That came from Dominique Raccah, CEO of Sourcebooks. I think she was quoting someone else; wish I knew so I could given them due credit. Others also discussed how their publishing companies are changing:
Marcus Leaver - President, Sterling Publishers
Josh Marwell - President of Sales, Harper Collins
Dave Thompson - VP of Sales Analysis, Random House
A key take-a-way from the publishers and Mike Shatzkin: Publishing’s future is about owning very distinct narrow verticals, which can be described as very specific BISACs. If you do craft books, for example, you may be able to own the crochet vertical but someone else may own the beaded jewelry vertical.
To “own” the vertical you must own the community; the place where the crochet community can meet to share ideas, interact with the crochet leaders and acquire the leaders’ content in what ever format the consumer wants it: e-book, iapps, online, audio, software, podcast and books.
The successful “authors” will be those that can relate to the community, regardless of format. In many cases, it will be the authors that know how and have the desire to utilize social networking.
If you stop and think about that for a moment, the implications of “going vertical” are huge relative to today’s business model. I think, however, Thomas Nelson is already starting to adapt in some ways to this emerging business model.
To make it most relevant to my Nelson colleagues, consider how the presenters outlined how this might change your “traditional” publishing jobs.
Editorial
- Product development cycles are going from 12-18 months to 2-6 months. In today’s world, it’s much easier to become irrelevant quickly; can’t wait 12 months for a book.
- Acquisition editors need to look for authors that not only have great content, but an affinity for building a community with their audience; especially online.
- Editors are not making books; but building content in format neutral XML. Sourcebooks has gone 100% XML.
- More data analysis on what to publish; balancing it with the art of publishing.
- Publishing fewer books; about 25% seems to be the reduction this year.
- Editors are more engaged in the social networking aspect of the content, blurring the lines between marketing and editorial.
Marketing & Sales
I suspect marketing and sales becomes much more vertical specific. Nelson has already started to do that by grouping publishing, marketing and sales around groups of BISACs.
Marketing and sales are adjusting resource allocation. The change in focus can be seen in where these publishers say they are and are not spending their money.
Generally, this is where they are not spending money or spending much less:
- Catalogs – Going to web-based e-catalogs with much more functionality and flexibility. This makes sense when the product development cycle is now just a few months. Print catalogs have been error-filled for decades, and it will only be worse with a shorter product development cycle time. It is interesting what HarperCollins is doing with e-catalogs to help buyers.
- Trade shows – You just don’t need them with today’s consolidated, shrinking market and communication possibilities. Only foreign rights may need them, and most publishers are even questioning that.
- Sales Conferences – Most going to Web Ex. Just too costly to fly everyone in from the far reaches. If publishers are flying reps in, they are only doing it once per year.
- Author tours – Biggest waste of money. We all knew it, and now the community is online any way. Author tours are being replaced with webinars that can be measured to a direct sales impact. Webinars work, especially when the vertical community knows about them.
- Traditional print, radio and TV media – These are dead. Random House’s survey confirmed other organizations’ surveys that these are ineffective medias for creating book awareness.
- Print galleys
So, where is money being spent?
- Holistic TITLE/CONTENT SPECIFIC vertical marketing plans that focus on social networks, community building and store placement. Sterling increased per title marketing spend by 66% in the past two years by doing away with so much stuff that no longer matters.
- Digital and online medias
- Increasing travel budgets in two ways: (a) Editors spending more time out with consumers, again blurring the marketing line. Editors have been too insular for two long and their historical format is becoming less relevant. (b) Sales people visiting accounts more often.
- Strategically providing more free content
- Partnering with related vertical sites and online communities
- Lot’s of young people tweeting on key brands
- e-galleys
Will all of this change happen over night? Nope. As Dominique Raccah said, we will be running two different companies at the same time. My hunch is that owning narrow verticals will change how publishers are structured; some employees will adapt and others will have a much harder time. Perhaps more on that in a future blog.
What do you think?
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