JANUARY 14, 2013

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Industry Viewpoints
The Transformation of Print Media
Analysts at Boston Consulting Group do not buy into the notion that publishing is a dying business, and have published a paper on their vision for transformation within the newspaper and magazine business. The authors feel meaningful transformation will be comprised of three interconnected steps: funding the journey, winning in the medium term, and building the right team, organization and culture. BCG provides strategies and tactics for each step. A couple of the more interesting suggestions to increase revenues are: -Increased price points for newsstand and subscriptions. Research cited by BCG found consumers often perceive greater value in what they receive from newspapers and magazines than the amount it costs them. -As tablets gain penetration, BCG has found willingness for owners to pay for content on their devices. The firm's research found that US consumers were willing to pay an average of $3-5 for a monthly digital magazine subscription and $4-9 for a newspaper subscription.
So what? Boston Consulting Group's confidence in the future of publishing is a welcome opinion. Many of the strategies and tactics outlined here have been employed by Condé Nast. While CN explores further development and monetization of its digital business, a more comprehensive understanding of the perceived value of publisher content versus its cost will prove useful.
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Technology
What Makes a Good Mobile Website
Attitudes toward ads on mobile devices are improving, but still lagging behind receptivity for more traditional ad formats, according to Millward Brown’s AdReaction 2012 study. Younger consumers (ages 18-34), men, tablet users and Apple users tend to have more favorable views of mobile advertising. The study suggests that a competent mobile experience can help marketers improve user perceptions. Based on surveys and interviews with smartphone and tablet users, it defines a good mobile website as one with three main attributes: -Speed and display: Loads quickly, functional and easy to find. Of all the possible factors determining how good a mobile site is, the greatest number of users viewed a fast load time as important. -Targeted: Leverages location-based capabilities and tailors content to the context of consumption. -Unique to screen: Has a different look than desktop website and offers unique features that play to mobile’s strengths.
So what? As mobile visitation to Condé Nast’s sites continues to rise, we must ensure they are meeting consumers’ expectations and providing them with a positive user experience. Abiding by the principles put forth in this study can help foster a favorable perception of both content and ads.
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Technology Adoption and Usage Vary Across Generations
Forrester’s 2012 Benchmark Survey provides a generational view of technology adoption in the US. The analysis found that Generation Zers (consumers ages 18-23) are the most immersed in digital technology and manage many of their interactions with friends and brands through social networks. Generation Yers (24-32) are the most mobile-savvy, with the highest adoption and usage rates of tablets and smartphones. Generation Xers (33-46) have the highest average income and spend online 25% more than the average US online shopper. Boomers (47-67) are slower to adopt new technologies, but they are active users once they have adopted them. The Golden Generation (68+) lag behind on ownership of more “modern” devices, yet 63% of them go online on a monthly basis and more than half of them have a Facebook account.
So what? As Condé Nast is increasingly targeting Generations Z and Y, we need to pay close attention to their technology behaviors and have a prominent presence in both the social and mobile space.
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Media
Digital and Social Media in the Arts
Digital and social media have become important tools to promote the arts. A recent survey by Pew among organizations that have received grants from the National Endowment for the Arts (theater companies, orchestras, and museums) set to uncover how those groups are using digital and social media. Four out of five organizations feel internet and digital technologies are very important for promoting the arts. Other findings included: - 97% of organizations have established a social media presence. The organizations said the most positive outcomes from their social media practices have been increased attendance, sales and public awareness as well as an additional way to support fundraising. - 86% accept donations and 72% sell tickets online. - 81% of organization post or stream videos from performances or exhibits.
So what? A number of Condé Nast brands have highly regarded relationships with organizations within the arts. As we share audiences with those organizations, or at the least -- audiences that share many of the same interests, there might be opportunities to develop mutually beneficial digital relationships.
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Quick Takes
$42.3 Billion Spent Online This Holiday Season
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Tablet Shipments to Surpass Notebooks in 2013
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Worldwide Digital Ad Spend to Surpass $118 Billion in 2013
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More Than Four-Fifths of the Nation's 113th Congress Consists of Protestants & Catholics
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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