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The Future of Digital Distribution
                                     and eBook Marketing

                                                    Tim O’Reilly
                                                 www.oreilly.com

                                   Tools of Change for Publishing
                                                February 24, 2010




Thursday, March 4, 2010
Why There Will Always Be Publishers

                                                        Tim O’Reilly
                                                     www.oreilly.com

                                       Tools of Change for Publishing
                                                    February 24, 2010




Thursday, March 4, 2010
What Publishers Need To Do To Survive
                                                          Tim O’Reilly
                                                       www.oreilly.com

                                         Tools of Change for Publishing
                                                      February 24, 2010




Thursday, March 4, 2010
Create the coolest new enhanced ebooks? NOT.




Thursday, March 4, 2010
Thursday, March 4, 2010
Thursday, March 4, 2010
Thursday, March 4, 2010
Thursday, March 4, 2010
Thursday, March 4, 2010
ΩΩ




Thursday, March 4, 2010
You’re betting that you’re going to be smarter, and
        faster, and more creative than all the young
        developers and entrepreneurs out there.




Thursday, March 4, 2010
“The ugly stuff will always need to be done.”

                                                     -John Ingram




Thursday, March 4, 2010
Your job as a publisher is to do things for authors that
        they can’t do for themselves:
           – Things that require special expertise
           – Things that require scale
           – Things that are expensive
           – Things that require marketplace leverage
           – Things that are boring and time-consuming




Thursday, March 4, 2010
Production
                          Distribution
                          Pricing
                          Channel management
                          Marketing
                          Sales




Thursday, March 4, 2010
Why?




Thursday, March 4, 2010
“No place affords a more striking conviction of the
         vanity of human hopes than a public library.”



                                  Samuel Johnson, 23 March 1751
                                               Rambler No. 106




Thursday, March 4, 2010
“Obscurity is a bigger problem for authors than
         piracy.”



                                  Tim O’Reilly, 11 December 2002
                                   Piracy is Progressive Taxation




Thursday, March 4, 2010
Does anyone see a problem with this?




Thursday, March 4, 2010
Thursday, March 4, 2010
Thursday, March 4, 2010
Why does new media always display power laws?




                          Figure #1: 433 weblogs arranged in rank order by number of inbound links.
                          The data is drawn from N.Z Bear's 2002 work on the blogosphere ecosystem.
                          The current version of this project can now be found at http://www.myelin.co.nz/ecosystem/.



        Clay Shirky, Power Laws, Weblogs, and Inequality, February 8, 2003
        http://www.shirky.com/writings/powerlaw_weblog.html


Thursday, March 4, 2010
Thursday, March 4, 2010
Thursday, March 4, 2010
Publishing with the Huffington Post gives authors
        more visibility than they can get on their own.




Thursday, March 4, 2010
Thursday, March 4, 2010
Thursday, March 4, 2010
Thursday, March 4, 2010
Thursday, March 4, 2010
It’s all in the math!




Thursday, March 4, 2010
The mathematics of complex social organization

        “Relationships between a band of 20 people involve only 190
        two-person interactions (20 people times 19 divided by 2), but
        a band of 2000 would have 1,999,000 dyads.... In small
        societies with few pairs of members, the resulting necessary
        transfer of goods can be engaged directly between pairs of
        individuals or families, by reciprocal exchanges. But the
        same mathematics that makes direct pairwise conflict
        resolution difficult in large societies makes pairwise
        economic transfers also inefficient. Large societies can
        function economically only if they have a redistributive
        economy in addition to a reciprocal economy.”

                          Jared Diamond: From Egalitarianism to Kleptocracy
                                         in Guns, Germs and Steel, pp 286-287




Thursday, March 4, 2010
Your mission, should you choose to accept it, is to get
        more visibility and sales for authors than they can get
        on their own.




Thursday, March 4, 2010
Distribution




Thursday, March 4, 2010
Thursday, March 4, 2010
Thursday, March 4, 2010
O’Reilly eBook revenue sources




Thursday, March 4, 2010
Thursday, March 4, 2010
“the minimum viable product is that version of a new product
                               which allows a team to collect the maximum amount of
                              validated learning about customers with the least effort.”




Thursday, March 4, 2010
Thursday, March 4, 2010
Thursday, March 4, 2010
The capability to create product in new formats, and
                      sell it into emerging channels.




Thursday, March 4, 2010
Marketing




Thursday, March 4, 2010
Social Media Marketing




Thursday, March 4, 2010
Thursday, March 4, 2010
retweetradar




Thursday, March 4, 2010
nivi and the @timoreilly bump




Thursday, March 4, 2010
This is important!
     In social networks, you gain and bestow status
      through those you associate with
     A key function of a publishing brand is the bestowal
      of status by who and what you pay attention to
     If you only pay attention to yourself, you aren’t as
      valuable to your community
           – You don’t learn as much from your readers
           – You don’t bind them to you by amplifying their voice




Thursday, March 4, 2010
Thursday, March 4, 2010
Thursday, March 4, 2010
Thursday, March 4, 2010
Thursday, March 4, 2010
Thursday, March 4, 2010
Analytics are the heart of SEO.




Thursday, March 4, 2010
They are also at the heart of social media marketing.




Thursday, March 4, 2010
Thursday, March 4, 2010
Thursday, March 4, 2010
Thursday, March 4, 2010
The
PeopleBrowsr
Cycle
            •
Historical
and
                              •
Campaigns
to
Build

            Ongoing
Sen9ment
                              Followers
            Analysis




                                                           •

Campaigns
to
Direct

                                                           Message

            •
Custom
Monitoring

            Dashboards


                                            •
Repor9ng
on
ROI
for

                                            tradi9onal
and
Social

                                            Media
                                                                                     1


Thursday, March 4, 2010
There will be ebook reader analytics tools as well.




Thursday, March 4, 2010
Pay attention.




Thursday, March 4, 2010
Analytics will help you find what products are working
                                      what channels are working
                                        what prices are working
                           who is spreading the word about you
                                        what your readers think




Thursday, March 4, 2010
Thursday, March 4, 2010
The secret of social media is that it's not about you,
        your product, or your story. It's about how you can
        add value to the communities that happen to include
        you. If you want to make a positive impact, forget
        about what you can get out of social media, and start
        thinking about what you can contribute. Not
        surprisingly, the more value you create for your
        community, the more value they will create for you.




Thursday, March 4, 2010
Create more value than you capture.




Thursday, March 4, 2010

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What Publishers Need to do to Survive

  • 1. The Future of Digital Distribution and eBook Marketing Tim O’Reilly www.oreilly.com Tools of Change for Publishing February 24, 2010 Thursday, March 4, 2010
  • 2. Why There Will Always Be Publishers Tim O’Reilly www.oreilly.com Tools of Change for Publishing February 24, 2010 Thursday, March 4, 2010
  • 3. What Publishers Need To Do To Survive Tim O’Reilly www.oreilly.com Tools of Change for Publishing February 24, 2010 Thursday, March 4, 2010
  • 4. Create the coolest new enhanced ebooks? NOT. Thursday, March 4, 2010
  • 11. You’re betting that you’re going to be smarter, and faster, and more creative than all the young developers and entrepreneurs out there. Thursday, March 4, 2010
  • 12. “The ugly stuff will always need to be done.” -John Ingram Thursday, March 4, 2010
  • 13. Your job as a publisher is to do things for authors that they can’t do for themselves: – Things that require special expertise – Things that require scale – Things that are expensive – Things that require marketplace leverage – Things that are boring and time-consuming Thursday, March 4, 2010
  • 14. Production Distribution Pricing Channel management Marketing Sales Thursday, March 4, 2010
  • 16. “No place affords a more striking conviction of the vanity of human hopes than a public library.” Samuel Johnson, 23 March 1751 Rambler No. 106 Thursday, March 4, 2010
  • 17. “Obscurity is a bigger problem for authors than piracy.” Tim O’Reilly, 11 December 2002 Piracy is Progressive Taxation Thursday, March 4, 2010
  • 18. Does anyone see a problem with this? Thursday, March 4, 2010
  • 21. Why does new media always display power laws? Figure #1: 433 weblogs arranged in rank order by number of inbound links. The data is drawn from N.Z Bear's 2002 work on the blogosphere ecosystem. The current version of this project can now be found at http://www.myelin.co.nz/ecosystem/. Clay Shirky, Power Laws, Weblogs, and Inequality, February 8, 2003 http://www.shirky.com/writings/powerlaw_weblog.html Thursday, March 4, 2010
  • 24. Publishing with the Huffington Post gives authors more visibility than they can get on their own. Thursday, March 4, 2010
  • 29. It’s all in the math! Thursday, March 4, 2010
  • 30. The mathematics of complex social organization “Relationships between a band of 20 people involve only 190 two-person interactions (20 people times 19 divided by 2), but a band of 2000 would have 1,999,000 dyads.... In small societies with few pairs of members, the resulting necessary transfer of goods can be engaged directly between pairs of individuals or families, by reciprocal exchanges. But the same mathematics that makes direct pairwise conflict resolution difficult in large societies makes pairwise economic transfers also inefficient. Large societies can function economically only if they have a redistributive economy in addition to a reciprocal economy.” Jared Diamond: From Egalitarianism to Kleptocracy in Guns, Germs and Steel, pp 286-287 Thursday, March 4, 2010
  • 31. Your mission, should you choose to accept it, is to get more visibility and sales for authors than they can get on their own. Thursday, March 4, 2010
  • 35. O’Reilly eBook revenue sources Thursday, March 4, 2010
  • 37. “the minimum viable product is that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort.” Thursday, March 4, 2010
  • 40. The capability to create product in new formats, and sell it into emerging channels. Thursday, March 4, 2010
  • 45. nivi and the @timoreilly bump Thursday, March 4, 2010
  • 46. This is important!  In social networks, you gain and bestow status through those you associate with  A key function of a publishing brand is the bestowal of status by who and what you pay attention to  If you only pay attention to yourself, you aren’t as valuable to your community – You don’t learn as much from your readers – You don’t bind them to you by amplifying their voice Thursday, March 4, 2010
  • 52. Analytics are the heart of SEO. Thursday, March 4, 2010
  • 53. They are also at the heart of social media marketing. Thursday, March 4, 2010
  • 57. The
PeopleBrowsr
Cycle •
Historical
and
 •
Campaigns
to
Build
 Ongoing
Sen9ment
 Followers Analysis •

Campaigns
to
Direct
 Message •
Custom
Monitoring
 Dashboards •
Repor9ng
on
ROI
for
 tradi9onal
and
Social
 Media 1 Thursday, March 4, 2010
  • 58. There will be ebook reader analytics tools as well. Thursday, March 4, 2010
  • 60. Analytics will help you find what products are working what channels are working what prices are working who is spreading the word about you what your readers think Thursday, March 4, 2010
  • 62. The secret of social media is that it's not about you, your product, or your story. It's about how you can add value to the communities that happen to include you. If you want to make a positive impact, forget about what you can get out of social media, and start thinking about what you can contribute. Not surprisingly, the more value you create for your community, the more value they will create for you. Thursday, March 4, 2010
  • 63. Create more value than you capture. Thursday, March 4, 2010