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Welcome to Disruption

             Stephen Bateman
             Paris March 2011




Perspectives for Authors in the Post-Digital-Age
Talk outline
1. Disruption
2. Old and New business models
3. Examples and decisions about what content to put
   out, for whom, at what time, in what form
4. Examples of online community building and
   monetisation
5. Consumer trends and the competitive landscape
6. How to develop new revenue generating opportunities
7. Want to elicit knowledge and experience from
   participants
Google Becomes Your Sous Chef with Recipe Search
Reactions?

Good?              Bad?

            Why?
Why?
• People search for food related content, a lot
• People search food but really want recipes
• Specific “vegan curry, potatoes, peas and coconut”
• Search by ingredients they have “oatmeal, peanut butter,
  applesauce, vanilla, yoghurt”
• Help with special diet low-carb, gluten-free or vegetarian
• Interested in calories and time to cook: all located in left-
  hand column
• Great for consumers but what’s in it for Google and
  where does the content come from?
Sources
• Food Network
•   Food.com
•   AllRecipes.com
•   iFood
•   Consumer and retail
•   Blogs
• Many other places
Friend or Foe?

• Friend or Foe?
• What about Amazon, Kindle,
  Apple, iPad, Twitter, Facebook
• Depends
borderless world
      disintermediation
        end of scarcity


It’s the new physics
   of business.
Not a quote from the book, but it sums up the problem


        (It)upsets all conditions of
        location, all cost calculations,
        all production functions
        within its radius of influence;
        and hardly any “ways of
        doing things” which have been
        optimal before remain so
        afterward.
Is this so totally new?
Joseph
Schumpeter
hardly any “ways of doing things” which
have been optimal before remain so afterward
1936
From Industrial Revolution
            to
    Digital Revolution
The Digital Revolution
• Amanda Hocking - best-selling "indie" writer on
  the Kindle store, no publisher
• She sells around 100,000 copies/month
• $3 and $0.99
• No intermediaries, nothing to print, no shelf
  space, inventory
• Low prices, volume, impulse, self-purchase; she
  gets to keep 70% of revenues
• Where did she come from?
• 10 of the top 25 best-selling indie Kindle
  writers have never been affiliated to a
  publisher. Previously, she published stories on
  her blog.
• 100,000 copies a month at average $2 retail
  @ 70% = $millions
• Welcome to the digital age: the age that
  scares traditional publishers but which makes
  the world better for writers and readers alike.
• Congratulations to Amazon for making it
  possible.
• Losers are the intermediaries
• Intermediaries find themselves fighting
  rivals that have completely different
  operating models
• Amazon is not just a book store but a
  very different consumer experience.
  Merchandising, recommendations,
  collaborative filtering and word or mouth.

hardly any “ways of doing things” which have been
optimal before remain so afterward
Digital Marketing Success
My French Table
• Dorie Greenspan beautiful book 544 pages, best enjoyed in print
• #13 spot on the New York Times's hardcover list +60,000 since
  launch (Oct 2010)
• No TV show or magazine, not quite a household name
• 36,000 Twitter fans
• Blog (2008): In the Kitchen and On the Road with Dorie:
  70,000 visitors/ month
• Martoin: “All of the sales [of Around My French Table] were
  pretty much created online.”
                                  Adapted: No Platform? No Problem Nov 22, 2010 By Lynn Andriani Pub Weekly
My French Table
• Fans buy the books. Online fans blog and tweet about
  their adventures cooking Dorie’s recipes, creating a
  powerful community. Dorie: "Every place I've gone on book
  tour, I've met people who've been part of this group."
• But trade accounts lukewarm about My French Table.
  "French food is scary, complicated, not spicy, not
  ingredient-driven." Niche
• Dorie says putting recipes online "entices people to look
  for more."
                                Adapted: No Platform? No Problem Nov 22, 2010 By Lynn Andriani Pub Weekly
Niche and mega-niche
Business built on being
able to leverage the
Internet to transform a
niche into a mega-niche.
Publisher sold tens of
thousands of copies of a
premium-priced book and
sold only to people who
cared.
Digital Marketing
“I’ve decided not to publish any
more books in the traditional
way...I can’t abide the long wait,
the filters, the big push at launch,
the nudging to get people to go to a
store they don’t usually visit to
buy something they don’t
usually buy, to get them to pay
for an idea in a form that’s hard
to spread … I really don’t think the
process is worth the effort that it
now takes to make it work. I can
reach 10 or 50 times as many
people electronically”(2010).
What changes the world?
The idea of finding
and connecting
like-minded people,
leading them and
creating value.


Adapted: Wired Kim Zetter 2009
Are your target audience online?
         If so, where?


                        Technorati's State of the Blogosphere 2010
Secrets

• Can you commit to on going conversations?
• Use tools to discover new people to interact with
• Online community building is a long term
  engagement: few people will get to understand
  you instantly!
Use it

•   Highlight expertise / experience
•   Become leader within your sector / area
•   Build a following, tribe, community
•   Seed out news / PR pieces of interest
•   Have people do your marketing for you
Conclusion and Implications
• Digital allows us to build relations with like-minded people
• Take independence, innovate the product, the packaging,
  and the user experience
• In time, understanding what your followers will pay for:
  users are reluctant to pay for digital content but they
  will spend money on products and services around
  content, and this is where to focus.
• Great content builds an audience, but monetising that
  audience not the content is the key.
                                          Adapted from Forrester
Stephen Bateman
 @concentricdots
        For a free copy of this
      presentation, send me an
         email or visit my blog
       www.concentricdots.com

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Perspectives for authors in the post digital age

  • 1. Welcome to Disruption Stephen Bateman Paris March 2011 Perspectives for Authors in the Post-Digital-Age
  • 2. Talk outline 1. Disruption 2. Old and New business models 3. Examples and decisions about what content to put out, for whom, at what time, in what form 4. Examples of online community building and monetisation 5. Consumer trends and the competitive landscape 6. How to develop new revenue generating opportunities 7. Want to elicit knowledge and experience from participants
  • 3. Google Becomes Your Sous Chef with Recipe Search
  • 4. Reactions? Good? Bad? Why?
  • 5. Why? • People search for food related content, a lot • People search food but really want recipes • Specific “vegan curry, potatoes, peas and coconut” • Search by ingredients they have “oatmeal, peanut butter, applesauce, vanilla, yoghurt” • Help with special diet low-carb, gluten-free or vegetarian • Interested in calories and time to cook: all located in left- hand column • Great for consumers but what’s in it for Google and where does the content come from?
  • 6. Sources • Food Network • Food.com • AllRecipes.com • iFood • Consumer and retail • Blogs • Many other places
  • 7. Friend or Foe? • Friend or Foe? • What about Amazon, Kindle, Apple, iPad, Twitter, Facebook • Depends
  • 8. borderless world disintermediation end of scarcity It’s the new physics of business.
  • 9. Not a quote from the book, but it sums up the problem (It)upsets all conditions of location, all cost calculations, all production functions within its radius of influence; and hardly any “ways of doing things” which have been optimal before remain so afterward.
  • 10. Is this so totally new?
  • 12. hardly any “ways of doing things” which have been optimal before remain so afterward
  • 13. 1936
  • 14. From Industrial Revolution to Digital Revolution
  • 16. • Amanda Hocking - best-selling "indie" writer on the Kindle store, no publisher • She sells around 100,000 copies/month • $3 and $0.99 • No intermediaries, nothing to print, no shelf space, inventory • Low prices, volume, impulse, self-purchase; she gets to keep 70% of revenues • Where did she come from?
  • 17. • 10 of the top 25 best-selling indie Kindle writers have never been affiliated to a publisher. Previously, she published stories on her blog. • 100,000 copies a month at average $2 retail @ 70% = $millions • Welcome to the digital age: the age that scares traditional publishers but which makes the world better for writers and readers alike. • Congratulations to Amazon for making it possible.
  • 18. • Losers are the intermediaries • Intermediaries find themselves fighting rivals that have completely different operating models • Amazon is not just a book store but a very different consumer experience. Merchandising, recommendations, collaborative filtering and word or mouth. hardly any “ways of doing things” which have been optimal before remain so afterward
  • 20. My French Table • Dorie Greenspan beautiful book 544 pages, best enjoyed in print • #13 spot on the New York Times's hardcover list +60,000 since launch (Oct 2010) • No TV show or magazine, not quite a household name • 36,000 Twitter fans • Blog (2008): In the Kitchen and On the Road with Dorie: 70,000 visitors/ month • Martoin: “All of the sales [of Around My French Table] were pretty much created online.” Adapted: No Platform? No Problem Nov 22, 2010 By Lynn Andriani Pub Weekly
  • 21. My French Table • Fans buy the books. Online fans blog and tweet about their adventures cooking Dorie’s recipes, creating a powerful community. Dorie: "Every place I've gone on book tour, I've met people who've been part of this group." • But trade accounts lukewarm about My French Table. "French food is scary, complicated, not spicy, not ingredient-driven." Niche • Dorie says putting recipes online "entices people to look for more." Adapted: No Platform? No Problem Nov 22, 2010 By Lynn Andriani Pub Weekly
  • 22. Niche and mega-niche Business built on being able to leverage the Internet to transform a niche into a mega-niche. Publisher sold tens of thousands of copies of a premium-priced book and sold only to people who cared.
  • 23.
  • 24. Digital Marketing “I’ve decided not to publish any more books in the traditional way...I can’t abide the long wait, the filters, the big push at launch, the nudging to get people to go to a store they don’t usually visit to buy something they don’t usually buy, to get them to pay for an idea in a form that’s hard to spread … I really don’t think the process is worth the effort that it now takes to make it work. I can reach 10 or 50 times as many people electronically”(2010).
  • 25. What changes the world? The idea of finding and connecting like-minded people, leading them and creating value. Adapted: Wired Kim Zetter 2009
  • 26. Are your target audience online? If so, where? Technorati's State of the Blogosphere 2010
  • 27. Secrets • Can you commit to on going conversations? • Use tools to discover new people to interact with • Online community building is a long term engagement: few people will get to understand you instantly!
  • 28. Use it • Highlight expertise / experience • Become leader within your sector / area • Build a following, tribe, community • Seed out news / PR pieces of interest • Have people do your marketing for you
  • 29. Conclusion and Implications • Digital allows us to build relations with like-minded people • Take independence, innovate the product, the packaging, and the user experience • In time, understanding what your followers will pay for: users are reluctant to pay for digital content but they will spend money on products and services around content, and this is where to focus. • Great content builds an audience, but monetising that audience not the content is the key. Adapted from Forrester
  • 30. Stephen Bateman @concentricdots For a free copy of this presentation, send me an email or visit my blog www.concentricdots.com