With publishers reeling in this sour economy, it’s time to come up with new revenue models. Here’s one this CyberSibyl thinks they should consider.
One of the few bright spots in publishing these days is not a new book by Dan Brown (or J.G. Sandom, for that matter--LOL)! It’s the host of new electronic reading devices (e.g. Kindle, Apple’s iPhone or T-Mobile’s G1 phones) coupled with mobile editions from book publishers and distributors (e.g. Amazon and Google). That’s right: Google has joined the fray with its vast inventory of mobile editions, now 1.5 million strong, under the Google Book Search project. [As an author, I’m happy to report that Google and the Author’s Guild have come to terms over book rights in Google’s vast online library.]
While this is good news for readers, it also presents publishers and online edition distributors with a new business opportunity. Given the economic downturn, book sales are suffering--whether they be hardcover, softcover or mobile editions. I submit publishers and book distributors consider embedding contextual advertising within electronic editions, and offer readers a sliding scale for the pricing of the books they buy: full price for hard- and softcover editions; reduced pricing or--dare I say it--FREE for electronic editions that contain advertising. Further, prices could be scaled based on the actual exposure to said advertising; i.e. the more ads you look at, the cheaper the edition.
In addition, since these digital book players are based on phone technologies (including Kindle), a whole host of new geo-based (via GPS) ad delivery systems are fast becoming available to target consumers based on their location.
How would this work? Publishers would determine tags and/or key words within their authors’ publications (or such terms could be linked to browser-based searches and systems such as Google’s AdSense). Electronic edition ads could be sold to advertisers via existing ad-delivery networks (e.g. DoubleClick or AdSense, or via some new dedicated system yet to be invented--are you listening, Jeff Bezos?). Consumers would sign up for the less expensive, ad-based electronic editions at the time of purchase or via discount “book” clubs. [The latter would make all of this easier to manage, of course.] Once these three groups are on board, here’s a potential scenario:
- Consumer buys ad-based edition . . . or gets it for “free”
- As s/he reads the title, links to contextual ads would be visible on the page and/or ads would pop up based on where the consumer is located, consumer-defined preferences (e.g. for electronic goods, etc.), book type (i.e. based on the psycho- and demographics of readers who like specific categories of books), search terms, or through other targeting techniques. By contextual ads I mean you’re reading about a character having a coffee at Starbucks, for example, and the ad would be for Starbucks or some other coffee venue or product. Plus, since the reading devices are geo-enabled, you could literally offer up a coupon to that Starbucks a block away. [You can tell I’m a heavy coffee drinker . . . though not a fan of the overcooked Starbucks coffee bean.]
- If it’s a brand ad, consumers would simply have to see the ad to meet their obligation; it pops up and they have to close it.
- If it’s a direct response ad, consumers would have to follow the link to obtain further information, to request a coupon, or to satisfy some other call-to-action.
- Once the consumer’s ad quota has been met (i.e. you have to see or click on X number of ads to warrant the free or reduced-price edition), no further action on the part of the consumer would be required; the ad links would still be visible, but the pop-ups might be deactivated.
As an author, I’m always looking for new ways to extend my fan base. Plus, given that these editions are delivered electronically, it means that the disabled, aged shut-ins etc. can get their books for free or at discounted prices without having to go to the local library.
Everybody benefits: book distributors and publishers would reach consumers who can’t afford, or are--in these hard times--less willing to pay for books, thereby maintaining or expanding their user base and revenues; they’d share ad revenues with authors and distributors. [Plus, just because a reader gets a free or discounted ad-supported book one time doesn’t mean s/he won’t pay full price next time.] Advertisers would have a new way to target better-educated and generally difficult-to-reach (since they don’t watch as much TV, etc.) consumers. Ad agencies would have a new targeting vehicle at their disposal, granting them yet another way to charge their clients. And authors would extend their fan base, potentially reaching new readers who simply can’t afford to buy as many books as they used to.
Would readers refuse to accept editions with embedded advertising? My bet is, since this model has worked with so many other communications vehicles, many would give it a whirl. After all, what’s the price of suffering through a few ads--especially when they’re targeted and relevant--if it means hours of pleasure curled up next to your glowing new reader?
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