Emerging eBooks Markets Webinar

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Information on Accessing New Territories for eBook publishers. Section on:
*Pricing
*Pricing & Growth Per Territory
*Maximizing Sales Impact on Volumes & Revenues
*eBook Analytics – Analytical Performance Data
*International Buying Behavior

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  • Publishers Lunch Conference last Summer
  • 2 conclusions: 1) US less price sensitive and 2) publishers pricing too high in many cases, and sales could be improved by better pricing strategies
  • ‘Free’ in emerging markets still major source of access to eBooks
  • Publishers Lunch Conference last Summer
  • Emerging eBooks Markets Webinar

    1. 1. Emerging Markets: Growing Profitable Sales in New Territories 27 March 2013
    2. 2. Ten years marketing experience in the publishing industry and recently completed his Masters in Marketing. A proven track record of achievement in the areas of Digital Marketing, Business Development and Strategic Planning. Contact Patrick: pcrowley@epubdirect.com Patrick Crowley Digital Marketing Manager
    3. 3. 1. A little bit about us 2. Accessing New Territories 3. Pricing 4. Pricing & Growth Per Territory 5. Maximising Sales Impact on Volumes & Revenues 6. eBook Analytics – Analytical Performance Data 7. International Buying Behaviour Agenda http://www.slideshare.net/PublishersLaunch/kelly-gallagher-ebooks-go-global
    4. 4. • An Irish company that provides a distribution management system for publishers to get their eBooks to market. • We have the widest market reach with over 1,000 retail channels and 25,000 library channels, all under one simplified contract. • Sales channels in 60 countries, 50+ languages. Sales reported from 112 countries YTD. • Our unique selling points put us at a distinct advantage over our competition in terms of cost savings to clients: • Digital Distribution specialist service offering • Maximum exposure to retail outlets and library channels • The most flexible and powerful software platform • All managed through a culture of collaboration and partnership. Our success depends on our publisher’s success. Who are ePubDirect
    5. 5. Publishers RetailersChallenge • Access to multiple channels • Sales reporting • File storage • Conversion • Marketing • Resources • Margins Simplicity in a World of Complexity
    6. 6. How it Works
    7. 7. Accessing New Territories
    8. 8. eBook Purchase Sources
    9. 9. International Reach – 112 Countries United States of America United Kingdom Ireland Australia Canada France Italy Spain South Africa Netherlands New Zealand Germany Singapore Norway Belgium Switzerland Mexico Denmark India Japan Austria Brazil Hong Kong Finland Sweden Thailand Portugal Malta Romania Philippines Poland Greece Qatar Czech Republic Taiwan Israel Chile Luxembourg Russia Cyprus Iceland Argentina Venezuela Trinidad and Tobago Slovenia United Arab Emirates Croatia Korea Northern Mariana Islands Indonesia Namibia Jersey Bermuda Ukraine Ethiopia Grenada Botswana Latvia Bulgaria Cameroon Peru Nigeria Vietnam Bosnia and Herzegovina Guatemala Hungary Puerto Rico Samoa Isle of Man Zimbabwe Brunei/Borneo Falkland Islands Kenya Estonia Lithuania Monaco Guernsey Swaziland Cayman Islands Bahamas Jamaica Saudi Arabia Antigua & Barbuda Armenia Barbados Cambodia Colombia Congo Dominica Dominican Republic Ecuador Ghana Guyana Haiti Malawi Montserrat Myanmar Nepal Netherlands Antilles New Caledonia Palau Panama Saint Kitts and Nevis Saint Lucia Serbia Sri Lanka Tanzania Turks and Caicos Islands Uganda Uruguay Virgin Islands Western Sahara
    10. 10. 30% 28% 10% 7% 4% 21% 0% 5% 10% 15% 20% 25% 30% 35% USA UK Ireland Australia Canada Other % Value Territory % Value
    11. 11. 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% US IE GB CA AU MY SG NZ FI IN ZA PH BM TR Global Libraries – 2012
    12. 12. Pricing • Most publishers have difficulty with their pricing policies, because they don’t have any (don’t tell anyone!) • Lack of a pro-active pricing policy results in crucial changes in volume and value in each territory, which can have a huge affect on MARGIN • One of the biggest challenges is that eBook buyers tend to understand the competitive landscape better than publishers • Another major challenge is Amazon’s disputed ‘dominant position’ in the market. Harder to replace lost print sales. • Compounding the problem is the fact that many publishers tend to shoot very low to get high volumes, without a full understanding of the margin consequences This race to the bottom makes life harder for everyone
    13. 13. Pricing: Expectation and Behaviour Publishers Expectations Publishers Pricing Behaviour Buyers Expectations Buyers Purchasing Behaviour
    14. 14. Setting the Price: A Trade Off • Price Optimization is a complex process that involves 2 distinct components 1) Publisher’s existing price and cost structures 2) Customers Behaviour • If I decrease my price, how much volume do I need to gain to improve my profitability • If I increase my price, how much volume can I afford to lose, before reducing my profitability
    15. 15. Relationship between Price and Sales Price € Sales Volume €10 €0 25 75 100
    16. 16. Pricing: UK & US BISAC US UK Fiction : General (FIC000000) $5.54 $4.51 Bus & Economics : General (BUS000000) $10.77 $6.23 History: General (HIS000000) $8.85 $5.82 Juv Non-Fiction: General (JNF000000) $6.87 $4.87 Biog & Autobiog : General (BIO000000) $10.24 $3.59 Religon: General (REL000000) $8.36 $3.72 Self-Help: General (SEL000000) $10.72 $8.53 Sports & Rec : General (SPO000000) $11.14 $7.47 Political Science: General (POL000000) $12.90 $6.82 Total Average $9.49 $5.73
    17. 17. Pricing: UK vs US $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 History: General Biog & Autobiog : General Religon: General $8.85 $10.24 $8.36 $5.82 $3.59 $3.72 Amz.com ASP Amz.co.uk ASP 34% 64% 55%
    18. 18. •Elastic = many substitutes •Inelastic = few substitutes Amazon.com No titles in category Fiction 598,000 Romance 99,000 Nonfiction 915,000 Biographies & Memoirs 63,000 Business & Investing 95,000 History 112,000 Politics & Current Events 103,000 Religion & Spirituality 156,000
    19. 19. "The important thing is not to stop questioning." Albert Einstein
    20. 20. Innovative eBook Analytics Suite  Graphical views on eBook performance  Detailedinsight through title level dashboards  Self-service accessto key measures/reports  Accurate, timely business intelligence  GraphicalKPIs  Detailed:title/retailer reporting, YTD/month
    21. 21. ePubDirect Analytics Optimise Measure Report Analyse BISAC US UK Fiction $5.54 $4.51 Bus & Economics $10.77 $6.23 Biog & Autobiog $10.24 $3.59
    22. 22. Price vs. Sales vs. Margin Price € Sales Volume €10 €0 25 75 100
    23. 23. http://www.slideshare.net/PublishersLaunch/kelly-gallagher-ebooks-go-global
    24. 24. Super Powers India 1,210,193,422 UK 63,181,755 While only 2% of Indian population has purchased an eBook – that number is > UK with 17% penetration
    25. 25. http://www.slideshare.net/PublishersLaunch/kelly-gallagher-ebooks-go-global
    26. 26. http://www.slideshare.net/PublishersLaunch/kelly-gallagher-ebooks-go-global
    27. 27. Free as a Driver in Emerging Markets
    28. 28. Do’s and Don’ts 1: Broaden your sales mix and decrease your risk by ensuring your titles are available to all territories by working with all retailer and library channels 2: Maximise your margin by establishing an eBook pricing policy – implement this by territory, start with the biggies 3: Test your pricing – see what works (easy in digital!) 4: Make informed decisions utilising Analytics, review regularly 1: Wait. And watch the biggest get bigger then decide to do something (learning curve) 2: Base your eBook pricing strategy on the legacy model for print – they are different 3: Race to the bottom on price 4: Go it alone – lean on us!
    29. 29. Thank You & Questions pcrowley@epubdirect.com ePubDirect Events: 11 April BIC Breakfast – Digital Panel 15 April LBF, X555 @ Digital Zone 24 April Supply Chain Visibility 13 May Bookseller Awards ePubDirect Archive: https://vimeo.com/58629421 Metadata that matters http://vimeo.com/55015307 Organic SEO http://vimeo.com/56899413 Retailer Requirements Blog Pricing, DRM, Tax Contact us for more information - today!

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