FEBRUARY 04, 2013

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Industry Viewpoints
The Publishing Business is Now the Publishing + Mobile Business
In its yearly survey of its membership of media brands, the Alliance for Audited Media (formerly the Audit Bureau of Circulations) found that 90% of publishers have a mobile presence, and those that do not, plan to develop one in the next year. Apple is king for apps -- 87% of publishers have iPad apps and 85% have iPhone apps. Android (75% of publishers have Android apps), Kindle (67%) and Nook (57%) apps are all less prevalent, however are growing fast. The number of publishers on Kindle has nearly tripled in the past year and those on Nook have more than quadrupled. According to this survey, magazines are more likely to create apps built for specific device operating systems, while newspapers are more likely to optimize their content for web browsers. And while much attention has been paid to mobile, it still has a long way to go to drive revenue. The overwhelming majority of publishers report that mobile represents less than 10% of their ad and circulation revenue.
So what? It is interesting to compare and contrast Condé Nast's mobile integration with the industry-wide data found in this report. CN was an early leader in the mobile space in a lot of ways, especially on tablets. While it remains a comparatively small slice of the revenue pie, publishers are bullish on mobile owning a larger share in the near future to drive both their advertising and circulation businesses.
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E-books Gaining Ground Among Children and Teens
Research from Scholastic finds that 46% of children age 6-17 read an e-book in 2012, up from 25% in 2010. Half of children age 9-17 say they would read more books for fun if they had greater access to e-books – a 50% increase since 2010. The main benefit of e-books over print, according to both kids and their parents, is convenience. They like the ability to carry all their books in one place and get books anytime, anywhere. Children also tend to think that it is a cool, more interesting way to read. A dictionary, note-taking capabilities and interactive features are viewed as important attributes of e-books. However, the vast majority (80%) of kids who read e-books are still reading books for fun primarily in print. Among girls, there has been a decline since 2010 in frequent readers (from 42% to 36%), but they are still more likely to read books 5-7 days a week than boys are (32%).
So what? The growing popularity of e-book reading among children and teens is likely to translate into magazine reading as well. This is good news for Condé Nast's digital editions, especially those that are targeted at younger readers. As we develop content and new technological features for these digital properties, we should keep in mind the attributes that children and their parents are looking for in the e-reading experience.
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Media
Paid Social Media Advertising: An Update
In a study of 500 digital media and marketing professionals, the advertising research firm Vizu found that advertisers are increasingly allocating for paid social media in their advertising budgets. Nearly two-thirds of advertisers report that they will increase their paid social media budget in 2013. And while paid social media's part of the advertising budget is rather modest (less than one-tenth of the average online advertising budget for the majority of advertisers), 39% of those who do plan to increase their social media spend will move resources from offline channels to do it. Advertisers see social media as a device to build brand awareness and bolster positive sentiment more than as a direct-response tool.
So what? This is an interesting trend to monitor. After a glut of negative press last year and major advertisers like GM pulling their ads, Facebook has made attempts to more transparently measure ROI for its clients. However, a feeling remains among many that social media still does not work as an ad environment because consumers do not expect it to be one, as opposed to print, where consumers opt-in to ad engagement. If advertisers want to build awareness and improve sentiment for their brands, they are likely better served by print.
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Technology
One in Five American Consumers Have Used QR Codes
According to a new report from Pitney Bowes, 19% of US consumers have scanned QR codes, compared to 15% in the UK, 14% in Germany and 12% in France. Most QR codes are captured from print applications, with 15% of consumers scanning a QR code in a magazine, followed by direct mail (13%) and packages (13%). Consumers were less likely to capture QR codes in a digital context: on a website (8%), in an email (5%), or on TV (4%). In general, usage of QR codes was more prevalent among 18-34 year-olds. This trend was especially strong in the US, where 39% of consumers ages 18-24 and 36% of consumers ages 25-34 scanned a QR code in a magazine.
So what? Marketer adoption of QR codes is growing, yet many struggle with the challenge of increasing the consumer response rate. With the highest engagement among all media types, magazines offer them an attractive value proposition. Successful collaborations with advertisers on innovative QR code campaigns, such as the Glamour-L’Oreal Fashion Week campaign, can make Condé Nast a particularly desirable partner to work with.
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Quick Takes
More Than 700M Smartphones Shipped in 2012
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Maps, Facebook and YouTube iPhone Apps had the Most Users in 2012
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31% of Americans 25+ are College Educated; Nearly Double the Number of 30 Years Ago
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Denzel Washington is America's Favorite Actor
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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