to make sense to consumers. Publishing imprint brands were always B2B, meant more to inform such trading partners as libraries and bookstores and reviewers, not the general public.

But the big houses reap large benefits from the power of their central services. They get rock-bottom prices for printing and lightning-fast service for reprints. They have daily contact with the biggest accounts, which matters for getting reorders onto suddenly-empty shelves or to execute a short-lived price promotion for an ebook. They have teams of people staying abreast of every promotional opportunity at every account or service like BookBub. They are increasingly developing teams and tools to keep their marketing metadata fresh and relevant, to monitor the online world for marketing opportunities, or to build or advise authors on creating effective web presences.

Although authors can certainly be found who felt they were signed and then ignored, most houses sweat all the details: editing the book, packaging it for sale, and following rigorous pre-publication routines to get endorsements. They all have special sales departments that are regularly working catalogs and specialty retailers for the books appropriate to their audiences. Smaller houses don’t have all these capabilities. To suggest to an author with no publishing background that s/he can do all this themselves, even with an unlimited budget to buy outside services, is really setting a novice up for frustration and failure, or at the very least near-certain dissatisfaction.

I asked Eisler about the competition among the big houses that doesn’t seem to enter his calculus. Here’s what he told me:

As for competition among the Big Five, I call it kabuki competition. Competition that results in decades of zero innovation and the same antediluvian lockstep contractual terms is by definition meaningless. It’s managed competition, agreed-upon competition. A lack of industry innovation is like the dog that didn’t bark: the absence is itself evidence, because in the presence of meaningful competitive pressure, industry players innovate. To argue otherwise, you’d have to argue there has never been room for real innovation in publishing practices. I think that would be a hard argument to make.

To put it another way, what the Big Five cooperate on is far more significant than what they compete on. By it’s [sic] nature, competition is more noticeable than cooperation, so a little bit of competition obscures a lot of cooperation.

Unfortunately, this doesn’t tell me much. I don’t know what the Big Five “cooperate” on. And though the argument that there “has never been room for real innovation in publishing practices” would, indeed, be nonsense, so is the claim that there has been no innovation. A “failure to innovate” doesn’t describe the last five years that I’ve been living through. All the Big Five houses have continuously reorganized, brought in outside-of-publishing digital talent at a high level to up their game, and introduced digital-first operations and contracts, all at the same time that they have had to manage down fixed investments in plant (warehouses) and change manufacturing-and-inventory processes to take advantage of improved digital printing capabilities.

It is now often forgotten that, while it is true that Amazon “made” the ebook market really happen, publishers had for a very long time before Kindle been creating editorially magnificent products and were far ahead of Amazon in seeking to publish in ebook formats, only partly because of better economics. (At the time all costs were additive and the market was tiny.) They published them because readers seemed to want them and big publishers, whatever their bashers might think, feel a responsibility to assure maximum distribution of a writer’s work.

In fact, the big houses all are comprised of competing imprints. Among them they employ hundreds of acquiring editors who are each trying to build their own successful lists (competing with each other). They are shamelessly commercial: a book with the potential to sell only a few thousand copies won’t get their attention. But, beyond that and those things that are far outside prevailing public morals and sensibilities, I can’t see any restrictions on what they’ll publish.

The Big Five houses have negotiated the digital transition that has occurred so far with startling success. The self-publishing business has grown, fueled by investment from Amazon and other big players, but big houses have hardly lost any authors. They are facing down dominant retailers in their two biggest channels — brick bookstores and online — and managing to maintain their margins and profitability. They are all moving on a variety of initiatives to build vertical (audience-centric) capabilities and extend their global marketing and sales reach.

But even if one assumes the “worst” of the big publishers, it is a total canard to say, as Eisler did to me, that “in the absence of meaningful competition, the Big Five has exercised incredible power over what books are published and what people are functionally permitted to read.” In fact, the argument that authors can reach their audiences successfully through self-publishing (which on other days, Eisler and his fellow musketeers Hugh Howey and Joe Konrath make with gusto) explicitly contradicts that contention. But so do Harry Potter, published by Scholastic, and “Fifty Shades of Gray”, picked up by Knopf after a self-published start, to name two sales phenomena of relatively recent times. There are a number of very capable publishers just a bit smaller than the Big Five (Houghton Mifflin Harcourt has the Lord of the Rings books, for example) and there are legions of specialty publishers who do books the Big Five would generally not even consider.

Sometimes the Big Five acquire those publishers to add diverse author and publishing talent to their rosters to compete in niche markets. Harpercollins’s acquisitions of Thomas Nelson and Harlequin fit that description. How much a big house can publish is one thing; what they can publish is also a function of the talent onboard and the audience development that has already taken place.

The Big Five are actually specialists of a different sort: they do the books with the biggest commercial potential. I’d argue that having five very large companies all capable of making a book a mammoth commercial success is a pretty big number, not a small one. If those companies were broken into more of their component parts and we had 15 or 25 large-ish publishers rather than five giant ones, it is not at all obvious that author advances or sales would be higher. There would probably be more manufacturing and sales staff per title (and less investment in tech to support either) than there is now, but those salaries would be subtractions from the company’s margins, and would therefore likely increase book prices. That’s not going to produce more value for either authors or readers. So I actually think author advances — which one must always remember is the metric that matters most in determining how well authors are getting paid — would be lower.

During our on-stage conversation at Digital Book World 2015, Brian Murray, the CEO of HarperCollins, took great pains to express his view that self-publishing capabilities are good for authors and for readers. On the same morning, Judith Curr, who is the President of S&S’s Atria imprint, explained how her house specifically targets successful indie authors to bring them in. Every big house has some respectful variation on those themes. The animus between big publishers and some components of the self-publishing community is really a one-way street. In a prior post of mine about the illogical publisher-bashing, the comment string taught me that the mostly rhetorical and histrionic arguments from the self-publishing side against the big houses constituted an emotional, not a rational, reaction.

A dispassionate examination of the facts and an understanding of how things really work make it clear that big publishers — both goaded and constrained by powerful agents — are very good for authors. That doesn’t mean self-publishing isn’t good for them too but, then, no big publisher I know is saying that it isn’t!

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Kids book publishers need to massage their data to understand where their books are really going


The day before Digital Book World (which this year was last Tuesday, January 13th), we organize a conference about publishing for young people called Publishers Launch Kids. Because my involvement with juvie publishing over my half century in the business has been relatively cursory, we are fortunate to have recruited our friend, Lorraine Shanley of Market Partners International, to be the Conference Chair and program the show. She invites me to join a wrap-up session at the end of the day. I bring a “fresh perspective” because I am relatively lightly burdened with prior knowledge before I hear all the speakers.

Lorraine delivered a consistent theme, which was that kids’ publishers are finding new revenue streams. Subscription is one of them. Tapping big brand promotional dollars was another. And some of the new-style digital publishers who are creating their own IP are turning books into a subsidiary right, licensing back that IP to more pure-play book publishers.

I was delighted that I found myself able to offer comments in the wrap-up that the audience seemed to think added insight to their day, so I’m repeating those observations here and adding another in hopes that it will do the same for yours.

The first point is around the general consensus, widely reported and commented upon, that kids publishing is the one big bright spot in the industry, carrying all of the Big Five publishers to expanding margins and profits. But when the facts are examined a little more closely, it is clear that there are real limits to the conclusions that should be drawn from the data that lead people to that belief.

Publishing revenues are credited based on the BISAC codes associated with each book published. The phenomenon of the past few years, really going back almost two decades to the launch of the first Harry Potter book, is the massive adult audiences for books intended, and tagged, for YA audiences (and sometimes, as in the case of a book called “Wonder” — or Harry Potter itself for that matter — books that are tagged for even younger readers).

Well, the stat-masters from Nielsen Book made it clear how distorting those sales can be in their presentation, where they showed that 80 percent of the sales of YA novels are made to adults for their own reading! Since one of the core challenges we acknowledge for juvie publishing is how to overcome the teacher and parent gatekeepers between the books and their intended audience, that data would make it appear that the gatekeeper question is not nearly as consequential as we might have thought. Or, at the very least, for a big chunk of their list, it isn’t the most relevant marketing challenge.

And that raises a second point. It is clear that juvie publishing, like all trade publishing, needs to clearly separate the titles and attributable revenues that are straight text from those which are not. We have long advocated this perspective for adult publishing because of the clear and consistent evidence that straight text books port successfully to digital and other books do not. Of course, that would be true regardless of the age level of the books. But aside from the differences in performance based on format, YA has a divide that is also based on audiences.

In a whole day’s conversation, there was never any indication from any publisher that they clearly delineate their businesses that way. That is, even if you accept the idea that 80 percent of your YA straight text sales are to adults for adults, it does not facilitate an easy recalculation of how much of your total audience and sales are for adult consumption as opposed to being for youth consumption unless you have already separated out the YA and middle-grade chapter books from your other output. (I include the middle-grade chapter books here because of my awareness of the book “Wonder”, aimed at 9-year-olds but a rewarding read for kids of all ages.)

Without making that distinction, meaningful analysis of sales data to inform marketing becomes nigh on impossible.

There is an analogy here to a different dichotomy. We have said for years on this blog that looking at the division between print book sales and ebook sales by genre or category or publisher is much less meaningful for analysis or business decisions than looking at the sales made online versus those made in stores. Obviously, about 100 percent of the ebook sales are made online but that only tells a part of the story. As publishers consider resource allocations from marketing and sales staffing to where promotional efforts should be focused, the more meaningful distinction is how people buy than in what format they read.

And the meaningful distinction for publishers looking at sales to figure out how to get more of them is who buys and reads their books, not what reading level they were theoretically aiming for.

There are some other implications of this matching of books and actual audiences. One is that it certainly possible, and perhaps even likely, that the ability of the kids’ divisions of Big Five houses are better positioned to go after those adult audiences than a kids-only house would be. To the extent that adult-division marketers get involved in pushing the books that come from the kids books editors, they press that advantage.

I also came into Pub Launch Kids with an old idea that the discussion that day only reinforced. I can’t understand why each of the Big Five publishers isn’t operating its own subscription program for juvies: all of them across grade levels, picture books and chapter books. Here’s my logic. Just about every parent would love to be able to hand a kid the tablet or phone they could read on and let them do their own “shopping” for books. But they don’t want to give them the ability to spend money. Subscription is a simple answer for that.

Lorraine had put together a great panel of companies for Launch Kids with subscription offerings: MeeGenius, Speakaboos, and Smarty Pal. All of these companies had more to offer than just subscriptions, including enhancement (read-along narration), curation, and data that could be useful to parents and teachers. But they also had both a limited number of titles (in all cases, fewer than any one of the Big Five publishers could deliver on its own) and a commercial model challenged both by the operational cost of content acquisition and the need to have their own share of the revenue in addition to what the publisher takes (to share with the author).

Meanwhile, the Big Five publishers have digital files of all their books and the ability to promote a subscription service to their target audience by the very simple device of promoting it on the covers of all the print books they sell and within all their ebooks. Unlike a third party subscription service, they could live with a relatively small and slowly-growing subscription base to keep the cost of subscriber acquisition low. They’d learn a lot by observing the behavior of their readers. They could find that a subscriber who looked at a picture book 27 times might be enticed to buy a print copy, so the subscription activity could also be lead-generating.

And this kind of intel could really drive sales through another of the new revenue streams discussed in some detail at Launch Kids: personalized books.

Subscriptions from the owners of juvie book IP for digital versions of their content also have another massive potential market: schools. All of the subscription sellers recognize that. Any publisher who had such an offering would have that market to chase as well. One publisher I discussed this with sees the institutional market as the first one to pursue but agreed after we discussed it that the ability to pursue an opportunistic single subscriber strategy, rather than needing to get enough of them to build a free-standing business, made a real difference in how profitable those single subscribers could be and how low the acquisition cost might be driven.

I have been waiting expectantly for Penguin Random House to offer its content to schools on a subscription basis, which could give them a huge structural advantage over everybody else in that marketplace. I say this despite PRH consistently reporting back to me (in only the nicest ways) that my speculation about what’s best for them doesn’t square with their own thoughts on that matter.

But were they to do that, the most sensible response from the other four big houses would be a combined offering to schools, since it would pretty much take all four of them to present a comparable alternative. One wonders what the DoJ would think about that.

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Headliners galore will address Digital Book World 2015


Half of Digital Book World is delivered to the entire audience from the Main Stage. The speakers for 2015 comprise the most illustrious group we have ever had. The headine is definitely that we have managed to corral both Amazon and Apple speakers for our main stage — a feat we don’t believe any other conference in the book business has ever managed to pull off — but I’d be proud of this program even if neither of them were on it! Beyond the retailers, we have three bestselling authors, three leading publishing executives (four if you count that F+W CEO David Nussbaum will deliver a welcoming speech), three data-driven experts, and two leaders from adjacent industries.

The program will kick off with a presentation from best-selling author Walter Isaacson, whose current book is “The Innovators”. Isaacson wrote definitive bios of both Benjamin Franklin and Steve Jobs in recent years, both of whom had their own role to play in the book business. His current book really is about the digital revolution in general, the context in which publishing’s change, DBW’s topic, occurs. Context-setting is always a good way to start, and Isaacson definitely fills the bill.

We discovered ed-tech investor Matthew Greenfield during the course of planning DBW 2015 and we think our audience will agree he was a great “find”. Greenfield’s Rethink Education business invests in start-ups, which for ed-tech he divides into three groups of companies: those that deliver ebook readers and content for school use; those focused on short form reading, like news; and those that are writing-related, which are likely to include leveled collections of reading to help developing writers. Since the ed-tech field is largely about creating new platforms within which the content is consumed in schools and colleges (as well as adding value with context and evaluations), he will explicitly include advice for trade publishers who sell their content for educational use and will increasingly find it necessary to sell through these platforms. Greenfield also has some interesting speculation to offer about where educational technology is going and what we can expect to see from publishing’s biggest disruptor, Amazon.

You can’t be trying to figure out the future of publishing without being aware of the new phenomenon of “content marketing”. So I reached out to the Founder of the Content Marketing Institute, Joe Pulizzi, about imparting some wisdom to book publishers. I started out thinking the content marketing business might make use of some of our content, but he straightened me out pretty fast: that’s not the most likely synergy between what he knows and what we need. In fact, Pulizzi is an expert on how to use content to drive consumer engagement and he does it for organizations and brands that have to pay to create that content. Of course, we in the book business already have lots of content and ready access to more within our existing staffing and networks. In this presentation, Pulizzi will be talking about how we can use content to build consumer engagement and loyal customers to whom we can market repeatedly (vertical thinking). Everything Pulizzi says is likely to suggest questions to publishers, so we’ve also given him a breakout session to allow those who want to hear more and interact more to do so.

The first of our publishing CEOs to take the stage will be Linda Zecher from Houghton Mifflin Harcourt. Zecher runs a company that is very big in education publishing but has a top 10 general trade list as well, so she is really the only CEO managing across those two publishing segments. She’s also the rare publishing executive with a tech background (hers was at Microsoft). This interview with Michael Cader will focus on the lessons learned from the education side which could be harbingers of adjustments trade publishers will also have to make.

Next up will be James Robinson, Director, News Analytics, for The New York Times. Robinson is, effectively, the Times’s techie in the newsroom. He takes the view that writers and editors need to understand who their readers are, and, of course, they are not the same for every story. He also wants to make sure that as many people as possible see each relevant story, whether they would have expected it from The Times or not. If I do say so myself, Robinson has a sterling background. He spent several years working with me at The Idea Logical Company before he went on to get a Masters at NYU studying under thought leader Clay Shirky. The way he thinks about content and audiences for The Times contains lessons for non-fiction book publishers and perhaps for fiction publishers as well.

The first morning of Main Stage presentations will conclude with Cader and me interviewing Russ Grandinetti, SVP, Kindle, at Amazon. Grandinetti is a straightforward and outspoken executive who has been with Amazon since just about the very beginning and who has shepherded Kindle throughout its existence. With Amazon now generally acknowledged as the most powerful and disruptive force in the book business, we will all be interested to hear what he thinks is the future for printed books versus digital, bookstores versus online purchasing, and how much Amazon’s own publishing and subscription programs are likely to grow.

The second morning will begin with Michael Cader interviewing Internet and marketing guru Seth Godin on the subject of “what’s next?” Godin, who saw — and wrote about — the importance of building personal brands and mailing lists at the dawn of the Web era, is a successful book author who has been watching how publishers operate and market for several decades. In this conversation, he will deliver intuitive and logical advice that many can follow. Anybody who listened to Godin talk about “permission marketing” 20 years ago and followed his advice now has a massive emailing list that is a major marketing asset. Just about every publisher will likely come away from this session with some new ideas to apply.

Next up, for an interview with me, will be CEO Brian Murray of HarperCollins. Under Murray’s leadership, HarperCollins has established itself as the number two English-language trade publisher in the world. Two recent acquisitions, Christian publisher Thomas Nelson and romance publisher Harlequin, have given them strong foundations to develop large vertical communities. In addition, Harlequin had a global infrastructure in place that HarperCollins is using as a springboard to build out their own global — and beyond just English — presence. Murray will discuss how these acquisitions position HarperCollins strategically to compete with the substantially larger Penguin Random House and to build their ability to reach readers beyond those they get to through Amazon, Barnes & Noble, and an ever-smaller number of ever-larger retail trading partners.

Over the past several years, ebooks have taken market share from print that is probably in the range of 25 percent across the board. But that’s not distributed evenly by genre or subject or type of book. Jonathan Nowell, the CEO of Nielsen Book, is going to help us understand how the mix of what sells in print has changed as a result of this. Understanding what the evolving print marketplace really looks like willboth publishers and retailers plan for the ever-changing future, in which we will probably see less print overall, but not for everything.

Ken Auletta of The New Yorker has been covering both content and technology businesses for many decades. Nobody understands how the companies in both those industries work — including their cultures — better than he does. Among his five bestsellers is “Googled: The End of the World as We Know It”. Auletta will talk about “Publishing in World of Engineers” and how the smaller content companies cope with their new partners that come from the world of technology. The culture clash between long-established content providers and techies who place high value on “disruption” is a theme we all deal with and about which Auletta can shed real light.

Hilary Mason is a data expert who has honed her talent for analytics during a stint at Bit.ly. Mason has spent years learning about individuals through their online behavior. In this talk, she is going to tell publishers what she’s learned about how to gain insight into individuals and audiences and how to use those insights to garner interest and affect behavior. Like Pulizzi, we anticipate that Mason will raise a lot of points some of our attendees will want to pursue further around their particular interests. So we have also given her a break-out session in the afternoon, where the most interested can explore further how to use data and analytics effectively.

Judith Curr is President and Publisher of Simon & Schuster’s Atria imprint. She has always had an admiration for entrepreneurship and indie authors have looked attractive to her as a publisher for a long time. (She points out that Vince Flynn started out as a self-published author.) So Curr did some brainstorming and tried to figure out how to make her imprint a place that an indie author would want to be. In this talk, other publishers who see the importance of appealing to authors who want to market themselves, manage their careers, and publish faster (or shorter) than the conventional process, can learn from her thinking, insight, and experience.

Our main stage activity will conclude with an interview by Michael Cader with Keith Moerer, who runs Apple’s iBooks Store. iBooks Store has established itself as the second leading global seller of ebooks and has ambitious plans for continued growth. We’ve never had the good fortune to have them on the DBW program before. We are thrilled to be able to close our main stage day with Amazon and our second with Apple, giving publishers a chance to hear from the two biggest retailers in the world for their ebooks.

Not covered in this post or my prior post about the DBW breakout sessions is the sterling Launch Kids program organized by our friend and frequent collaborator, Lorraine Shanley of Market Partners International. The world of juvie and YA publishing will probably change the most of all publishing segments and there are legions of players outside what we think of the book business working on it. Lorraine has corralled a number of them — familiar names like Google, Alloy, Wattpad, and NewsCorp’s Amplify and innovators such as Kickstarter, Speakaboos, Paper Lantern Lit, I See Me, and Sourcebooks’s new smash success, Put Me In The Story. If publishing for young people is on your radar, you’ll want to plan for three days with us and start with Launch Kids the day before DBW 2015 begins.

Through the comments section of this blog, I got to know Rick Chapman, who is the self-published author of books on software (and, now, also some fiction.) Chapman’s comments on the blog were so insightful that I recruited him to speak on a panel at DBW (covered in the last post). Yesterday, Rick published this piece challenging the conventional wisdom that Amazon is the indie author’s best friend. He has even started a survey of indie authors to gather data for his DBW appearance. Whatever position one takes on Amazon, Chapman’s post is thought-provoking and entertaining. If you read this, you’re likely to want to see him when he speaks on a panel at DBW.

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The Digital Book World program this year covers the waterfront of the digital transition for book publishing


(This is a longer-than-usual Shatzkin Files post reviewing the topics and speakers for the 26 breakout sessions at DBW 2015. It serves as a checklist of “things to think about right now” for book publishers living through the experience of digital change. The entire program is here. We decided not to link to each and every speaker.)

The main stage speakers get most of the promotional attention leading up to Digital Book World. That’s just good marketing because there are many important names. Some have written big books (in addition to many other things they’ve done) like Ken Auletta, Seth Godin, and Walter Isaacson. We have a number of CEOs on the main stage as well, including Brian Murray of HarperCollins, who has just been named PW’s “Person of the Year”.

But half of Digital Book World is the six breakout session slots, at which attendees select from several choices. I take some pride in saying that we’re requiring some of the toughest decisions our attendees will have to make in 2015 very early in the year when they decide for each slot which session to attend and which ones they have to skip.

What we tried to do was to schedule things so that our “tracks” — two or more sessions on marketing, data, global, transformation, kids/education, technology, and new business models — are set up to allow people to attend all the sessions in that track. But there is overlap, of course.

“Marketing” is definitely the marquee subject for DBW 2015. We have seven sessions under that heading. On the first day we have a conversation about the skill sets required for marketing today, chaired by my Logical Marketing partner Pete McCarthy and featuring Jeff Dodes of Macmillan, Angela Tribelli of HarperCollins, Rick Joyce of Perseus, and Hannah Harlow of Houghton Mifflin Harcourt. Since two of the panelists are recent imports from outside publishing, presumably hired precisely because they had skill sets that publishing training wouldn’t have produced, this group is bound to help all publishing marketers identify what they need to bring on board.

That will be followed by a session on Smarter Video Marketing, which will be chaired by Intelligent Television founder Peter Kaufman, leading a discussion among video marketers Scott Mebus of Fast Company, Sue Fleming of Simon & Schuster,  Heidi Vincent of National Geographic Books, and John Clinton of Penguin Random House. In a world where authors are making their own videos and YouTube is the second leading search engine, this is a topic that suddenly needs to be on everybody’s radar.

The third marketing track session on Day One is on mobile marketing. Since tracking data is now showing that people now do more searching on mobile devices than on PCs, making sure books are optimized for mobile discovery has rapidly become essential. Thad McIlroy, a consultant with a long history in publishing, did a report on mobile for Digital Book World and will present some of his findings to kick off the session. Then he will lead a discussion including Nathan Maharaj of Kobo, Kristin Fassler of Penguin Random House, and CJ Alvarado of Snippet, a reading app that has been specializing in creating mobile reading experiences for branded authors/musicians /personalities, to detail how publishers and retailers are responding to this new reality.

Also related to marketing and also running on Monday, we’ve set up a break-out session for Joe Pulizzi, head of the Content Marketing Institute, who will have done a presentation on the main stage. Content marketing is something publishers need to learn from. Certainly all the techniques that are employed by non-publishers to market themselves with content created for a marketing purpose should be employed by publishers who have tons of content available for marketing. Pulizzi knows all the tricks and will have talked about many of them from the main stage. The breakout session will give attendees that want to learn more, and ask questions, an opportunity to do that.

The marketing track continues on DBW’s second day. One session, being moderated by my Idea Logical colleague, Jess Johns, will examine case studies of successful marketing campaigns. We’re featuring representatives from two of the platforms publishers can work with for marketing: Ashleigh Gardner of content platform Wattpad and Alex White from marketing data aggregator Next Big Book. They’ll each be joined by a publisher who has worked with them (about to be announced). Wattpad and Next Big Book, along with their publisher partner, will walk through what they’ve done in marketing that would have been impossible to imagine a couple of years ago.

Also on Day 2, we’ll be examining the new world of digital paid media. This has been a big challenge for publishers. Digital media is apparently cheap; you can do marketing that matters for hundreds of dollars in “media” cost, it doesn’t require thousands. But there’s also a lot of work and management involved to using digital media right. We were glad to get digital marketers from three leading publishers, Alyson Forbes from Hachette, Caitlin Friedman from Scholastic and Christine Hung from Penguin Random House as well as Tom Thompson from Verso Advertising. This session will be moderated by Heather Myers of Spark No. 9.

A marketing topic that has become top-of-mind for many publishing marketers is “price promotion”. A business has been built around it for the ebook business called BookBub, and its founder and CEO Josh Schanker will be on our panel discussing it. He’ll be joined by Matthew Cavnar of Vook, Rachel Chou of Open Road, and Nathan Maharaj of Kobo. We went for three retailers and service providers here because publisher experience with price promotion is still pretty limited, although the ebook pioneers at Open Road are an exception. Laura Hazard Owen of GigaOm will moderate this session.

Our data conversation begins on the main stage on the second morning of DBW with data scientist Hilary Mason, the CEO and Founder of Fast Forward labs. She started looking at Big Data at Bit.ly, the link-shortening and -tracking service. Mason is going to look at data across a content set that is the only one more granular than books: the content on the web. Her presentation will help us all understand how to interpret audiences for very small portions of the available content. Because we expect her presentation, like Pulizzi’s on Day One, to generate lots of questions, we also gave her a breakout session to facilitate questions and further explanations. DBW sponsor LibreDigital, which has a new offering to help their client publishers turn data into business intelligence, will help Hilary manage the Q&A.

Our panel on “Authors Facing the Industry” will be prefaced by two presentations.. Judith Curr, president and publisher of Simon & Schuster’s Atria Publishing Group, will have done a main stage presentation on the choice “self-publish or be published” that authors face. Then the breakout session will begin with a short presentation from Queens College Professor Dana Beth Weinberg of DBW’s annual “author survey”, giving a data-grounded underpinning to the panel discussion that will follow. Bianca D’Arc, an extremely successful writer of paranormal sci-fi and fantasy romance (and a former chemist), will be joined by two non-fiction writers for this conversation. Both David Vinjamuri, a marketing professor, and Rick Chapman, a computer programmer, have marketed their books themselves because they make more money doing it that way to their highly-targeted audiences. The panel will be moderated by Jane Friedman, one of the industry’s thought leaders about self-publishing.

The data we’ve never had before that is just beginning to be appreciated is the subject of our “How People Read” panel. It has become obvious that the platform owners know more about how consumers “behave in the wild” around reading than publishers do. Multiple device use, response to free samples, whether people read more than one book at a time, and how fast they read various books are all clear to those who serve up the ebooks, as well as differences in behavior that are geographically based, including uptake of English-language ebook reading. In a panel which will be moderated by Chris Kennealley of Copyright Clearance Center, Micah Bowers of Bluefire, Michael Tamblyn of Kobo, Jared Friedman of Scribd, and David Burleigh of Overdrive will share data insights their companies have gained by seeing many consumers of many genres in many contexts. Evan Schnittman, who had senior executive positions with Oxford and Bloomsbury and most recently with Hachette, will be moderating.

Of course, that last session is not just about “data”, it is also about “global”, which is another track at DBW 2015 with two sessions on Day Two.

The first of these, moderated by BISG Executive Director Len Vlahos, is on “Global Publishing Tactics”, designed to help publishers know what to do to sell outside their home territory. Speakers from three companies that provide global ebook distribution — Gareth Cuddy of ePub Direct, Marcus Woodburn of Ingram, and Amanda Edmonds of Google — will talk about what it takes to make your ebooks discoverable and get them purchased outside your home market. All of these entities distribute to just about every market in the world on behalf of a wide variety of publishers large and small. They see what works in metadata, pricing, and marketing, and they know what doesn’t. They are in a unique position to help publishers hoping to expand their global sales know what it will take to do that.

Our other dedicated global track session is the “Global Market Spotlight”, which will help our US- and English-centric audience understand the opportunities in four of the biggest emerging digital markets. It will feature local experts Carlo Carrenho from Brazil, Thomas Minkus of the Frankfurt Book Fair speaking about Germany, Marcello Vena from Italy, and Simon Dunlop of Bookmate, the ebook subscription service from Russia. Following a general introduction about how to look at new markets from Gareth Cuddy of ePub Direct, each of them will talk about how both online and ebooks are taking hold in their market, what local competitors are doing (and there is a very interesting ebook competitor coming from Germany), and what the prospects are for English-language sales in their market. This session will give very directed advice to publishers trying to get sales in four of the most promising new digital territories in the world.

Education is a subject on the agenda for trade publishers because how their books will get to students is undergoing dramatic change they’ll need to understand.

College textbook publishing has been remade in the past decade. In a panel moderated by veteran industry executive Joe Esposito, we will have the four giants of college textbook publishing talk about what that has meant in each of their shops. Simon Allen of Macmillan, Ken Brooks of McGraw-Hill, Clancy Marshall of Pearson, and Paul Labay of Wiley will discuss how their businesses have changed over the past few years, and why. Each of the biggest college publishers has changed their organizational structure, their workflows, and even their products themselves in the past decade, sometimes responding to and sometimes anticipating the changes taking place in the market. All of them have essentially switched from selling textbooks to selling learning platforms. Publishers that sell content into the college market will want to understand the new platforms these players have created and how outside content will now make its way to this market.

The school market is also undergoing extreme change. Partly spurred by the new Common Core standards but also by the fact that digital devices are increasingly integrated into the lives of today’s youth, the classroom experience is being changed dramatically. Neal Goff, who has had senior executive positions in several companies, most recently My Weekly Reader, and who is currently consulting with Highlights, will moderate the discussion about the changing K-12 environment. Three companies with very different perspectives on the market will participate. Chris Palma of Google will describe the operating system that works on the district, building, and classroom level that Google is making available free to school systems, achieving remarkable penetration very quickly. Of course, Google also provides hardware (Chromebooks) and content (through Google Play). Neil Jaffe is the CEO of Booksource, which has been providing print and digital content to schools for many years and sees a continuing need to provide both in the future. And Erica Lazzaro speaks for Overdrive, the company that has dominated the ebook library lending business and is making its way in the school market through its penetration of school libraries. They each have a unique view of how this market is changing. Publishers who sell books read by K-12 students will find this session invaluable.

It is becoming increasingly understood that “gamification” is a way to engage a lot of people who might choose non-reading content, particularly potential readers among the young. Our panel on this subject includes two publishers that are using gamifying to create more engaged “readers”. Keith Fretz will speak for Scholastic, which has made this work more than once already, most notably with “39 Clues”. He is being joined by Greg Ferguson of Full Fathom Five, a collaboration created by James Frey among HarperCollins, Fox, and Google’s Niantic Labs. Another way to employ gamification to engage younger readers is being employed by panelist Thomas Leliveld of Blloon, a subscription ebook service that uses “virtual money” both to reward its users and for them to use to pay for what they read. Also on the panel will be Sara Ittelson, Director of Business Development at Knewton, an adaptive learning company that has developed a platform to personalize educational content and which has lots of data showing how students engage with educational content across ages. This session is moderated by publishing attorney Dev Chatillon.

You could call it “education” or you could call it “tech” (another one of our tracks), but either way DBW attendees will learn about some important new propositions on our Publishers Launchpad session on ed-tech. Our Launchpad sessions are moderated by Robin Warner, a tech investor through her role as Managing Director of Dasilva & Phillips. Launchpad seeks to feature companies that many won’t yet have heard about, but we think they should. Johnjoe Farragher, CEO and Founder of Defined Learning has a new approach to mapping skills to curriculum for the K-12 market. Neal Shenoy, CEO of Speakaboos, will explain his subscription platform for digital picture books which is pedagogically designed to promote education. And Jason Singer, CEO of Curriculet, will explain how his company provides a rental model combined with enabling teachers to annotate and structure the student experience. All of these companies effectively become “gatekeepers” for trade content in schools, making their models very important for publishers who want their books delivered to K-12 students to understand.

The other Launchpad session, also moderated by Robin Warner, is more clearly “tech”-centric. Kevin Franco, the CEO of Enthrill, will talk about how his company “makes ebooks physical” by the use of cards with codes, which is now being trialed in Wal-mart in Canada. Peter Hudson of BitLit enables publishers to provide a free or discounted ebook to people who own a print copy and, along the way, has also developed a really nifty technology that will identify the books on anybody’s shelf from a picture (which they call a “shelfie”). Andrew Dorward of BookGenie451, will explain how his company uses semantic search to make books more discoverable. Beni Rachmanov of DBW sponsor iShook, which has a social ebook reading platform for readers, authors, and publishers, will also present at this session.

Following the Launchpad session, we have our techiest session, moderated by my personal “go-to” guy for understanding tech development in book publishing, Bill Kasdorf, Vice-President at Apex Content Solutions. Bill’s panel’s topic is what might be thought of publishing tech’s “magic bullet”: HTML 5, a format that enables the nirvana of “write-once, use-many-ways” content creation. With the need to manage both print and digital formats and with digital now being rendered on what seems like an infinite variety of screens, the need for publishers to make use of this technology has never been greater. The panelists will include Bill McCoy, head of the International Digital Publishing Forum, and publisher practitioners Phil Madans and Dave Cramer of Hachette Book Group USA, Paul Belfanti of Pearson, and Sanders Kleinfeld of O’Reilly.

Because DBW is relentlessly “practical”, we don’t program much that is far from the current commercial mainstream. An exception this year is our “Blue Sky in the eBook World” panel, which will feature three perspectives that are clearly pushing the envelope beyond where we are today. Chris Kubica and Ashley Gordon have been convening a lot of industry thinkers around the invention of a new kind of bookstore, the publishers’ “dream” to compete with Amazon. They’ll be describing what they and their co-brainstormers have come up with. Peter Meyers, until recently at Citia, is author of “Breaking the Page” and the industry’s leading thinker about how straight-text ebooks can be improved. He’ll put forth his thoughts on that. Paul Cameron is the CEO of Booktracks, a company which puts sound tracks to ebooks and has evidence that the music along with the text improves recall and comprehension. All of these propositions are not (yet) commercially employed, but for DBW attendees who might be looking for the big things AFTER the next big thing, this is the session that will talk about those possibilities. This session is moderated by Professor John B. Thompson, author of “Books in the Digital Age” and “Merchants of Culture”.

Although what the educational publishers are doing might also qualify, we have a track dedicated to “transformation” that has three distinct groups of panelists, each demonstrating how radical change can occur in different ways.

The session on “building the trade publisher of the future” focuses on companies that are remaking themselves from what they were before. Carolyn Pittis, now Managing Director of Welman Digital and formerly on the cutting edge of change management with HarperCollins for over two decades, will moderate. We are proud to be the first industry event to host Daniel Houghton, the new CEO of Lonely Planet, a several-decades old travel book publisher, founded as an upstart, and now rethinking its publishing role in a very challenging travel book market. Lucas Wittman is at ReganArts, Judith Regan’s start-up venture which has an entirely different literary character than the art book publisher she’s working within, Phaidon. Andrea Fleck-Nisbet of Workman is in a company that has just reorganized to be better positioned for change. And Sara Domville, President of F+W (owners of Digital Book World), will describe the experience of turning a “book and magazine publisher” into a “content and commerce company” with a diminishing footprint in print and a growing dependence on ecommerce.

We aren’t neglecting publishing start-ups that are really entirely new propositions as well. Lorraine Shanley of Market Partners will moderate a session bringing together a few of them. Liz Pelletier is the publisher of Entangled, a publisher with new economics that rewards the service providers that support authors as partners in the projects they work on. Georgia McBride is the proprietor of Georgia McBride Media Group, a lean publishing start-up that is developing its properties for multiple media, not just books, taking advantage of her background in music and Hollywood. Jason Pinter of Polis Books is a bestselling thriller writer and has worked for a number of publishers (St. Martin’s, RH, Grove Atlantic, Warner Books) before he founded this digital-first genre book publisher with high author royalties (beginning at 40% of net) against advances. And Atria executive Peter Borland heads up an in-house start-up, Keywords Press, which seeks to leverage YouTube fame into bestsellers with the nurturing of an experienced publishing team.

But it isn’t just book publishers and entrepreneurs who are capitalizing on the digital transition. Former DBW.com editor Jeremy Greenfield, now with The Street, will moderate a session of media companies using digital as an opportunity to change their business models. Sometimes ebooks are very important to this effort and sometimes not so much so. The speakers in this session are Mike Perlis, the President of Forbes, Lynda Hammes, the publisher of Foreign Affairs magazine, Jay Lauf, President and Publisher, Quartz (The Atlantic), and Kerry Dyer, Publisher and Chief Advertising Officer of U.S. News & World Report. The tactics being employed by these three media companies to take advantage of their content and their audiences are harbingers of what all non-book media will be thinking about and doing in the years to come. Publishers can find new collaborators in their ranks, or they’ll be facing these entities as new competitors.

The sessions in the track we call “transformation” are also really about “new business models”. But we have two sessions that are more strictly about publishers exploring new business models.

One of these is on “publishers selling direct”, something that made very little sense for any but the nichiest publishers before the digital era. Dominique Raccah, the founder and CEO of Sourcebooks, pointed out to me that I needed that session (she surely was right!) and will appear on it. She’ll be joined by Eve Bridge from F+W Media, Mary Cummings of Diversion, and Chantal Restivo-Alessi of HarperCollins, the biggest of the publishers to aggressively pursue the direct sales option. The panel will be moderated by industry consultant David Wilk.

Publishers are also exploring new business models with their attention to “verticals”, audience-centric marketing that sticks to a topic in ways that might ultimately allow selling things other than books. This is also a big subject for DBW’s owner, F+W Media, and Phil Sexton, who runs their Writer’s Digest community, will speak about it. Mary Ann Naples, SVP and Publisher at Rodale, Adrian Norman, VP Marketing and New Products at Simon & Schuster, and Eric Shanfelt, Senior VP, eMedia, of HarperCollins Christian Publishing, show us that both specialist and general trade publishers are investing in building these enduring audience connections. Ed Nowatka of Publishing Perspectives moderates this conversation.

There are two panels that will be among the best-attended of all, but which don’t fit comfortably under any of the track headings.

Probably the two most-discussed digital change issues in 2014 have been subscriptions for ebooks and Amazon. We’re pleased to have breakout sessions on each that should really shed some new light on topics that have already been the subject of much conversation.

The subscription conversation will be moderated by Ted Hill, who co-authored a White Paper on subscription for Book Industry Study Group early in 2014 which has looked increasingly prescient as the year has gone along. The session will begin with a brief presentation by Jonathan Stolper of Nielsen Bookscan, who will deliver data from Nielsen’s recent research into subscription sales. Hill will be joined by the two biggest players in ebook subscription, Matt Shatz of Oyster and Andrew Weinstein of Scribd, to describe how their companies have fared building this new model in 2014. He will also have two publishers with books in those services, Doug Stambaugh of Simon & Schuster and Steve Zacharius of Kensington, to talk about how it is going from the publishers’ point of view. As a bonus, Zacharius also has real sales experience with Amazon’s new subscription service, Kindle Unlimited. This will be most people’s first opportunity to get a wide-ranging view of how the subscription model is really working in the marketplace for the subscription services and the publishers themselves.

And, finally, we’ll have an Amazon conversation that is extremely timely against the backdrop of a year when contentious relationships between Amazon and their publisher-suppliers became a matter of public record. Our discussion is on the subject “Can Amazon Be Constrained? And Should They Be?” and it is moderated by Ken Auletta of The New Yorker, a journalist with several decades of experience tracking both media and tech. (Auletta will be appearing earlier that day on the main stage.) He will be talking with Barry Lynn, a scholar at the New America Foundation, who has recently proposed that Amazon be investigated for anti-trust; journalist Annie Lowrey of New York Magazine, who has expressed skepticism about whether the anti-trust rubric fits; and Amazon and indie author Barry Eisler, who has been a full-throated supporter of Amazon’s position against the major publishers. No conference has ever presented such a balanced and provocative conversation about Amazon before; we’re proud it is taking place on the DBW stage.

So there’s a lot to choose from at DBW 2015. We probably won’t settle all the questions around where book publishing is going in the future, but we’re certainly providing engaged conversation about the issues that matter most. And remember after you read this: the highest-profile speakers are mostly not mentioned. We’ll talk about them in a later post about what’s taking place on the main stage.

PS: The last Early Bird discount for Digital Book World expires on Monday, December 15. Save money by registering now!

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The support infrastructure for entities to publish is growing but the most important piece may not yet be provided


I remember a song lyric from the early 70s for which the opening line was: “we don’t need more sailors, we need a captain”. (I can’t find the reference in LyricFind and I don’t remember the name of the band.) That song could be about the new publishing that is arising from the phenomenon of “atomization”, books that could come from just about anybody anywhere (that’s the “we”). They are supported by “unbundling”, the availability of just about every service required (those are the “sailors”) in the complex task of publishing books.

This is what we should call “entity self-publishing”, as opposed to “author self-publishing”. The success of indie authors has gotten a lot of ink lately, partly fueled by the Amazon-Hachette dispute which has brought into bold relief that authors can make a living self-publishing — mostly by exploiting the capabilities of Amazon — without a big organization of their own. But entity self-publishing is ultimately far more threatening to the publishing establishment trying to make a profit because it could, in time, bring a lot more content into the marketplace with a lot more marketing muscle behind it than individual authors will. And sometimes the motivations of those content providers won’t include the need for profit.

(It also can be seen to offer opportunity to the establishment, to the extent that they find it productive to craft their own service-offering on-ramps to be flexible partners for entities.)

Companies abound that offer the core services that support publishing. Big organizations like Ingram and Perseus are mainstream providers and deliver the full suite of capabilities, including putting printed books onto store shelves. (In fact, if you’re big enough, you can get a Big Five publisher to do this for you.) Digital distributors like Vook, INscribe, and ePubDirect can turn a file into ebooks and put them into distribution around the world. Lulu and Blurb will also deliver printed books for you. The subscription services like Scribd and Oyster (not to mention Amazon, Ingram, Overdrive, and the other ebook retailers) will give you distribution. And, both as part of those larger offerings and as stand-alone services like BiblioCrunch, it is increasingly easy for an author (or self-publishing entity) to find editors, cover designers, marketers and web site creators, and just about any other specific skill set that is required to publish a book successfully. In fact, publishers themselves have relied for years on freelancers for many of those functions.

But entities have challenges that individual authors don’t.

An individual author knows what is to be published: what they write. And because most authors are most comfortable in a particular genre, they don’t have to worry much about consistency as they build an audience. They are inherently consistent. (Authors who want to span genres or write outside what they’re best known for have a tougher row to hoe to make themselves commercially successful as self-publishers.)

Of course, they have plenty of challenges outside their writing skill set: editing, cover design, even pricing and marketing. And those challenges are enough to make many authors prefer to have a publisher who will take care of them, even if they would otherwise be willing to give up the marketing and distribution clout of a professional publishing house. There are big per-copy-sold margin advantages to doing it yourself as well as being set free from the constraints and delays that come with working with a larger organization. There are still plenty of “how” questions, but there are very few “what” questions.

But when an entity commits to self-publishing, even one like a newspaper or a magazine that knows how to create the intellectual property, they suddenly need decision-making they’re not equipped to do, and it begins with “what” to publish.

They need a publisher. In the metaphor of the song lyric, they need a “captain”.

The position of “publisher” exists within the magazine and newspaper worlds as well, but it means something subtly different than it does in books. In either case, the publisher governs the whole enterprise, not just the editorial decisions. Because the revenue for magazines and newspapers comes primarily from advertisers, the publisher’s time, bandwidth, and focus are directed there. The publisher certainly has responsibility for things like marketing and distribution, but those tend not to require a great deal of issue-by-issue attention.

But the nature of book publishing is that each book is its own separate marketing challenge as well as an editorial one, and the two are interrelated. If the right book for a market should cost $15, you make a different book than if the right book would be $30, or $8. If the book is ready for publication in September but the right time to bring that book to the market is February, it’s a publisher who decides to hold it back.

And if there are 20 or 30 or 100 books an entity could do, it is a publisher who decides whether to do five a month or five a season, which ones to do first, and which ones should always come out in June.

In a post over a year ago, I cited the example of what publisher Bruce Harris did for Microsoft founder Nathan Myhrvold’s audacious (and successful) $625 cookbook. Myhrvold had the concept and the intellectual property and the business acumen to make key decisions. But it took Bruce, or somebody with his considerable experience and publishing sophistication, to orchestrate the inputs from marketers and publicity experts, coordinate it to the realities of the publishing calendar, and provide the direction to make best use of Ingram’s industrial-strength services.

This kind of expertise is even more important to structure lists within an ongoing publishing program.

Vook has certainly experienced some of that. Their new website announces them as “author-centric” (and they’ll move more and more in that direction), but they have totally cottoned to the idea that entities are a big part of the self-publishing future. They’ve provided critical infrastructure services to enable ebook publishing for The New York Times, Forbes, Thought Catalog, Fast Company, U.S. News & World Report, Frederator Studios, and The Associated Press.

Providing business intelligence has been a crucial part of Vook’s strategy for working with entities. Matt Cavnar of Vook told me:

“We’re tracking data on over 4 million books — print and digital — and we use that information to generate pricing recommendations to maximize revenue for the books our partners publish, to then adjust the books within the marketplaces, and to find specific categories where they will more be likely to rank on bestseller lists. We also coordinate the standard digital marketing and merchandising with the retailers. Thus, we’re acting as the infrastructure and data backend platform for these partners to be as successful as possible — allowing them to focus more on the creative and developmental side of their publishing program.”

But, of course, that data needs to be acted upon by a publisher at the other end. Vook’s client list is heavy with media organizations that can provide some version of that title-by-title, list-by-list decision-maker to make use of Vook’s tools. Because Vook  thinks hard about offering services to authors, Cavnar knows what it is like having focused direction and acknowledges the point.

“That’s right. That coordinated/creative decision maker on the partner side plays the role of the author in a sense.”

The news arrived over the weekend that Blurb, the publishing services company that grew out of an initial print-on-demand offering, had hired veteran publishers Molly Barton and Richard Nash to help them build a network of support services that they will, presumably, operate as a stand-alone business and as an on-ramp to their core business. Blurb has seen this coming for a while and the move made made sense: two publishers with vast experience know how to find and vet all the service offerings for every component of what it takes to publish a book successfully.

But I suspect that for most of the newbies who find editors and cover artists and book marketers in the network Barton and Nash will help Blurb deliver (and, one wonders, how much overlap and qualitative distinction there will be with what BiblioCrunch and a Google search would offer), it would be Barton and Nash themselves, and people like them and Bruce Harris and other veterans with experience with many books and many lists, who would be the most valuable service providers. The most ambitious of the new entrants to book publishing, coming to it to build on knowledge and a reputation established in some other ecosystem (even one that is “media”), would be wise to see that, like all the other tasks, the orchestration of a publishing program is best done by somebody with experience. And the person providing it doesn’t necessarily have to be on staff.

*********

And another, not unrelated thought.

In the world outside book publishing, a lot of content is being generated for “content marketing”. It has been part of my job in programming Digital Book World to understand how the world of content marketing and the world of book publishing connect.

The way a publisher instinctively wants to think about it is “if people are getting paid for content, can I sell some?” Of the three possible interactions with the world of content marketing, that’s likely to be the least productive one. The content marketing world is all about creating precisely the right content for a brand’s marketing needs. It’s not a particularly efficient approach to search the world of existing content for that, then have to license it and live with the licensing restrictions, and almost certainly have to modify it for marketing use. So, with some limited exceptions, scratch that.

Another potential interaction might be around distributing what is or starts out as marketing content as ebooks. I first made this suggestion to a law firm that had created a white paper on Trademark Law. Why not publish it as an ebook, I said? They said, why bother? I thought, don’t you want to show it to people who search Amazon for “trademark law”?

But when I talked to Joe Pulizzi, the head of the Content Marketing Institute, about ebooks, he said “well, sure, they might make sense in some cases, but there are so many other things that are more important to a marketer.” He’s talking about blogs and Pinterest and YouTube and the wide world of web and apps where content can be made to show up for the people who would be most interested in it exactly when they need it. In other words, “I see your point, but frankly, we usually have much bigger fish to fry.”

And that points to what publishers most have to gain from the business of content marketing. Publishers have tons of content, but they are far from having figured out every best way to use that content for marketing. That’s an adjacent science for us, not one in our experiential wheelhouse. That’s why we have Pulizzi speaking on precisely that subject — using content to build an audience and how to apply all those things that work better than ebooks — from the main stage at Digital Book World. We even gave him a breakout session to follow because there are going to be tons of questions from publishers (and their marketers) who will want to put these capabilities in their arsenal.

Many of the companies mentioned in this post are speaking at Digital Book World, Jan 14-15, 2015. Blurb and ePubDirect are sponsors who will also be on the program. Speakers from ForbesIngram, OverdriveOysterPenguin Random House, PerseusScribdUS News & World Report, and Vook are on panels. From the main stage, we will hear a presentation from James Robinson, who does web analytics in the newsroom at The New York Times, and Michael Cader and I will have a conversation with Russ Grandinetti of Amazon.

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What we are learning about making digital marketing accessible to a bigger group of publishers


Every conversation I have with a publisher about digital marketing sitting with Peter McCarthy is an education for me and for them. The dialogues are peeling away layers of an endless onion, working through levels of understanding of what it takes to have truly discoverable content, surfaced to the right people in response to the right queries in whatever venue they search today. (But, as we keep learning, the “best practices” at any particular time are likely to change.)

Of course, we’re learning too. The challenge in “scaling” Pete’s knowledge is to get people in our industry, with their uniquely complex stakeholders and requirements, to be able to buy the services they need him to direct without taking a lot of his very precious time. (If you take his time, we can’t be economical, which we’re trying hard to be.) Our approach is to “productize” our offerings but, of course, our clients and potential clients each have very specific needs by their own lights. The challenge we almost always face is not “whether we can” but “how we can” deliver what they want in a way that works for us and for them. And we keep finding new ways to morph each product idea into another and then another to address those needs. The evolution of our thinking and our business probably provides useful clues for anybody trying to tackle the beast that is digital marketing of books in an evolving marketplace.

Although it is not simple to harness Pete’s knowledge, it would be absolutely impossible to replicate it. He’s read (and understands and remembers) every patent Google has ever filed about search. (Don’t try to start gathering that knowledge now; Pete started it in the 1990s.) He works with a huge number of listening and analytical tools. Some have obvious uses such as analytical and “SEO” tools, but some require a more interpretative approach to apply them to create better marketing. They numbered 140 when we last counted, but he seems to discover a new one or two just about every day. So far, I haven’t met anybody else in publishing who claims knowledge of a fraction of that number. Pete’s knowledge of Amazon’s algorithms and behavior similarly outstrips everybody else’s, understandings partly gained through a capability he had at Random House that nobody else we’ve met has ever had: an unlimited number of affiliate codes that allowed him to track conversion across a wide range of A/B tests and other variables.

(It should be noted that the unlimited number of affililate codes came about through serendipity, not any official negotiations or favoritism. It was not a formal “policy” move on either side.)

Knowing how the clicks you send Amazon convert is beyond very important. As an example of what this can reveal, Amazon loves it if you send them clicks that convert. When they see that happening, they help you. They don’t like it if you send clicks that do not convert and when they see that, they (metaphorically) throw sand in your gears or, at least, don’t put the wind in your sales. The many winds they can make blow happen at what for Pete are predictable kick-points. We don’t have an unlimited number of affiliate codes at Logical Marketing, but we do know that if we’re sending clicks that convert we’ll see Amazon buy keywords to get more of the traffic. If they don’t do that, the clicks aren’t converting and we stop sending them. We have other ways as well to see when the winds are blowing.

How many of our clients know that? We haven’t met one yet that did. That means that virtually every publisher is sometimes paying for clicks that are actually harming their sales. And they don’t even know when that’s happening. And I’d add that Pete himself doesn’t believe this is among the most profound insights he has about optimizing Amazon sales.

We do our work across three loci of interest: titles, authors, and brands. Authors are brands, but so are publishers (B2B, B2C, or both), imprints, and series and, in rarer cases, fictional characters. We can do a quick and cursory look at a title or author, or a deeper and more comprehensive one. For authors and brands, we can do a “360 audit”, which delivers a voluminous (80-100 page) deck, rich with data about how the author reaches their core and potential audiences. They tell you everything from how they sort on dozens and dozens of high-value search terms; their engagement in social media; the precise and thorough characteristics of their followers and, if they have them, “subscribers”; advice about how to optimize their owned web presences in terms of content, architecture and technology; and very specific recommendations to improve their discoverability and their sales.

We will also aim our analyses at any specific questions or concerns a client may have. For example, “how might we break this author in the UK market” or “can we reach and convert women into fans” are questions we can address. We answer based on what the data tells us and provide the degree of granularity and technology/publishing knowledge to act.

For a franchise author, or an author on which a publisher will spend substantially promoting their next book, these reports — costly though they may be ($5,000 and up) — are invaluable tools. They even tell you what days and times to tweet and which cities to choose for heavy print laydowns and tour activity. We’ve had several occasions where these reports confirmed hunches based on experience or a house’s analysis but there are almost always nice surprises too. Those are not always fun to hear when they upset previous plans but they will result in more efficient sales reach if they’re acted upon.

But sometimes an author or agent might be after information or analysis that is easier (and cheaper) to deliver because it is very targeted. One agent friend said to me, “I don’t care about the title descriptions. Doing those right is the publisher’s job and they wouldn’t listen to me if I wrote a better one anyway. But I want my authors to be list-gathering machines. Can you show us how to do that?”

A targeted ask of this kind is much simpler than a 360 audit. We save time and effort when we’re looking for very specific actionable data and then confining our report to just that. We analyzed three of that agency’s top authors, with recommendations about how to improve their web sites for email list optimization, each for much less than half of a full 360.

As we’ve noted before, management of author web presences is a weak spot in author-publisher relations. We just did 360 audits for three different imprints of a major house. In two cases, the authors in question controlled their sites and the suggestions for improvement devolved into discussions of how to persuade the close friend or relative of the author who maintained the presence to make changes. (Having the authority of our very well-designed and thorough report would help, of course.)

In the third case, the house controlled the site. It turned out to be very important that they did. One thing we found in the audit was that this well-known author wasn’t appearing for searches of “best thrillers set in London”. We could see that he very likely could, easily and within short order, rank high for that. We saw that with great likelihood; it wasn’t a guess. With a host of books that fit that description and rankings of 4.5 stars on Amazon and Goodreads, all it would take is a properly set-up landing page to make the author rank highly for the term, and the rank would be deserved in the eyes of Google and humans and likely to be self-perpetuating. That search is not only frequently employed, it would bring in likely customers who might well not yet know the author. It is roughly analogous to an evergreen end-cap with face-out display in just the right aisle for a book they will love by an author whom they probably have not read as yet, and one who happens to have plenty of books.

And setting up an optimized landing page is easy to do.

All you need to do is know that the term is important and that the author isn’t sorting for it and probably can. But only using the methodologies developed and employed by Pete would assure you’d find that out.

Google’s recently reported de-emphasis of Google Plus has led to widespread misunderstanding about Google Plus, but more importantly here, about author websites. One agent friend recently asked whether they just weren’t necessary anymore and if authors could just focus on social media. That’s a dangerous misunderstanding. An author’s website along with an author’s Google Plus account enables Google to understand who an author is and what is important about them. Author websites are as important as they ever were, as is an author’s Google Plus profile. (And it isn’t just about Google. An author’s Amazon author page is critical for their success as well.) Any real-estate in the social landscape is rented, not owned and the leases change all the time.

The wisdom of our agent friend about the publisher’s responsibility to write the descriptive copy has also been reflected in the evolution of our thinking. We have been selling SEO-optimized copy as the key deliverable for our “foundational title audit”. The process to get to it involves research to find the right keywords, phrases, and topics to include in the copy and training our own staff in Pete’s techniques to employ those in the copy itself. We’re optimizing for multiple environments, primarily Google and Amazon, which complicates the task, but we’ve been able to train previously uninitiated people to do this effectively and fairly quickly.

But we’ve seen that most publishers don’t believe that anybody else’s copy is as good as what they’d produce in-house. They’d far rather have us give them the keywords and write the copy themselves. That’s easier for us, and we can do it for less money, but then that requires us to train their team on how to use the keywords, phrases, and topics in the copy.

All that has led us to the latest addition to our offerings. When we started exploring this business nearly a year ago and launched it in the Spring, one Very Smart Publisher said “would you please just teach us how to do it ourselves?” I resisted that idea, partly because of the impossible challenge of replicating Pete’s knowledge and how he uses it in a training course of any length. But as time’s gone by, we realized that we did train our own staff. And Pete did a lot of marketer training at Random House. We have come around to the point of view that training people to do some things actually makes them appreciate even more the things we do that we can’t easily train. It also empowers them to innovate in ways we might not see or to provide feedback to us on what we might offer that we’ve yet to identify.

So we’ve now formulated seven specific training programs. We offer three-hour courses (if delivered in-house, or three 1-hour webinars if remote) called “Audience-centric Marketing 101″, “Author Optimization 101″, and “Advanced Optimization” (with the last one only open to those who have taken the first one). And we have four 1-1/2 hour programs as well: “Social Media for Publishers, Agents, and Authors”, “Supercharge Your Author Website”, “12 Tools for Marketing Success”, and “The 30 Chrome Extensions You Need Now”. The “Marketing 101″ course would cover both the keyword research and the instructions on how to place them in the copy.

As a result of Frankfurt, we’re now taking our talents and capabilities to other countries to work in languages other than English. We’re about to start our first assignment for an Italian publisher and we have a big project pending that would take place in German. In both cases, we’re getting help from our clients to make sure that what we find and do in Google Translate and other linguistic processing tools doesn’t have gaps we can’t see and to understand what we have to do to make it totally effective.

The digital marketing business is a global business as is all publishing these days and digital marketing, and the running of a digital marketing agency, is a process, not an event.

At Digital Book World next January 14-15, Pete McCarthy is moderating a panel on “Marketing Skill Sets Required in 2015″ with a star panel consisting of Angela Tribelli of HarperCollins, Hannah Harlow of Houghton Mifflin Harcourt, Jeff Dodes of Macmillan, and Rick Joyce of Perseus. There is a host of other marketing programming on the agenda. 

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Export sales is one of the few areas of predictable growth for book publishers


For a client meeting last week, I was shown a chart that came from Bookstats of channel revenue for publishers. Bookstats is the recent (and now no longer) partnership between the AAP and BISG collecting book publisher shipment information. It has four years of data, which were arrayed in a neat bar chart.

Since the chart showed publisher shipments, it was an imprecise gauge of sales. The third largest channel was “jobbers/wholesalers”, and those books went somewhere else (if they got re-sold and not returned), but we don’t know where. Basically all the other channels got those books eventually.

But it is noteworthy that of the eight channels enumerated (one of which is “other”), only two showed increased sales from 2010 to 2013: online retail and export sales.

Indeed, export sales are one of the real growth opportunities for publishers, and particularly English-language publishers, in the future.

The reasons for this aren’t hard to understand. English is the most important second language in most countries that are not English-speaking. And, obviously, ebooks create no-inventory and little-friction distribution opportunities that make it easy for a publisher in New York or London (or Sydney or Toronto) to deliver to a customer separated by any distance or number of oceans.

In addition, the search engines are global so “discovery” can take place anywhere as well which can increase the demand for printed books as well as digital ones, even though the printed books present a more complex delivery challenge.

The opportunity brings along its challenges. One is that rights conventions need to change. Publishers often have their rights to distribute in some parts of the globe limited by contract. But even when rights aren’t an issue, marketing — including both customizing the metadata and the pricing to a very large number of local territories — can be.

This opportunity has grown rather recently at the same time that many publishers have been preoccupied with overcoming obstacles in their home markets. Both the US and UK markets have been roiled by the relatively sudden emergence of a strong ebook market and the concurrent (and related) weakening of the brick-and-mortar infrastructure for print. Publishers have been scurrying to change many of their practices: licensing differently, learning to do SEO well and employing other digital marketing techniques, shifting their internal structures and workflows, and grappling with the opportunities presented by social media. Many have expended effort on apps and enhanced ebooks which were time and money traps in markets that briefly looked promising but then didn’t pan out.

But in a more settled marketplace, which we have now (perhaps temporarily), the opportunities for growing revenue through export sales is going to get increasing attention from all publishers, who will be happy to know that entrepreneurial companies — some new but some quite established and familiar — have been building out the capabilities to help them.

There are three panels at Digital Book World that will really inform publishers that want to work harder to exploit this opportunity.

The mostly obviously relevant one is called “Global Publishing Tactics: understanding distribution, metadata, pricing, and marketing to maximize sales in different markets”. Two of the panelists are Marcus Woodburn of Ingram and Gareth Cuddy of ePub Direct — we have other conversations pending — and moderated by Len Vlahos, the executive director of Book Industry Study Group. Marcus and Gareth and the panelist(s) who will join them have experience selling around the world on behalf of many publishers. Their insight and advice will be gold for publishers looking to expand their export sales.

We also have a panel discussion “Global Market Spotlights: reports from markets around the world”. The four markets we’ll discuss are Germany, Italy, Brazil, and Russia. The panel will be moderated by Thomas Minkus of Frankfurt Book Fair. Our panelists — all of whom are local players — will talk about the switch to digital reading and online sales in those markets, but will also give specific insight into the market for English-language books.

Another discussion which is a bit more tangential, but will still be informative for publishers trying to grow ebook exports, is one on “How People Read”. What we’re trying to get at here is to use the knowledge that ebook platform providers have about the granular detail of reading consumption: about devices, how far people go in various kinds of books, whether they read more than one book at a time, and how they respond to pricing changes. All of our panelists — Micah Bowers of Bluefire, Michael Tamblyn of Kobo, David Burleigh of Overdrive, and Andrew Weinstein of Scribd — are superintending global platforms. Another aspect of what they’ll reveal is how these consumption patterns vary across markets, including how much English is read in various export markets. Chris Kenneally of Copyright Clearance Center, which also has an increasing international focus, will moderate.

We could well also learn more about global opportunities from the keynote talk we’ll hear from Brian Murray, the CEO of HarperCollins, and Michael Cader and I will certainly be asking Russ Grandinetti of Amazon about how publishers can maximize their export sales through them.

So if export sales is on your current agenda, a visit to DBW on Jan 14-15 also should be. And, in that case, sign up before the end of the day on Monday and save yourself some dough. Early bird pricing ends on Monday night.

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