Getting a Read on Publishing P-O-P

With the economy showing early signs of a recovery, publishers and book retailers say they're cautiously optimistic about their industries' fortunes for this holiday season and beyond -- although they're quick to point out that publishing is never a high-growth field.And while independent bookstores' fortunes took a sharp nosedive during the 1990s, their market share has stabilized during the past four years vis-a-vis the major chains, superstores like Costco, and the Internet, publishers and industry analysts report."Overall, the book market has been flat to slow growth," says Barrie Rappaport, chief analyst for Chicago-based Ipsos BookTrends, which tracks industry trends. Separate Ipsos studies of the children's and adult markets found consumer spending up 10% for children's markets in the first six months of 2003, and up 1% in the adult sector from 2001 to 2002.For marketers, slow growth is just one more challenge -- they must deal with the opposite retail worlds of large chains and independents, too. At the large chains, marketers wade through strict merchandising requirements and compete for space against not only fellow publishers but also marketers of CDs, DVDs and gifts. At the other end are the independents, which are either ignored altogether, have almost no display space or are simply trying to stay afloat amidst growing book chains. Essentially, publishers must pick their spots when it comes to merchandising. "From our data, I think the worst for the independents is over," says Rappaport, whose company found that independent market share bottomed out at 15% in 1999 but has held steady and inched up to 15 1/2% in 2002. But those chains like Borders and Barnes & Noble will continue to gain against smaller, mostly mall-based chains like B. Dalton, she says. "We do see continued concentration, at least within the chains, among the leading brands."Michael Hoynes, chief marketing officer for the independent-oriented American Booksellers Association, Tarrytown, N.Y., agrees with Rappaport's views. "It's been a relatively static industry. Even in the best of times, it never sees dramatic growth," he says. "There seems to be evidence to suggest that 2003 will be comparable to 2002, and maybe because of 'Harry Potter' coming out in June, you might see a bump of 1 or 2%."Recalling that independent bookstores held about one-third of the market in 1990 and that half have gone out of business since then, Hoynes says, "You've got to stop the bleeding before you start moving. Independent bookstores seem to have stabilized. In certain markets, they tend to do better than in other markets."Terrance G. Finley, executive vice president of merchandising and marketing for Books-A-Million Inc., Birmingham, Ala., believes retail is rebounding and predicts publishing will follow. "Both publishers and retailers have had a couple of rough years," he says. "We lost our media [budgets] that promoted our books and struggled through the last couple holiday seasons as a result. The current environment for retail is much improved, but the publishing community lags behind us. I suspect publishing will improve in the year to come." Despite independents' rapid drop-off during the 1990s, publishers -- even major ones -- say they're not counting out the little guys. "Those that have made it through the expansion of the chains have come out stronger for it," says Suzanne Murphy, vice president of marketing for Simon & Schuster Children's Books, New York. "They're doing that through smart marketing techniques, which is great for us.""They're still a really strong community out there," agrees Jay Henry, national accounts marketing manager for DK Publishing, New York. "The independents that are still out there have really had to go the extra step to keep their client base."The American Booksellers Association's 1,250 members draw strength from one another in a variety of ways, most recently through Book Sense, a national marketing campaign on behalf of the independent American bookstores. Its unified gift card program enables gift recipients to purchase books virtually anywhere in the nation -- matching the natural advantage the major chains have in being everywhere at once."That's their answer to the chains, so that the independents can work together and gain some of the benefits," says Katie Blough, vice president of the Association of American Publishers, Washington D.C. and New York. "I think the independent bookstores are holding their own." As for the overall economic climate, she says, "I think it's good. We're seeing [sales] increases. There are certainly some big books that are driving traffic into the bookstore."Picky About P-O-PWhile a slight uptick in budgets might follow higher sales, publishers face increasing choosiness among clutter-averse chains in terms of what they'll agree to accept, and some smaller, niche houses say they feel shut out entirely. And although independent stores might be more flexible in theory, their size constraints limit what they can take, as well.The upshot is that publishers must choose carefully which titles to promote with larger, fancier, more permanent displays, and when to opt for either less expensive, corrugated floorstands or alternatives like danglers, counter cards or shelf talkers that don't use real estate.An Ipsos study of people's reasons for purchasing general trade books (excluding children's books) found that displays have a bigger impact outside of traditional bookstores. "Book prominently displayed" was the main factor influencing purchases less often in independents and small chains (13%), large chains (13%) and used bookstores (3%) than it was in mass merchandisers (23%), food/drug stores (23%) and price clubs (24%), according to statistics from the first six months of 2003. (See charts at right.)Rappaport cautions that such studies are dependent on consumers' perceptions of what is and is not a display. "We can't say specifically how much is P-O-P-oriented," she says. "Some of my clients feel customers don't really know what a display is." With mass merchandisers, she says, "I can't say that's driven by P-O-P as much as the fact that [books are] in the middle of the store on these big giant tables."Rappaport adds that while displays' effects within large chains have remained roughly constant at 13% of purchasing decisions since 1999, their impact has inched up slightly from 10% of purchasing decisions in independents and small chains in that same time frame. "I do see a growth pattern," she says. "Could it be related to the BookSense piece? I don't know. But they have a tabletop display with a P-O-P sign."That doesn't translate into more displays, however -- in fact, quite the opposite. Henry says DK has cut significantly the number of titles for which it produces them. "We used to do a lot more displays than we do now," he says. "Fewer and fewer are accepted, and we really pick and choose our battles as far as what we want to push out there."Smaller, niche publishers that are more reliant on independent bookstores don't necessarily see the same trend. Thomas Nelson Inc., a Nashville-based house that focuses on Christian bookstores, has maintained a fairly steady flow of merchandising material, according to advertising manager Emily Sweeney. "We haven't produced fewer pieces," she says. "We've maintained the number of pieces we put out."Views vary among retailers and publishers as to whether a trend exists away from temporary corrugated displays and toward more permanent, higher-end materials. To some extent, it depends on whether you're trying to sell something that's part of a series or other ongoing product. Chain retailers, who have been trying to cut back on clutter, say they're definitely trying to get away from the corrugated look. "It's been an issue with us in that you have the good, often highly creative publisher content on that [cardboard], in terms of design, but the corrugation tends not to hold up well," says Tom Dwyer, director of adult trade books for Borders, Ann Arbor, Mich. "So we're looking more toward clarity and more permanent fixturing, where you pull that content in, but the fixture is of a more pleasing and permanent nature."Murphy of Simon & Schuster says she has better luck placing longer-lasting displays in smaller stores. "The trend is, even with 'permanent,' it's a year if you're lucky," she says. "We haven't put out anything big and permanent in a while." She adds that publishers of reference books, series fiction and other cyclical products might be more inclined to invest the money.That reflects the strategy of Rand McNally, which produces permanent fixturing for its maps and atlases "because they're kind of funny shapes," says Dave Van Dusen, director of merchandising and promotion for the Skokie, Ill.-based company. "We have several different configurations -- floorstands, shelf units -- it's a matter of figuring what specifics retailers are looking for." The company does produce corrugated displays "for new product launches, seasonal programs, consumer programs, things like that," Van Dusen says.Americana Publishing Inc., which publishes audio books sold primarily at truck stops, produces cardboard displays intended to be long-lasting because the books come out in series, says George Lovato Jr., chairman and CEO of the Albuquerque-based firm. "It's a self-perpetuating product," he says, adding even truck stops have "very widely dispersed requirements. Some like mobiles, some don't. Some like display stands, some say they take up too much space. Some of them like banners, some don't. It's all over the map."DK's Henry, who has been hard at work this fall promoting the company's coffee-table release "America 24/7," says he sees more corrugated displays at mass merchants. His company does not use them for practical reasons, he says. "What we do P-O-P for on the adult side of publishing tends to be larger gift books," Henry says. "It just physically doesn't work putting 10 6-pound books into corrugated." But, he adds, "In the industry in general, especially when you're looking at mass-market paperback, that still will pretty much remain corrugated."Mary Burns, vice president of marketing for Uhrichsville, Ohio-based Barbour Publishing Inc., says companies that produce corrugated displays can't rely on what she terms "a cardboard dump." She says, "A lot of stores take pride in what their stores look like, so P-O-P needs to fit into that atmosphere," and adds, "It's a matter of getting corrugated evolved and coming up with nicer-looking displays."The independent stores targeted by Thomas Nelson "are coming away from permanent merchandising because of floor space," Sweeney says. Her fellow ad manager Scott Harris adds, "We try to cater it to something they can take. We never do something 20-feet tall and 20-feet wide. Real estate is at such a premium now."Squeezing Into Small StoresPublishers and industry analysts agree that display size does matter, especially in smaller independent stores. "They tend to be more countertop size" in smaller stores, says Hoynes of the American Booksellers Association. "They may have posters." Floorstands are designed more for chains, he says, although "we might see them in some of our larger independent bookstores. We have several that are 10-, 12-, 15,000-square feet, but the average independent bookseller has a real space problem." Space is an issue even at larger stores, says Murphy, whose team has developed a generic floor display with a customized header that can hold up to 60 books. "We've redesigned it for a smaller footprint after a lot of input from minor and major accounts," she says. "Hopefully that will get us into more spaces." She adds, "With the big guys, it's a very competitive environment to get any kind of display -- to get shelf talkers or anything. We try to do things that don't take up much space. But shelf talkers don't work that well."However, Simon & Schuster did have success with a heavy plastic bra-shaped shelf talker to promote one of its teen titles ("Mates, Dates, and Inflatable Bras"), Murphy says. "That was the hottest thing," she says. "Thinking about the book first and having some fun with it has worked well."While larger stores might be able to take a larger fixture, everyone has their limits, Van Dusen says. "It's not necessarily just a Borders vs. small-guy situation," he says. "Each chain or retailer has its own visual merchandising standards. People have different sight lines, or materials, or colors that they like to maintain."Peter Archer, director of book publishing for Renton, Wash.-based Wizards of the Coast, which publishes "Dungeons & Dragons" and other shared-world fantasy novels, sees marked differences in placing displays in chains versus independents. Wizards is developing an integrated racking system to showcase its line of products, which include miniatures, role-playing games and novels aimed at independent hobby stores."The chains have tended to go with a more corporate appearance," he says. "They have a more set system of shelving and racking, and they're perhaps less interested in P-O-P and other marketing materials." Archer adds, "We have had some interest in the chains in spinner racks. It's harder for us certainly to get displays into chains. We've tried to make up for that with shelf talkers and danglers and things that don't take up a lot of space."Borders and Barnes & Noble do not take any displays from Barbour Publishing, Burns says. "That probably has to do more with the Christian book section not quite being as large as some of the other sections within their stores," Burns says. "As far as the religious independents, we are known as a value-promotion-type book publisher. The way to capitalize on a promotion is to put the P-O-P in."Simon & Schuster Children's Books relies on its illustrators to create eye-catching displays, Murphy says. "In the children's world, the trend is the more bells and whistles, the better," she says. "We're up against floor space and competition, and retailers are having to make choices, like 'What's the one big display for the month?', and 'We all have our big books that we want to get out.'" Who Gets a Display?When to do that -- and how much to invest -- remains the puzzle for most publishers. They rely on their best calibration of the author's popularity and whether the book ties into any kind of ongoing series, along with a gut feeling about how consumers will respond."If you call 10 publishers, you would get 10 different answers," says Blough of the Association of American Publishers. There is, he says, "a benchmark of marketing support that goes to all of the titles," yet some receive support far beyond that benchmark.Simon & Schuster relies on a combination of in-house sales, marketing and editorial decisions to decide "where the biggest print runs are going to be, whether it's an established author or a follow-up to a bestseller, or a new book with a new author that we really think has a lot of possibilities," Murphy says. "Every book is different."Murphy's team recently focused heavily on a pop-up version of "Alice's Adventures in Wonderland," developing a foil display with a 3-D shroud. "We've had to raise the bar for our staff so that it was something special," she says. "We're trying to convey what's inside the book, which is incredible pop-up work. We had to take their breath away. Those displays are expensive, but it's well worth the money."DK has invested heavily in its display for "America 24/7," a 20 1/2-inch-wide by 48-inch-high by 15 1/2-inch-deep podium constructed of a sturdy plastic typically used to hold car tires, "which tells you the durability of it," Henry explains.DK sent out 2,200 displays "across most channels" to coincide with the book's release on Oct. 27, Henry says. "We have those titles every season that we really want to focus on, that you want front-of-store. In the past, we might have gone with 10 displays a season, where we're looking at three or four now," he says. "We know coming into a season what our bigger, key books are."Wizards of the Coast rolled out an endcap to promote "The Lone Drow" by Robert A. Salvatore, Archer says. The six-pocket corrugated display is about 2-feet wide and between 4 and 4 1/2 feet tall and features a header card that shows an image from the book. It shipped on Oct. 28, Salvatore says, though he's unsure how many shipped."Some of the chains are more willing to take those, and a number of mall stores, like B. Dalton and Waldenbooks," he notes. "It helps particularly in the mall stores. They're trying to catch people who are walking by." More broadly speaking, Archer adds, "There are certain authors who, by their print history, we decide that we're going to make a campaign around. And also because we publish series fiction, there are certain titles that play a role in the ongoing story. Very often, the two coincide."P-O-P is #1P-O-P, publishers say, has and will continue to play an above-and-beyond role in their overall advertising and marketing scheme, since they rarely have much budget for print or, certainly, broadcast advertising, and measuring sales lifts from P-O-P is more reliable."The smaller the budget, the more they rely on various types of point-of-purchase materials," says Hoynes of the American Booksellers Association. "Consumer advertising is tough for us to buy enough of to make an impression. That's why we're very much in the game of working with retailers to try to get a presence in the store," says Murphy of Simon & Schuster. "We'll get the 'Today Show' segment, we'll get the NPR segment about a book for older kids. The publicity drives the consumers in, and then when they get in there, they can find our stuff. Consumer advertising is so costly, and our budgets are so tight."It's often easier to measure a book's sales-lift by tracking sales after a display comes down, Murphy says. "We can definitely see the effect in a major account when the display goes down. In the independent market, we can see that it does make a difference -- like any product, it goes back on the shelf, spine-out.""Print advertising is always very difficult to measure -- that's just the nature of advertising," says Henry of DK. "You want displays to go right in when a book goes on sale. It definitely does have an impact on what sells."P-O-P remains central to the outreach strategy of Wizards of the Coast, given the company's strong brand identification, Archer says. "P-O-P can make a particular title stand out very effectively," he says. "We spend a lot of time working with the chains and the independents on different endcaps and other types of pieces."Sales lifts are difficult for Rand McNally to measure on its more typical permanent pieces, but Van Dusen says, "We do see very desirable sales lifts off our corrugated programs. Those are easier to measure because they're there and then they're gone."Retailers pay attention, too, says Finley of Books-A-Million. "We track every placement in the store, every endcap, every display," he says. "How we determine whether a display stays up is whether it's earning its keep through sales."

Getting a Read on Publishing P-O-P

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