MARCH 25, 2013

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Industry Viewpoints
Digital is Both an Opportunity and a Challenge for News Organizations
In the State of the News Media 2013 report, the Pew Research Center explores the ways digital technology impacts news organizations. While TV, radio and newspapers are losing ground as a source for news, digital news consumption has been rising sharply over the past two years, with 50% of people getting their news digitally on an average day. This growth is further fueled by social media, as major US news websites are now getting 9% of their traffic from Facebook. The main challenge for news organizations is to monetize the rapid growth in digital news consumption. Only a small share of the display advertising pie is available for news organizations, and they need to come up with new monetization strategies. They are building up their video programming to take advantage of the 47% growth in video advertising in 2012; they work with advertisers to create native ads – otherwise known as digital advertorials, a category that grew by 39% in 2012; and they develop capabilities for geo-targeting ads, capitalizing on the 22% increase in local digital ads in 2012.
So what? Condé Nast brands can identify with many of the changes that news organizations are going through. The New York Times has recently developed Ricochet, a tool that allows ads to follow content that is shared on social networks or by email, and similar innovations are in the works at Condé Nast.
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Mobile Apps Have A Place Alongside Mobile Web
Two out of three people prefer using a retailer’s mobile website, rather than downloading the retailer’s app to their smartphone or tablet device. While the mobile web is preferred, apps can still serve a function, but consumers need to see the specific advantages to downloading and using the app. A new report from SiteWorx found that the top two features to pique interest in downloading a branded app were if the app has special offers and if the app loads faster than the mobile website. Another top reason to download was to gain specific loyalty benefits. Although consumers are largely bringing their computer Internet browsing habits to their mobile devices, such as using search to find information or typing in a specific address, they are open to using apps to discover, educate, and purchase.
So what? This study demonstrates that a comprehensive mobile strategy is the key for brands to offer consumers value in different ways and across all platforms. As new technologies enter consumer homes (for example: Google Glass and Apple’s smart watch), it’s important to understand the best way to communicate and the best content to offer through each platform.
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Hispanics Close the Digital Divide
In the past three years, the percentage of Hispanics using the internet has grown by 14 percentage points, doubling the growth of whites (+7 percentage points) and blacks (+6 percentage points). According to a new report from the Pew Research Center, between 2009 and 2012 Hispanics went from being significantly less likely than whites to own a cellphone to being more likely to own cellphones and/or smartphones. Three out of four Hispanics access the internet on a mobile device – more than the percentage of whites (60%). Hispanics are more reliant on their mobile devices to connect them to the world, as Hispanics are less likely than whites to have a computer or landline at home. Like other races, internet usage among Hispanics skews higher among younger, educated and affluent individuals. Internet usage also skews higher among native-born Hispanics versus foreign-born Hispanics.
So what? Advertisers and publishers, perhaps spurred by President Obama’s incredibly effective 2012 campaign among Hispanics, have continued to dial up their Hispanic outreach. And Condé Nast has proven keen to that trend – this month Glamour released Glam Belleza Latina. As the Hispanic population, along with its influence and spending power, continues to grow, it is important to understand how to best reach them. One of those ways best to connect is on the devices they are growing incredibly dependent on.
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More Households Are Cutting the Cord on Traditional TV Services
In its Q4 2012 Cross Platform Report, Nielsen profiles the “Zero-TV” households: households who do not watch traditional television offered by cable or satellite provider, and favor getting their content on other devices, such as a computer, an internet-connected TV, a smartphone or a tablet. The group accounts for less than 5% of US households, but it is growing quickly – from 2 million homes in 2007 to 5 million homes in 2013. These “Zero-TV” video homes tend to be younger, with 44% under the age of 35, compared to only 18% of TV homes. 36% say that the main reason they opt out of the traditional TV system is cost, while 31% say they lack interest in it. Only 18% consider subscribing to traditional services in the future.
So what? Content consumption habits have gone through a radical change in recent years, with more and more viewers opting to get their video content through the internet. While much of this content still consists of TV shows and films, there’s also growing reception to content created especially for the web – from long-form shows like Netflix’s House of Cards, to short-form videos like the ones featured on Glamour’s and GQ’s recently-launched video channels.
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Quick Takes
The US Drinks Half the World’s Tequila
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iPhone Regained its Lead Over Galaxy in the Fourth Quarter of 2012
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Consumers More Likely to Use Tablets than Smartphones to Stream Movies & TV Shows, but use Phone More Often for User-Generated Content
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1 of 4 Americans Now Own a Computer, Smartphone & Tablet
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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 |

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