FEBRUARY 25, 2013

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Culture
Brand Building with Generation Z
The generation after the Millennials -- Generation Z (18-23) -- are the first true digital natives. They have spent their whole lives immersed in technology. This creates both a challenge and opportunity, according to Forrester Research. In a new paper, the research firm outlines how marketers can connect with Generation Z to build their brands. Forrester found that Generation Z is more trusting of brands' messages across platforms than older counterparts. Generation Z is also discerning about the brands they buy -- 25% said owning the best brand is important (versus 17% of total US adults) and 36% said they would pay more for products consistent with an image they like (versus 23% of total US adults).
So what? The way Generation Z perceives and processes information to make decisions is like no other generation before. While their trust of brands might be partly attributed to some naïveté, the fact remains that they are more willing to accept brands at their word and pay a premium for the ones they like. There might be an opportunity to build brand awareness and positive opinion for advertisers seeking younger audiences on some of Condé Nast's sites.
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Media
How Much is Your Social Media Presence Worth? A New Model to Calculate the Value of Social Media
Facebook's founder, Mark Zuckerberg, agrees that it will not be the number of people on Facebook that will define its success as much the engagement of those users. So it's no surprise that marketers are increasingly seeking ways to measure their social media audience beyond top line metrics about the number of followers or fans. A new measure, built by Tourism Ireland and featured in the Journal of Brand Strategy, assigns value to a brand's social media presence. The marketing and engagement team at Tourism Ireland computed social media value by equating different levels of social engagement with data on the cost of advertising for like established paid interactions. For example, for every photo clicked on Tourism Ireland's social media presence they assigned a value of €0.20 (the equivalent of cost/value of viewing a YouTube Promoted Video). After aggregating this data, Tourism Ireland calculated that they produced $875,000 in media value for its US presence.
So what? The valuation of social media will be a major trend to watch in the near future. While the model set here may not be a perfect one, it is creative and provides food for thought as to how other organizations might want to value their social media engagement beyond likes and followers. Condé Nast's social media platforms effectively promote both our brands and the products, experiences, etc. that our editors curate. It might be a worthwhile exercise to see just how valuable those platforms are.
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Advertising
Digital Video Ad Viewing is On the Rise
A new study from video monetization company FreeWheel reveals that video ad volume increased by 47% in Q4 2012 compared to the same quarter the year before. This growth outpaced the 23% increase in video views and was fueled by holiday spending and increased ad loads. FreeWheel only analyzes copyright-protected videos and does not reflect trends for user-generated content, which tends to be shorter. It found that long-form content (20 minutes or more) had an average of 9.4 video ads per video view, up from 6.9 in Q4 2011. Video ads in short-form content (5 minutes or less) were also at an all-time high of 0.66 ads per video, up from 0.54 a year ago. 30-second ads are becoming increasingly common in digital video, encompassing 42% of all video ads compared to 31% last year. 34% of video ads are 15-seconds long, down from 45% last year. Despite the increased ad loads and longer ad lengths, completion rates for all types of videos are rising: from 88% to 93% in long-form, content, from 68% to 81% in mid-form content (5-20 minutes), and from 54% to 68% in short-form content.
So what? The combination of greater ad loads and higher completion rates is welcome news for companies looking to monetize their growing inventory of digital videos. It comes at an especially good time, when the Condé Nast Entertainment Group is about to launch its first digital video channels for Glamour and GQ.
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Retail/Shopping/Commerce
Demystifying the Online Shopper
In a new report, PwC debunks 10 common myths about the behavior of global online consumers. Those myths include: - Myth 1: Online retail is cannibalizing sales in other channels. Reality: Consumers are actually reporting that since they started shopping across multiple channels, they are spending more with their favorite retailers rather than just shifting purchases to a different channel. - Myth 2: In the future, stores will become mainly showrooms. Reality: While many multichannel shoppers research online, more still prefer to buy products at a physical store. In fact, with the exception of two categories (electronics and books, music, movies and video games), the majority of consumers use physical stores for both researching and purchasing. - Myth 3: Low price is the main driver of customer spend at favorite retailers. Reality: While consumers are generally price sensitive, when it comes to their favorite retailers, four key drivers affect spend: fast and reliable delivery, a “return to store” policy, exclusive or early access to products, and innovative marketing and products.
So what? In the rapidly evolving e-commerce world, it is hard to keep track of consumer trends and behaviors. Many retailers feel overwhelmed by multichannel shopping and struggle with developing the right strategy to address it. PwC’s report is a good reminder that physical channels still play a significant role in consumers’ shopping experiences and companies should strive to find the balance and synergies between physical and digital.
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Quick Takes
Social Networking Adoption Leveled Out in Late 2012
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Versace Has Been the Most Worn Designer at the Oscars During the Past 15 Years
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Tablet Owners Watch More Movies Than Others
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Admissions at the Box Office in 2012 Were Up 6% Over 2011; More Tickets Were Sold in 2012 than Any Year Since 2009
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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