Direct response

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. 

10 Comments »

Marketing the author properly is a challenge for the book publishing business


A few years ago, trying to explain the difference between how books had weathered digital change compared to other media, I formulated the paradigm of the “unit of appreciation” and the “unit of sale”. The music business was roiled when the unit of appreciation (the song) became available unbundled from the prevailing unit of sale (the album). Newspapers and magazines presented individual articles that were appreciated within a total aggregated package that were the unit of sale. The ability of consumers to purchase only what they most appreciated shattered the business models built on bundling things together.

The bundling was acceptable to consumers when it was a requirement for delivery (I can’t just drop the baseball scores on your lawn; I need to deliver a whole newspaper) but often rejected when the individual content components were available on their own. (And, of course, it was even more damaging to the established media when units of appreciation like box scores became free!)

This played out in a more complicated way in the book business. For novels and narrative non-fiction, where the unit of sale equaled the unit of appreciation, simple ebooks have worked. That’s been great for publishers, since the ebooks — even at lower retail prices — deliver them margins comparable to, or even better than, what they got from print books.

But there is a big challenge related to this paradigm that the industry hasn’t really tackled yet. The “unit of appreciation” for many books is the author. And the “unit of appreciation” is also the “unit of marketing” and therein lies the problem. Because the industry hasn’t figured out how to bring publishers and authors together around how to maximize the value of the author brand.

Marketing requires investment. For an author, that means a web site that delivers a checklist of functionality and appropriate social media presences, as well as what any competent publisher would do to make the individual book titles discoverable.

But authors inherently do not want publishers to “control” their personal brand, particularly when so many of them have more than one publisher or self-published material in addition to what they’ve sold rights to. And publishers don’t want to invest in marketing that sells books they don’t get revenue from or to build up an author name that could be in some other house’s catalog a year or two from now.

The net result is an industry hodge-podge. Many authors have fragmented web presences, with pages on publisher sites, sites of their own, and Google Plus and Amazon author pages that are imperfectly managed (or not filled in at all), even though they are actually critically important to the success of a book.

This is a problem that has no single or simple answer.

Where the solution must start is with authors (which also means agents, but also means all writers with by-lines, whether they’re now writing books or not) recognizing that the author brand is a proprietary asset that, if properly nurtured, can grow in value over time. The value is reflected in email subscribers (to newsletters or notifications or whatever an author cares to offer that fans will sign up for), social media followings, and web site traffic. When it becomes large enough, the following becomes monetizable.

In our Logical Marketing work, we have encountered one literary agent who was focused on this. “I’m not concerned with title metadata,” s/he said. “That’s the publisher’s job. I want my authors to become list-gathering machines.” So we looked at three of the agency’s authors’ websites and made recommendations specifically addressing how to gather names. The agent is in a position to urge the authors to take the right follow-up actions.

But we’ve also found flaws in the web presences of authors that publishers asked us to evaluate. When that happens, we — actually they — often hit a brick wall. The marketing people don’t have access to the authors; those are relationships handled by the editors, often through agents. Editors don’t have the same understanding of web site flaws that marketers do, even after we explain them, and the agent-author relationships have other elements that are more important to the editor to manage. It is difficult for a publisher, with whom an author signed so they would market the book, to spell out a list of tasks the author should do to market their books (or themselves). It opens what can be a difficult conversation about who should do what and who should pay for what.

In another case, we worked with a publisher that has a celebrity author (in a how-to field) who has split his publishing between our niche-publisher client and a Big Five house. The author’s own web site is a critical part of the marketing mix and it promotes the books from both publishers. When we evaluated the author’s web presence, we suggested a range of improvements that suggested a rebuilt site was required. When the small publisher and author went looking for a developer, they were hit with an estimate of $60,000 to build what they wanted. In the meantime, we have found the resources necessary to do the site for a fraction of that cost, but it still isn’t free. Who should pay for it? That remains a question.

As it happens, the author rebuilt the site for something more than we’d have charged but less than the extortionate $60,000 price. It looks fine. But it is an SEO disaster. He isn’t registering for the most fundamental search terms relating to his books and expertise. The optimization is SO bad that his link traffic is exceeding his search traffic. So he’s got something that looks good to him but isn’t adding commercial value.

In fact, we have often seen stunningly bad author websites in our reviews, even for very high-profile and successful authors who have spent real money building their sites. Lots of video and flash may make something an author finds eye-catching, but it doesn’t help them get discovered or engage their fans.

Perhaps there will never be an “industry answer” to maximizing the marketing clout of our core “unit of appreciation”: the author. But we know that every author who has more than one published piece (book or article) on the Web under their name and who has the intention of publishing more should have the following built into a web presence they control and manage:

* a list of all their books making clear the chronological order of publication (organized by series, if applicable)
* a landing page for each book with cover, description, publisher information (including link to publisher book page), reviews, excerpts, and easy to find retail links for different formats, channels, and territories
* a clear and easy way for readers and fans to send an email and get a response
* a clear and easy way for readers and fans to sign up for email notifications
* a clear and easy way for readers and fans to connect and share via social media
* a calendar that shows any public appearances
* links to articles about or references to the author

They must have an active and up-to-date Amazon author page and Google Plus page; that’s critical for SEO. Twitter and Facebook promotional activity might be optional, none of the rest of this is if an author is serious about pursuing a commercially successful career.

And every publisher and agent should be urging authors to see these minimum requirements as absolutely necessary, offering advice, help, and financial support whenever possible. Authors should be wary of publishers who want to “own” the author’s web presence but they should expect publishers to be wary of any author who doesn’t nurture their own.

My marketing whiz partner Pete McCarthy’s recommendation is that the authors own their websites but that the publisher run a parent Google Analytics account across author sites. That would enable them to monitor across authors, use tools like Moz to improve search (that would be beyond most authors’ abilities to manage and understand), and provide real support to authors optimizing their own web presence. This kind of collaboration is particularly appealing because it is reversible; the author can at any point install their own Google Analytics and remove the site from the publisher’s visibility. What this takes is for a publisher to set up the “parent” Google Analytics account and make a clear offer to authors of the support they can provide. As far as we know, only Penguin Random House — using an analytics tool called Omniture subsequently acquired by Adobe — offers this capability. Pete set it up a few years ago when he was there. As far we know, nobody else has done so.

This solution allows authors to own their own sites and email lists — ownership of email lists is a massively underdiscussed point between authors and publishers — but for publishers to have a sense of what’s going on. That means they can make recommendations about marketing, employing what is usually (and should just about always be) their superior marketing knowledge on behalf of the shared objective of selling more books.

We still haven’t made the switchover from Feedburner, our frustrating email non-delivery service. If you didn’t see the post before last about how a Google-Ingram combination could create a meaningful challenger to Amazon (and I think that’s the only way one can happen — or at least I haven’t thought of another), you should take a look.

23 Comments »

It is hard for publishers to apply even Harvard B School advice in their struggle with Amazon


Harvard Business Review published an article recently by Benjamin Edelman called “Mastering the Intermediaries” which gives advice to businesses trying to avoid some of the consequences of audience aggregation and control by an intermediary. The article was aimed at restaurants who don’t want their fate controlled by Open Table or travel companies who don’t want to be beholden to Expedia. The advice offered is, of course, scholarly and thoughtful. It seemed worth examining whether it might have any value to publishers suffering the growing consequences of so much of their customer base coming to them through a single online retailer.

The author presents four strategies to help businesses reduce their dependence on powerful platforms.

The first suggestion: exploit the platform’s need to be comprehensive.

The author cites the fact that American Airlines’ strong coverage of key routes made its presence on the travel website Kayak indispensable to Kayak’s value proposition. As a result, AA negotiated a better deal than Kayak offered others or than others could get.

Despite some suggestions in the late 1990s that publishers set up their own Amazon (which they subsequently half-heartedly tried to do with no success) and a couple of moves to cut Amazon off by minor publishers that were minimally dependent on trade sales, this tactic has never really been possible for publishers on the print side. Amazon began life by acquiring all its product from wholesalers — primarily Ingram and Baker & Taylor — before they switched some and ultimately most of its sourcing to publishers to get better margin. But the publishers can’t cut off the wholesalers without seriously damaging their business and their relationships with other accounts, and the wholesalers won’t cut off Amazon. So for printed books, still extremely important and until just a couple of years ago the dominant format, this strategy is not worth much to publishers.

However, the strategy was and is employable for ebooks, which are sold via contractual sufferance from agency publishers, even if the sourcing is (sometimes, not typically by Amazon) through an aggregator. That was the implied threat when Macmillan CEO John Sargent went to Seattle in the now-famous episode in 2010 to tell them that ebooks would only be available on agency terms. Amazon briefly expressed its displeasure by pulling the buy buttons off of Macmillan’s print books. (Publishers can’t cut them off from print availability, but they can cut publishers off from print sales!) In the meantime, Amazon’s share of the big publishers’ ebook sales has settled somewhat north of 60 percent, and those Kindle customers are very hard to access except through Amazon. This is considerably more share than Kayak had when American Airlines threatened their boycott.

In fact, it is likely that Amazon could live without any of the Big Five’s books for a period of time, except for Penguin Random House, which is about the size of the other four big publishers combined. The chances are that PRH’s size will prevent Amazon from treating them the way they are now treating Hachette. And the massive share that Amazon has of both print and ebook sales makes it extremely difficult for Hachette, or any other big house except PRH and possibly HarperCollins, to sustain an ebook boycott (with consequent print book sales reductions) for any significant length of time. In other words, for publishers dealing with Amazon, this horse has left the barn.

Where it has not yet left the barn is with the ebook subscription services, and for them many publishers actually appear to be following the strategy being suggested here. Only two of the big houses have put titles into Scribd and Oyster, and it appears that they got extremely favorable sales and payment terms in order to do so. Indeed, these fledgling subscription offerings must have the big houses’ branded books to have a compelling consumer proposition.

The second suggestion is to identify and discredit discrimination.

The HBS piece cites the complaints that eBay was giving search prominence to suppliers who advertised on the site forcing a reversal of the policy.

Although the search algorithms on powerful platforms are ostensibly geared only to give the customer what they’re most likely to want, it is probably generally understood that these results are jiggered to favor the platform’s interest. It is not surprising that Google has underwritten White Papers from UCLA professor Eugene Volokh and from Supreme Court nominee Robert Bork defending that conduct. Volokh argues that the first amendment prevents the government from interfering with search results and Bork says nobody is harmed if Google favors its own interests.

Could we apply that same logic to Amazon? How about this scenario?

Amazon is well on its way if not already past the point where they sell more than half of the books Americans buy (combining print and digital). Book consumers are highly influenced by the suggestions made and choices surfaced by their bookseller, whether physical or virtual. That is: the process of buying books is inextricably linked to the process of discovering books. So Amazon is getting a stranglehold on recommendations which for many consumers also means a stranglehold on marketing and promotion.

The “damage” to society that results from results being gamed in fiction is probably minimal, and restricted to Amazon promoting either its own published titles, its favorite self-published authors, and books from other publishers that have paid to play. But, with non-fiction, the consequences could be much more severe and of real public interest.

Imagine a persuasive book arguing that the government should sharply increase the minimum wage and let’s also imagine that Amazon corporately doesn’t like that idea. Is it really okay if they suppress the awareness of that book from half or more of the book-buying public?

This is the kind of an argument that can arouse the government which, so far, has shown scarcely more interest in Amazon’s dominance of book commerce than they would if they dominated the commerce in soft drinks or lawn fertilizer. Can they be awakened by publishers to this concern before dramatic cases affecting public awareness and policy are documented? We don’t know, but we do know that Hachette sent lawyers to Washington early in the Obama Administration to call attention to Amazon’s growing marketplace power and their willingness to use it. That apparently had no affect (unless, in some perverse way, it contributed to the government’s interest in pursuing the “collusion” case).

There could certainly be some consumer blowback to the gaming of search results by a platform, perhaps including Amazon. The Harvard article says Google changed algorithms that seemed to be burying Yelp because consumer sentiment, partly measurable in search queries, showed dissatisfaction among the public. But in the absence of an aroused government, it would seem unlikely that this suggestion will do publishers large or small much good.

It is definitely worth noting here that Hachette authors are involved in just such an effort right now over the current Hachette-Amazon dispute. (And Amazon authors, also often called “indie authors”, are pushing back in the other direction.) There is a difference of opinion about how much this is “hurting” Amazon or whether it will push them to a quicker resolution of the dispute; I’m not sure anybody will ever know the answer to that.

The third suggestion is to create an alternative platform.

As the piece explains, when MovieTickets was on the verge of dominating phone and online ticketing, Regal Entertainment and two other large theater chains formed Fandango.

Unfortunately, this is a strategy that simply won’t work as an antidote to Amazon. In fact, trying it, which publishers have, demonstrates a failure to understand the source of Amazon’s power in the marketplace.

Amazon’s strategy is in plain sight and is the title of the best and most recent book about them: Brad Stone’s “The Everything Store”. Books had a central role in getting Amazon started, but have now declined to very likely less than 10 percent of their revenue and far less of their operating margin. Books are strategic for Amazon, but not commercially fundamental. This is one of the reasons, perhaps even the principal one, why they operate their book retailing on margins so thin that the incumbent book retailers can’t match them. After all, B&N can’t make up the margin shortfalls created by offering books cheaply by selling that same customer a lawnmower. Nor do they benefit from additional scale provided by selling lawnmowers or cat food or server space.

The fact that Amazon did book retailing in a thorough and sophisticated way as they established their business to become an online Walmart made them different from omni-retailers in the past (going back to departments stores a hundred years ago) who sold some books.

The story has been told on this blog before about Amazon cutting prices more than fifteen years ago to discourage competition coming into the market. Although publishing is a profitable business for them, it is also a strategic component of larger objectives: getting an increasing share of its customers’ purchases across a range of physical products as well as to compete as a streaming content provider across the entire range of digital media.

No enterprise focused primarily on books can compete with that. Amazon takes too many customers off the table before whoever else is competing gets to begin and keeps them for a wide range of reasons. They’ve got the most admirable competitive position conceivable: a first-class operation supported by scale provided by myriad other enterprises, totally wide-ranging and broad knowledge of the details of book retailing, and the financial heft to accept diminished (or even negative) margins from time to time to support strategic objectives.

So, Bookish, the attempt to compete (although that objective was not explicitly stated) forged by three major publishers more than a decade after Ingram’s I2S2 attempt to create a broader base of online retailers, was never a serious threat. (It is now owned by another Regal, Joe Regal, whose Zola Books — an ambitious upstart ebook retailer — bought Bookish, apparently for its recommendation engine, from the publishers.)

This is probably the 20th year in a row, dating from their start in 1995, that Amazon has gained market share for sales of books to consumers. And that’s because consumers are making what for them is the obvious choice for convenience, total selection, and competitive pricing, as well as getting tied into Amazon through their PRIME program. Unless one of the other two tech giants in the bookselling world — Apple or Google — decides to make a dedicated effort to take some of that market share away from Amazon in both print and digital (and neither of them is much interested in print), it is hard to see where a serious competitor can come from.

As of this moment, there is no way for any ebook retailer except Amazon to put DRMed content on a Kindle, which eliminates a big part of the audience from play for any competitive platform.

The fourth suggestion: deal more directly. The article points out that people ordering takeout through online platforms like Foodler and GrubHub have often already chosen their restaurant so that restaurants that deal directly can afford to exit the platform.

As I was working on this post, HarperCollins announced that they have redesigned their website to be consumer-facing which enables them to sell books directly to consumers. They’ve collaborated with their printer-warehouse partner, Donnelley, to handle print book fulfillment and have a white-label version of indie ebook platform Bluefire to deliver ebooks. They promise that authors will be able to use the capability very easily to connect their own web presences and they’re thinking about additional compensation to authors that generate those sales.

This bold move has a hole in it, though, and it is one that publishers so far have no easy way to fill. All the non-Amazon platforms use Adobe DRM, which HarperCollins/Bluefire supports, so they can put your ebook on a Nook or Kobo device with copy-protection. Of course, they have their own “reader”, which can be loaded with ease on most web-capable devices and can apparently also be squeezed onto a Kindle Fire. But, because HarperCollins wants to continue to use DRM protection for the content, they won’t be able to sell directly to users of Kindle devices that are dedicated e-readers.

Although publishers have certainly encouraged that competition to Amazon which exists, their direct efforts have for the most part been limited to cultivating direct interaction with the end user audience to influence awareness and selection. Many smaller publishers are willing to sell direct without DRM and other large publishers sell direct in a more restrained way, but this seems to be the first concerted effort by a major player to drive direct sales.

It will be interesting to watch the pricing interaction between Harper and Amazon and whether Harper can come up with “specials” (bonus content, some connection to the author, bundling) that Amazon or another retailer can’t match. Competing on price is the retailer’s first instinct, but for publishers competing with Amazon on price is a fool’s errand, fraught with the potential for retaliation in many ways (including that “discounts” from publishers, the retailers’ margin, is presumably based on the publisher’s price. What does “publisher’s price” mean if they sell for less?)

But HarperCollins doesn’t need to get a big volume of direct sales for this to be a worthwhile initiative for them. I’d expect it to be copied. Any sales they can get directly increase their power in the marketplace.

There is one other initiative we’re aware of that can perhaps help publishers disintermediate Amazon for direct sales. That’s Aerbook, which widgetizes a book or promotional material for a book so that it can be “displayed” in any environment. Aerbook’s widgets can contain the capabilities for transacting or for referring the transaction to a retailer, Amazon or anybody else. Putting the awareness of the book directly into the social and commercial streams can be a big tool for authors and publishers. But even Aerbook can’t put a DRMed file on a Kindle. They offer a version of “social DRM” — essentially “marking” the ebook in a way that identifies its owner — which can be loaded onto the Kindle. But big publishers and big authors have apparently not yet come to a comfort level with that solution; perhaps the need to get to the Kindle customer directly and the experience Aerbook develops with their method will encourage a more open mind on that question over time.

So, it would seem, the best thinking presented by Harvard Business Review for how producers and service providers can dodge platforms trying to lock in their audiences has precious little that can be usefully applied by publishers to escape the grip of Amazon. Having taken about half the retail book market over the two decades of their existence, they have given themselves a reputation, tools, and momentum that will make it very hard to stop them from eating into the other half substantially in the years to come.

The fact that competing with Amazon is difficult doesn’t stop smart people from trying to figure out how it might be done. A group of publishing thinkers are holding a 2-day brainstorming session at the end of this month to come up with ideas. Two of them, Chris Kubica and Ashley Gordon, will be presenting at a session at Digital Book World in January called “Blue Sky in the ebook future”, which will include thoughts on how to improve the narrative ebook itself from Peter Meyers and somebody not yet chosen to speak about complex ebooks.

109 Comments »

Peter McCarthy and I have a new business and publishing has a new digital marketing service


Today Peter McCarthy and I are formally announcing a new business which is a partnership between us: The Logical Marketing Agency. What we’re doing is applying the most modern and sophisticated digital marketing techniques and capabilities to the challenges faced by book publishers and authors — and therefore agents — and, because the same techniques apply — also by brands.

This business has been in gestation for about 18 months, since Pete and I first started working together on other projects. We are building on what he learned during nearly two decades in publishing, first working for The Reader’s Catalog and then The New York Review of Books, followed by six years at Penguin very early in the digital transition, and then six years at Random House. At Random House Pete’s job was, explicitly, to figure out how books would be sold in the future. So for several years he was tasked with experimentation, using the books from publishing’s most extensive and diverse commercial list and the resources of the world’s biggest trade publisher.

As my Idea Logical colleague Jess Johns and I came to realize how much Pete knew about the digital marketing challenge all publishers are aware is important but woefully under-equipped to tackle, we saw the great opportunity in “scaling” him. The Logical Marketing Agency is our vehicle to make Pete’s knowledge available and useful to every publisher or author who wants to make use of it.

Over the past six months or so, we have done initial, relatively small small digital marketing jobs for more than a dozen clients. They have included both major and smaller publishers in the US and the UK, authors, literary agents, and brands that aren’t publishers. By working with this initial group of beta clients, we have learned how to shape our offerings to directly apply what we know to publishers’ and authors’ and agents’ perceived needs and pain points.

First we thought about the two key elements that need optimizing: titles and authors. Titles need easy discoverability; they need to be found in the right places, at the right time, by the people who are likely to be interested in them. This often involves a nuanced understanding of search as it exists in environments like Google, Amazon, Apple, and others but can also encompass other means of enhancing a book’s reach into its likely audience(s). Authors need optimized web presences, so that their credibility and personal networks are grown and enhanced regularly and so that their reputation as authorities on the subjects that matter is confirmed on the Internet.

Of course, the key for titles is the metadata: the long and short descriptions of the book that are accessed by all the retailers and search engines and the BISAC (or, in the UK, BIC) codes that identify the book’s subject matter (and, therefore, its audiences).

Pete’s key insight about title metadata — one that is very hard for most publishers to accept, frankly — is that it can’t be done properly without research. You start by positing what the audiences for a book are or, in the absence of hypotheses, how to figure out what they are. Then you look for them online and find out more about the makeup of those audiences: who those people are, where they hang out online, what they’re interested in and what they believe, and what words and phrases they use when talking about the author or the subject(s) in the book. Then you have to research the search terms that matter, to find out which ones are used most frequently and by whom. It is probably not surprising to learn that the “right” search terms might not be identical in Google and Amazon. And from there, one can keep going, analyzing what Pete calls the “meaningful back end data” that results from good outbound social media marketing. You can learn who it is that is engaging with and what their beliefs are, where they live, and other attributes that can be used to properly position each piece of marketing collateral. And, that’s a process that can keep going for a long time if the vein is rich.

How long does this research take? If you know what you’re doing, it can be done in an hour or two. How many publishers have the know-how and the staff to spend a couple of hours researching before writing descriptions of all their new titles? According to what we’ve found over the past few months, the answer is “not many”. Or “almost none”.

Getting the descriptions and metadata right is what Pete (and the Logical Marketing Agency) calls “foundational”. You must do it or everything else you do afterwards sits on a shaky base.

But there’s another level of knowledge that can be helpful beyond the foundation. What can you do to further promote a title beyond getting its core discoverability right? Well, there are potential paid media opportunities (keywords you might buy or audiences you might target through well-placed banners or other ads). There are other books or other things that have audiences to whom the book would appeal that give keys to other potential promotions. Each of these can lead to further SEO efforts around an author or title web site, new social media tactics to employ and more. You can take what is gleaned in the original research to find new ways to target the audience and that chain, in some cases, can be extended productively many times. The research that turns up those opportunities is something Logical Marketing will also offer, through “comprehensive” title analysis, a deeper drive than “foundational”.

We are doing the same for authors, offering a “foundational” author audit and a “comprehensive” one. But for authors we have found demand for even more research and analysis. Major publishers have bought customized author audits from us for authors they wanted to poach from other houses and for authors of their own they wanted to do a better job for and, often, compare with other authors’ efforts. These are really in-depth reports, 50 to 100 pages in length and filled with data, interpretation, and actionable insights. They often require an execution team to handle implementing the suggestions, though, increasingly we will be offering those services as well. The more complex an author’s online footprint — whether from many books or from many other things in their career — the more work this takes, but the more value there is. A long career and a long list of prior books can bury the messaging to surface and focus on the current book. It is ironic that authors with the biggest online presence can be the most complex to maximize for a particular project.

Recently, we have had two of New York’s biggest literary agencies try us out. One of them was looking for a picture of how one of their biggest authors was doing. The other had specific objectives in mind for their authors and asked us to look at the online footprints of three of them — two very big, one a little less so — to recommend how to achieve those objectives.

There are two additional elements we have only dabbled with so far, but which could become a big part of our business and service suite in the future: backlist and running campaigns.

Getting the most sales out of the backlist requires two things working in tandem. First of all, the backlist metadata has to be optimized. That requires research too, although a bit different research than for a forthcoming title because people have read it and people have talked about it. That gives clues to audience and nomenclature that are much more reliable than what one can discern for a yet-to-appear book. If publishers don’t have the staff time to do by-title research for their new books, imagine how hard it would be for most of them to do it for their whole backlist. It is safe to say that no house is staffed to do this.

The other necessary piece to optimize backlist sales is a tool that will chart the news and social graph — trend analysis — that then can bounce each day’s developments off the backlist metadata to find titles that can benefit from current attention. Of course, that opens up the question of “what attention?” Sometimes a change in metadata will produce a big result, tying the title to current interest. But sometimes more effort will make sense, like a digital media campaign. This has, of course, been tried by certain houses and has sometimes been successful. But it is our belief that this kind of work has not been executed optimally. Paradoxically, often the problem is that it is done too broadly. But it is important work we have some new ideas about how to do it well and at a cost-effective scale and pricing.

And that brings us to the final component of our suite of services, for now. We will run digital marketing campaigns for publishers. We did one of these last Fall for a live event, rather than a book. Since our conversations with publishers and self-publishing authors repeatedly confirm that running campaigns is a real pain point — they know they don’t have the staff for it and they sometimes know they don’t have the skills or experience either — we see that as a big part of our business going forward.

Brands are like authors. They have online presences; they have reputations; they have audiences that have characteristics that, once understood, enable you to reach them better and to find them in other venues. In fact, authors are brands. Publishers know that and we believe that what we do for authors would work for many other brands.

So it is with high expectations and great confidence that we can be helpful that we launch this new business.

One thing we’re going to add shortly is a self-service offering for independent authors. The service organizations we know who do the tech and distribution work for self-publishing authors all say they need marketing. That looks like an opportunity to us. If you want to get ahold of us, you can email us at [email protected] A web site with more about our services has gone up at that address as well.

7 Comments »

It is not news to publishers that they have to engage directly with their readers


Since the merger that has created Penguin Random House, there has been precious little speculation (except by me, as far as I can tell) about what this new behemoth in trade book publishing could do to exploit their scale in new and innovative ways.

Their scale advantage is huge. PRH has something in the neighborhood of half the commercial trade books published, bestsellers and below. (You see numbers as low as 25% for this and most of the time estimates put it around 40%.) For several decades, the big US book clubs — Book-of-the-Month Club and the Literary Guild — demonstrated that having about half the books was “enough” for very large numbers of people to feel comfortable that their choices of what to read from within that group of titles would be sufficient for most of their needs.

My initial hunches, still totally unrealized, were that PRH would launch a subscription service with just their own books and, through the use of vendor-managed inventory, create exclusive channels of store distribution that wouldn’t be available to any of their competitors. (One senior executive from a competitor to whom I described this scenario said candidly, “we’d make our best books available to them for their proprietary channel if it were the only way for us to get the distribution”.)

One PRH executive kindly explained to me the company’s inherent resistance to the subscription model, which would seem to appeal most to the heaviest readers looking for a bargain. As the largest player in the market, PRH isn’t looking to reduce the spending by the people who are the biggest sources of industry revenue, which a successful subscription offer would inevitably do. (That subscription model, or “Netflix for ebooks”, is complex in ways that are often ignored, but which Joe Esposito spells out very clearly.) Of course, that doesn’t mean the company wouldn’t consider it in an environment where subscription services were taking a big part of the audience (certainly not the case yet, but watch what happens if Scribd or Oyster or Entitle or the new Rooster succeed). It does seem to say that they won’t be pioneers in this field. And there is no sign yet that they’re taking up my idea to use VMI to create their own bookstores, either.

But PRH UK — echoing what was said to me by RH US CEO Markus Dohle some years ago — has now announced it is becoming a consumer-focused publisher. Hannah Telfer, who was made “group director, consumer and digital development” in January, says discoverability depends on “building a direct relationship with consumers”. And she claims “our scale” is a key enabler of doing this “properly”. This is refreshing, since most of the industry thinking about how they would use scale seems to be more about consolidating warehouses than getting smarter about talking to consumers.

One article in The Bookseller details staff changes and initiatives around this goal. (And another expresses some skepticism about whether their plans are adequate to the task. That second piece suggests they need to think about selling direct, a recommendation I have expressed some reservations about.) On the one hand, the first article suggests some really broad, company-wide objectives, including “the potential for Penguin Random House to be a cultural and entertainment powerhouse; a home for all audiences”. At their recent sales conference. CEO Tom Weldon described the opportunity for PRH “to create the blueprint for a publisher brand as a consumer brand and, in doing so, capture the attention of the world for the stories, ideas and writing that matters”. That sounds like one big brand.

At the same time, there was clear acknowledgment of the importance of what we call “verticality”, or “audience-centricity”. An “audience segmentation project” was announced. So was cross-imprint attention to specific subjects, with “cookery” and “crime” cited. One tool that it is clear Penguin Random House has and will use is called Bookmarks, described as “the Random House readers’ panel”. New plans call for it to “become a PRH resource, giving all parts of the business access to over 3,500 readers through surveys and focus groups”.

Of course, the more different ways the company wants to use that panel, the more difficult it will be to get meaningful data from it. In fact, it would seem that what is really called for is an ongoing “panelization” process, by which new people are being added all the time to a number of panels that can answer questions about different communities of interest. One panel can’t serve all purposes.

This brings two topics into bold relief that have not historically been part of a book publisher’s thinking or skill sets.

1. It calls for new and nuanced thinking about brands.

2. It calls for a multi-faceted plan for engagement with individual consumers.

Advice directing publishers to think about branding for consumers is plentiful these days. Since I first started thinking and writing about publishing and brands, something disruptive occurred which I wasn’t thinking about at the time: self-publishing. My original notion was that the challenge was establishing brands with clear vertical, audience-centric identities. Probably the best example of doing that successfully in the big US houses has been Macmillan’s establishing of Tor as a brand for science fiction and tor.com as a destination site for science fiction devotees. It is well over two years since I wrote about tor.com having hundreds of thousands of email addresses that they could address with promotions that got very high open rates.

Tor.com gives Macmillan’s science fiction list a clear label of not-self-publishing. But outside Tor, for their general list, Macmillan uses many imprint names. A novel might be published as St. Martin’s, Holt, Farrar Straus, or Thomas Dunne Books (among others), each of which probably has “meaning” to buyers at major accounts, big libraries, and major book reviewers, but which means precious little to the general public. Does the average person know those names better than they know, let’s say, Thomas & Mercer (the new imprint of Amazon) or Mike & Martha Books (a name I just made up)?

(Please note that Macmillan is being used here for illustrative purposes; every major house has the same issues with imprint brands that are really intended as B2B signals, not for the consumer.)

But ultimately, it is important for Macmillan, and for every publisher, to stamp “major publisher” on their books to let the public know “this is from a long-standing and established book publisher” on the assumption, which I would share, that people who don’t know the names would still trust an institution rather than a self-interested individual to “pick” their books.

(Obviously, most people choose their books because of the author, the subject matter, a recommendation from a friend, or even based on some combination of the cover, the description, and the price. How much of the audience would be influenced by knowing that a major publisher was behind the book? We don’t know that, and we don’t know whether that number will grow or shrink based on the always-increasing output of self-published material that has not gone through a publisher’s editing and formatting rigor. And, by the way, doing aggressive branding means the publishers need to pay even more attention to their editing and formatting. Each instance of an inferior branded product hitting the marketplace will weaken the value of the brand.)

So here’s the rule about branding. Each major house should pick one name that is an umbrella. It goes on every book to establish the company as a major source of quality literature, enjoyable reading, and book-packaged information.Trying to target more precisely than that should be the job of the “imprint” brand under the umbrella brand. And that brand should be vertical, identifying subject or audience. That’s Tor in the Macmillan example above. Note that right now Macmillan is not a brand being used by any of the US companies in the Macmillan family.

The plan for engagement with consumers is much more complicated and has many components. One is simply collecting email addresses and permissions to ping people and then utilizing them. Turning almost all the marketing efforts you can into components of an email-gathering machine is a big part of this. This is a game everybody should be playing: all the retailers, all the publishers, and all the authors. We know from recent assignments at our digital marketing business that the smartest literary agents are figuring out how to help their authors do this. We can’t be far from the day when an agent will routinely ask a publisher “how many relevant email names do you have to promote my author’s next book to?”

But email lists, as the PRH UK statements suggest, are just one aspect of consumer engagement. And the statements from PRH also implicitly claim that a much bigger company has advantages in pursuing it. Aside from their ability to analyze existing email addresses among their signups or that they find through other means (hitting their web sites, self-identified in social media) to understand and reach audiences better, large companies can create special interest verticals to pull traffic (driving email signups) and give themselves a range of promotional opportunities. We see Simon & Schuster doing a lot of that kind of work. I’ve become a daily fan of “250 Words”, an email from their new business book web vertical that summarizes the core proposition of a business book every day. Whether that, or other vertical efforts of this type the house is trying, can turn into a remunerative web community or even a good place to get a book launched, is still an open question. But it is the kind of experiment that could produce a launching pad that could really help S&S with business books.

We touched on the notion that creating dynamic panels of consumers to tell you things — things you can ask all the time — is also a real value. We are aware of a niche magazine which routinely uses Twitter to ask its readers for opinions about various things, like what angle to take on a story. They get very fast responses that way. We know that Osprey, the military history publisher, routinely asks its audience for opinions when they are choosing among subjects for development of a book. (And it is relevant to note that Random House UK has hired Osprey’s energetic and visionary CEO, Rebecca Smart, to run their Ebury imprint. That’s another way to employ scale: hire away the best smaller-company executive talent!)

A good approach for a big house that can harvest large numbers of email addresses would be to routinely ask consumers whether they would like to be polled about questions that will guide the house’s publishing and marketing strategies. Doing that would give them fresh names all the time. What Osprey does with their specialist audience could become routine practice to a house with a big enough email list. Consumers could be asked about whether a topic is a good one to sign up before the house makes a commitment. They could also be asked about packaging and pricing. And if that kind of interaction were built into the house’s practice, over time they’d learn when consumer opinions are a good guide to follow and when they’re not (because they won’t always be!)

We are in the earliest days of big publishers changing from near-total dependence on intermediaries to reach their markets to having direct relationships with consumers. For now, most houses are pretty quiet about what they’re doing, partly because they think they’re inventing something and partly because they don’t know how well any of this will work. But relative silence shouldn’t be interpreted as relative inaction or inattention. It isn’t news to the big publishers that they need to talk to audiences directly. Penguin Random House has advantages of size relative to the others in the Big Five, but the rest of them have advantages of size relative to everybody else.

Note to readers: because of glitches and fiddling not worth detailing, the last two posts didn’t go out through our normal email distribution (which makes some people refer to this blog as my “newsletter”!) If you didn’t receive posts entitled “Getting Mark Coker Right This Time…” and “Sometimes One More Calculation…” they are linked here for your convenience.

40 Comments »

Publishers do need to sell direct, but here are five things they should at least be started on first


The “Code Meet Print” blog by Glenn Nano recently reprised a subject I wrote about 18 months ago: the benefits that flow to publishers that sell direct. In that piece, I highlighted the disagreement that seemed to exist at that time between my advocacy of direct selling of ebooks particularly and Random House’s lack of interest in doing so.

In the meantime, I’ve been working with Peter McCarthy, building a digital marketing business. Pete was the lead digital marketing strategist at Random House for six years ending shortly before I published the piece. Nano makes the point that only Random House among the former Big Six does not sell ebooks direct now (although Penguin, the other half of the supermerger, does).

But in the year I’ve been working with Pete, I’ve learned with more nuanced perspective where “owning the transaction” fits in the hierarchy of tools and opportunities for publishers to directly influence consumer behavior. It isn’t at the top. So I have a new-found respect for Random House’s reluctance to forge ahead with retailing (although they clearly have been pursuing a direct-to-consumer strategy for years) and a new-found understanding of many other things publishers can do to help themselves with direct-to-consumer book marketing without necessarily executing the final sale of the ebook.

Any publisher who has been awake for the past several years knows that they need to talk to consumers directly where consumers are and can be engaged. Search engine optimization, Facebook and Twitter (and Instagram and other digital venue) campaigns, and consumer databases were practically non-existent five years ago and are now universally-accepted components of the marketing toolkit.

At first blush, it seems like a no-brainer that if you are talking to the consumer, introducing them to a book and persuading them to buy it, then you ought to at least try to get the full margin on the sale by executing the final transaction (as well as, perhaps, learning even more by observing their behavior as they read). But, of course, there are myriad complications.

Selling ebooks with DRM at all costs money for the license, adds complications for the end consumer, and can’t be executed by anybody except Amazon for delivery to the Kindle.

Setting prices is devilishly difficult. Either you resign yourself to being more expensive than many of the retailers or you compete with them on price. That requires technology and complicates the relationship with the sources of most publishers’ sales. It also means the “additional margin” you’re aiming to capture might not be as much as you hoped.

Being a retailer requires customer service. That’s something publishers have no experience with. And the difficulty of delivering it escalates with DRM and with any kind of dynamic pricing policy.

It is not surprising that the first publishers to sell ebooks direct had both the characteristics of being “vertical”, working with the same audiences repeatedly, and of being willing — for whatever reason — to distribute ebooks without DRM, which makes them easily passed along to others without in any way reducing the access of the original purchaser. These publishers — like Osprey for military books and F+W Media for illustrated books on many discrete subjects and Baen and Tor in the sci-fi genre — were anticipating the opportunity that Nano points out HarperCollins is exploiting with Narnia: using content to attract consumers which would lead inevitably to some desire to purchase. And selling direct also enables those publishers to make special offers around pricing or bundling or loyalty that would be much more cumbersome, if not impossible, to execute in collaboration with the existing retail network.

The need to sell direct seems pretty obvious and pretty compelling and there are now a growing number of service providers who can make it possible for publishers to do this on the web and through apps. (We’ll have a number of them talking about that at Digital Book World.)

One thing I learned from Pete is that — at least for a time and maybe still — Random House, apparently uniquely, was able to gain very granular affiliate-code tracking from Amazon. (This was achieved, apparently, merely by requesting it.) An affiliate code is the mechanism that enables publishers (or any other third-party) to be paid a referral fee on sales executed from traffic they send to Amazon (or any other retailer which compensates affiliates for referrals) for a purchase. Publishers normally have one and only one for each retailer to use across all their referrals, so they get sales reporting and payments from each retailer that are consolidated across all their titles and all the campaigns they run for those titles.

That leaves them flying blind on one of the most important metrics in digital marketing: how their clicks convert. Publishers persuading consumers and sending the traffic as an affiliate to Amazon or B&N (or any other retailer) can only possibly know the total number of clicks that went through them to the retailer and the total number of copies of each book they are credited with selling. Painstaking matching could get them a conversion index for a title, but not broken down by campaign or referral source.

Because Random House didn’t have that blind spot, they were, first of all, aware that their conversion rate on clicks to Amazon was very high, much higher than they would expect to get themselves if they tried to encourage consumers to buy direct. So the capture of more margin per sale would be at the expense of losing many sales. But, in addition, the extra margin can get burned up pretty quickly with the costs of running a direct-sale operation. One that provides solid user experiences, customer service, and other now standard eCommerce practices anywhere near today’s customer expectation is expensive — more so when it isn’t your primary business. eCommerce is a huge distraction, especially when it is executed by the folks who are also your digital marketers! That, or additional head count (which further lowers margins), would constitute a publisher’s choices.

When Nano made the suggestion in his piece that publishers move their “direct sale” up in the hierarchy of what they offer the consumer, above Amazon and other retailers, he wasn’t reckoning that this would result in a predictable rise in “cart abandonment”, which would mean sales lost. Nor did he calculate a substantial increase in operating costs.

That granular knowledge also enabled Random House to measure the success of campaigns by the meaningful metric of “books sold” rather than the proxy of “clickthroughs created”. That data made it evident very quickly that the search terms and calls to action that drove the most clicks weren’t necessarily the ones that drove the most sales. And, in addition, Amazon likes it better, and is more likely to invoke their own marketing capabilities on your behalf, if you’re driving traffic for a book that converts.

And all of this leads me to a list of five things I’ve learned in the past year that are really essential for effective marketing by publishers in the digital age. And I think all of these things are more important than, and independent of, whether the publisher controls the transaction or doesn’t.

1. It is necessary to do research to create effectively-SEOd copy for each and every book. McCarthy works with about 125 listening and analytical tools that allow him to find where targeted audiences are on the web, when they’re there (he can tell you the optimum time to tweet or post) and what words they use, enabling optimized search and attracting the consumers with the right “intent” to learn more about books. At the very least, every book needs an hour or two of structured examination of its audiences employing a dozen or more of these tools. Publishers who have their editors or marketers create the book descriptions and other metadata without doing this research are missing a critical trick. (Full disclosure: the Logical Marketing Agency Pete and I have just launched is now selling the service of doing this work at a per-title price that any publisher can afford, and which we think might be a faster, better, and cheaper solution for many than burning their own staff time figuring it out.)

2. Optimizing an author presence also requires research, and the more famous an author is, the more complicated is the challenge of pointing readers to a particular book. We’ve done three big author-centric jobs in the early days of our agency: one helping a major publisher look at the online presence of a major multi-book author they want to woo away from a major house competitor and the others examining the online presences of celebrity authors with complex backgrounds and prior books as well. Author and celebrity networks contain all sorts of clues to how to expand the author’s base, by segmenting it and by finding other celebrities and brands that have a following with similar profiles.

3. Although this is a touchy subject at the time that we’re still living with the Snowden-NSA revelations, it is also essential for publishers to be building their database of consumers and and tracking their knowable attributes, preferably with companion “permission” to email them, but even without. Several years ago, we were made aware by an agent that the enormous email lists owned by Hay House of readers interested in “mind body spirit” books enabled them to out-market big houses in their vertical. What working with Pete has taught us is that starting only with an email address or a Twitter handle, one can learn a tremendous amount about most individuals. They don’t make much noise about it, but we know at least some big houses have databases of consumers that number in the millions. They know very little about many of them, but are able to learn more all the time. Someday, if not already, publishers will be bumping the attributes of a book they want to buy against their database of people they know they can touch to make acquisition decisions.

4. When publishers are proceeding with fully-optimized book metadata, author online presence, and as many proprietary connections as they can muster to deliver free or earned discovery, they will also find opportunities for paid campaigns that can buy them additional attention. But running these media campaigns properly is yet another new skill set that requires developing experience in people and technology to help them. The “media cost” of Facebook or Google advertising is relatively trivial (compared to what media cost in the pre-digital age), but the management of that spending requires expertise and close attention to optimize the messages and the targeting.

5. The opportunities that a digital marketing environment creates for increasing sales of backlist have, across the industry, hardly been explored. If publishers are failing to do the necessary research to deliver optimal metadata on new titles, most aren’t even thinking about it for their backlist. This is a complicated problem. You can’t spend the hour or two we consider minimal necessary research to position a new title across thousands of titles on a backlist on a regular basis. Both monitoring the outside world, news and the social graph, and keeping metadata optimized for changing circumstances are, as yet, problems without a lot of helpful tools (or start-up initiatives) to assist them with yet. But publishers have lived for years in a world where the biggest barrier to backlist sales was the lack of availability of books in stores. As sales made online now exceed sales in stores for many titles anyway, that’s no longer a barrier and a much more proactive everyday approach to selling backlist is called for. A proprietary direct-selling effort can be of only minimal value there until a publisher creates such a heavily-trafficked store that screen real estate can be an effective tool. So other solutions are called for and it is probably unnecessary to say that McCarthy and I are working on this challenge too.

We’ll be covering a number of these issues at next week’s Digital Book World. In addition to the session on “Building Direct Sales Relationships” — featuring Micah Bowers of Bluefire, Sameer Shariff of Impelsys, Doug Lessing of Firebrand and Marc Boutet of DeMarque, and moderated by Ted Hill — we’ll also have several sessions focused on backlist marketing, marketing to (and building) online reading communities, gathering and using consumer data to inform acquisitions and marketing, and how to make the most of all the various social media channels. 

21 Comments »

7 starter principles for digital book marketing learned from Peter McCarthy


Times are changing in publishing and publishers know it. Almost every publisher recognizes that their value to authors, and therefore their future, is dependent on their ability to deliver effective marketing at scale. In this day and age, that means digital marketing, which also has the characteristic of being “data-driven” marketing. And not only is that a science that is really less than 10 years old, it is changing all the time. Ten years ago many of the most important components of digital marketing for books today — Twitter, Facebook, Goodreads — barely existed or hadn’t been born yet. They certainly didn’t matter.

Publishers can’t address their digital marketing challenge by simply spending more because the choices in digital marketing are endless. They have to be smart about what they do. Which means they have to be smart about something for which there is little established wisdom and no deep experience inside of publishing houses.

For a large part of the past year, I have been learning about digital marketing for books from the man whom I will regard as The Master until the day comes when I meet somebody who knows more. He’s Peter McCarthy. Pete started his career with nearly 3 years at The Reader’s Catalog, New York Review of Books, and the Granta family of publications. Reader’s Catalog formed part of the backbone of Bn.com 1.0. Then Pete spent six years at Penguin in the early digital days helping them build a DAM system and put out ebooks for the first time, followed by six years at Random House pioneering their digital marketing efforts.

Pete has made the point repeatedly that much of what he knows, does, and is teaching me is already well understood in the modern world of branding and marketing. The distinctions among psychographics, demographics, and behavior, and their importance in marketing, were new to me but are familiar stuff to people who sell Pepsi or Toyotas. Pete’s really invented something in publishing by looking for comparable products that aren’t other books, but outside publishing they know all about seeking comps that aren’t precisely the same as their own product. The techniques Pete employs to find audiences in people that are like the known audiences for a book are standard tools in consumer marketing outside publishing.

But that doesn’t mean publishers can just hire big digital agencies to help them. It won’t work. Because while publishing can use techniques that sophisticated marketers are using to sell other products in other places, the truly more complex world of books will be hard for them to cope with. And marketing budgets for a title that are rarely five figures, often three figures, and sometimes less than that don’t fit the best agencies’ idea of “workable”, either.

The big agencies would actually have no clue how to deal with thousands of highly differentiated products at the same time, which have some interconnectedness to them (because they’re all books, so Amazon author pages have to be optimized for all of them, for example) but mostly are unrelated. And not knowing that causes lost value two ways:

1. They don’t have techniques to apply mass optimization across hundreds or thousands of highly differentiated “products”, because the work they do doesn’t require it;

2. They don’t have the capacity big publishers need to run hundreds (or maybe even thousands) of campaigns at one time with realtime “budgets” (or “go, no-go” gauges).

So the big agencies wouldn’t know how to deal with a publishing house. The granularity would frustrate them and they’d freight each ISBN (publishing speak for “SKU”) with too much overhead.

That has left most publishers on their own, with service providers delivering some by-title assistance (you can hire somebody to do an author’s tweeting for them), but with the publishers themselves left to sort out how to make maximum use of a book or author’s digital footprint and social media presence to drive sales. And it is not really surprising that Pete McCarthy, having had the opportunity to meet the marketing challenge across thousands of titles and authors and hundreds of genres, topics, and imprints, would have figured out a lot of things that elude the publishers who aren’t digital marketing sophisticates and the digital marketing experts who rarely, if ever, encounter the granularity and product diversity that characterizes book publishing.

I’ve learned a lot from Pete, but I’ll never catch up to him and I won’t even try. He uses more than 100 different digital tools to help him understand followers in various social platforms and who they are. He is using a marketer’s understanding of each individual’s demographics, psychographics, and behavior (and behavior’s subset, intent), to define the groups of people he sees clustering. That, in turn, helps him find groups of people who are similar to the ones who already like the author or the book.

Pete has articulated many principles which make a lot of sense, even to somebody who didn’t know about demographics and psychographics and who has not worked his way through even a handful of “listening” tools, let alone a hundred or more.

1. The digital marketing menu contains nearly an infinite number of items. That results in a tremendous amount of wasted effort spent trying things that a little research would have indicated will never work.

2. The key to making sales is to put the right message in front of the right person at the right time. Research finds the right people; testing finds the right message and the right time.

3. The various tool sets will allow you to profile the “followers” of a book or author in Facebook, Twitter, or LinkedIn (or by securing an email address) and it will enable you to understand for each of them what kind of following they have. This is critical research to do before you invest effort and time in actual marketing.

4. Another key research element is to carefully pick your nomenclature. Tools can also tell you how common various words and terms are in searches made through Google, Amazon, and other venues. This informs the best choices for metadata tagging, of course, but it could also affect a book’s titling.

Understanding the book and author’s digital connections and the right language to describe the book you’re selling are “foundational” elements; everything flows from them.

5. The whole concept of marketing “budgeting” needs to be rethought. While the trap or danger in digital marketing is its infinite number of possibilities, the opportunity is that the results of efforts are visible and measurable. So everything that is tried should be measured and evaluated, continued it if is working and either altered or terminated if it is not.

This reality collides with the historical practices and commercial realities of publishers, particularly big publishers. Editors, who have to sign up the books and keep agents and authors happy, want to tell agents and authors what their marketing budgets and efforts will be. Whether the book is selling or not, agents and authors don’t want to hear that the marketing spending was cancelled because the efforts weren’t adding value. But a house can’t just add to the budget when something is working and not cancel anything that is not, or they’ll go broke.

6. The whole concept of “time” also needs to be rethought, both “time on the clock” (work people do) and “time on the calendar” — not just how long programs run (as above) but also when they take place in relation to the lifecycle of the book. In the digital era, whether books are well-represented in stores at any moment is not necessarily the key determinant of how well they’ll sell, so pushing a backlist book that might be thinly distributed but which is suddenly timely is perfectly sensible (“the calendar”). And it wasn’t that way five or ten years ago when marketing efforts wouldn’t be extended if books weren’t in the stores. It is also true that the external costs of digital marketing could be very low but a campaign could consume a lot of in-house time (“the clock”) with copy creation, design, and posting.

7. The key to successful digital marketing is to do the research that finds the right messages and targets, test the messages to the targets looking for a defined result, measure the impact, and then adjust the messaging and targeting. Pete calls that “rinse and repeat”. The objective is to find replicable actions that provide results with an ROI that can be continued until the ROI stops.

With Peter McCarthy’s help and in conjunction with Digital Book World, Cader’s and my Publishers Launch Conferences has organized a Modern Book Marketing Conference to lay out the core tenets of digital marketing for publishers. (So we can all learn from Pete McCarthy.) 

After Pete opens the day by introducing his basic approach, we’ll have a panel of top publishing strategists — Rick Joyce of Perseus, Angela Tribelli of HarperCollins, Matt Litts from the Smithsonian, and Jeff Dodes of St. Martin’s Press — talk about how they apply digital marketing in their companies. Then Murray Izenwasser of Biztegra, a top digital marketing company, will clarify the core principles of using consumer demographic, psychographic, and behavioral data before Susie Sizoler of Penguin covers how publishers can build powerful customer databases and reader insights. Marketers Matt Schwartz of Random House, Rachel Chou of Open Road Integrated Media, and Brad Thomas Parsons of Houghton Mifflin Harcourt will  talk about how they promote, including a “lightning round” of commentary about how and when to use the most important venues and tools: Amazon author pages, Twitter, Facebook, Goodreads, and many others.

We will have a round of speed-dating, so attendees can meet with key sponsors and expert speakers in small groups and get their individual questions answered. And we’ll conclude the day with Erica Curtis of Random House on best practices for measuring and analyzing your marketing ROI, and two panels. The first, on “how digital marketing changes budgeting and timing”, will feature case histories from Sourcebooks, Running Press, and at least one other publisher. The second on the new collaboration required among authors and marketers, will feature agent Laura Dail, outside marketer Penny Sansevieri, inside marketer Miriam Parker of Hachette, and an editor still to be selected.

This Marketing Conference is co-located with our Publishing Services Expo, which I described in a previous post, and attendees of the Marketing Conference are welcome to sit in on any part of PSE as well. At the breaks, sponsors and many of the speakers from both events will be available to the audiences for both events.

Full disclosure and a teaser “announcement”: Pete McCarthy and I are forming a digital marketing agency to apply his knowledge on behalf of publishers, authors, and agents. We’ll reveal more details, including our starter assignments, over the next few weeks.

16 Comments »

Two new initiatives to ponder as we end the year


Two announcements made in the last two weeks caught our attention.

One was Simon & Schuster’s deal with Author Solutions, creating a new Archway Editions publishing imprint. This was the third such major deal with a publisher for ASI, following similar arrangements forged with romance publisher Harlequin and Christian publisher Thomas Nelson (now owned by HarperCollins).

The other was Publishers Lunch’s deal with Random House, creating the new online bookstore-lite, Bookateria. This was the second such major deal with a heavily-trafficked website for Random House, following a similar arrangement forged with the political site, Politico.

Of the two, the S&S-ASI connection offers less obvious benefits. ASI has apparently built a remarkably efficient engine to get a book delivered from a manuscript. And every publisher has many times more authors knocking at their door than they could possibly consider publishing. And many of them will never find a publisher so would be good candidates for self-publishing services.

But there are both ethical and practical commercial challenges to converting author aspirants who come looking for a deal to customers willing to buy self-publishing services. ASI seems to have persuaded publishers that the conversion works enough of the time to make the connection between publishers and ASI worth making. Let’s remember that the Harlequin and Nelson deals preceded both the acquisition of ASI by Pearson and the deal announced last week with S&S. Presumably, S&S and Pearson knew something about the results from those prior deals and were proceeding with some evidence that using a known publisher as a front door for self-publishers was an idea that works.

On the other hand, neither Nelson nor Harlequin has trumpeted the results of their ASI deal and authors may notice that the legions of successful self-publishers (John Locke, Amanda Hocking, Hugh Howey, Bella Andre, and more than a few others) seems bereft of ASI clients.

There are more questions than answers generated by these deals so far. It appears that the publishers really have nothing to do with their new customers aside from bringing them into the tent. (S&S says in the press release that they’ll be watching the sales of Archway books to see what authors it might want to sign for the house. But isn’t that what every big publisher should be doing across the self-publishing landscape right now?) Will the association with self-publishing damage the core publishing brands? Will the publishers feel some ownership of the self-publishers from whom they profit? Will real synergies develop between the publishers and their ASI connections, or will this remain largely a branding trick?

While all of that remains to be seen, if the ASI-publisher connections deliver revenue to publishers with little or no effort on their part, other publishers will be open to doing the same thing. The question is whether they do.

It is not difficult to discern the value delivered by the collaboration between Publishers Lunch and Random House to deliver Bookateria, a search-and-shopping experience with a Publishers Lunch perspective. It gives Lunch an easy way to deliver real convenience and value to its audience and modestly monetize it at the same time. And it further tests and proves the concept Random House first demonstrated with Politico. By delivering the tech around a pretty complete catalog of available books able to be monetized through affiliate relationships, Random House has created a “product” that any web site with substantial traffic can benefit from in the way Lunch now will.

Publishers Lunch, because it is constantly reporting book news, has more opportunities than the average site to link to purchase pages for a book it is mentioning. It regularly refers to various and sundry lists of award winners and top sellers and it makes nothing but great sense for them to make purchase of these books easy (and make a little money at the same time.)

It may be (and I’m not on the inside of any of these deals; aside from our partnership in Publishers Launch Conferences, Michael Cader of Publishers Lunch runs his businesses and I run mine) that Publishers Lunch is taking a more active role in merchandising books than Politico is. That would make sense. Books are PL’s business, and they have to both be thoughtful and appear thoughtful about how they present them. And since this capability is probably at least as much about providing utility to site visitors as it is about increasing revenue, the merchandising would want to reflect the site’s knowledge and point of view.

I have long believed that book and ebook distribution would ultimately follow the web’s innate tendency to verticalize audiences. Why wouldn’t you buy your political books or sports books or knitting books where you learn about them and be guided more by recommendations of “domain experts” than “book experts”?

I had visualized this verticalization working out from a publisher, which would use its content to attract audiences which it would then monetize many ways, including by selling them books and ebooks of its own and from other publishers. To varying degrees, this is what I saw unfolding with Hay House, F+W Media, Osprey, and Harlequin with the most highly-developed Big House example being Tor Books inside of Macmillan.

Some new propositions — notable among them being the still-promised book retailer Zola and the distributed sales “apps” from Impelsys and Ganxy — were built around the understanding that book curation was most effectively done by the experts and communities functioning in any domain and it made sense to deliver a way for them to enable their own ecommerce for the content they suggested or reported on to their audiences.

But it is in a trade publisher’s DNA to work with aggregators and intermediaries (which is what bookstores, mass merchants, libraries, wholesalers, and special sales outlets are). Random House applied the same vision of distributed and vertical curation but decided that they didn’t need to offer the entire ecommerce solution to execute on it.

So Politico and Publishers Lunch — and, one presumes, more to follow — use Random House to provide their catalog and metadata and some level of curation and they all rely on the existing retail network to complete the transactions and do the fulfillment. Random House and their partners (presumably) share affiliate revenues from the retailers, not the “full margin” on the content sales.

This could be viewed as a bit klunky from the customer’s perspective and it definitely will be for some. You wouldn’t be “shopping” and then “checking out” as two discrete and serial experiences. Each “buy” decision would take you to a retailer choice and then deep-link you to the purchase page for that book at the retailer you choose. Anybody who wants to purchase multiple titles would definitely find this less convenient than just shopping on a retailer’s site.

But if the retailer were delivering the curation and information that Politico or Publishers Lunch is offering in the area of vertical interest, then the customer would probably do their multiple-title shopping at the retailer anyway. The Random House-powered strategy is more opportunistic than that. It’s more about facilitating impulse purchasing than attracting a shopper.

And when you stop and think about it for just a minute, you realize that conversion is likely to be much higher by offering customers a choice of their favorite retailers than it would be if you were signing them up to a new account with a retailer (web site) they hadn’t purchased from before. This is true even in the case of Publishers Lunch, which has credit card numbers for a large number of its most regular visitors because they’re members of Publishers Marketplace. It would be even more of a barrier to making a purchase at Politico and other non-membership sites.

One veteran publishing marketer told me that conversion on clickthroughs to Amazon were very high in his experience, ranging from 8% to 17%. He really doubted whether any fledgling retailer could achieve anything like that rate of conversion.

That constitutes evidence that the revenue achievable as an affiliate could well be higher than what could be gained executing the sales and keeping “full margin”, which brings along with it full responsibility for maintaining an infrastructure and providing customer service. None of that is necessary working as an affiliate.

There is a superficial similarity to these two initiatives. Both involve a company offering tech at scale to help another company monetize its existing network in ways that it doesn’t now. How effective that monetization really will be is still an open question. But it would appear that the ASI service to publishers entirely depends on that: aside from whatever revenue it can yield, there’s no other real benefit to the publisher and, in fact, it could confuse or cheapen the perception of their core business.

The Random House offer to websites, on the other hand, has all sorts of “soft” value. The partnering web site unambiguously offers a service to its site visitors by enabling rapid purchase of relevant content encountered while pursuing their vertical interest. Selling content and earning revenue is only one way to win; they also benefit from more traffic and more stickiness, the inevitable by-products of improving the value being offered any site’s visitors.

What is also interesting to contemplate about the Random House-powered distributed curation is what its potential impact will be on the retail network. Enabling the content purchaser to choose her retailer would, one assumes, distribute the sales from their site in pretty much the same proportions as the market had already.

On the other hand, it might also make it easier for consumers to switch. It could dilute the advantage Amazon has built through their usually superior (compared to other retailers) curation and presentation. It would make it much easier for a supporter of independent bookstores to make the choice to buy from them. (The choices presented are obviously flexible. Politico offers “Politics and Prose” bookstore, an indie based in Washington that specializes in political books. Bookateria instead offers Indiebound, the ABA’s way of sending you to an independent retailer.)

One more observation. There have been two retailers expected to make their appearance anytime now for the last six months: the big publisher-created Bookish and the previously-mentioned Zola Books. The rumors about both of them say that they are having a really hard time making the metadata we have in our industry work well enough to execute on ecommerce. Obviously, Random House had to overcome that same problem to deliver their proposition (although perhaps the bar was a bit lower since they execute sales as an affiliate rather than transacting themselves). An informational page for Bookateria makes it clear that metadata improvement will be an ongoing work-in-progress.

As the other big publishers look at what Random House is doing and wonder if they should be doing the same, they might want to rethink the digital aphorism that anything, once done, can be replicated in half the time and for half the cost. Even if that’s true, starting now to replicate the Random House capability could take a year or more; this is not something that Random House dreamed up last week. In a year, Random House could pick off a number of very desirable large sites and improve their metadata organization even further. I don’t think any competitor who takes this concept seriously will be able to afford to wait for proven success or failure to start developing if they want to be in this game.

NPR did a great job of choosing four minutes of me to sound wise on All Things Considered as part of a publishing roundup. Or you can read a summary of my bit instead of listening to it. We start with the Random House and Penguin merger and meander a bit from there.

This is the last post for the fourth calendar year of The Shatzkin Files. Our annual rhythm is that our quietest week of the year (this one) is followed rapidly by our most intense: the 7-1/2 days of conference programming in four days on the calendar that comprise Digital Book World  2014 and the two Publishers Launch events that bookend it. 

Happy New Year to all my readers, and especially the many of you who take the time to add to the conversation here in the comment string. Double-especially to those of you who dispense your wisdom in concise doses.

1 Comment »

Seven-and-a-half days of conference programming coming up during 4 days in January


Blog posts have been scarcer for the past couple of months because I’ve been so engaged with a major responsibility: putting together what amounts to 7-1/2 days of conference programming that will be presented on four days next month in New York City.

As most readers of this blog probably know, we’re responsible for the programming of the two-day extravaganza that is Digital Book World. DBW 2013 — taking place on January 16 and 17 at the Hilton New York Hotel — will be the fourth iteration of the event, which aims to explore the commercial challenges facing trade publishing in the digital transition. DBW is not about technology per se; it is about the business problems publishers must cope with in an age of technological change.

DBW’s main two days are divided between morning plenary programming — all 1500+ people in one big room — and afternoon breakouts. We’ll have up to five simultaneous breakout sessions in each of three slots each day. So we have what amounts to 4-1/2 days of programming in the breakouts plus one on the main stage.

Because people really do come from all over the world to attend DBW, we were delighted to agree when they asked us at Publishers Launch Conferences (the conference business I own with Michael Cader) to add a show on each side of theirs to build out a week of programming. (The team at DBW itself are also putting together some pre-conference workshops that will run on Tuesday.)

So on Tuesday, January 15, we’ll do our second annual “Children’s Publishing Goes Digital” conference at the McGraw-Hill Auditorium (put together with the invaluable assistance of our Conference Chair and close friend, Lorraine Shanley of Market Partners). And on Friday, January 18, we’re presenting (in conjunction with the DBW team) a new program called “Authors Launch“, a full day of marketing advice for publisher-published authors. (Self-published authors are welcome and will learn a lot, but the program is framed for authors who are working with publishers, not looking for ways to avoid them.)

Programming the “Children’s Publishing Goes Digital” show revealed what we think will be the most important theme in the children’s book space for the next few years: the development of  digital “platforms” that, like subscription offerings (which some, but not all of them, clearly are), will “capture” consumers and make them much less likely to get ebooks and other digital media from outside of it. The list of platform aspirants in this space is long and varied: Storia from Scholastic; RRKidz from Reading Rainbow (the TV show brand); Poptropica from Pearson (which launched Wimpy Kid before it was a book); Magic Town; Disney; Capstone; and Brain Hive. All of them are presenting, as well as NOOK, which, like Amazon Kindle, has announced parental controls on its platform that encourage parents to manage their kids’ reading experience there.

There are other big issues in children’s publishing, particularly the creation of original IP by publishers so they can better exploit the licensing opportunities that follow in the wake of successful kids’ books. We’ll have data presentations from Bowker and from Peter Hildick-Smith of Codex to help our audience understand how kids books are found and selected outside the bookstore in today’s environment.

But we know that the digital discovery and purchase routines will be markedly affected by the platforms as they establish themselves. Publishers are faced with an interesting conundrum. They can’t reach the audiences that are loyal to a platform without going through the platform. But it is the presence of many publishers’ books that strengthens the attraction of the platform and, once it gains critical mass, the value of the content to it (and probably what it will be willing to pay for the content) is reduced. So publishers licensing content to these platforms may be strengthening beasts that will ultimately eat them. I think the roundtable conversation Lorraine and I will lead at the end of the day, which will include publishers Karen Lotz of Candlewick, Barbara Marcus of Random House, and Kate Wilson of Nosy Crow, will have interesting things to say about that paradox.

We’ve developed some “traditions” in the four years we’ve been doing Digital Book World. As we’ve done the past two years, the plenary sessions will open on Tuesday with the “CEOs’ view of the future” panel organized and moderated by David Nussbaum, the CEO of DBW’s owner F+W Media and the man who really dreamed up the idea of this conference. David will be joined this year by Marcus Leaver of Quarto, Karen Lotz of Candlewick, and Gary Gentel of Houghton Mifflin Harcourt. And Michael Cader and I will — as we have every year at DBW — moderate a panel to close the plenaries, “looking back and looking forward” with agent Simon Lipskar of Writers House; Harper’s new Chief Digital Officer, Chantal Restivo-Alessi, and Osprey CEO Rebecca Smart.

Among the presenters on the main stage who will be unlike what our audiences usually hear at a digital publishing conference will be Teddy Goff, the digital director for the Obama campaign, who will talk about targeting and marketing techniques that might serve us well in the publishing world; Ben Evans of Enders Analysis in London, who will tell us how publishing fits into the strategies of the big tech companies (Amazon, Apple, Facebook, Google, and Microsoft) that he tracks regularly*; ex-Macmillan president and now private equity investor Brian Napack, talking with Michael Cader about the investment climate in publishing; and Michael D. Smith, Professor of Information Technology and Marketing from Carnegie-Mellon, talking about a study he and his colleagues have done on the real commercial impact of piracy.

(We’ve also scheduled a breakout session for Teddy Goff so he can talk more about the Obama campaign for those in attendance who want to learn more of its lessons to apply.)

We’re also delighted to have gotten Robert Oeste, Senior Programmer and Analyst from Johns Hopkins University Press, to deliver his wonderfully insightful, entertaining, and informative presentation on XML, the subject so many of us in publishing need to understand better than we do. And we will after he’s done. (We’re also giving Oeste a break-out slot to talk about metadata which I’ll bet a lot of our audience will choose to attend after they’ve heard him on XML.)

(*Late edit: Ben Evans had to cancel.)

Some authors have had remarkable success without help from publishers in the past year, but few or none more than Hugh Howey, the author of “Wool”, who has just signed a groundbreaking print-only deal for the US with Simon & Schuster. His dystopian futurist novel has sold hundreds of thousands of self-published ebook copies and rights all over the world and to Hollywood. We’ll have a chat with Howey about how he did it and we’ll be joined by his agent, Kristin Nelson, for that dialogue. Kristin will stick around to join a panel of other agents (Jay Mandel of William Morris Endeavor, Steve Axelrod, and Jane Dystel from Dystel & Goderich) to talk about “Straddling the Models”: authors who work with publishers but are also doing some things on their own.

We will have several panels addressing the challenges of discovery and discoverability from different angles. One called “Closing the New Book Discovery Gap” teams Patrick Brown of Goodreads with three publishing marketers — Matt Baldacci of Macmillan, Angela Tribelli of HarperCollins, and Rachel Chou of Open Road — and is chaired by Peter Hildick-Smith. That will focus on what publishers can do with metadata and digital marketing to make it more likely their titles will get “found”. Barbara Genco of Library Journal will share data on library patron behaviors and then helm a panel discussion with Baker & Taylor, 3M, Darien Public Library, and Random House exploring the role of libraries in driving book discovery and sales. Another session called “Making Content Searchable, Findable, and Shareable” introduces three new propositions from Matt MacInnis of Inkling, Linda Holliday of Citia, and Patricia Payton of Bowker, along with SEO expert Gary Price of INFODocket. Publishing veteran Neal Goff (who is also the proud father of Obama’s digital director) will moderate that one. MacInnis, Holliday, and Payton offer services that will help publishers improve the search for their books. Price will talk knowledgeably about how the search engines will react to these stimuli.

We’re covering new business model experimentation (with Evan Ratliff of The Atavist, Brendan Cahill of Nature Share, Todd McGarity of Hachette, and Chris Bauerle of Sourcebooks) where publishers discuss ways to generate revenue that are not the old-fashioned ones. We’ll underscore the point that we’re about changes caused by technology rather than being about technology with our “Changing Retail Marketplace” panel, featuring publishers and wholesalers talking about the growth of special sales (through retailers that aren’t bookstores and other non-retail channels).

The future for illustrated books will be discussed by a panel with a big stake in how it goes: John Donatich of Yale University Press, Michael Jacobs of Abrams, Marcus Leaver of Quarto, and JP Leventhal of Black Dog & Leventhal. Two publishers who have invested in Hollywood — Brendan Dineen of Macmillan and Pete Harris of Penguin — will talk about the synergies between publishing and the movies with consultant Swanna McNair of Creative Conduit.

We will have major US publishers and Ingram talking about exports: developments in the export market for books — print and digital. And we’ll have some non-US publishers joining Tina Pohlman of Open Road and Patricia Arancibia of Barnes & Noble talking about imports: non-US publishers using the digital transition to get a foothold in the US market.

One session I think has been needed but never done before is called “Clearing the Path” and it is about eliminating the obstacles to global ebook sales. That one will start with a presentation by Nathan Maharaj and Ashleigh Gardner of Kobo where they will enumerate all the contractual and procedural reasons why ebooks are just not available for sale in markets they could reach. And then Kobo will join a panel conversation with Joe Mangan of Perseus and agent Brian Defiore to talk about why those barriers exist and what might be done in the future to remove them.

Oh, yes, there’s much much more: audience-centric (what I call “vertical”) publishing; the changing role of editors; the evolving author-publisher relationship; and a conversation about the “gamification” of children’s books. David Houle, the futurist and Sourcebook author who wowed the DBW 2012 audience, will return with his Sourcebooks editor, Stephanie Bowen, to discuss their version of “agile” publishing: getting audience feedback to chunks before publishing a whole book.

We will also do some stuff that is more purely “tech”. We have a panel on “Evolving Standards and Formats” discussing the costs and benefits of EPUB3 adoption, which will be moderated by Bill McCoy of IDPF. Our frequent collaborator Ted Hill will lead a discussion about “The New Publishing IT Department”. Bill Kasdorf of Apex will moderate a discussion about “Cross-Platform Challenges and Opportunities” which is about delivering content to new channels.

But purely tech is the exception at Digital Book World, not the rule.

And purely tech won’t show up at all at Authors Launch on Friday, January 18, the day after Digital Book World.

Authors Launch is what we think is the first all-day marketing seminar aimed squarely at authors with a publisher, not authors trying to work without one. It is pretty universally taken as a given that authors can do more than they ever have before to promote themselves and their books and that publishers should expect and encourage them to do that. But, beyond that, there is very little consensus. What should the publisher do and what should the author do? That question is going to be addressed, in many different ways, throughout the day.

The Authors Launch program covers developing an author brand, author involvement and support for their book’s launch, basic information about keyword search and SEO, use of metrics and analysis, a primer on media training, when and how to hire a publicist or other help, and a special session on making the best use of Goodreads. We’ll cover “audience-centric” marketing, teaching authors to think about their “vertical” — their market — and understand it.

The faculty for Authors Launch includes the most talented marketers and publicists helping authors today: Dan Blank, co-authors MJ Rose and Randy Susan Meyers, journalist Porter Anderson, David Wilk, Meryl Moss, Lucinda Blumenfeld, agent Jason Allen Ashlock, and former Random House digital marketer Pete McCarthy.

We have assembled a group of publishers and an agent to discuss how an author should select the best places to invest their time from the staggering array of choices. (Facebook, Twitter, YouTube, Pinterest, etcetera.) That panel will include agent Jennifer Weltz of The Naggar Agency as well as Matt Baldacci of Macmillan, Rachel Chou of Open Road, Rick Joyce of Perseus, and Kate Stark of Penguin. Matt Schwartz, VP, Director of Digital Marketing and Strategy for the Random House Publishing Group, will conduct the session on metrics.

A feature of both our Kids show on Tuesday and the Author show on Friday are opportunities for the audience to interact with the presenters in smaller groups so each person can get his or her own questions answered. At Kids we’ll do that at lunchtime, seating many of our presenters at tables with a sign carrying their name so our attendees can sit with them and engage. At Authors Launch, we’ll be conducting rounds of workshops, crafted so that the authors can get help in their own vertical (genre fiction, literary fiction, topical non-fiction, juvies, and so forth), and on the topics of greatest need for them.

We are sure the week of January 15-18 will prove to be an energizing and stimulating one for all of us living in the book publishing world. We hope you’ll join us.

Digital Book World Week | January 15-18, 2013

Children’s Publishing Goes Digital | Tuesday, January 15, McGraw-Hill Auditorium
DBW Pre-Conference Workshops | Tuesday, January 15, Hilton New York Hotel
Digital Book World Conference + Expo | January 16-17, Hilton New York Hotel
Authors Launch | Friday, January 18, Hilton New York Hotel

2 Comments »

I came home from the Charleston Conference with a couple of new thoughts


One great benefit of stepping outside your own world — which for me is the world of general trade publishing — is that you can get a jolt of perspective when you do. It really took only a few minutes of listening to Annette Thomas, the global head of professional and college publishing for Macmillan, at the Charleston Conference to underscore an important point. Thomas was talking about how Macmillan had to solve the problem of linking together content that was delivered in journal articles with that delivered in books, a format distinction she correctly saw made no sense to somebody who just wanted the information regardless of the form in which it was initially delivered.

In professional and academic publishing, it is pretty much a requirement to understand the context of all content. Any observation, discovery, or opinion needs to be connected to the other knowledge and information that relates to it to have validity. Scholarship and professional knowledge all live in a world where the total body of relevant information is the key to understanding the value of any new contribution. (And, indeed, the creators of any new contribution are carefully placing their work in the context of all that came before it.)

This is not true for trade publishing, where — more often than not — each book being read is judged and appreciated for what exists between its own covers.

This brings me to two observations about how publishing is changing and how trade publishers need to think differently that are relevant and have not been said to death (if, in fact, they’ve been said by anybody else at all.)

We often observe that book publishing is many businesses, by which we usually mean that academic or professional or college textbook publishing has little to do with “trade”. But it is also true that trade publishing is many businesses. Even within fiction, the publishing skills and markets for genres like romance and science fiction are quite different than for literary fiction.

But non-fiction is even more diverse. And some of it has a lot to learn from professional publishing.

What the top professional publishers will tell you is that the challenge for them is to deliver content within the workflow. That means that accountants or construction engineers are trying to get particular things done and what they look to publishers to do is to help them accomplish their tasks. That means software. And the content they need should be provided within that workflow so they have the knowledge they’re looking for when they want to apply it.

Well, some consumer publishing also addresses content needs that arise in a workflow. Consumers of gardening books, knitting books, and cookbooks are all using the knowledge they present within a workflow context.

What that means to me is that we’re not far away from these tasks being addressed by workflow tools: apps. Your gardening app, for example, will help define your challenge. It will ask you questions. How big is your front yard? How big is your back yard? How much sun do they get? How much time do you have to spend with this? Do you want flowers, shrubs, or vegetables?

Then the app will tell you, “Mike, it’s March 15, dig a hole.” “Mike it’s April 10, drop a seed in the hole.” “Mike it’s April 28 and we see it hasn’t rained in your neighborhood for a week. Water your garden.” Etcetera.

When that day comes, the publisher with the really terrific gardening book better hope they’ve made a good licensing deal with the owner of the app. Power will have shifted.

(One example of what the future may bring a lot more of are the Audubon Mobile Field Guides, which were done by Green Mountain Digital. These are region-specific species guides that contain reference content, maps, bird calls, etc. and provide real time access to bird sightings. Brendan Cahill of Green Mountain will speak on a “new business models” panel at Digital Book World.)

If I were a publisher of books that address a challenge that is actually handled through a workflow, I’d start now trying to be the licensor, not the licensee.

And that brings me to the second observation.

When you read self-published books (and I do: some of the big bestsellers anyway), you become aware by omission of what a publishers would do to improve them. The lack of copy-editing and proofreading is often what is most apparent, but more acute readers also see the deficiencies in development that good editors correct before a book goes to press.

Because major publishers tend to spend a fair amount of money acquiring most of the titles they do and — correctly or not — see it is a major expense (drain on overheads) to publish each and every title, they tend to be careful about making sure each book is really ready for prime time before they print it. That means there is almost always some editorial input from somebody with commercial responsibility (the acquiring editor or somebody who works for the AE) but there is also certainly professional copy-editing and proofreading of every single book. My highly anecdotal view of self-published books is that for them there is no such guarantee.

I have advocated previously that big publishers should see the value of branding their work as “professional”, which I believe argues for minimizing the number of brands they ask consumers to remember. Nuanced brands make sense in a B2B world (for buyers and reviewers) but are likely to just confuse or be ignored by consumers. But as more and more self-published material makes its way to the public and even onto bestseller lists, the reading public (at least those of us who care about grammar, syntax, and punctuation) might be well served by branding that says, in effect, “this book has been edited, copy-edited, and proofread by professionals”.

But now I’m seeing that thinking isn’t granular enough. If a publisher adopted that suggestion, they’d be locking themselves into maintaining those high quality standards across everything they do. In the long run, is that the right idea?

I’m beginning to think it isn’t. As we see increasingly that self-published material can reach extremely large audiences, it will probably become important before long for the established publishers to be able to test titles in the marketplace without doing the full editorial job on them. In fact, if Sourcebook’s “agile publishing model” (by which a non-fiction book by my friend and client, futurist David Houle, is being released in ebook chunks for audience feedback before being assembled into a “final” published version that will also be printed) were to gain traction and be used more broadly, it would almost certainly mean that parts of the editing job should be bumped back to the end (or else would have to be done twice).

When the big publishers float through the looking glass and realize that they are really wasting their clout and resources if they don’t crank up to do many more titles than they do now (which they haven’t yet, but I believe they will; and I think Penguin’s acquisition of Author Solutions is the first sign of recognition of that reality by a major house), they’ll see that not all the books they’ll want to publish in the future can get the same full-on treatment that they give to all the books they publish now. They’ll want to be able to publish an author’s short non-fiction ebook about the topic of their novel — because the author wants them to — without giving it thousands of dollars worth of editorial development its revenue forecasts wouldn’t justify. The solution might be to create secondary brands, or it might be about “badging” each book with the amount of editorial attention it actually got. But one signal of quality might not fit all books.

One remarkable facet of my Charleston trip was something I’m quite sure would never happen to me in New York. I had the same cab driver coming in from the airport on Wednesday and then going back out again on Thursday! I also managed to take off from LaGuardia before the nor’easter hit and come back the following evening after it had come through. I saw a little evidence of what was reported to me was “a blizzard” that I’m not sorry I missed.

36 Comments »