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

Will the digital download push the printed premium onto the back seat? Gemma O'Reilly investigates.

To the outsider, the world of publishing is shrouded in a romanticised haze of dust and musty books. The reality is, of course, very different: commercial publishing, especially when it comes to promotional premiums, can be innovative and extremely adept at tweaking its offering to reach 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.

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