Emerging eBooks Markets Webinar

Emerging Markets: Growing Profitable Sales in New Territories

27 March 2013

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 CrowleyDigital Marketing Manager

1. A little bit about us2. Accessing New Territories3. Pricing4. Pricing & Growth Per Territory5. Maximising Sales Impact on Volumes & Revenues6. eBook Analytics – Analytical Performance Data7. International Buying Behaviour

Agenda

http://www.slideshare.net/PublishersLaunch/kelly-gallagher-ebooks-go-global

• 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

Publishers

Retailers

Challenge• Access to multiple

channels

• Sales reporting

• File storage

• Conversion

• Marketing

• Resources

• Margins

Simplicity in a World of Complexity

How it Works

Accessing New Territories

eBook Purchase Sources

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

USA UK Ireland Australia Canada Other0%

5%

10%

15%

20%

25%

30%

35%

30%

28%

10%

7%

4%

21%

% Value

Territory % Value

US IE GB CA AU MY SG NZ FI IN ZA PH BM TR 0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Global Libraries – 2012

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

Pricing: Expectation and Behaviour

Publishers Expectations

Publishers Pricing

Behaviour

Buyers Expectations

Buyers Purchasing Behaviour

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

Relationship between Price and Sales

Price €

Sales Volume

€10

€025 75 100

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

Pricing: UK vs US

History: General Biog & Autobiog : General Religon: General $0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$8.85

$10.24

$8.36

$5.82

$3.59 $3.72

Amz.com ASPAmz.co.uk ASP

34% 64% 55%

•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

"The important thing is not to stop questioning." Albert Einstein

Innovative eBook Analytics Suite Graphical views on eBook performance Detailed insight through title level

dashboards Self-service access to key

measures/reports

Accurate, timely business intelligence

Graphical KPIs Detailed: title/retailer reporting,

YTD/month

ePubDirect

Analytics

Optimise

Measure

Report

Analyse

BISAC US UK

Fiction $5.54 $4.51

Bus & Economics $10.77 $6.23Biog & Autobiog $10.24 $3.59

Price vs. Sales vs. Margin

Price €

Sales Volume

€10

€025 75 100

http://www.slideshare.net/PublishersLaunch/kelly-gallagher-ebooks-go-global

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

http://www.slideshare.net/PublishersLaunch/kelly-gallagher-ebooks-go-global

http://www.slideshare.net/PublishersLaunch/kelly-gallagher-ebooks-go-global

Free as a Driver in Emerging Markets

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!

Thank You & Questions

pcrowley@epubdirect.com

ePubDirect Events:

11 April BIC Breakfast – Digital Panel15 April LBF, X555 @ Digital Zone24 April Supply Chain Visibility13 May Bookseller Awards

ePubDirect Archive:

https://vimeo.com/58629421 Metadata that mattershttp://vimeo.com/55015307 Organic SEOhttp://vimeo.com/56899413 Retailer RequirementsBlog Pricing, DRM, Tax

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