SEPA Summit 2011

To 20:20 And Beyond

‣Where are we ?

‣Reading device threshold

‣Our stories transform lives

‣Some milemarkers ahead

#SEPA20111

Tuesday, November 15, 11

LMK Consulting

• Digital transformation

• Social media

2

Stories of faith &

transformation, across

digital platforms

Bob Carlton 27 years in publishing

17 years digital7 startups

Author, bloggerAustin, TX

#SEPA2011


• Where are we ?

• 2011 Threshold

• U.S. eBook market

• The Waves Ahead

3

Hawaiian surfer Garrett McNamara, Nazare Canyon off Portugal

The 1000-ft deep and 3-mile wide underwater canyon – which stretches for 105 miles – acts likes a funnel when it receives

Atlantic swells, creating huge waves. Some estimate that McNamara's wave was 27-metre (90ft) high, which would top the current Guinness World Records holder

Mike Parson's 77ft monster at Cortez Bank in 2001

#SEPA2011


Where are we ?• Economy Only Certainty is Uncertainty

• Globality Aren’t In Kansas Anymore…

•Mega-Trend of 21st Century Empowerment of People

via Connected Mobile Devices

Source: KPCB Annual Outlook, 10/18/11 Mary Meeker 4


• Mobile: Early Innings Growth, Still…

• User Interface: Text > Graphical > Touch / Sound / Move

• Commerce: Fast / Easy / Fun / Savings

• More Important Than Ever…

• Advertising: Lookin’ Good…Fb, Mobile

• Content Creation – Changed Forever

• Authentic Identity – The Good / Bad / Ugly. But Mostly Good?

Source: KPBC Annual Outlook, 10/18/11 Mary Meeker 5

Where are we ?


• Mobile: Latinos/Latinas in U.S. have their mobile phones with them more than African Americans and even more than non-Hispanic whites

• Social: 67% of Latinos/Latinas in U.S use social networking sites, slightly above the average rate

• Video: 64% of Spanish-speaking internet users visited a video site in the past month, compared with 50% of the general population

6

Where are we ?

Source: eMarketer 2011


• 70% of eReader device market is Kindle

• nook & Kobo gaining

• 97% of tablet market currently is iPad

• Average user has downloaded 60 apps on average. In Q410, number was 10

✓ older readers read faster than normal on an iPad, than they do when using a Kindle or traditional paper book - greater retention as well

✓ 77% of tablet owners use their tablets every day

✓ 27% of tablet users use their tablets for reading books daily

7Source: Gartner study, Sept 2011

2011: Device Threshold


iPad Kindle nook

Launched Q210 Q407 Q309

Units 29MM 16MM ~6MM

Positioning Apps AMZN Media Hybrid

✓creating direct to consumer channels - app store still very inefficient

✓competition for content locker in the cloud and differentiated content

✓ self-publishing conduit for AMZN (CreateSpace), B&N (PubIT)

✓Google & Microsoft both appear on sidelines

2011: Device Threshold

8Source: Gartner study, Sept 2011


9Source: AAP study, Oct 2011

eBook Wave Has Hit U.S.


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• Fiction is the leading sales driver of e-books, with 61% of unit sales in 2010 and 51% of revenue

• Nonfiction accounted for the second highest amount of e-book revenue in 2010, with the segment representing 14% of sales

• Children's segment generated 12% of unit sales in 2010

Source: AAP study, Oct 2011

Wave By Content Area


Source: Context, Not a Container, Brian O’Leary 9

Wave By Content Area


12Source: PWC study, August 2011

What’s Behind Wave ?


13Source: Bowker/BISG Pubtrack, May 2011

Power Surfer Profile









More Frequent Purchases



Publishers’ Shifting Water



Publishers’ Shifting Water



Publishers’ Promos


Academic trailing



some waves ahead

21#SEPA2011


22#SEPA2011


• $111: median cost per title

• Simple title: $55

• Moderate titles: $97

• Complex titles: $181

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Digital Conversion Costs

#SEPA2011


• Top 10 title: 480 units

• Top 50 title: 235

• Average for all ISBN: 13

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Typical Digital Sales

#SEPA2011


• Competing harder in fewer segments ?

• Greater need/opportunity for partnerships

• Digital shift = cultural shift for organizations

25#SEPA2011

Navigating These Waters


publishers link content to markets

far too often

+ markets are something we outsource

+ context is the last thing we think about

#SEPA2011 26


major change in the way consumers make decisions ➡ marketers must move aggressively

➡ beyond purely push-style communication

➡ learn to influence consumer-driven touch points, such as word-of-mouth & Internet information sites

67% of of the touch points during the active-evaluation phase involve consumer-driven marketing activities

postpurchase experience shapes their opinion for every subsequent decision in the category

Source: McKinsey Digital Marketing27

Content to Markets


• both business-to-consumer (B2C) and business-to-business

(B2B) purchasers increasingly want marketers to help

them make smart decisions

• tailor message to audiences and stage in consideration process

• be much more specific about the touch points used to influence consumers as

they move through initial consideration to active evaluation to closure

• invest in vehicles that let marketers interact with consumers as they learn about

brands

Content to Markets

28Source: McKinsey Digital Marketing



Navigating These Waters


• "release early. release often. and listen to your customers, not your developers."

• customer development always trumps product dev

• minimum viable book

• smallest in-progress subset of your book that you could sell and be able to claim with a straight face that it is worth the money right now

• copy editing, indexing and distribution

• areas that publishers may continue to add value in for a long time

Lessons from Lean Startup & Open Source



31#SEPA2011

...2 last things


kids storybook apps

cinderella ~ nosy crow

morris lessmore ~ moonbot

our choice - push pop press

wasteland - touch press

budhify

holiday eats - big oven

speakeasy - open air

adult story apps

YouVersion

mission st clare

Next Waves in U.S. 32


• Write ourselves into the story world and infuse it with your soul • in most media what's missing is the pain -- not yearning, but true loss

• story crucial to transmedia• project should not originate from the desire to make use of new technology,

but from the desire to tell a captivating story

• collaboration is the only path forward• complex (who owns the story?)

Our stories transform lives

33#SEPA2011


Bob Carlton

[email protected]

Cadabra Media @cadabramediaLMK Consulting @bobcarlton


mailto:[email protected]

mailto:[email protected]

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SEPA Summit 2011

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