1. Market
Research
The Changing Face of E-Book Reading
BookExpo America | June 5, 2012 | New York, NY
© 2012, the Book Industry Study Group, Inc.

2. Market
Research
Standards and
Education
Best Practices
and Events
Research
© 2012, the Book Industry Study Group, Inc.

3. Market
Research
© 2012, the Book Industry Study Group, Inc.

4. % Book Buyers Who
Market
Research
Purchased an E-book (US)
14%
13%
12%
10%
8%
6%
4%
2%
3%
0%
© 2012, the Book Industry Study Group, Inc.

5. Trade by Format
Market
Research
Hardcover
$5,400,000,000
$5,350,000,000
$5,300,000,000
$5,250,000,000
Hardcover
$5,200,000,000
$5,150,000,000
$5,100,000,000
'08 Ext. Value '09 Ext. Value '10 Ext. Value
© 2012, the Book Industry Study Group, Inc.

6. Trade by Format
Market
Research
Softcover
$5,700,000,000
$5,600,000,000
$5,500,000,000
$5,400,000,000
Softcover
$5,300,000,000
$5,200,000,000
$5,100,000,000
$5,000,000,000
'08 Ext. Value '09 Ext. Value '10 Ext. Value
© 2012, the Book Industry Study Group, Inc.

7. Trade by Format
Market
Research
Mass-market Paperback
$1,550,000,000
$1,500,000,000
$1,450,000,000
$1,400,000,000
$1,350,000,000
Mass-market Paperback
$1,300,000,000
$1,250,000,000
$1,200,000,000
$1,150,000,000
'08 Ext. Value '09 Ext. Value '10 Ext. Value
© 2012, the Book Industry Study Group, Inc.

8. Trade by Format
Market
Research
eBooks
$1,000,000,000
$900,000,000
$800,000,000
$700,000,000
$600,000,000
$500,000,000
eBooks
$400,000,000
$300,000,000
$200,000,000
$100,000,000
$0
'08 Ext. Value '09 Ext. Value '10 Ext. Value
© 2012, the Book Industry Study Group, Inc.

9. Len’s All-Time
Market
Research
Favorite Chart!
© 2012, the Book Industry Study Group, Inc.

10. % Book Buyers Who
Market
Research
Purchased an E-book (US)
14%
13%
12%
10%
8%
6%
4%
2%
3%
0%
© 2012, the Book Industry Study Group, Inc.

11. % Book Buyers Who
Market
Research
Purchased an E-book (US)
20%
17%
15%
10%
9%
5%
0%
© 2012, the Book Industry Study Group, Inc.

12. Market
Research
Really?
© 2012, the Book Industry Study Group, Inc.

13. Market
Research
Yes, really. But…
© 2012, the Book Industry Study Group, Inc.

14. Fiction is Stranger
Market
Research
Than Truth
Adult Fiction 26%
Juvenile 11%
Adult Non Fiction 15%
Religion 12%
Young Adult 17%
Christian Non-Fiction 11%
Science Fiction 29%
Christian Fiction 40%
© 2012, the Book Industry Study Group, Inc.

15. “e” Questions to
Market
Research
Answer in 2012
• What is the continued growth capacity of
Fiction?
• When will the other genres get moving?
• What roles does technology really play in
adoption?
© 2012, the Book Industry Study Group, Inc.

16. Market
Research
Power Buyer = someone
who purchases 4 or more
books a month.
Consolidated group of your best
customers who share one
common trait – regardless
of ‘p’ or ‘e’
© 2012, the Book Industry Study Group, Inc.

17. A Book Buyer by Any Name…
Market
Research
(or Format)
Heavy Book Buyers Heavy Ebook Buyers
70%
60%
50%
40%
30%
20%
10%
0%
© 2012, the Book Industry Study Group, Inc.

18. Market
Research
Have purchased an ebook
Why?
Do not own a device
Do own a device
Have never purchased an
ebook
© 2012, the Book Industry Study Group, Inc.

19. What Keeps You
Market
Research
From Buying E-Books?
Date Dec 2010 Apr 2011 Jul 2011 Nov 2011 Feb 2012 Apr 2012 Jul 2012
Prefer print 17.3% 15.6% 9.6% 8.7% 12.1% 11.2% 13.2%
Difficult to find/discover e-
books 7.1% 6.5% 6.8% 6.0% 5.7% 4.8% 7.7%
Difficult to read on a screen 11.5% 9.5% 4.7% 3.7% 6.7% 5.7% 8.1%
Difficult to annotate 4.7% 4.0% 2.6% 2.0% 4.3% 3.4% 4.5%
Difficult to share with others 14.8% 13.6% 12.0% 10.0% 16.6% 15.7% 17.7%
Difficult to find titles
available for my e-reading
device 9.7% 7.3% 6.6% 4.8% 7.7% 7.3% 9.1%
Lack of a good e-reading
device 10.3% 7.5% 5.2% 3.2% 4.9% 4.7% 4.9%
Difficult downloading
process 4.9% 4.4% 1.7% 1.9% 2.2% 2.3% 3.3%
Not enough time 24.8% 26.8% 26.7% 32.2% 29.9% 30.1% 30.3%
Inability to legally re-sell or
give away e-books after I'm
done with them 15.1% 13.9% 11.9% 17.9% 17.4% 16.8%
Cost of the titles 27.1% 23.7% 28.4% 23.8% 30.3% 29.7% 32.2%
Nothing 17.6% 23.3% 27.1% 33.0% 21.9% 22.9% 21.0%
© 2012, the Book Industry Study Group, Inc.

20. What Keeps You
Market
Research
From Buying E-Books?
12.0%
10.0%
8.0%
Lack of a good e-
6.0%
reading device
4.0%
Difficult downloading
2.0% process
0.0%
Dec Apr Jul Nov Feb Apr Jul
2010 2011 2011 2011 2012 2012 2012
© 2012, the Book Industry Study Group, Inc.

21. What Keeps You
Market
Research
From Buying E-Books?
20.0%
18.0%
16.0%
14.0%
12.0%
Prefer print
10.0%
8.0%
6.0% Difficult to share
4.0%
with others
2.0%
0.0%
Dec Apr Jul Nov Feb Apr Jul
2010 2011 2011 2011 2012 2012 2012
© 2012, the Book Industry Study Group, Inc.

22. Value of
Market
Research
Power Buyers
Print ‘e’
22% of 35% of
Buyers Buyers
53% of Books
60% of eBooks
Purchased
Purchased
50% of $$$
48% of $$$
Purchased
Purchased
© 2012, the Book Industry Study Group, Inc.

23. Power Buyers
Market
Research
Demonstrate Loyalty
60.0%
45% 44% 43%
41%
40.0%
32%
27%
24% 22%
20%
20.0%
15%
0.0%
Within the last 2 to 6 MONTHS ago 7 to 12 MONTHS ago 1 to 2 YEARS ago 2 or more YEARS ago
MONTH
only e-books mostly e-books both p & e more print
© 2012, the Book Industry Study Group, Inc.

24. “e” at the Expense of “p”
Market
Research
100.0
90.0
80.0
70.0
42 56 62
60.0
69 66 other
50.0
e-book
40.0
30.0 16 paperback
21 hardcover
20.0
16 18
26 15
10.0
15 9 11 12
0.0
Within the last 2 to 6 MONTHS 7 to 12 MONTHS 1 to 2 YEARS ago 2 or more YEARS
MONTH ago ago ago
© 2012, the Book Industry Study Group, Inc.

25. Consumer Purchases
Market
Research
by Format
© 2012, the Book Industry Study Group, Inc.

26. Consumer Purchases
Market
Research
by Format
© 2012, the Book Industry Study Group, Inc.

27. Spending Trends
Market
Research
© 2012, the Book Industry Study Group, Inc.

28. Spending Trends
Market
Research
© 2012, the Book Industry Study Group, Inc.

29. Device Preference
Market
Research
© 2012, the Book Industry Study Group, Inc.

30. Device Preference
Market
Research
© 2012, the Book Industry Study Group, Inc.

31. On what device do you
Market
Research
purchase your e-books?
70.0%
60.0%
50.0% Computer
40.0%
30.0%
Dedicated E-
Reader
20.0%
Multi Function
10.0%
Device
0.0%
April May May
2010 2011 2012
© 2012, the Book Industry Study Group, Inc.

32. Activity by Device
Market
Research
© 2012, the Book Industry Study Group, Inc.

33. Select the ways in which
Market
Research
you use your tablet
90% 84%
78%
80% 74%
70% 61%
56%
60% 51%
46%
50% 42%
40%
30%
19%
20%
10%
0%
© 2012, the Book Industry Study Group, Inc. Source: Google AdMob, August 2011

34. I spend more time on
Market
Research
my tablet than I…
59%
60% 52%
50% 43% 41%
40% 34%
30%
20% 11%
10%
0%
© 2012, the Book Industry Study Group, Inc. Source: Google AdMob, August 2011

35. Activity by Device
Market
Research
© 2012, the Book Industry Study Group, Inc.

36. Market
Research
Scenario Planning
© 2012, the Book Industry Study Group, Inc.

37. Market
Research
© 2012, the Book Industry Study Group, Inc.

38. Market
Research
?
© 2012, the Book Industry Study Group, Inc.

39. Market
Research
Len Vlahos
Executive Director
Book Industry Study Group
len@bisg.org
@lenhouse
© 2012, the Book Industry Study Group, Inc.