Jason Kutasi launched San Diego-based children’s book publisher Puppy Dogs & Ice Cream (PDIC) four years ago with a background in digital marketing, anticipating it would aid his entry into the book publishing market. However, the company’s early achievements have surpassed his most ambitious projections. This rapid ascent is attributed to PDIC’s unconventional business model, which prioritizes direct-to-consumer sales driven by digital advertising, and the significant increase in online book purchases fueled by the COVID-19 pandemic.
PDIC focuses on children’s books, with a strong emphasis on print formats, although it also publishes e-books. The publisher’s catalog features a wealth of picture books with vibrant covers, organized into three age categories: early readers (up to three years old), beginning readers (four to six years old), and advanced readers (seven to eight years old). Among its current best-sellers are titles such as Zen Pig by Mark Brown, illustrated by Amy Brown, and Right Now, I Am Fine by Daniela Owen, illustrated by Gulce Baychik.
The company operates with a decidedly market-driven approach, utilizing all compiled data to inform its publishing and marketing strategies. Potential titles, layouts, and covers undergo rigorous testing, primarily through Facebook advertising.
Since its inception, PDIC has consistently exceeded its own expectations. The company debuted in November 2017 with a team of two employees. Its first release, From A to Z: A Life of Glee, achieved sales of 5,000 copies by early December of the same year. The press’s 2018 frontlist included four storybooks, four coloring books, and 16 workbooks. By 2020, PDIC had grown to 21 employees and boasted an active catalog of 72 storybooks, nine coloring books, and one activity book.
According to Kutasi, the previous year’s revenue experienced a remarkable 555% increase compared to 2019. “Covid accelerated the adoption of online buying behavior,” he explained. “People were forced to adapt their buying behavior. I don’t think it’s going to go back—it’s here to stay.” He noted that the surge in online purchasing far exceeded all his financial projections for 2020, with revenue surpassing $20 million.
PDIC’s website serves as its primary sales channel, accounting for approximately 75% of its revenue. Amazon represents 20% of sales. However, PDIC does not advertise on Amazon; instead, it promotes all its titles across social media platforms, as well as on Google Display, YouTube, and even online news channels. The company also maintains a mailing list of over a million subscribers. A significant portion of PDIC’s workforce comprises media buyers, who operate under the direction of a media team director. “It’s about discovery,” Kutasi stated, elaborating on PDIC’s aggressive marketing tactics.
While this strategy might appear to bypass traditional brick-and-mortar bookstores, Kutasi asserts that it ultimately benefits them. “Ads provide brand and product lift to the bookstores,” he maintained. “People walk into the bookstore and recognize the title because they’ve seen the ads. And many people simply prefer to purchase in-store, rather than online. Our own experience and numerous marketing studies have supported this.”
Kutasi did acknowledge, however, that physical retail sales constitute only a minor portion of PDIC’s overall revenue and expressed a desire to expand its business relationships with bookstores. Currently, the company does not utilize a book distributor, fulfilling direct orders through third-party vendors. PDIC aims to attract booksellers by offering wholesale terms, allowing stores to establish an account directly on the PDIC website. To further incentivize this, Kutasi has pledged to share customer data related to titles sold through these stores.
Looking ahead, Kutasi anticipates 2021 will be another robust sales year. His growth plans include expanding the company’s offerings to include adult books. Similar to all other aspects of the company’s operations, the direction PDIC will take with its adult book division will be determined after a thorough analysis of market research results. Kutasi’s focus will be on identifying “the vertical that’s going to resonate with our existing audience the most.”
The publisher’s success underscores the evolving landscape of book sales, highlighting the power of direct-to-consumer engagement and data-driven marketing in the digital age. As the industry continues to adapt, PDIC’s innovative approach serves as a compelling case study for aspiring publishers seeking to navigate and thrive in a competitive market.