The document summarizes international book market trends in 2011 based on Nielsen BookScan data. Key findings include that major book markets saw sales declines as consumer confidence remained low globally. The impact of e-books on print book sales was significant in the US and UK, and this effect is expected to grow. India saw strong book sales growth, showing opportunities in developing markets. The presentation also found that comprehensive metadata listing details about books led to substantially higher sales.

1. 2011 International Book Market
Overview
Jonathan Nowell – President, Nielsen Book
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

2. What we do …
2
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

3. Agenda
• Global consumer confidence
• International book markets
• Market summaries:
– US
– UK
– Ireland
– Australia
– New Zealand
– South Africa
– Italy
– Spain
– India
– China?
• The impact of e-books
• Key findings
• The link between metadata and sales 3
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

4. Global consumer confidence
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

5. 5
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

6. India, Brazil and China are in the Top 10
Consumer Confidence Index Countries
6
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

7. Global consumer confidence in our territories
Q2 ‘11 v Q1 ‘11
Q3,
2011
Nielsen
Consumer
Confidence
Index
Consumer
Confidence
has
fallen
in
29
out
of
56
markets
Increase
Decrease
No Change
140
New markets
121
120 Global average 88
104
98 97
100
78 77
80 73
64
56
60
52
40
20
0
Base : All respondents n=31,031
Source: Nielsen Global Consumer Confidence Survey 7
Q3 2011
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

8. International book markets
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

9. Print book sales decline across all
markets
9
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

10. Broad sector declines across markets
10
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

11. Broad sector market share
11
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

12. Market Summaries
Title of Presentation
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

13. Italy
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

14. Italy annual sales trends
+3.7% -1.7%
14
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

15. Italy annual sales trends – broad sectors
15
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

16. 2011 top Italy titles
Title Author Volume
Le Primo Luci del Mattino Fabio Volo 272,935
Il Profumo delle Foglio di Clara Sanchez 201,386
Limone
Il Linguaggio Secreto dei Vanessa Diffenbaugh 186,995
Fiori
Nessuno si Salva da Solo Margaret Mazzantini 177,786
Il Gioco Degli Specchi Andrea Camilleri 173,844
Vieni Via Con Me Roberto Saviano 148,988
Un Regalo da Tiffany Melissa Hill 140,579
Steve Jobs Walter Isaacson 129,895
Il Piccolo Principe Antoine de Saint-Exupery 118,239
Tre Atti e Due Tempi Giorgio Faletti 116,021
16
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

17. US
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

18. US annual sales trends
-4.5%
-9.2%
18
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

19. US annual sales trends – broad sectors
19
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

20. 2011 top US titles
Title Author Volume
Heaven is for Real Todd Burpo 1,993,654
The Help Kathryn Stockett 1,831,972
The Hunger Games Suzanne Collins 1,577,952
Diary of a Wimpy Kid: Jeff Kinney 1,563,302
Cabin Fever
Steve Jobs Walter Isaacson 1,385,441
The Help Kathryn Stockett 1,011,136
Catching Fire Suzanne Collins 985,174
Unbroken Laura Hillenbrand 912,871
Inheritance Christopher Paolini 900,145
Mockingjay Suzanne Collins 853,314
20
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

21. UK
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

22. UK annual sales trends
-4.3%
-7.2%
22
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

23. UK annual sales trends – broad sectors
23
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

24. 2011 top UK titles
Title Author Volume
One Day David Nicholls 637,969
Jamie’s 30-minute Meals Jamie Oliver 504,557
Guinness World Records 491,191
2012
A Tiny Bit Marvellous Dawn French 459,183
Room Emma Donoghue 418,002
Jamie’s Great Britain Jamie Oliver 401,950
One Day David Nicholls 338,793
The Confession John Grisham 326,393
The Help Kathryn Stockett 325,020
Diary of a Wimpy Kid: Jeff Kinney 291,015
Cabin Fever 24
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

25. Ireland
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

26. Ireland annual sales trends
-7.8%
-8.6%
26
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

27. Ireland annual sales trends – broad
sectors
27
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

28. Australia
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

29. Australia annual sales trends
+0.5%
-7.2%
29
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

30. Australia annual sales trends – broad
sectors
30
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

31. New Zealand
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

32. NZ annual sales trends
+1.2% -14.8%
32
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

33. NZ annual sales trends – broad sectors
33
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

34. South Africa
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

35. ZA annual sales trends
-6.1%
35
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

36. ZA annual sales trends – broad sectors
36
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

37. Spain
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

38. Spain annual sales trends
-7.2%
-3.9%
38
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

39. Spain annual sales trends – broad
sectors
39
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

40. India
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

41. BookScan India – the first year of
our panel
• 2011 was the first full year in which we measured Indian book
sales. In total we measured:
• Volume sales of 12.6m units
• Value sales of INR 3,281m
• Sales for over 386k unique ISBNs
41
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

42. Make up of the Indian market by broad
genre
42
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

43. Quarterly sales in India
43
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

44. Like-for-like quarterly growth
Q2 vs Q1 Q3 vs Q2 Q4 vs Q3
Total 13% 16% 14%
Fiction 18% 28% 43%
Non-Fiction 9% 25% 5%
Children’s 13% 2% 7%
44
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

45. China
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

46. China value sales grow by 6% from 2008 to
2010 through the OpenBook panel
China value sales in billions RMB
Estimated figures from OpenBook
34
showed the China market up
31.9 6.3% year on year to October
32
31.3
2011
30.1
30
This represented 29.3bn Yuan in
28
2008 sales
2009
26
2010 These figures do not include
24
online book sales, which
OpenBook estimated to be:
22
5bn Yuan in 2010
20
10bn Yuan in 2011
Value
52
weeks
Source: Openbook
46
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

47. Non-Fiction is becoming less dominant as
Children’s and Fiction take a larger value
share of the Chinese market
Source: OpenBook
47
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

48. The impact of e-books
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

49. Tablets and E readers at a very early stage
Germany.
U.K. 5%
6% 2%
8%
Spain
7%
7%
Italy
8%
U.S. 2%
8%
11%
Tablet
eReader
Base:
General Population Aged 16-64 Years (All Markets Except USA) Source: Smartphone Insights Q3 2011 / Mobile Insights Q3 2011 (USA)
49
Mobile Users Aged 13+ Years (USA)
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

50. USA
Individual Penetration of Connected Devices
Trended Individual Penetration of Connected Devices Among Mobile Phone Owners
Source: Nielsen Mobile Insights
Q1 2010 (n=70,500), Q2 2010 (n=71,210), Q3 2010 (n=69,238), Q4 2010 (n=72,381), Q1 2011 (n=73,452) , Q2 2011 (n=67,863), Q3 2011 (n=7,5187)
50
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

51. UK
Individual Penetration of Connected Devices
Individual Penetration of Connected Devices
General Population (n=1,043)
38%
23%
12%
8%
6%
Tablets eReaders Portable media Smartphones Netbooks
players
***Source: Nielsen’s Q3 2011 UK Smartphone Insights study
51
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

52. As e-book reader penetration grows, the decline in
physical fiction sales is likely to continue to accelerate
-7.2%
-18.0%
-0.9% -11.7%
52
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

53. The growing UK fiction decline in 2011
53
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

54. The growing UK fiction decline in 2011
54
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

55. US Ebook sales from the AAP
In 2010 2011
• 14 publishers reported sales to • Reporting publisher between 15
the AAP and 18 depending in the month
• Total ebook sales estimated at • To the end of September ebook
$441.3m in 2010 sales totalled $727.7m
• Sales increased by 164.4% on • Sales $286.4m ahead of the
2009 total 2010 figure
• For the reporting companies • Sales increased by 137.9% on
eBooks sales compensated for ytd sales in 2010
the drop in print revenue • But and “anecdotally” … sales
increasing overall sales by 0.2% growth slowed towards the end
of 2011
55
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

56. The first accurately measured combined eBook
and print charts appearing in the WSJ
Source: Nielsen BookScan
56
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

57. The first accurately measured combined eBook
and print charts appearing in the WSJ
Source: Nielsen BookScan
57
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

58. Key findings
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

59. Key Findings
• Major book markets are experiencing decline in book sales as
the global economy and consumer confidence remain fragile
• The impact of e-book sales is now having a clear effect on
physical book sales in the US and UK, with this effect likely to
increase in these markets and begin to be felt in other
territories
• The rapid growth of eBook sales seems, “anecdotally”, to be
slowing in the US
• India is seeing strong growth in book sales, showing that
developing economies can hold great opportunities for
publishers and booksellers
59
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

60. The link between metadata and sales
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

61. What we do …
61
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

62. Key findings
• Titles that meet the BIC Basic standard see average sales 98%
higher than those that don’t meet the standard
• Ensuring that all four key enhanced metadata elements (long
description, short description, author biography and review) are
present on product records can help average sales rise by 55%
in comparison to records where none of the elements are
present
• New subscribers to the enhanced service can see annual
volume sales increase by up to 28%
62
Copyright © 2010 The Nielsen Company. Confidential and proprietary. Title of Presentation

63. The online world
• Split into offline and online sales:
– offline sales see an increase of 35% for titles which have all enhanced
metadata elements present
– online sales see a massive 178% increase for titles which have all
metadata elements present in comparison to those with no enhanced
metadata
35% 178%
63
Copyright © 2010 The Nielsen Company. Confidential and proprietary. Title of Presentation

64. The Link between Metadata and Sales published Wednesday, 25th January, 2012
Free PDF download from www.nielsenbookscan.co.uk
jonathan.nowell@nielsen.com
64
Copyright © 2010 The Nielsen Company. Confidential and proprietary.