JANUARY 28, 2013

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Retail/Shopping/Commerce
From Buzz to Buy
In its yearly study of America's shopping habits, WSL Strategic Retail took a close look at the channels influencing consumers and how those channels differ by demographic and category. Some of the firm's more interesting findings were: - There is a hierarchy of influence, and word of mouth from family & friends and manufacturer & retail websites sit at the top. Traditional media, like TV and magazines, is next most influential and more impactful in crafting shoppers' opinions than social networks. - Electronics, computers/software, entertainment, and restaurants are the most researched categories online. - Millennials are significantly more likely than older generations to research clothing & accessories online. - This year, clothing was also researched by significantly more people of all ages versus last year, as were health products, products for the home and men's personal care / grooming (Men only).
So what? Condé Nast should continue to develop its digital channels as points of reference for shoppers on their path to purchase. CN also has a wonderful print story to tell -- not only are magazines heavily relied upon to craft consumer opinions, but our audience is incredibly influential in crafting the opinions of their friends and family.
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Lifestyle/Luxury
Digital Luxury Shopper Satisfaction Varies by Brand
Foresee (a customer experience analytics firm) has recently released a Luxury Index, which reports on customer satisfaction with the websites of 13 top luxury retailers. Foresee found that while luxury shoppers are more likely to use mobile devices in the shopping process, they are slightly less satisfied with the e-commerce experience overall. On a 100-point scale, luxury brands received an aggregate satisfaction score of 77, just under the 78 score given to the top 100 online retailers. While two luxury sites (Tiffany and Coach) reached the threshold for excellence (80), none was able to get close to the high standard set by Amazon, with a high satisfaction score of 88. The 39% of visitors to luxury websites who are coming to make a purchase are more satisfied (81) than the 41% coming to research a product (76).
So what? Several of the brands that ranked highest in the Luxury Index feature exclusive digital content on their site: Tiffany (80), Tory Burch (78) and Net-a-Porter (78). While more luxury brands understand the value of adding a daily blog or magazine-like articles to their website, they often struggle with task of creating content that is outside their comfort zone. This is an opportunity for Condé Nast to collaborate with leading brands by leveraging its expertise in luxury publishing.
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Luxury Marketing Predictions for 2013
Gazing into the luxury marketing crystal ball, Luxury Daily recently published its Luxury Marketing Outlook for 2013. Among their predictions, the firm believes that print will be a major part of most luxury campaigns. Luxury Daily contends that nothing can beat the tactile and visual experience of holding a magazine with vibrant images and getting caught up in the storytelling of the brands. Print will continue to be an effective platform to reach niche audiences and showcase a brand in a curated environment that is trusted by consumers and advertisers alike.
So what? Condé Nast magazines will maintain their importance in consumers’ minds and can increase their stronghold through continued luxury lifestyle curation and brand storytelling. CN is in an enviable position to use its multimedia platforms and unique relationships to effectively bridge the print-digital-retail divides.
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Advertising
Primetime Television Sometimes An Inefficient Ad Buy
With the average American watching more than 31 hours of television per week, it is no wonder that advertisers continue to dedicate a dominant share of their budget to TV. However, a recent study from advertising consultancy Simulmedia reveals that primetime (8pm-12am), the most expensive time to advertise on TV, does not deliver the expected return on investment. As work schedules become more flexible and audience fragmentation is growing, less viewing happens on primetime hours. In the two-week period measured in the study, 54% of TV ad spending was spent on primetime, yet only 34% of TV impressions were delivered during that time. Simulmedia predicts that these trends will continue to expand as more digital-native viewers join the TV audience pool.
So what? As the value of primetime advertising is steadily eroding, marketers need to become more sophisticated in targeting audiences. Supplementing the TV media with digital advertising on sites like Condé Nast’s, which over-index for in-demand audience segments, can help them reach the right people at the right time.
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Quick Takes
Device Owners Most Often Learn About New Shopping Apps in App Store
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Asians More Likely than Other Groups to Take Action After Seeing Ads in Social Media
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Adele, Fun., and Taylor Swift Owned 2012's Most Purchased Albums
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Super Bowl Advertisers Spent $262 Million on Commercial Air Time Last Year -- More than Double the Spend of a Decade Ago
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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