1. MarketResearchThe Changing Face of E-Book Reading BookExpo America | June 5, 2012 | New York, NY 2012, the Book Industry Study Group, Inc.

2. Market Research Standards andEducation Best Practicesand EventsResearch 2012, the Book Industry Study Group, Inc. 3. Market Research 2012, the Book Industry Study Group, Inc. 4. % Book Buyers Who Market ResearchPurchased an E-book (US)14% 13%12%10% 8% 6% 4% 2%3% 0% 2012, the Book Industry Study Group, Inc. 5. Trade by Format Market Research Hardcover $5,400,000,000 $5,350,000,000 $5,300,000,000 $5,250,000,000Hardcover $5,200,000,000 $5,150,000,000 $5,100,000,00008 Ext. Value09 Ext. Value 10 Ext. Value 2012, the Book Industry Study Group, Inc. 6. Trade by Format Market Research Softcover $5,700,000,000 $5,600,000,000 $5,500,000,000 $5,400,000,000Softcover $5,300,000,000 $5,200,000,000 $5,100,000,000 $5,000,000,00008 Ext. Value09 Ext. Value 10 Ext. Value 2012, the Book Industry Study Group, Inc. 7. Trade by Format Market Research Mass-market Paperback$1,550,000,000$1,500,000,000$1,450,000,000$1,400,000,000$1,350,000,000 Mass-market Paperback$1,300,000,000$1,250,000,000$1,200,000,000$1,150,000,00008 Ext. Value 09 Ext. Value 10 Ext. Value 2012, the Book Industry Study Group, Inc. 8. Trade by Format Market Research eBooks $1,000,000,000 $900,000,000 $800,000,000 $700,000,000 $600,000,000 $500,000,000 eBooks $400,000,000 $300,000,000 $200,000,000 $100,000,000 $008 Ext. Value 09 Ext. Value 10 Ext. Value 2012, the Book Industry Study Group, Inc. 9. Lens All-Time Market ResearchFavorite Chart! 2012, the Book Industry Study Group, Inc. 10. % Book Buyers Who Market ResearchPurchased an E-book (US)14% 13%12%10% 8% 6% 4% 2%3% 0% 2012, the Book Industry Study Group, Inc. 11. % Book Buyers Who Market ResearchPurchased an E-book (US) 20% 17% 15% 10% 9% 5% 0% 2012, the Book Industry Study Group, Inc. 12. Market ResearchReally? 2012, the Book Industry Study Group, Inc. 13. Market ResearchYes, really. But 2012, the Book Industry Study Group, Inc. 14. Fiction is Stranger Market ResearchThan Truth Adult Fiction 26% Juvenile11%Adult Non Fiction15%Religion 12%Young Adult17% Christian Non-Fiction 11%Science Fiction 29% Christian Fiction40% 2012, the Book Industry Study Group, Inc. 15. e Questions to Market Research Answer in 2012 What is the continued growth capacity ofFiction? When will the other genres get moving? What roles does technology really play inadoption? 2012, the Book Industry Study Group, Inc. 16. Market ResearchPower Buyer = someonewho purchases 4 or morebooks a month.Consolidated group of your bestcustomers who share onecommon trait regardlessof p or e 2012, the Book Industry Study Group, Inc. 17. A Book Buyer by Any NameMarketResearch(or Format)Heavy Book Buyers Heavy Ebook Buyers70%60%50%40%30%20%10% 0% 2012, the Book Industry Study Group, Inc. 18. Market ResearchHave purchased an ebook Why? Do not own a device Do own a deviceHave never purchased anebook 2012, the Book Industry Study Group, Inc. 19. What Keeps You Market Research From Buying E-Books? DateDec 2010 Apr 2011 Jul 2011 Nov 2011 Feb 2012 Apr 2012 Jul 2012 Prefer print 17.3%15.6%9.6%8.7%12.1%11.2%13.2% Difficult to find/discover e- books7.1% 6.5% 6.8% 6.0% 5.7% 4.8% 7.7% Difficult to read on a screen11.5%9.5% 4.7% 3.7% 6.7% 5.7% 8.1% Difficult to annotate4.7% 4.0% 2.6% 2.0% 4.3% 3.4% 4.5% Difficult to share with others 14.8%13.6%12.0%10.0%16.6%15.7%17.7% Difficult to find titles available for my e-reading device 9.7% 7.3% 6.6% 4.8% 7.7% 7.3% 9.1% Lack of a good e-reading device 10.3%7.5% 5.2% 3.2% 4.9% 4.7% 4.9% Difficult downloading process4.9% 4.4% 1.7%1.9% 2.2% 2.3% 3.3% Not enough time24.8%26.8%26.7%32.2%29.9%30.1%30.3% Inability to legally re-sell or give away e-books after Im done with them15.1%13.9%11.9%17.9%17.4%16.8% Cost of the titles 27.1%23.7%28.4%23.8%30.3%29.7%32.2% Nothing17.6%23.3%27.1%33.0%21.9%22.9%21.0% 2012, the Book Industry Study Group, Inc. 20. What Keeps You Market ResearchFrom Buying E-Books?12.0%10.0% 8.0%Lack of a good e- 6.0%reading device 4.0%Difficult downloading 2.0% process 0.0%DecAprJul Nov Feb Apr Jul 2010 2011 2011 2011 2012 2012 2012 2012, the Book Industry Study Group, Inc. 21. What Keeps You Market ResearchFrom Buying E-Books?20.0%18.0%16.0%14.0%12.0% Prefer print10.0% 8.0% 6.0%Difficult to share 4.0% with others 2.0% 0.0% Dec Apr Jul NovFebApr Jul 20102011 2011 2011 2012 2012 2012 2012, the Book Industry Study Group, Inc. 22. Value of Market Research Power BuyersPrint e22% of35% ofBuyersBuyers53% of Books60% of eBooksPurchasedPurchased50% of $$$ 48% of $$$Purchased Purchased 2012, the Book Industry Study Group, Inc. 23. Power Buyers Market Research Demonstrate Loyalty60.0%45% 44%43%41%40.0%32% 27% 24% 22% 20%20.0% 15% 0.0% Within the last2 to 6 MONTHS ago 7 to 12 MONTHS ago 1 to 2 YEARS ago 2 or more YEARS ago MONTHonly e-booksmostly e-books both p & emore print 2012, the Book Industry Study Group, Inc. 24. e at the Expense of p Market Research100.0 90.0 80.0 70.042 56 62 60.06966 other 50.0 e-book 40.0 30.0 16 paperback 21hardcover 20.016182615 10.0 15911120.0 Within the last2 to 6 MONTHS 7 to 12 MONTHS 1 to 2 YEARS ago 2 or more YEARSMONTHagoago ago 2012, the Book Industry Study Group, Inc. 25. Consumer Purchases Market Researchby Format 2012, the Book Industry Study Group, Inc. 26. Consumer Purchases Market Researchby Format 2012, the Book Industry Study Group, Inc. 27. Spending Trends Market Research 2012, the Book Industry Study Group, Inc. 28. Spending Trends Market Research 2012, the Book Industry Study Group, Inc. 29. Device Preference Market Research 2012, the Book Industry Study Group, Inc. 30. Device Preference Market Research 2012, the Book Industry Study Group, Inc. 31. On what device do you Market Research purchase your e-books? 70.0% 60.0% 50.0%Computer 40.0% 30.0%Dedicated E-Reader 20.0%Multi Function 10.0%Device0.0%April MayMay20102011 2012 2012, the Book Industry Study Group, Inc. 32. Activity by Device Market Research 2012, the Book Industry Study Group, Inc. 33. Select the ways in which Market Researchyou use your tablet90%84%78%80% 74%70% 61%56%60% 51%46%50% 42%40%30%19%20%10%0% 2012, the Book Industry Study Group, Inc. Source: Google AdMob, August 2011 34. I spend more time on Market Research my tablet than I59% 60% 52% 50% 43% 41% 40%34% 30% 20%11% 10%0% 2012, the Book Industry Study Group, Inc.Source: Google AdMob, August 2011 35. Activity by Device Market Research 2012, the Book Industry Study Group, Inc. 36. Market ResearchScenario Planning 2012, the Book Industry Study Group, Inc. 37. Market Research 2012, the Book Industry Study Group, Inc. 38. Market Research? 2012, the Book Industry Study Group, Inc. 39. Market ResearchLen Vlahos Executive DirectorBook Industry Study Grouplen@bisg.org @lenhouse 2012, the Book Industry Study Group, Inc.