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ad.jpgAdvertising Age has a nice overview article on the current state of thinking about advertising in ebooks. You might want to take a look:

With print media in turmoil — or as one publishing executive put it, “The business is undergoing both a revolution and a depression” — digital players big and small are trying to find new business models with an eye to lowering the cost of books to consumers.

“There’s a movement in the industry to offset book prices through various ways,” said consultant Chris Andrews, who’s writing an e-book about the advent of e-books. “There’s more revenue per book with those ads and they allow publishers to sell the book less expensively. It also gives advertisers this cool market of people who spend hours with content. The relationship is longer than any other media — and it’s deeper.”

Others view in-book advertising as just one stop along a continuum of possibilities.

“They’re just exploring all the multiple ways you can monetize content, so you can offer a customer a full-priced book at $9.99 or you can offer them a half-priced book that’s partially underwritten by advertisers,” said Mark Coker, founder of e-book seller Smashwords.

 
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