APRIL 22, 2013

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Advertising
What Types of Tablet Ads Are Most Effective?
The Pool – a collaboration of 26 leading publishers, advertisers and research companies – has released a study highlighting the best ad models for tablets. The comprehensive study served various ad types to 20 million tablet users and identified three ad models that outperform tablet ad benchmarks: Banner to Full Page: A web banner that can expand to a full-screen interactive ad. This ad model had higher click-through rates than its benchmark, as well as increased purchase intent. Pre-roll with Overlay: A video unit that allows users to engage with it from within the video player. This ad model resulted in greater unaided awareness and message association compared to its benchmark. Rich Media Interstitial – A full-screen, interactive ad, which works best in magazine and print-like environments. This ad unit outperformed its benchmark on aided and unaided awareness. The Pool also outlines best practices for tablet ads, including: relating the ad to the surrounding content, using tablet-friendly language (e.g. tap, swipe), and featuring a persistent call to action.
So what? Hard to believe, but the first iPad was released only three years ago, in April 2010. Publishers and advertisers alike are still navigating the nuances of this new medium, trying to find ways to optimize user engagement with ads. The Condé Nast Studio has been at the forefront of innovation in this space, and will continue to work with advertisers to create attention-grabbing, engaging experiences for our audience.
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Culture
America's Fastest Growing Racial Group: Asian Americans
Over the past few years, Asians have overtaken Hispanics as America's largest immigrant group. During that time, they have also become the highest-income and best-educated racial group in the United States according to a new report from the Pew Research Center. Pew's study found that Asian Americans are more socially assimilated into their communities than other racial and ethnic groups, as they are more likely to live in mixed neighborhoods and marry across racial lines. The group's outlook is positive -- they are more optimistic than the general public about their lives, their finances and the nation's direction. Asian Americans also value career success more than the general public, and have a strong belief that people can get ahead if they are willing to work hard.
So what? As America's Asian population continues to grow in size, influence and spending power, Nielsen projects Asian American spending power to top $1 trillion within five years, marketers will feel compelled to make them a greater priority. The group's demographic and psychographic makeup fit the target many high-end advertisers seek. Condé Nast is able to make a pair of compelling statements as it relates to Asian Americans: a number of CN's magazines and websites overindex for Asian American audience and many of the themes intrinsic to Condé Nast brands are themes that resonate well among Asian Americans.
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Retail/Shopping/Commerce
Category Determines Key Path to Purchase Touch Points
The primary touch points along the path to purchase vary by category, according to a new report from Forrester. Shopping, the retail experience, is the top point of interaction for most categories, with the exceptions being consumer electronics and travel. While shopping for consumer electronics, consumers look primarily to professional review websites followed closely by in-store visits and talking with a customer service representative. For the beauty category, after an in-store visit, brand or manufacturer website is the second most important touch point for path to purchase. For clothing, the in-store visits and information learned in-store are tops, followed by retailer websites. In-store use of technology is also an important element in the decision journey. Among consumers with a mobile phone, 20% have used it to look up information or read a consumer review and 30% have taken a picture of a product to send to a friend, while in-store.
So what? Understanding how consumer touch points differ by category, Condé Nast can more effectively communicate with consumers at each stage of the decision process. By leveraging the most influential touch points, CN has the potential to try to increase consumers’ spend or basket size for advertisers' brands.
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Media
Digital Video Cannibalizes Traditional TV in Some Situations
Online video viewing is cannibalizing traditional television viewing, according to a new study published by the Journal of Advertising Research. While consumers were watching the same amount of television overall (whether on TV or online), there was a negative correlation between the time spent watching videos online and time spent watching shows on a television - more time was being spent viewing videos online to the detriment of TV viewing. Specifically, consumers who spend more time watching user-generated videos online are spending less time watching professionally-produced shows on TV. Interestingly, time spent watching branded content online did not affect the amount of time spent watching traditional TV; however, this could be due to the limited nature of branded content on the web.
So what? As people watch more video online and spend less time watching television programming in the traditional way, advertising dollars should continue to move from traditional TV to digital video. If consumers continue to shift their viewing to online channels, the value advertisers place on digital advertising will also continue to rise. Condé Nast is in a great spot to demonstrate to advertisers that Condé Nast Entertainment is a valuable channel to reach consumers. Additionally, Condé Nast Entertainment fills a consumer need as engaging, high quality content is scarce online.
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Quick Takes
The Majority of Americans Now in Favor of Legalizing Marijuana
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Compared to Last Year, Circulation and Digital Advertising Make Up Slightly More of Newspapers' Revenue Pie
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Two of Three Adults That Use Pinterest to Research Products are Under the Age of 35
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Twitter's Top Accounts Are Followed By Scores of Fake Followers
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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