DECEMBER 17, 2012

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Retail/Shopping/Commerce
The Road to Purchase Has Many Entrance Ramps
The purchase process is not always linear and is filled with both passive and active experiences. A new study from the Advertising Research Foundation set to uncover how those experiences impact shopping for consumer goods. In a study of consumers of automobiles, groceries and smartphones, 78% of consumers said they bought the brand they already had in mind when they started the shopping process. That figure speaks to the importance of passive experiences, as many consumers already have their mind set before starting their "research." As they move down the funnel to the point of purchase, they rely on more active experiences such as gathering information on websites and searching for the best deal in order to make their purchase decisions with confidence.
So what? There is a place for Condé Nast in multiple spots on the path to purchase. This study asserted how important it is to have strong brand consideration among consumers before they are ready to start their purchase process. Ads in CN magazines and on CN sites have traditionally helped develop brand awareness and consideration for marketers, and thus are responsible for a lot of the heavy lifting on path to purchase. But as Condé Nast moves further into mobile platforms, it can play a larger role in consumer activation in later stages of the path to purchase.
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Advertising
Video Advertising More Effective on PC Screens
Utilizing eye-tracking, biometric measurements and surveys, a recent research study by the IPG Media Lab assessed ad effectiveness on four different screen types: linear TV (a traditional TV), connected TV (a TV screen connected to the internet), PC and mobile. The research found that people paid the greatest attention to video ads they watched on the PC screen. When asked, 43% of those who watched a video ad on a PC screen correctly recalled seeing the brand advertised, compared to 38% for connected TVs, 35% for mobile, and only 26% for linear TVs. Participants also reported that their attention levels are highest when they are watching video in comfortable environments with less distraction, such as the couch or bed at home.
So what? There is a common perception among marketers that PCs are less effective for advertising. The findings of this research help Condé Nast contradict this misconception and make the case that video ads on its digital properties can draw more attention and be more memorable than traditional television advertising.
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Economy
McKinsey: Consumer Sentiment Improves
American optimism about the economy is stronger than at any point since the Fall of 2009, according to research from McKinsey. Consumers are feeling more optimistic about their personal financial affairs than they have in the past few years, as fewer Americans are: -Worried about their ability to make ends meet. -Living paycheck to paycheck. -Worried about losing their job. Just 35% of Americans report they have cut back on spending, compared to the high of 65% in February 2009.
So what? McKinsey's findings echo other reports that consumer optimism is growing, albeit at a measured pace. The recession instilled some new economic realities, but there has been a recovery since then in people's minds. Hopefully, improved consumer sentiment translates to continued economic growth in 2013.
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Media
Millennials Take a Broader View of What Is News
The New York Times Customer Insight Group conducted a survey of US news consumers and found that the TV and computer are the leading news platforms, but smartphones are gaining popularity, especially among Millennials. Traditional platforms (TV, newspapers, magazines, radio) are perceived as responsible and trustworthy, while digital platforms (computer, smartphone, tablet) are viewed as convenient and representing a variety of viewpoints. 53% of digital news consumers access web-native news sources (e.g. Huffington Post) and 43% access established news outlets (e.g. CNN). Millennials are more likely than other generations to also use social media for news, and in particular Facebook (used for news by 35% of millennials) and Twitter (10%). Millennials define news more broadly, including not only topics like weather, politics and business, but also art and entertainment, celebrity news, travel, fashion and food.
So what? Though Condé Nast’s brands don’t usually fit strict conventional definitions of “news media”, they have the credibility and reputation that accrues to traditional news sources. Given the broader definition of news favored by Millennials, Condé Nast’s brands can play an increasing central role in this ongoing conversation with consumers.
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Quick Takes
Google: Louis Vuitton, Gucci and Chanel were the Most Searched High Fashion Brands in the US in 2012
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As Tablets Gain Penetration, E-Reader Shipments Down
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Younger Children More Likely to Friend Parents on Facebook
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Online Travel Sales Growing the Fastest in Latin America
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10% of Retail E-commerce Dollars Spent via Mobile or Tablet in Q3 2012
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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 | philip_paparella@condenast.com

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