Special Report: Publishing - Digital knocks on publishing's door

brands' target markets in an effective and cost-conscious manner. Books,
maps, atlases and the like have been popular publishing premiums to date
for just those reasons. Now though, publishing is facing a shake-up from
the emergence of all things digital.

Although digital downloads in publishing are still in the early stages,
some blue chips, such as BMW, are already buying into the option. To add
value, the car-maker is offering free audio books on its website to
anyone who wants to download them (see case study, p42).

The majority of publishers see the advent of digital as a bonus rather
than a threat. But they're quick to point out that it isn't a
panacea.

As Peter Harden, co-owner of publishing house Harden's, warns: "While
there's a growing interest in digital versions of publishing premiums,
it is a complex option in its nascent phase, so is not without
complication."

Download teasers

Promoters basically have two alternatives in the download mix: the audio
book and the e-book. An audio book is a sound file that is listened to,
while e-books download the story to be read in the traditional manner,
but on a screen rather than on page.

For publishers, the benefits of downloads are clear: they offer a way to
issue teasers - making only a few chapters downloadable for free in the
hope of subsequently enticing readers to buy the whole book.

Peter Crawshaw, director and co-founder of Lovereading, alleges that
this "helps readers to find books that they would like to purchase. It
also works well for children since it's possible to allow pictures to be
downloaded as well as the words."

However, audio, rather than the e-book, seems to be the flavour of the
moment, at least in the UK. According to Jonathan Corzen, director of
business development at audible.co.uk: "Audio has the advantage of being
listened to anywhere as it is a background experience. Digital e-books
are a foreground experience and require more concentration. We have seen
a huge increase in demand for audible, and have experienced an 80 per
cent annual growth over the past five years," he claims.

It doesn't take a rocket scientist to see why: audio downloads can be
used on the same MP3 equipment as music downloads. E-books, however,
require different technologies, such as the Sony Reader. Launched to
acclaim in the US, the electronic book is tipped to become the iPod of
publishing.

It plugs into the side of a home computer and entire volumes of books
can be downloaded in seconds. Although there are no current plans to
launch the product in the UK, publishers expect it to be popular.

According to a Penguin Books spokeswoman, audible downloads allow a
marketer to be more creative and imaginative because more books, both
new and old, are becoming available for promotional purposes.

Promotional digital downloads also offer a greater reach than the
activity would have received if it were not online. "This form will
become more widely accepted as it provides an alternate form of
delivery. It will guarantee a wider range and number of recipients,"
asserts Phil Cutts, marketing director of PPA Marketing, a division of
the Periodical Publishing Association. "Downloadable published premiums
are an exciting opportunity and are also a cheaper option for use as a
promotion."

Digital drawbacks

But there is a caveat. Books are one of the most popular covermount
choices.

While downloads could conventionally work as covermounts, Cutts admits
they would "have a questionable impact at this point. People buy
magazines because they can see and feel the published premiums that come
with them. It's debateable if they'd have the same impact if people were
driven online to download a covermount."

Cutts isn't the only commentator with reservations. While some see
downloads as exciting and representative of the natural evolution of the
book, not all are convinced of their value. As Lovereading's Crawshaw's
argues, Sony's Reader is one of "a number of electronic books that have
emerged with the same amount of hype, but they haven't overtaken books."
And Audible's Corzen adds that the cost of buying the Reader, with its
limited functionality, will dissuade consumers and promoters. "With the
Reader, the buyer has to purchase the product and the books for only
that purpose. However, with the iPod, audio books are an added bonus
because they are an addition to what it was initially intended for,"
says Corzen.

For others, it's the very nature of the technology that poses the
drawbacks.

As Harden points out: "BlackBerries, iPods and Palm Pilots may be
popular but the operating systems are too different and specific for a
promotion to work across many of them. We have tried to develop download
options in the past, but it is not cost-effective if that system doesn't
stay popular for long enough."

And while digital downloads may be an exciting product for the early
adopters, they don't necessarily work for every market, as Katie Walsh,
business development director at Simon & Schuster UK, points out. She
argues that the printed book offers a response that cannot always be
replicated online. "It depends on the purpose of the promotion and who
you are trying to target. If you just want to supply content then a
digital download might do. If, on the other hand, you're looking for the
consumer to become engaged, a printed book may be a better solution,"
she says.

According to Walsh, a professionally printed book has a higher perceived
value than downloaded material and can make a better, longer lasting
ambassador for a brand. Even Corzen concurs and adds: "Audio books are
much less valuable once they have been listened to. You don't put it on
your bookcase and will probably not listen to it again." Another
disadvantage he highlights is the lack of ability to track what has
happened to the download once it has been received. "There are no real
numbers available for what people are doing with the downloads. We don't
know how long they are listening to it, or if they are even listening to
it at all. In terms of advertising, people will not know if their ads
have been listened to," he admits.

Print stays put

So it seems that although digital downloads in publishing have their
appeal, they aren't going to oust the printed book just yet. "We are
talking with a number of FMCG brands to use downloadable premiums as
part of promotions.

The demand is there, but I doubt that it will ever overtake the
traditional published premium," asserts Crawshaw.

And as much as publishers are acknowledging the benefits of downloads,
they are wary too. As Harden concludes: "There are so many platforms
that we have to be cautious. We invested in downloadable options for the
latest craze, only for another one to come along. As yet, the prominence
of the paper product is relatively unaffected."

CASE STUDY - BMW

Brand: BMW

Supplier: Random House

Date: February 2006, ongoing

BMW offered a range of four specially commissioned audio books as free
downloads from its website in conjunction with Random House. The short
stories, written by Don Winslow, James Flint, Simon Kernick and Karin
Slaughter, were designed to be listened on MP3 players, laptops or,
ideally, in the car. "Senses and experiences are heightened depending on
your environment.

We wanted drivers to listen to stories about driving while driving,"
says Jonny Freeman, ad executive at BMW.

The stories were 45 minutes long, the length of the average car
journey.

The original downloads were also changed to delete many of the BMW
references featured. "We toned it back so that the cars were integrated
naturally in the stories," adds Freeman.

The push saw more than 80,000 audio books downloaded in various
countries including the UK, US, Germany, China, Mexico, New Zealand and
Guatemala.

A new story went live every fortnight, and the website will remain up
for the next few months. "We have been really pleased with the
results.

Not having done something like this before, we didn't have a target in
mind. We are now thinking about doing it again with other genres," adds
Freeman.