NOVEMBER 12, 2012

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Hispanics Are Confident About the Future
The Great Recession impacted Hispanics more than most -- median household wealth declined by 58% for the group between 2005-2010 (compared to an 18% decline among whites and a 54% decline among blacks). However, as the country methodically recovers so does the positive outlook among Hispanics. According to the Pew Research Center, Hispanics in 2012 reported themselves to be far more satisfied with the country's direction than in past years. When asked about their finances -- one out of three said they were excellent or good, compared to one-quarter of Hispanics who made the same statement last year. Nearly three out of four Hispanics expect those finances to improve next year -- also an improvement over last year's sentiment.
So what? The Hispanic population in the United States is now well above 50 million and the US Census Bureau projects it to be over 100 million by 2050. Some Condé Nast brands have already demonstrated strong appeal among Hispanics. We should be able to grow that relationship among those magazines and develop Hispanic audiences among those with room to grow, as the aspirational tone of much of CN's content aligns with the sanguine outlook this research highlights.
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The Number of Consumers Buying Content is On the Rise
The proliferation of internet-connected devices designed for media consumption and the increasing availability of compelling paid service offerings will result in a growth of paid content audiences, according to an analysis by Forrester Research. The analysis forecasts the number of people buying digital content in Western Europe to grow by 10% annually over the next five years, with video (11.7%) and news (11.2%) growing at the fastest rates. Revenues in the paid news market are expected to increase at an annual rate of 12.1%, from €158.0M in 2012 to €279.3M in 2017. The report identifies tablets as an especially appealing opportunity, predicting that by 2017, 20% of tablet users in Europe will pay for news.
So what? Forrester’s analysis focuses on Western Europe, yet we are likely to see similar trends in the US as well. A growing demand for paid content allows Condé Nast to replicate its print business model by developing a dual revenue stream for its digital offerings, relying on both advertising and subscription payments.
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Industry Viewpoints
Ads Maintain Their Potency in the September Issue
The September issues of women's fashion magazines are getting thicker every year. In September 2011, the magazines in the women's fashion category (Allure, Cosmopolitan, Elle, Glamour, Harper’s Bazaar, In Style, Lucky, Marie Claire, Self, Vanity Fair, Vogue and W) had a total of 1,663 ad units according to Gfk MRI Starch. That was an increase of 4.5% over the previous September. While some wonder if the size of these September issues create clutter that compromises ad effectiveness, Starch recently reported that that theory fails to hold water. Starch reports that between 2009 and 2011 ads in September fashion magazines earned noting scores as strong as those for non-September issues. Furthermore, there was a lift for September issues versus non-September issues among readers that said they read the issues as much for the ads as for the articles and readers that felt the ads in the issue were valuable sources of new information.
So what? September has always been an opportunity to place our fashion magazines in the spotlight, from both an editorial and advertising perspective. This research reaffirms that advertisers are making the right decision when they double down in the September issue.
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How and Where Tablet Owners Use Their Devices
Google, a company better known for its plenitude of data, decided to conduct an exhaustive qualitative study of 33 US tablet users to better understand interaction with the device. The most widespread and frequent activities observed were checking email and playing games, followed by social networking, looking up information and watching videos. Many tablet owners were engaged in other activities at the same time they were using their tablets, especially watching television, eating, cooking, waiting somewhere and talking with others. Users were less likely to engage in a secondary non-tablet activity when they were reading news, blogs, magazines and books. Tablets were predominantly used at home, with the most common locations being the couch and the bed. Interestingly, many tablet owners used their devices in the kitchen while cooking.
So what? Although the small sample size limits conclusive generalizations, the findings do shed light on the tendency to multi-task when using tablets. While their media consumption is often accompanied by other activities, tablet users tend to be fully engaged when they are reading magazines. They are therefore more likely to pay attention to both content and ads, making digital magazines an attractive platform for advertisers.
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Quick Takes
Nearly 30% of Electorate in 2012 was non-White; President Obama Held Significant Advantages in Each Minority Group
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Nearly 28 Million Tablets Shipped Globally in Third Quarter
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Beer Sales are Bouncing Back
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US Retail E-Commerce Spending in the Third Quarter Up 15% Over Last Year
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Condé Nast
Feedback, questions, ideas for future issues? Please contact:

Phil Paparella
Condé Nast Research & Insights | Associate Director
1166 6th Avenue, 14th fl. | NY, NY 10036 | office 212.790.6044 |

Tamar Rimmon | Senior Manager, Digital Analytics
Robyn Hightower | Manager, Research & Insights